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Old 15-02-2019, 09:09   #1
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advice on placing an offer, first time, please help

Ok, all. Five years of planning, planned to spend $150k, have the deposit, ready to roll. Now, we have gone 180 degrees. for our first purchase, we decided on cash. A ton of reasons aside, it's our newness and lack of experience. Have never owned a boat, we rent them to practice!

So we found a hunter 37.5 for a good price. We are going to see her monday, we still will get a survey.

How do we progress if we like her after a sail? Put a deposit down, depended upon survey? How do I recognize contractual pitfalls?

Please advise, and assume I know nothing, which is true, yet I think we found her! I am not interested in a buyers broker, as the cost is so low.
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Old 15-02-2019, 09:12   #2
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Re: advice on placing an offer, first time, please help

Don't expect to go for a sail without an executed purchase contract.

Get a buyer's broker to look out for your interests, costs you nothing.
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Old 15-02-2019, 10:07   #3
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Re: advice on placing an offer, first time, please help

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Originally Posted by Gary S View Post
Don't expect to go for a sail without an executed purchase contract.

Get a buyer's broker to look out for your interests, costs you nothing.
they are sending a contract now. but let me ask, if I bring in a broker, for 20 grand purchase, my negotiating on not much to negotiate with goes whoosh!. Or is this more to secure the correct contractual agreement? it's coast guard registered. Anything else you can add?
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Old 15-02-2019, 10:12   #4
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Re: advice on placing an offer, first time, please help

that's what the brokers like to do. at the end of all the negotiating then you set a date for survey and test sail. usually there is no wind or bad weather so you might raise up the sails for a few minutes. then you can negotiate again after that. but you may already have a thousand into the process if you decide to walk.
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Old 15-02-2019, 10:13   #5
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Re: advice on placing an offer, first time, please help

-Give a deposit in the form of check.
-Insist on a small deposit just in case. I have bought $340k boats with a 5k deposit. If they want to sell, they'll take it. I also just scanned a check once as a deposit and faxed it to the broker. They just want to know you are serious.
-Most agreements should be in order if done by a broker. But still be careful. You want to be able to walk away based on any reason at all from an inspection. Maybe your gut just doesn't like the results.
-Be careful that the contract doesn't say you have to accept a repair by seller in lieu of walking away.
-depending on the price, offer low and start there.
-You dont need your own broker.
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Old 15-02-2019, 10:16   #6
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Re: advice on placing an offer, first time, please help

I think I need to be asking about a clean title? How do I ensure that the purchase is straight forward? Again, have no idea with boats, just houses, and I of course don't want to spend more cash for 20k, but am absolutely willing to if it's the best course of action. Thanks in advance all!
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Old 15-02-2019, 10:23   #7
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Re: advice on placing an offer, first time, please help

The purchase contract should specify terms for the seller to deliver the vessel to you with a clear title. And consequences if they do not (paying for your survey fees for example.)


You do not NEED to use a buyer's broker, but assuming the boat is listed for sale with it a broker it really doesn't cost you anything to use a buyer's broker.

Make sure purchase is subject to any and all inspections you want done. This includes survey, haul-out, engine inspection, oil analysis, rigging inspection, and sea trial.
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Old 15-02-2019, 10:37   #8
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Re: advice on placing an offer, first time, please help

I'll throw this out there for others intending to purchase a boat and have access to cash or a decent line of credit. If you can pay $150,000 for a boat, best to find a slightly older boat and only pay between $75,000 and $100,000 for it, using the difference to fix up, refurbish, rehabilitate, and buy new stuff like electronics, upgrading the anchor to a modern one, etc. You will end up with a better boat and supplemental items like maybe a new dinghy and/or kicker motor.

Even with well maintained boats, there are always issues, not fatal issues, but "stuff" that needs attention, new paint, etc. I bought a great in shape older power boat that I will add about $100,000 this year and probably another $30,000 to $50,000 in the next two years, 2020 and 2021. So I am adding Efoy, new firefly batteries, getting drawers installed where there were none, a new stand up pantry beside the fridge in the galley, new decking, repowering, etc.

So for example, on an older boat the radar, if it has any is probably getting close to its "best before" date, and not have the options you'd like, better still if the boat doesn't have radar then adding new electronics with a MDF (multiple display unit) is an attraction. If the bones of the boat are solid, you can modify, upgrade, refresh, remodel the rest.

If it were me, I'd get a decent older boat that probably won't win any races for around $50,000 and throw $100,000 to bring it up to speed. Another example, on my boat much will be new - refrigerator, separate freezer, new inverter and charger, all new electronics with radar (Doppler - target acquisition), forward sonar, AIS on new radio, new addition of a bow thruster, and as I said before, re-powered with a Volvo Penta 280 duoprop and leg, new trim tabs and hydraulic steering, new anchor and new composting toilet, along with a diesel interior heater.

At the end of the day, I feel I have more boat for the $150,000.
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Old 15-02-2019, 10:51   #9
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Re: advice on placing an offer, first time, please help

Quote:
Originally Posted by Gary S View Post
The purchase contract should specify terms for the seller to deliver the vessel to you with a clear title. And consequences if they do not (paying for your survey fees for example.)


You do not NEED to use a buyer's broker, but assuming the boat is listed for sale with it a broker it really doesn't cost you anything to use a buyer's broker.

