No Survey - No Deal!

eherlihy · #1 (**permalink**) 05-31-2010

I would like your opinions on the following situation;

A broker has shown me a boat that I am interested in. The boat needs a bottom job, and has minimal equipment, and 26 year old standing rigging. It does have a new motor, and cushions (that I don't particularly like). The asking price is in the middle of asking prices for similar boats.

I placed an offer on a boat @ 80% of asking price, justifying my bid by pointing out the need for standing rigging, and the bottom job. the seller countered at 90% of asking price, with the stipulation that the sale is NOT subject to renegotiation if any issues are found by a professional surveyor. I upped my offer to 83% of asking price, and again stating that 26 year old rigging on a salt water boat is not acceptable. The broker says that the seller will not budge, and that the rigging is fine.

I told him that I appreciated his effort, but that I cannot accept the seller's terms.

He replied (in email); "Let's be frank, his offer to you ... is a screaming deal, and I can't understand why you are not happy and excited about it."

Does anyone here think I'm being unreasonable?

Please - let me have it!

smackdaddy · #2 (**permalink**) 05-31-2010

I wouldn't do it. "Screaming deal" or not - that stipulation is ridiculous....if not suspicious.

eryka · #3 (**permalink**) 05-31-2010

I'm with Smacky on "suspicious." Its a buyer's market right now so you can afford to walk away ... er, run? ... What's the seller hiding???

eherlihy · #4 (**permalink**) 05-31-2010

Thanks Smack! and Eryka!! Wow - you are FAST!

Oh, I made a mistake in my math. My initial offer was at 78%, not 80%, of asking.

kd3pc · #5 (**permalink**) 05-31-2010

survey as usual with your ability to walk at any time during YOUR survey, and still get your deposit back..

I passed on a Gemini two years ago, with the same condition - as is, where is, no survey and no haulout. The owner "said" everything was fine..No regrets.

Survey or walk, no - run...regardless of how the broker presents it, and BTW the broker should know better....if it is such a "screaming deal" why doesn't the broker buy it and then let you survey it and pass title if your surveyor passes it....I doubt your broker is THAT certain...

eherlihy · #6 (**permalink**) 05-31-2010

Quote:

Originally Posted by kd3pc

The owner "said" everything was fine..

Yes, the broker has said much the same thing.

Here, in fact, is how he communicated the no survey clause; "All the gear worked at the end of last year and you can have it surveyed, but the seller is not offerring any warranty. It is up to the buyer or his agents to determine condition."

tdw · #7 (**permalink**) 05-31-2010

When we bought Raven the offer finally accepted by the seller was subject to survey but with the agreement that faults under a certain dollar value (from memory $1000) did not count.

That gave us an out if surveyer found a major structural fault in hull, engine or rigging but did not allow us to bail over a few quibbling details.

If your seller will not agree to those terms then it is pretty obvious they are trying to hide a serious fault.

johnnyandjebus · #8 (**permalink**) 05-31-2010

If I read the orginal post correctly the seller is stating that he will not renegotiate regardless of what the survey says. Basiclly he appears to be unwilling to except less than x$ period full stop. Nothing wrong with that.
With that said no way would I put a deposit down on any boat without a survey,particullary in this situation.

To a certain extent I could argue that the seller is doing you a favour, you now know up front what his bottom line price is, If you feel that a survey might show needed work and therefore needed $'s perhaps it is time to walk before you spend the dollars on a survey. Which would be wasted money if the selling price can not be adjusted according to the report.

Am I reading the orginal post incorrectly?

John

eherlihy · #9 (**permalink**) 05-31-2010

Quote:

Originally Posted by johnnyandjebus

If I read teh orginal post correctly the seller is stating that he will not renegotiate regardless of what the survey says. Basiclly he appears to be unwilling to except less than x$ period full stop.

That is correct

Quote:

Originally Posted by johnnyandjebus

Nothing wrong with that.
With that said no way would I put a deposit down on any boat without a survey,particullary in this situation.

This strikes ME as unusual. I have never purchased a boat before, but I have worked with several brokers. My understanding of the process is:

See boat
Place offer to buy with 10% deposit
Have boat surveyed
If issues found, renegotiate or cancel transaction
If no/minor issues, close sale

Much like buying a house

Quote:

Originally Posted by johnnyandjebus

To a certain extent I could argue that the seller is doing you a favour, you now know up front what his bottom line price is, If you feel that a survey might show needed work and therefore needed $'s perhaps it is time to walk before you spend the dollars on survey. Which would be wasted money if the selling price can not be adjusted according to the report.

I agree - no survey will be necessary on this boat.

JimHawkins · #10 (**permalink**) 05-31-2010

The seller is doing you a favor. They are telling you they are not going any lower. If you think the boat is worth what you offered, proceed with a survey. If the survey reveals additional defects you will then cancel the contract and get your deposit back. If the survey tells you the boat is in the condition you think it's in, the you will continue with the purchase.

If you are planning on getting the survey and then using what ever is found as ammunition to make a lower bid, the seller is telling you "Don't bother".

But really, the seller is just upset about selling the boat and upset at the price he's going to get for his boat. You just pushed his buttons.