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Old 01-21-2013
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How Much Should I Offer

I asked for opinions on 3 boats on another thread (actually two threads by mistake) and received some great feed back.

Now I'd like to ask another question that assumes a lot of ifs but I'll ask it anyway.

Where should I start with my fist offer - 20% below asking, 30%, 10%?

Thanks all.
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Old 01-21-2013
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The answer to your question depends on what your objective is. If you want to play a game, then offer some percent off the asking, as others may advise you. If you want to buy a boat you going to enjoy, you need to determine what the boat is worth, then offer just a little less. Then hopefully quickly come to an agreement on a price with the seller. Soon you can go out and enjoy your sailing. If you don't know what the boat is worth then you shouldn't be making any offer on it under any circumstance.

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Old 01-21-2013
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Re: How Much Should I Offer

Grunfeld,
I am in the process of purchasing a boat now. I went to NADA and looked at boat prices, but I have been told that these prices run low. I also looked at Yachtworld.com for an average listing price. By comparing the NADA and list prices I was able to get a number for my initial offer. The Broker looked at the last three years of ACTUAL SALES prices for the make and model boat on Yachtworld (info only brokers get to see...) and my offer was in line with the average sales price over the last three years.
Based on survey results, the owner and I negotiated a lower price than my initial offer.
The standard contract allows the buyer to walk away after the survey (AND sea trial!) if the buyer doesn't like the results.
You NEED a survey!!! (AND a sea trial!!!)
Ask the broker for "comparables" other vessels of the same make and model that have sold in the last couple of years.
Don't get fixed on a percentage of list price. IF the boat is listed for a lot more than they are selling at, offering even 75% of list may have you overpaying. You need to do some homework. This is not a small investment and unless you walk on water, your life could depend on getting it right.
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Old 01-21-2013
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Re: How Much Should I Offer

Having gone through this process fairly recently I think there is no fixed percentage. I think whether your offer is accepted depends somewhat on the position of the seller, how long the boat has been on the market and the amount of movement there has already been in the price.

When we tried to work out the value of the boat, there were four valuations that seemed to be in play.
1. Actual sales figures accessible by the broker (from Yachtworld, I think). I think these are to the seller's advantage because I do not think they included distressed sales.
2. The valuation reached by the surveyor (acting on our behalf).
3. The valuation used by the bank.
4. The valuation used by the insurance company.

We offered about 20% below the final listing price (about 35% less than the original listing price) but the seller seemed to have reached his floor already. The final sales price was about 20% off the original listing price. Our purchase price was lower than most other recent sales, the same as the vauation by the surveyor, higher than the initial valuation by the insurance company. The insurer (Boat US) was willing to insure the boat at the purchase price even though it was higher than their valuation.

We may have been able to get the boat at a lower price if we had more choices in our area (Lake Superior). However, it was the right boat in the right place at the right time for us. We were willing to pay a premium.

In the end, we are very happy with the boat and try not to think too much about how much we paid for it!
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Last edited by shanedennis; 01-21-2013 at 03:18 PM.
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Re: How Much Should I Offer

Thanks ND1953 for alerting me to NADA. I thought NADA just dealt with cars.

I am doing research on prices primarily using YW. However, adding NADA to the mix makes it a lot more interesting. For instance I'm looking at the Tayana 37. A few weeks ago there were about 4 or 5 of the 1970's variety all asking $49K. NADA suggests $23,800 as average.

Can't find the Valiant 40 on NADA though.

I do realize I'll need a sea trial and survey before buying and making an offer.
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Old 01-21-2013
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Re: How Much Should I Offer

Do you have a broker acting for you? Does not cost anything, comes from seller unless you can negotiate a better price because you do not have a broker ie the selling broker takes a smaller percentage. Your broker has access to YW selling prices.
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Old 01-21-2013
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Re: How Much Should I Offer

If you found a Tayana listed at 49k assume an additional 100k to bring it up to spec, That is way too low unless its a total fixer. Get a great surveyor, these boats have the potential to be very pricey in regard to necessary repairs.
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Old 01-21-2013
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Re: How Much Should I Offer

NADA is for cars and small runabouts....totally useless for boats of the type you are looking at. Get a broker to pull sold prices....

Wasting your time with BUC/NADA and the like...

Boat US has a valuation service, I found it low, but it gives you another data point if needed for an offer price.
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Re: How Much Should I Offer

Its not like making an offer at the car dealer. It will entirely depend on what the boat is actually worth and how much you want it. If you only want a deal, then bid well below value, but take your chance that the seller no longer want to deal with you. If you're willing to pay a fair price, then my first offer would be about 5% below what I might be willing to pay.
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Old 01-21-2013
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How Much Should I Offer

Try the Boat/Us boat valuation. It's they get back to you with specific info pretty quick. Not sure if you need to be a member but would be worth joining for just this reason (I've been a member for 25 yrs, and don't recall). They give their valuation based on the same comps that the broker won't let you see.
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