How to Make a Successful Purchase Offer

[sailorboy1]

1 - Get a broker
2 - Inspect the boat with the broker
3 - Get broker to run the sold boat data
4 - Determine a price YOU are willing to pay based on 2&3 dependent on survey
5 - adjust final price based on 4

All this low ball game crap is just insulting! If you think it is a good boat be willing to pay what it is worth, if you don't want the boat just don't waste everyone's time.

[PortClydeMe]

Originally Posted by sailorboy1

1 - Get a broker
2 - Inspect the boat with the broker
3 - Get broker to run the sold boat data
4 - Determine a price YOU are willing to pay based on 2&3 dependent on survey
5 - adjust final price based on 4

All this low ball game crap is just insulting! If you think it is a good boat be willing to pay what it is worth, if you don't want the boat just don't waste everyone's time.

That's almost correct, yet in today's market you forgot number 6.

6 - Divide that price by 2, and that is your initial offer.

[a64pilot]

As you go shopping around for boats, you will meet a lot of brokers. Pick one you like to be your buyers broker.
Then like SB says, use them to run the sold boat price on that yr / make / model
Heck in my instance, we found the boat I bought, PO had bought it a couple of years earlier and she found out what he paid for it.

My opinion, you go too low ball, no one takes you seriously, not even your broker and very soon you'll be on your own again. You have to be realistic, and the boats whose asking prices weren't realistic, well I didn't even bother looking at them


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[sailorboy1]

Originally Posted by PortClydeMe

That's almost correct, yet in today's market you forgot number 6.

6 - Divide that price by 2, and that is your initial offer.

That's just insulting bull! Sure there are stories once in a while when maybe that worked, but rare in the real world. If the seller really is asking twice what the boat is worth you shouldn't even have looked at it. If I was a broker working with you I would move on to spending my time with real buyers.

[PortClydeMe]

Originally Posted by sailorboy1

That's just insulting bull! Sure there are stories once in a while when maybe that worked, but rare in the real world. If the seller really is asking twice what the boat is worth you shouldn't even have looked at it. If I was a broker working with you I would move on to spending my time with real buyers.

Bull? In business you have to play hard ball. I'm not concerned about the broker's happiness or the seller's ego. In reality, it will go something like this:

6 - Divide that price by 2, and that is your initial offer.
7 - Make that offer, then watch the facial expressions.
8 - Before anyone can speak, say "OK!, now let's talk some real numbers.", and offer them 25% lower than number 5. Deal done!

[Scout 30]

Originally Posted by PortClydeMe

Bull? In business you have to play hard ball. I'm not concerned about the broker's happiness or the seller's ego. In reality, it will go something like this:

6 - Divide that price by 2, and that is your initial offer.
7 - Make that offer, then watch the facial expressions.
8 - Before anyone can speak, say "OK!, now let's talk some real numbers.", and offer them 25% lower than number 5. Deal done!

This advice is worth exactly what you paid for it.

[Ex-Calif]

Originally Posted by Julie Mor

Certain things HAVE to be done, so do you deduct the cost of those from the asking price right off the bat or do you let the surveyor price them out later?

Certain things most likely will have to be done, like replacing the electronics. Do you deduct those items from the asking price or wait for the surveyor?

Then there's cosmetic things like paint. Maybe you see scratches on the hull that few buyers would live with, paint bubbles on metal spars tell you that needs to be looked at. Things most people would see. How do you handle that?

You can't know about the engine (or the generator, if there is one) because without the owner there, the broker won't start either. Same with electronics, pumps and motors. You may only know the age but you will know how they look because you saw them and took pictures you later examined.

You are forgetting that the seller knows all this stuff too. That's why he set his price where it is. "All things considered"

You either agree with his price or you don't.

The survey should not turn up things the buyer didn't tell you about. It should turn up things the buyer didn't know about.

If the seller is "hiding" stuff he is an idiot as the survey will turn it up.

If the buyer is making lists of stuff the target boat doesn't have and deducting from the selling price the buyer is an idiot.

"Let's see no chartplotter - minus $1500. No gypsy - minus $1,000. Heck there are only 2 batteries and I need 8 - minus $1,200. And I need 800W of solar - minus $2,000. Tiller steering? I want a wheel conversion - minus $3,000. Mr. Seller I'll take your boat but you owe me net $4,000 for the stuff it doesn't have."

[PortClydeMe]

Originally Posted by Scout 30

This advice is worth exactly what you paid for it.

Not everything free is devoid of value.

You can lead a horse to water, yet...

My friends Harvey (58-year-old baby food rep) and Ron (58-year-old athletic clothes distributer). Harvey was a Ron's house in Los Angeles, just after purchasing his new (and first) Harley.

H: I need a helmet.
R: Why don't you try that one on the shelf. It's like new.
H: How much?
R: Just give me a hundred bucks and we'll call it good.

Next day phone call:
H: Hey, I just saw that helmet you sold me for sale brand new at the Harley shop for $89.95.
R: Let that be a lesson to you. Click.

[Stu Jackson]

Originally Posted by Ex-Calif

You are forgetting that the seller knows all this stuff too. That's why he set his price where it is. "All things considered"

You either agree with his price or you don't.

