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-   -   Bid price vs asking price (http://www.sailnet.com/forums/boat-review-purchase-forum/36356-bid-price-vs-asking-price.html)

MARRSY 08-26-2007 05:48 PM

Bid price vs asking price
 
I'm looking at boats in the 50 to 80 grand range and wondering what an appropriate starting price would be. I know it depends on the sellers motivation/situation but as a new buyer I originally expected to pay close to asking price but as Iíve been doing more and more research I see lot of people say they offered half and go from there. Just wondering what others here have done in the past when haggling over price. Probably a dumb question but any insight would be great. Thanks.

PBzeer 08-26-2007 06:14 PM

The first thing you have to do, is determine how much any partiular boat is worth to you. Then you make an offer that you feel will at least recieve a counter offer from the seller. There's no specific formula such as 20% of, or 30% of, it's individual with each boat and seller.

TrueBlue 08-26-2007 06:33 PM

In my limited buying experience (after four boats, currently selling/shopping again), I'd say most boats listed on yachtworld.com sell for 10-15% below the last listed price (many reduced prices going on right now). Others may sell for less.

Prospective buyers who know a good price on a currently listed boat, based upon current market values, may offer close to list - others may offer a lowball number.

Keep in mind that a safety factor exists when the buyer's surveyor reveals devaluing deficiencies in his report - providing motivation for the buyer to reduce the seller's previously accepted price, and incentive for the seller to accept or counter. Negotiations can get very interesting.

DrB 08-26-2007 06:40 PM

Selling/Buying very Case Specific
 
The "Cut to the Chase" statement. Offer betwen 70 and 80% of asking for first go around and make offer depended on successful survey and sea trial.

While that is a guideline, there are certain things that can make seller stick to his guns on asking:
  1. Rare model/Latest Model
  2. Exceptional Upgrades/Condition
  3. Age - New
  4. Brand Name
  5. Testing the Waters - No Hurry
What I mean from Testing the Waters is that the current owner likes the boat and has a set price in mind that he will let it go for. Unless he gets close to that, he isn't going to sell it. Maybe he wants to upgrade and needs a certain amount to "float" his next pruchase

Maneuver Room on Asking Price (Good For You):
  1. Owner needs to unload for variety or reasons (helath, move, kid's college, divorce, change in employment, etc.)
  2. Specific model is plentiful in your area (Catalina, Cals, Hunters, etc.)
  3. Poor conditon - Needs work
  4. End of Season
  5. Estate Settlement
  6. Rare Model/Old model

I made an offer on an 87 Pearson 33-2 boat. Owner originally was asking 44K, dropped his price to 40K. $40K was out of my initial price range, but I went to look at it anyway. Current owner was there cleaning boat and I asked him why he was selling. He said he just got a Catalina 36 so he needed to sell and wanted to not have to pay for two boats.

Armed with that knowledge, I offered $32K, to the displeasure of the Broker, who kept telling me to offer around $35. $32K was more near my price range. The offer didn't go through, but was countered with $38K. The boat is still for sale at $40K 6 months later.

A month later, a Pearson 1979 10M came up for sale. The asking was $27.5K. The boat was in exceptional condition. We liked it immediately and offered $24,5K. Seller came back with $25K and the deal was done.

I just saw a Pearson 34 (1984) go for low money for it's model/age because a dealer took it on trade from the original owner when he bought a newer boat from them. Dealer just wanted it off their lot. Boat was in good shape. Similar boats are listed/going for $40 to 50K. This one was being offered at $35K, so probably went for slightly less.

Once you find a boat that you like, pick a price that you are comfortable paying for the boat and be prepared to walk away if that price is exceeded as the final offer. Another opportunity will came along quickly.

Maybe you make your limit the upper end of your counter offer range and make the initial some number lower. If a boat is listed at $80K, you like and would be willing to pay $70K as your max, offer say 55K (30% off 80K). If the counter offer is $75K, you'll have to make a decision if you go to $70K immediately or offer somwhere in between.

Like others have said, there is no science or formula to this. In the end, you need to be happy with the price that you want to purchase the boat for.

DrB

GREGGWARREN 08-26-2007 06:41 PM

good old boat
 
50Gs, will get you a nice boat, I,ve been searchin" the web for about 2 years and I haven,t bought one yet, guess I,m real picky I know what I want for cruizin' tel me what u are lookin for maybe I know where it is. Gregg

Insails 08-26-2007 06:47 PM

I say insult them with your offer if you really want to find their absolute bottom...

TrueBlue 08-26-2007 06:50 PM

Don't give the world that advice Insails . . . I'm about ready to list my boat. But, as a "testing the waters" - per DrB, boat owner. (g)

Insails 08-26-2007 06:53 PM

LOL...sorry TB:)..I can't afford yours so no worry I wont insult you:))

sailhog 08-26-2007 06:54 PM

TB,
Don't list your boat.

GREGGWARREN 08-26-2007 06:56 PM

I,m gonna get a bath tub and put a sail on it LOL........


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