HELP!! Question about making an offer with sellers broker - Page 2

paulk · #11 06-26-2002

Have to agree with Denr & Ham. 10% is the norm. Brokers willing to accept less would make me suspect they were cutting corners elsewhere and not following regular procedures - like Enron. There are a lot of rudder-kickers out there -- do you want the broker and seller to take your offer seriously or not? Houses are different - people need a shelter to live in. Boats are big toys to play with -- are you toying with the seller, or do you mean business? How is the seller to know with minimal "earnest" money? Why not $5? 10% has apparently served brokers and sellers well to differentiate between most real dreamers and real buyers. Hope your boat surveys ok!

Herbstr · #12 06-27-2002

LIKE I ALREADY SAID.....

I GOT THE BROKER TO TAKE A LITTLE OVER 1%... SO ALL OF YOU THAT WANT TO LET SOME GUY THAT WORKS FOR SOME COMPANY THAT YOU KNOW HARDLY NOTHING ABOUT HOLD ON TO THAT MUCH MONEY FOR WHAT WILL END UP TO BE WELL OVER A MONTH.... GO AHEAD.

WITH COMPANIES LIKE ENRON, WORLDCOM, AND YES EVEN MARTHA STEWART SHOWING US HOW TRUSTWORTHY BUSINESSES CAN BE...

Jeff_H · #13 06-27-2002

Well Herbster, the bigger question is whether the guy you made the offer to took the offer. From where I sit, if a guy only put up 1% I would consider him a potential flake and would not take his offer very seriously, especially if it was a ''low-ball''.

Jeff

hamiam · #14 06-27-2002

Good for you, Herbster!!! Why, if you think that 1% is appropriate, did even bother to post the question on this board? Although I don''t hold a candle to Jeff_H in terms of number of boats bought and sold, I have given 10% deposit on each of the 4 boats that I have purchased. I guess the rest of us are IDIOTS for thinking that a 10% deposit would show the seller that we are serious buyers.

VIEXILE · #15 06-27-2002

Now, now people. I simply don''t agree that throwing 10% down, reliance on the return of which could ultimately rely on the seller releasing the funds, leading to unnecessary disputes over contract terms, etc. Common law contract law dictates only "consideration" be paid. I would wholeheartedly agree that 10% down is nice and makes a buyer appear "serious," so I guess those of us, like the original poster, that refuse to hand over excess cash to people we don''t know must also be idiots for refusing to allow a broker or seller to dictate our finances. I saw one deal with a lousy $1,500 deposit go sour " subject to survey" on an old boat down here when it was discovered that the mast step was mush. That was over 2 years ago and the buyer has yet to get his deposit back (no broker). Sorry, you''ll never convince me that I''d have to risk more than I care to in the hands of another. Any dispute or simple disagreement could tie up your money. But hey, each to his own.

Mclion71 · #16 06-27-2002

I have to reply here!
The first boat I ever considered buying was owned by a distant relative. Not knowing anything about buying a vessel and not knowing about this and other terrific resources, I gave him 50% down. His asking price was 15K. We had no written agreement and there was no broker involved. I had the boat surveyed and it turned out to be a real tub! More wrong than right with almost everything aboard. When I told him I couldn''t buy it he refused to return my deposit. After suing each other and several months, we settled out of court 2 weeks before trial. The only winners were the lawyers.
Needless to say, I learned from that mistake.
The boat I finally bought hse been terrific.
Get everything in writing.
Put down 10% max.
Make everything contingent on survey, sea trial and engine analysis.
Trust yourself and your surveyor only!

aasault · #17 06-27-2002

When I bought my boat, I put the 10% down AFTER the offer was accepted. I''m relativley new to sailboats, but I would never put 10% down just to make an offer. Most of the brokers I came across while boat shopping didn''t impress me very much. Mostly just cleaned up dock rats with a certain degree of transiency. Many knew less about sailboats than me!!!! Not folks I would write a large check too without an sales contract.

I currently have a boat for sale, and fully expect a certain amount of rudder kickers and insincere offers. THATS A PART OF SELLING ANYTHING!!!! NOT A BIG DEAL!!!

I have a gut feeling most of you professing the "10% down for an offer" are in the business, and are simply stating how you wish it was....I''m sure the reality is 10% down after the offer is accepted.

I''m paying the broker 10% to sell my boat, and if he has an occasional rudder kicker or insincere offer, tough s#*t. That what I''m paying him for!! THAT IS WHAT SALESMAN DO!!

hamiam · #18 06-27-2002

For the record I am not in the business. Again, this dialog is pointless. If you are paranoid and think everyone is out there to steal money from you, you should go back to your bubble.

tsenator · #19 06-27-2002

aasault I agree.

I have bought 2 boats and sold 1 boat and on all transactions I made or received a "verbal" offer first. AFTER the verbal offer sounded reasonable to all parties is when you put the money down and signed the offer letter with all the contingencies. It could happen the same day or typically in a short amount of time.

The broker shouldn''t request any money to take the verbal offer to the seller. He should just call and see if the buyer is willing to sell for $xxx. Now if its a ridiculous offer maybe he''s trying to weed out the tire kickers. But if the offer sounds good to both sides, thats when the money goes down and make sure it is put in some sort of escrow with all the contingencies of its return (or not) on the offer letter. At that point 10% does not sound unreasonable, because the seller theoretically has his boat off the market while the buyer gets the financing/survey etc going, which can take a while sometimes.

VIEXILE · #20 06-27-2002

There is nothing wrong with 10% down AFTER an initial offer and contingencies are hammered out. Who pays to launch, who pays to haul, do you split the costs, etc.? Hence, a marginal deposit for a couple of days to get the answers and hammer out the contingencies, THEN throw 10%. AND, as one of dem stinkin'' lawya boyz dem, only the lawyers win in security deposit disputes that NEED NOT arise if you hash out details based on a minimal deposit. But, hey, who am I to question the yachting tradition of full 10% deposit up front? And, yes, I think the thread is important as pointed out in a couple of these posts. If twern''t, twouldn''t be so many posts.