Buying a boat in the winter?

piratemike · #1 (**permalink**) 10-12-2008

I've been looking at buying my first sailboat, but had a question about the timing. I live in NJ so most of the boats are starting to be put into winter storage. The broker I spoke to recently said that when boats are in winter storage a sale takes place after a marine survey and some of the money is put in escrow pending the sea trial in the spring. I was wondering if anyone had any experience with this? Obviously, I'd be concerned buying a boat that hasn't had a sea trial, but as this would be my first boat I'm not sure how much the marine survey would cover. In other words would the sea trial be formality? Thanks in advance for any suggestions.

artbyjody · #2 (**permalink**) 10-12-2008

Personally, and I have stated with my own experience on my Barberis purchase - escrow money suggested by brokers is just that - a suggestion. The typical reason it is used - "To make the buyer believe that you are serious". That is a crock of bs, the only person who gets that money is the broker - as it is usually the broker's commission. It is not a legal requirement to bind a contract - only a signature on a piece of paper so deemed a contract is.

Having lived where you are, it is just as easy to pull the boat out of the water - and do a sea trial, and get it back to storage. Albeit - may be a bit more uncomfortable (weather wise), but doable. The owners if wanting to sell will probably pick up the costs for getting into the water.

Waiting till spring and them (brokers) having your money - non sense in my opinion. I personally promote and do myself, no earnest money until sea trail and survey - and only with a contract that states that the boat is off the market until pending close of sale by specified date.

tommays · #3 (**permalink**) 10-12-2008

NOBODY is going to hold a boat ALL winter without a FIRM contract and exactly what is required to complete the trial

In the northeast with how sailboats are stored it may well be imposable to even get it in the water until the spring as they pack them in so tight and many get moved to remote sights

As the majority of boats in this area are stored with the mast DOWN and shrink wrapped and winterized your talking some serious change to do a sea trail out of season

artbyjody · #4 (**permalink**) 10-12-2008

Quote:

Originally Posted by tommays

NOBODY is going to hold a boat ALL winter without a FIRM contract and exactly what is required to complete the trial

In the northeast with how sailboats are stored it may well be imposable to even get it in the water until the spring as they pack them in so tight and many get moved to remote sights

As the majority of boats in this area are stored with the mast DOWN and shrink wrapped and winterized your talking some serious change to do a sea trail out of season

Considering that it is still fall I doubt that the location he is at is all shrink wrapped. NJ is not really a winter / snow and ice place. I couldn't see someone giving earnest money over to a broker to just wait until spring especially with current economic issues. Either the boat is for sale or it is not. Waiting until spring for a survey in NJ and giving money as escrow is a bit foolish and indicates either a broker just wanting to cash in or a seller not really interested in selling. But that is my opinion.

piratemike · #5 (**permalink**) 10-12-2008

Just to clarify, the way it was explained to me is that the escrow would be to pay for any repairs to the engine, sails or steering that the sea trial reveal. The sale would be complete after a satisfactory survey, but the buyer wouldn't get all the money until after the sea trial in the spring. Basically I'm just wondering if I should stop looking and wait until spring to start again.

artbyjody · #6 (**permalink**) 10-12-2008

Quote:

Originally Posted by piratemike

Just to clarify, the way it was explained to me is that the escrow would be to pay for any repairs to the engine, sails or steering that the sea trial reveal. The sale would be complete after a satisfactory survey, but the buyer wouldn't get all the money until after the sea trial in the spring. Basically I'm just wondering if I should stop looking and wait until spring to start again.

No escrow is not used for that. Responsibility of the boat is still the owners / broker that shows it - period. If a main sail rips during sea trials that is not the prospective buyers responsibility as the seller has authorized agent representing him. The sale is only complete after proper title, monies have been exchanged / transferred. You are in NJ - a sea trial doesn't have to wait until spring.

Freesail99 · #7 (**permalink**) 10-12-2008

Quote:

NJ is not really a winter / snow and ice place.

Depending on the year it can be, Winter of 93 my kids had to go to school on Saturdays to make up for all the lost snow days they had.

Many Marina's in NJ start pulling boats out of the water on 10/15.

tommays · #8 (**permalink**) 10-12-2008

The winter of 2008 it stayed below 30 for two weeks

I don't know what to tell you BUT you gotta be OFF your mooring buy Oct 31 so they can be pulled to stop and ICE FUBAR

I steped my mast on the water today and droped it off to be put on the trailer to take it home tomorrow and there are already MUCHO boats with the covers on

The yards in this area store 600 to 800 boats each and they cant really wait till the last minute to start winterizing

I can assure you it is a snow and ice place and if you wet store there will be a cost rider on the amount of days they have to run the ice bubblers

xort · #9 (**permalink**) 10-12-2008

As I understand it, there are two ways to do this.
One is to put downpayment earnest money on the boat that holds it for you until spring. you then complete the deal in the spring. This method favors the buyer as you can basicly walk away in the spring if anything at all comes up in the survey.
Second is to complete the sale minus some money to pay for unseen engine issues. This method favors the seller. You the buyer are commited to the deal and only have limited recourse after the sea trial. I would not do a deal like this. what if you find a better boat? What if you don't like something in the seatrial? What if the discovered repairs are more than the set aside money? too many ways to get screwed in this method.

j34035 · #10 (**permalink**) 10-12-2008

Just remember, a broker's job is to sell a boat. They will do whatever they have to do to tie a buyer and his money up until the sale is complete. Any buyer that walks away without a contract is very likely to not come back, or come back with a lesser offer. It is a buyers market out there right now! Take advantage of it!! (unless you are buying mine..)
DD