Boat Swamped - Should I walk away from the purchase?

[regex]

Hello there folks.

So, the Mrs and I have an agreed purchase price of a 2009 Beneteau Oceanis 40 in Marina Del Rey. In our due diligence, we found that in 2016 the boat was swamped due to a run aground in Santa Monica Bay. I don't have the full details yet, but I went to "The Boat Yard" in MDR today with my agent and we got permission to look at the entire invoice by the selling party. I spoke with one of the heads of the MDR boatyard and he, of course, stands by his work and I hear very, very good things about the workmanship of this yard so that is a good starting point.

Needless to say, my first response in learning this info was "Oh, F****. This could be a showstopper"

Details as I know them:

• Event happened in October of 2016
• Boat took on water (swamped) and was emergency towed back to MDR boat yard
• I was told the run aground happened rudder first (aft end)
• Removed the mast
• Removed the prop, shaft, coupling, and seal
• Replaced bearings and shaft seals
• Cut out a delamination section next to keel joint and laid new fiberglass
• Repaired rudder tube & rudder
• Replaced nearly every electrical component on the entire boat
• New wiring throughout, new refrigeration compressors, modules, & fans.
• Replaced electrical panel, transom plates
• New electrical panel & transom covers
• Replaced inverter/charger, stereo, AIS system, and replaced all damaged electrical connections (all fuses, breakers, junction boxes, etc.)
• All new raymarine rewiring for GPS/Plotter/Radar
• Replaced all the batteries, batt charger, etc.
• Fabricated 2 new customer mattresses
• Replaced starter motor and alternator
• Replaced water heater
• Repaired steering system
• New bottom paint (2 coats)
• New spinnaker halyard
• Replaced motor mounts & aligned engine
• Repaired gel coat at the helm
• New microwave
• Serviced winches
• Sand and applied sepmco coating at teak in cockpit

Ok, that's the gist. So clearly as our first major boat purchase we are already pretty sketchy about the whole thing. Now having learned that the boat was swamped at some point puts us even more on edge.

Current thoughts from the two of us:

1. Could be a blessing in disguise, she's a 10yr old boat but has had many components replaced only 3 years ago.
2. It was done 3 years ago if there were additional problems from the swamping they would have surfaced already (no additional work orders at the boatyard, I checked). One would hope anyway...
3. However, there could be "sleeper cell" kinds of issues that would show up later. Clearly, the motor was in salt water for a time and salt is horrible on everything but they only replaced the mounts and the starter/alternator? Concerning.
4. Lastly, and maybe worst of all - This ugly history is going to haunt her, her entire life. If we decide to sell her, in full disclosure I legally have to tell the buying party that this happened even though I had nothing to do with it and it might make her MUCH harder to sell.

The boat is beautiful, very well taken care of and certainly loved and yes, you can tell she "calls to us" so our heart wants to move forward but my stupid technical sailing head keeps getting in the way.

Status: We are currently prior to Survey, Sea Trial and Haul-out. If we move forward I fully intend to tell my mechanical surveyor that this happened and to get "clinical" during his evaluation and diagnosis.

All of this said we got what looks to be a good deal. I guess now we know why.

OK. So. What say you salty-sailors & cruisers? Would you walk? Would you pay for the survey/haul-out etc?

Has anyone bought a boat (or had a run aground event) that had this kind of issue and did the MDR boatyard work on it? Were you satisfied with the work?

This is foreign territory for us so any advice would be greatly welcomed.

Thanks everyone, much appreciated.

- Shane

[ThereAndBack]

Get out of there.

You're in lust with this boat. If you were talking to some other buyer considering the same thing as you, you'd probably say, "Run!"

Even if the boat was repaired to better than new quality after the event, there is the seed of doubt. It will always be there in your mind. Especially with all the stories out there of Bene keel issues.

Go find a boat that hasn't been crashed or sunk or neglected. They're out there.

[regex]

Originally Posted by ThereAndBack

Get out of there.

You're in lust with this boat. If you were talking to some other buyer considering the same thing as you, you'd probably say, "Run!"

Even if the boat was repaired to better than new quality after the event, there is the seed of doubt. It will always be there in your mind. Especially with all the stories out there of Bene keel issues.

Go find a boat that hasn't been crashed or sunk or neglected. They're out there.