Make sure purchase is subject to any and all inspections you want done. This includes survey, haul-out, engine inspection, oil analysis, rigging inspection, and sea trial.
thanks sooo much, our contract looks legit, so we put 1k down, and will survey, even thought it's only 20k, it helps us know the issues. I thank you and everyone here
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Old 15-02-2019, 10:51   #10
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Re: advice on placing an offer, first time, please help

Quote:
Originally Posted by nimbex1970 View Post
I think I need to be asking about a clean title? How do I ensure that the purchase is straight forward? Again, have no idea with boats, just houses, and I of course don't want to spend more cash for 20k, but am absolutely willing to if it's the best course of action. Thanks in advance all!
It depends. Contract should indicate they will deliver a clean title to you.

Is it just state titled or Coast Guard documented?
State title is just like a car.
Document: I would have a service do it.

But I'm confused, I thought you were spending $150k on a boat?
But now it looks like $20k?
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Old 15-02-2019, 10:54   #11
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Re: advice on placing an offer, first time, please help

Quote:
Originally Posted by rsn48 View Post
I'll throw this out there for others intending to purchase a boat and have access to cash or a decent line of credit. If you can pay $150,000 for a boat, best to find a slightly older boat and only pay between $75,000 and $100,000 for it, using the difference to fix up, refurbish, rehabilitate, and buy new stuff like electronics, upgrading the anchor to a modern one, etc. You will end up with a better boat and supplemental items like maybe a new dinghy and/or kicker motor.

Even with well maintained boats, there are always issues, not fatal issues, but "stuff" that needs attention, new paint, etc. I bought a great in shape older power boat that I will add about $100,000 this year and probably another $30,000 to $50,000 in the next two years, 2020 and 2021. So I am adding Efoy, new firefly batteries, getting drawers installed where there were none, a new stand up pantry beside the fridge in the galley, new decking, repowering, etc.

So for example, on an older boat the radar, if it has any is probably getting close to its "best before" date, and not have the options you'd like, better still if the boat doesn't have radar then adding new electronics with a MDF (multiple display unit) is an attraction. If the bones of the boat are solid, you can modify, upgrade, refresh, remodel the rest.

If it were me, I'd get a decent older boat that probably won't win any races for around $50,000 and throw $100,000 to bring it up to speed. Another example, on my boat much will be new - refrigerator, separate freezer, new inverter and charger, all new electronics with radar (Doppler - target acquisition), forward sonar, AIS on new radio, new addition of a bow thruster, and as I said before, re-powered with a Volvo Penta 280 duoprop and leg, new trim tabs and hydraulic steering, new anchor and new composting toilet, along with a diesel interior heater.

At the end of the day, I feel I have more boat for the $150,000.
I agree with this, although for us, we do not need more than a starter boat, so why was I looking at 150k? It's because I could afford it, not need it. When we are ready to move on, I will follow your advice too. let someone else upgrade it, be done with sailing and get a better deal with them paying full price for upgrades. Luckily, we realized, we didn't need all that, before taking the loan we were approved for!!!
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Old 15-02-2019, 10:59   #12
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Re: advice on placing an offer, first time, please help

Looking at YW, there is one for $20k in FL. The next price up is $48k. Red flag.


The one in FL "Exotic Dancer" says engine is 1987 with 169 hours. Not impossible, but improbable. Red flag.
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Old 15-02-2019, 11:00   #13
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Re: advice on placing an offer, first time, please help

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Originally Posted by Cheechako View Post
It depends. Contract should indicate they will deliver a clean title to you.

Is it just state titled or Coast Guard documented?
State title is just like a car.
Document: I would have a service do it.

But I'm confused, I thought you were spending $150k on a boat?
But now it looks like $20k?
thank you, we are approved for a loan for 150k, but have had second thoughts for our first boat, now thinking basic, paying cash for 20k. It's a 1987 hunter legend 37.5 and it really is all we need to start out. It's coast guard documented, I just need a surveyor, signed the lookie loo, want to buy it contract, we see her on Monday.

so we can continue to save to pay cash for a bigger boat in the future, is my thought, I hated the idea of financing, when we are so new to sailing.

our concern, is our first buy.. not knowing how to protect ourselves, even though it's only 20k, we want to be financially smart, but smart with the purchase too. does that make sense?

And we thank you for the time spent replying and helping us. very appreciated.
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Old 15-02-2019, 11:04   #14
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Re: advice on placing an offer, first time, please help

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Originally Posted by Tetepare View Post
Looking at YW, there is one for $20k in FL. The next price up is $48k. Red flag.


The one in FL "Exotic Dancer" says engine is 1987 with 169 hours. Not impossible, but improbable. Red flag.
that is the one we are looking at, it's at the marina we rent sailboats to learn on, harbortown.
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Old 15-02-2019, 11:16   #15
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Re: advice on placing an offer, first time, please help

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Originally Posted by Tetepare View Post
Looking at YW, there is one for $20k in FL. The next price up is $48k. Red flag.


The one in FL "Exotic Dancer" says engine is 1987 with 169 hours. Not impossible, but improbable. Red flag.
yikes, I hope I don't waste a survey fee. broker says this is from a true sailor, who doesnt motor, lol. we shall see.
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