Buyer broker and Initial Bidding Strategy - Page 3 - SailNet Community
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post #21 of 27 Old 03-25-2008
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When making an offer on a boat, it should be based on what you're willing to pay for that boat. Irregardless of the asking price. That doesn't mean you can't or shouldn't start with a lower offer, but you should go into it with a top price in mind.

John
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Full, is the spirit, that thinks not, of falling.
True, is the soul, that hesitates not, to give.
Alive, is the one, that believes, in love.
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post #22 of 27 Old 03-25-2008
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jody, not to beat a dead horse, but.... put down the slide rule, throw away the graphs, quit plugging formulas into excel .... and read these.

http://www.sailnet.com/forums/buying...iberglass.html

http://www.sailnet.com/forums/buying...ing-price.html

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post #23 of 27 Old 03-25-2008
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Originally Posted by Sailormann View Post
If your vendor is selling the boat through a broker, ask the broker to provide you with a 12 month sales history of like and similar boats in your region. If they won't give you that, they are probably trying to get more than market value for it. I think that it's a good idea to open with as low a figure as you can without feeling embarassed. Do your research - look at what smilar boats are listed for on Yachtworld, etc. and then offer about 50 to 60% of that. In this market - you might even be able to offer 35% of asking...you never know until you try.

Don't ever buy a boat without a survey, and make sure that your sales contracts include the right to renegotiate your purchase price based on surveyor's report. If the broker won't co-operate - walk away.

Note: I have heard about honest brokers but have never encountered one.
Good advice. I'm in the market for a boat and I'm wary of getting ripped off. Is the boating market anything like the housing market?

35% seems low... would anyone actually accept that price? Like, I'm looking at a boat that is listed at 18k, which is over my budget. 35% of that price is $6300, does anyone have any experience getting a boat at such a price from a broker under normal circumstances?
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post #24 of 27 Old 03-25-2008
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Jody,

You may want to consider contacting Boat US Valuation Services as they will provide no charge current value estimates of the boats you are looking at. They use their most recent survey and insurance data as part of the source. I was very suprised at the large difference (much lower) between their market value and a few seller asking prices.

Good Luck!

121Guy
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post #25 of 27 Old 03-25-2008
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Jody,

You may want to consider contacting Boat US Valuation Services as they will provide no charge current value estimates of the boats you are looking at. They use their most recent survey and insurance data as part of the source. I was very suprised at the large difference (much lower) between their market value and a few seller asking prices.

Good Luck!

121Guy
Jody,

Establishing the value of the boat, at least to you, is key. Any purchase price less than or up to that value is good, after all you are looking to buy what should be a treasured personal possession, not to make $$ by flipping a one-time steal.

To establish value you need to know what 3-4 examples of the same boat sold for and be able to adjust their prices for condition and equipment. this can take time and until you have established this knowledge you need to be comfiortable with other people buying a boat out from under you - that's OK you learn something from it and can get ready for the next one.

If you want to enjoy your boat ownership, release any expectations that it'll be a good financial opportunity. Boats are called "holes in the water in which you pour money" for a reason.

I offer these guidelines:
1. the best you can hope for in buying a boat is at least get what you pay for.
2. the cheaper the boat is, relative to others, the more expensive or less satisfying it will turn out to be to own.
3. remember the seller has perfect knowledge of the boat, its strengths and problems. You will at best have less or much less knowledge, only good surveyors (hull/engine/rig) get you close.
4. when you see the boat you really want to own, be willing to make a fair offer, negotiate up to your determined value as needed, then enjoy your new pride and joy.
5. If someone makes a killing in a boat sale, its far more likely to be the seller.

Certified...in several regards...

Last edited by sailingfool; 03-25-2008 at 10:02 AM.
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post #26 of 27 Old 03-25-2008
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Quote:
35% seems low... would anyone actually accept that price? Like, I'm looking at a boat that is listed at 18k, which is over my budget. 35% of that price is $6300, does anyone have any experience getting a boat at such a price from a broker under normal circumstances?
Some might, some might not. Each situation is unique. If someone owes money on a boat, then they are usually going to have to sell it for enough to cover the outstanding balance of the loan, or very nearly so.

If the boat is owned outright, and if it has been on the market for a while, the owner may just be willing to sell cheap in order to avoid having to invest the time and money to insure it, maintain it, launch and dock it, etc.

You never know until you try. And you if you are polite about the process, you may get lucky. If you see that a boat has been on the market for a while, contact the owner and explain to them that you don't want to insult them, but you only have X amount of money, and if they ever decide to consider a price like that, you'd be very interested in their boat. (It helps if you butter them up a bit - tell them how well they have maintained the boat, how smart they were for selecting it in the first place, you'll give the boat the best home possible, etc., etc.) They might not end up selling you the boat, but you never know until you try...

But still NEVER buy one without surveying it first.

Last edited by Sailormann; 03-25-2008 at 10:10 PM.
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post #27 of 27 Old 03-26-2008 Thread Starter
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Thanks again everyone - I utilized a majority of the advice here today. Placed a reasonable bid on what I believe is a suitable boat for me. I did a thorough inspection, asked lots of questions in terms of the boat, the owner, history etc... as well as in general got to know the broker. And instead of quibbling over things - I made a very reasonable offer with very few contingencies based on my observations and the discussions, and what needed to be done (it is a slight project boat).


I had explained my findings as I was examining the boat the issues as I saw them, and we discussed the already known issues, and I let the broker know what my straight up thoughts and strategy was. I also let the broker understand how I approach a deal and had the contract reflect that (Which meant instead of earnest money - the contract dates reflect 2 weeks to sign, seal, and deliver if the contingencies are met. I'll write more in detail later as I do not want to jinx but based on the invaluable advice here - I was much more informed on what to expect, as well as how to handle the first stage of negotiations and tailored my conversations with the broker in a manner that would / will curtail a long winded process....

Again thanks everyone - as usual, awesome discussion and advice....I'll update at a later date - keep your fingers crossed for me

-- Jody

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