The survey should not turn up things the buyer didn't tell you about. It should turn up things the buyer didn't know about.

If the seller is "hiding" stuff he is an idiot as the survey will turn it up.

If the buyer is making lists of stuff the target boat doesn't have and deducting from the selling price the buyer is an idiot.

"Let's see no chartplotter - minus $1500. No gypsy - minus $1,000. Heck there are only 2 batteries and I need 8 - minus $1,200. And I need 800W of solar - minus $2,000. Tiller steering? I want a wheel conversion - minus $3,000. Mr. Seller I'll take your boat but you owe me net $4,000 for the stuff it doesn't have."

Correct.

Deducting things for electronics especially is nonsense.

We spent a year looking for a boat, only one model and builder.

After spending two weeks going through a survey with another boat it didn't pass muster. We'd seen dozens of others - sad neglect in many different ways. Some made me cry, literally.

I crawled all over that boat with the surveyor.

I read ALL about that specific boat.

I DID MY HOMEWORK.

This is NOT only all about Negotiating 101, this is about learning about what it is you're planning to purchase.

Spent an hour & a half with the owner. He asked if I was a broker. I said no. He said How come you know so much about this boat?

I was honest. I said I was spending $50K (in 1998) and wanted what I wanted, knew what I wanted and was impressed with the condition of his boat.

He was fair: No renegotiating after a survey. Unless they find something big I said.

We pulled out a piece of paper. I said Your price is X I can only afford Y. We split the difference. Wrote the offer, still subject to survey.

Passed survey with flying colors. Why? 'Cuz it was in great shape. But I KNEW it.

17 years later, still glad we bought the boat.

And there's a lot to said that the PO knew it was going to get a good home. There is merit in that part.

Bully business dealing only goes so far, and if that's the way you live your life, you deserve what you get in return. In spades.

KISS.

[PortClydeMe]

My father owned a pharmacy.

When I was young he said "The customer is always right. That's rule number one."

Here we have a boat. It's for sale. No need to let emotion, romanticism, or karma play any part in the transaction.

It's your money, and you are giving it to them. They are giving you a used boat in return.

It's not rocket science, nor is it the script to a Brad Pitt movie shot with monks in Tibet.

Give as little of your hard-earned money as possible for the most value possible. Nothing else matters.

[deluxe68]

Originally Posted by Kenomac

You need to hire a buyer's broker then make the offer you think is fair. I can PM an excellent broker that I've used twice if you like.

Do you pay the buyers broker directly or do they share the commission with the sellers broker?

[a64pilot]

Originally Posted by deluxe68

Do you pay the buyers broker directly or do they share the commission with the sellers broker?

When there are two Brokers, they split the commision, If you have no buyers Broker, the sellers gets the whole comission.
Really I can't see the downside to having a buyers Broker, and mine was very helpful, mostly in setting up viewings. Often I'd call Brokers to see a boat, and they wouldn't call me back, but once I got a Broker, she worried about all of that. Also she could call her friends and sometimes found out a lot about the boat and owner, before I go there.


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[Scout 30]

Originally Posted by a64pilot

When there are two Brokers, they split the commision, If you have no buyers Broker, the sellers gets the whole comission.
Really I can't see the downside to having a buyers Broker, and mine was very helpful, mostly in setting up viewings. Often I'd call Brokers to see a boat, and they wouldn't call me back, but once I got a Broker, she worried about all of that. Also she could call her friends and sometimes found out a lot about the boat and owner, before I go there.


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This is only true if the boat you are trying to buy is listed with a broker. If it's for sale by owner then you will be responsible your agent's commission unless you don't involve your agent in the transaction which might be a problem depending on your contract with the agent. Even if you do have to pay a commission it might be worth it to have a professional on your side.

[Andy73]

Originally Posted by a64pilot

When there are two Brokers, they split the commision, If you have no buyers Broker, the sellers gets the whole comission.
Really I can't see the downside to having a buyers Broker, and mine was very helpful, mostly in setting up viewings. Often I'd call Brokers to see a boat, and they wouldn't call me back, but once I got a Broker, she worried about all of that. Also she could call her friends and sometimes found out a lot about the boat and owner, before I go there.
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On the whole you are right, however I think a buyer always needs to be careful. At the end of the day, both brokers are focused on getting a sale.

Also, if the buyer is being paid by the seller (or the seller's broker, depending on your point of view), who do their true loyalties lie with? No man can serve two masters...

[Scout 30]

Originally Posted by Andy73

On the whole you are right, however I think a buyer always needs to be careful. At the end of the day, both brokers are focused on getting a sale.

Also, if the buyer is being paid by the seller (or the seller's broker, depending on your point of view), who do their true loyalties lie with? No man can serve two masters...

You are right. Although your agent has a legal obligation to represent you he/she only gets paid if there is a sale. Another dirty little secret is that surveyors, like home inspectors, get referrals from agents so it may not be in their best interest to kill a deal. Also, without a clean survey you won't be able to get insurance and they're well aware of that. I got a survey from a gut on Boat US's list of approved surveyors. It sucked. Luckily I had thoroughly inspected the boat & knew what it needed but if I was less experienced or had missed something I would have been unhappy.