How to Calculate an Offer Price

[Pblais]

No one really knows what a seller thinks so don't try to guess. You are not getting married - just buying a boat! Any boat you really want is worth just a little more than the the boat you know you can buy for less. Knowing what other boats are out there for sale is really the better approach. Computing boat prices is a fools adventure. The market goes up and down because fools think they know what they are doing.

Go out and look at boats and really study the ones you can actually go walk on. It's a WHOLE lot easier to compare real boats for sale than theoretical boats you might find.

Brokers are there to close sales and help sellers actually sell the boat. There really are no bad guys out there but a few fools are common too. You buy with strength from knowing "the other boat" you can actually buy. You have nothing to gain by just low balling boats or thinking you can out think a seller. On average you have a 50 / 50 chance they will outsmart you. You are strong by knowing what the other boat is. It may be the best deal you'll ever find. So find the other boat first then go shopping for the dream boat and maybe settle one way or the other knowing you tried and compared real boats for sale.

[FLLCatsailor]

Originally Posted by Pblais

No one really knows what a seller thinks so don't try to guess. You are not getting married - just buying a boat! Any boat you really want is worth just a little more than the the boat you know you can buy for less. Knowing what other boats are out there for sale is really the better approach. Computing boat prices is a fools adventure. The market goes up and down because fools think they know what they are doing.

Go out and look at boats and really study the ones you can actually go walk on. It's a WHOLE lot easier to compare real boats for sale than theoretical boats you might find.

Brokers are there to close sales and help sellers actually sell the boat. There really are no bad guys out there but a few fools are common too. You buy with strength from knowing "the other boat" you can actually buy. You have nothing to gain by just low balling boats or thinking you can out think a seller. On average you have a 50 / 50 chance they will outsmart you. You are strong by knowing what the other boat is. It may be the best deal you'll ever find. So find the other boat first then go shopping for the dream boat and maybe settle one way or the other knowing you tried and compared real boats for sale.

Well said.

[Curmudgeon]

I would have no issue with using a buyer's broker so long as the total commission for all of the brokers in the transaction does not exceed 10%.

If I were buying another boat and were serious about a particular boat, I'd hire a good surveyoror yacht manager for a couple of hours to look it over before I made an offer. I wouldn't want a written report, but I'd make sure he (or she) brought a moisture meter and a screwdriver.

[zboss]

Originally Posted by Curmudgeon

I would have no issue with using a buyer's broker so long as the total commission for all of the brokers in the transaction does not exceed 10%.

We paid exactly %0 percent for our broker. The seller pays it all.

In fact we got positive return on our broker since he has been so instrumental in helping navigate the sales process, provided excellent help at pointing out boat defects that we did not notice, plus being excellent at providing insight into area facilities which cost less than the ones I was looking at for haul outs, storage, etc.

[letsgetsailing3]

Originally Posted by zboss

We paid exactly %0 percent for our broker. The seller pays it all.

Well, I'm supposing the seller paid the brokers, but you paid the seller.

Technically, you're right, but in essence, they were paid out of the money you paid for the boat.

If you feel you got your money's worth, all the better.

[SVI]

Originally Posted by letsgetsailing3

Well, I'm supposing the seller paid the brokers, but you paid the seller.

Technically, you're right, but in essence, they were paid out of the money you paid for the boat.

If you feel you got your money's worth, all the better.

I am of the same opinion. The buyer will only get 90% of your low offer. SO it is you who are paying the broker (whether it is Seller's or Buyer's broker).
Let's imagine there is no broker? Then the Seller will be prepared to agree to your lower offer (as he get's 100% of that).

How to eliminate the broker? Easy. If you know the name of the boat, you can search on the online registration database, and then call or facebook the owner. Best case you will get the same boat for 10% less (and the Seller will sell the boat). Worst case - both of you will split and get 5% each. That's a lot of upgrades

IMHO broker adds nothing to the transaction (besides listing the boat and keeping the Seller contact details secret). Some are located in different town and will not show up to show the boat. Does that service cost 10%?

