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post #1 of 21 Old 06-25-2002 Thread Starter
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HELP!! Question about making an offer with sellers broker

The Sellers Broker just told me that when I am ready to make an offer that he will require a 10%!!! deposit before the offer is submitted to the Seller!!! IS THIS NORMAL!!! I personally think this is ABSURD. When you make and offer on a house.. 1000.00 has always been acceptable as a good faith down payment!

Please respond as I am wanting to make an offer.
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post #2 of 21 Old 06-25-2002
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HELP!! Question about making an offer with sellers broker

Chill out Herbster,

10% is the usual and customary amount of ''serious money'' when you buy a boat. It does not matter whether you have a Buyer''s broker, sellers broker, normal garden variety broker, or a person to person sale. The money is held in escrow and is used as part of your payment on the boat.Unlike some realtors, brokers do cash the deposit check. If the deal flops for any of the usual contingent clauses (Offer should be subject to Survey, sea trial, engine inspection, sail inspection, and getting financing) the ''serious money'' does come back to you. I when I first heard about this it sounded like a lot of money to me as well.

Good luck,
Jeff
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post #3 of 21 Old 06-25-2002 Thread Starter
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HELP!! Question about making an offer with sellers broker

I don''t have a problem with writing the check for 10% AFTER the seller has accepted my offer. The broker wants it BEFORE he even presents the offer to the seller.

That is normal? I would give 1000 or 2000 as a good faith to present contract. but not 10 percent.

If so.. I can''t believe people actually do that.
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post #4 of 21 Old 06-25-2002
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HELP!! Question about making an offer with sellers broker

Herbstr,

I''m certainly no boat buying expert, but I would call the guys bluff. Good Salesman and serious Sellers don''t let deals walk out door!

Art
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post #5 of 21 Old 06-26-2002
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HELP!! Question about making an offer with sellers broker

Just made an offer on a boat and had the broker tell me that they required 10% also. Said I didn''t have it with me so he made the offer anyway. It appeared that it was normal business practice to ask for the 10% prior to making the offer. Thought the same thing about the difference between a house contract and buying a boat. I agree, tell them, if they want the offer and think you are serious, they won''t want you to walk.
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post #6 of 21 Old 06-26-2002
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HELP!! Question about making an offer with sellers broker

It''s YOUR offer, Bubba. The only thing the 10% does is indicate seriousness. Realtors, for example, are generally REQUIRED by law to convey all offers to a seller. It won''t kill the broker to take a $1,000 deposit and convey an offer. Time-limiting the period between acceptance and requesting a full 10% deposit would protect the seller. It''s a freaking negotiation, not a cast-in-stone law. Just make sure you cover all contingencies such as interest rate, subject to obtaining financing, survey, etc. Forget asking that the boat value be equated to or exceed the offer by survey. That always seems to happen anyway unless there''s HUGE problems.
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post #7 of 21 Old 06-26-2002
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HELP!! Question about making an offer with sellers broker

Give him the 10% so that he knows you are serious. Make the survey conditional on survey, sea trial, financing, etc. Totally normal. If you decide you don''t like the way the boat sail or if the survey comes up with something you can cancel the deal and get your money back.
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post #8 of 21 Old 06-26-2002 Thread Starter
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HELP!! Question about making an offer with sellers broker

I gave him 1%, and he took it.

so..

thanks anyway.
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post #9 of 21 Old 06-26-2002
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HELP!! Question about making an offer with sellers broker

Good man. It ain''t the broker''s offer and it ain''t the seller''s offer. It''s YOUR offer. Screw tying up 10% of whatever because someone thinks it''s "proper" or "traditional." I''ve bought a few boats and a hell of alot more "toys" and real estate. Never laid down more than $1,000.00 or so. It''s a lot more practical than picking at a seller and asking "so, what''ll you take" or "what''s your bottom line?" I hate that. I tell them to make a formal offer, which MUST include "consideration" in the form of a deposit. Then I''ll either accept, reject or counter-offer.
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post #10 of 21 Old 06-26-2002
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HELP!! Question about making an offer with sellers broker

I don''t understand why you''re getting your shorts in a knot. The contract clearly states that all monies are to be returned if the seller refuses your offer, no harm-no foul. By getting the 10% earnest money, the broker separates the serious buyers from the rudder kickers. Can you imagine how many frivolous offers a broker could receive from buyers trying to find out what the bottom line might be on a boat if there was no serious intent to an offer?
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