Ya, I hear you. But we would also be out of our price range for this kind of boat and would have to go older. So, then we are dealing with more wear/tear which could be pretty costly too right? It's a tough choice.

[thinwater]

Originally Posted by regex

Ya, I hear you. But we would also be out of our price range for this kind of boat and would have to go older. So, then we are dealing with more wear/tear which could be pretty costly too right? It's a tough choice.

You forgot "go smaller." You don't need 40 feet. If up-keep worries you, smaller will be more manageable. Not too many years ago, 40' was considered huge. Size creep, like houses.


I had a bigger boat, paid for and not old, and down sized because I wanted smaller.

[AKA-None]

Is it really cheap as in almost give away

[regex]

Originally Posted by AKA-None

Is it really cheap as in almost give away

No. Anything made in 2009 and 40 feet is going to be a pretty penny. However, we are looking at legitimately 30% under market. Based on nationwide comps.

[DeValency]

Originally Posted by regex

No. Anything made in 2009 and 40 feet is going to be a pretty penny. However, we are looking at legitimately 30% under market. Based on nationwide comps.

My two cents...
I wouldn't walk away but definitely reserve the right at any stage...
The starting price should be around 40-50% of the REAL comps
Make sure you have a really good survayor

If all looks good, buy her. If you'll keep her without incident related issues for say, 10 years, the original event may have a minimal effect on the future selling price.

Best of luck!

[Underdog]

Originally Posted by regex

No. Anything made in 2009 and 40 feet is going to be a pretty penny. However, we are looking at legitimately 30% under market. Based on nationwide comps.

If the seller did not disclose this upfront, and as a valid reason for a below market value price I would have no problem with giving it as a reason were it me, I would wonder what else has not been disclosed. You could be buying a world of hurt. I could not sell my yacht without full disclosure. I mean people could die from undeclared problems manifesting themselves into show stopping events in a boat. Couldn’t sleep at night....

[stainless guy]

You discovered after your accepted offer? I would go back to the negotiating table if it has been for sale for awhile a lower offer may be accepted. You just have to realize when you sell, the same thing will happen to you. if you can accept that and the fact the boat has had extensive repairs and possiblity of ongoing issues...

[regex]

Originally Posted by stainless guy

You discovered after your accepted offer? I would go back to the negotiating table if it has been for sale for awhile a lower offer may be accepted. You just have to realize when you sell, the same thing will happen to you. if you can accept that and the fact the boat has had extensive repairs and possiblity of ongoing issues...

No, they told me when we entered negotiations that there was an " incident with the rudder and the boat needed to be towed back to the marina" a pretty big understatement.

Your second point is the one that is really getting under my skin. I think after talking to the boatyard I can get past the issue of "what else am I going to find" but the fact that the boat will always have this storied history is going to bug the hell out of me.

[achil]

Originally Posted by regex

Your second point is the one that is really getting under my skin. I think after talking to the boatyard I can get past the issue of "what else am I going to find" but the fact that the boat will always have this storied history is going to bug the hell out of me.

Look at it this way; if you are buying it at a 30% discount and you sell it at a 30% discount, you are out nothing. If I were in your shoes I would go back to the boatyard and ask them why more work was not done on the engine. If their response doesn't satisfy you, hire a mechanic to check the engine out. If there is something wrong with it, you can go back to the negotiating table, if not, go ahead with the rest of your due diligence. Good luck, whichever way you go.

[gonesail]

i would be looking for reasons NOT to buy a boat that ran was run hard aground and then sunk .. especially if the owner or agent did not disclose it

[regex]

Originally Posted by gonesail

i would be looking for reasons NOT to buy a boat that ran was run hard aground and then sunk .. especially if the owner or agent did not disclose it

It wasn't sunk, it was swamped. The boat never completely sunk or submerged. Both the selling and buying agent disclosed it, that's why I posted this. They even gave me the entire invoice to review prior to moving forward. I can get every penny I put down as a deposit back if I want to.

[weavis]

Be Brave. Move on.

You were looking for a boat when you found this one............ Plenty more out there.

The cheapest part about buying a boat is the purchase price... regardless if its a lot or little.

[regex]

Originally Posted by weavis

Be Brave. Move on.

You were looking for a boat when you found this one............ Plenty more out there.

The cheapest part about buying a boat is the purchase price... regardless if its a lot or little.

Good advice.