All is my IMHO. If you decide to pay extra 10% to the broker - your choice.

[zboss]

Originally Posted by SVI

I am of the same opinion. The buyer will only get 90% of your low offer. SO it is you who are paying the broker (whether it is Seller's or Buyer's broker).
Let's imagine there is no broker? Then the Seller will be prepared to agree to your lower offer (as he get's 100% of that).

How to eliminate the broker? Easy. If you know the name of the boat, you can search on the online registration database, and then call or facebook the owner. Best case you will get the same boat for 10% less (and the Seller will sell the boat). Worst case - both of you will split and get 5% each. That's a lot of upgrades

IMHO broker adds nothing to the transaction (besides listing the boat and keeping the Seller contact details secret). Some are located in different town and will not show up to show the boat. Does that service cost 10%?

All is my IMHO. If you decide to pay extra 10% to the broker - your choice.

I disagree. 1st... I would have had no idea how much the boats were selling for or what was a good offer. The broker having access to previous sales prices was critical. However, I was able to use the BUCU value to further assess the price.

2nd.. this boat was off the books. I would never had known that the boat was for sale. It was sitting in the owners backyard private dock. No sale sign, no nothing.

3rd... if I am a seller, I am not reducing my price by 10%, I am keeping that 10%. Much like selling a house without a realtor.

4th... As a buyer, I have no control as to if that seller is using a broker or not, so I might as well use one myself. I am sure they have signed a contract obligating them to use the broker to sell the boat.

[susswein]

I've bought a number oh houses without a buyer's broker, and in each case the seller's broker agreed to give me the 3% that he would otherwise have paid to the buyer's broker. I'm sure buying a boat through a broker would be no different.

[scoobert]

the formula for buying any used boat looks like this

asking price - dreaming - BS - market - state of jobs - 20% = sale price.

really. don't be afraid to offer 50-60% less then asking price.

My yacht in pristine shape is close to a $200,000 value. i made an offer that was laughable to 99% of people out there, as i had done 40 times prior to that, and it was countered, countered countered, and accepted.
people who want a boat to disappear, will do stupid things.

[snort]

It's very simple. Just use this statistical formula:



Or go to boat ad websites and gather the price range to arrive at a ballpark figure.

[CPseudonym]

Why some attempt to apply logic to the purchase of an illogical commodity is beyond my comprehension. Every boat is a unique animal.

I paid full asking price for mine. Negotiations took two minutes face to face with the owner. Shook hands, paid the man cash and we've been great friends since. No written contract.

An acquaintance last week saw a well priced boat advertised for two days. He called and someone already had a deposit on it. I told him to call back and offer $1,000 over asking. He did and got the boat.

Questions for the analytical souls among us. Did I overpay for my boat? Did my acquaintance? How would you know?

[scoobert]

Originally Posted by CPseudonym

Questions for the analytical souls among us. Did I overpay for my boat? Did my acquaintance? How would you know?

patience can be traded for gold.

[letsgetsailing3]

Originally Posted by CPseudonym

Questions for the analytical souls among us. Did I overpay for my boat? Did my acquaintance? How would you know?

If you're happy with it, you didn't overpay.

Once the deal is done, the questions about the purchase are no longer relevant.

[SVI]

Originally Posted by CPseudonym

An acquaintance last week saw a well priced boat advertised for two days. He called and someone already had a deposit on it. I told him to call back and offer $1,000 over asking. He did and got the boat.

BS. If the seller took the deposit and decided not to perform - he has to return the deposit in duplicate.

[FLLCatsailor]

Originally Posted by SVI

BS. If the seller took the deposit and decided not to perform - he has to return the deposit in duplicate.

If it was a FSBO deal the owner can do whatever he wants, unless their was a contract in writing... If he returns the deposit I would just walk away... The cost of bringing a seller to court would not be worth the cost...

One of the advantages of working with a broker... If a broker pulled **** like this he would lose his license...

That being said, if the seller had the boat under contract and the boat goes to survey the seller can refuse to make any survey adjustments or address the items from the survey... Effectively killing the deal... Then accept the backup offer...