Making an Offer Question???

[meme]

Originally Posted by Tony B

I am not a broker so I am not speaking from solid knowledge, just from what I think I know.

A broker is obligated by law to present all offers no matter how ridiculous.

It's the law....I think.

I brokered RE for 20+ years, and yes, you are correct, it is the law.

However many brokers will say a lowball is an insult.

This started as an off the cuff idea, going direct thru the listing broker, and he responded, that he did at all was amazing.

Not all brokers are used car salesmen!

[Ocean Girl]

Meme, it would be great if you could be a idea bouncing board for GalaxyGirl. I was a broker for only a year, sold 18ish boats! But I'm really rusty and I'm sure much has changed.
I wrote a long pm to ya GG, then erased it cause I just didn't feel like I was remembering everything right and wasn't the best person to give advice.

But I will say this, cause I can't help meself, don't stray from the normal procedural protocol for buying a boat.

There are lots and lots of boats out there, this is a buyers market, and you are not living under a bridge . You have all the advantage. Getting a boat bought out from under you bites, but stay cool, your ship will come in.

Peace out

[captain58sailin]

You can always make the offer contingent upon acceptance of the inspection and survey. I wouldn't put ANY money into anyone else's hands until I had decided I wanted the vessel. They can say anything they want, but they will not prevent you from inspecting the vessel. I wouldn't commit to anything without first hand knowledge of the vessel. If it gets sold out from under you while you are making the decision then there will be another more suitable vessel coming to you soon. If it is one thing I have learned, there is always another deal in the offing.

[Cap Erict3]

I imagine there are a few brokers in this conversation.

[Cap Erict3]

Winning through the power of Intimidation was written many years ago and the principles discussed in that book have been the foundation of business since before legal tender was invented.

It especially applies when selling something on commission. Realtors, car dealers, boat brokers, etcetera are selling on commission and many people try to renegotiate said commission post sale. Having your money in hand puts the broker in a much better position.

To my knowledge iron clad means a magnet will stick to it. Not a salesman.

[Ocean Girl]

Sorry, didn't mean to imply there was only one expert I meant someone she could PM back and forth with.

I've never renegotiated my commissions. But the highest priced boat I sold was about 180,000 US. So I was a little fish. I loved being a broker, but not a sales person. My favorite part of closing a deal was to buy a nice present for my customer. Nothing romantic, more practical. It was usually a nice anchor rode, or good dock lines with chafe guards, as that is what was usually lacking.

Anyways, sorry for the thread drift.

[Cap Erict3]

No offense intended to boat brokers. Most owners have no idea how to advertise or to negotiate with buyers. Many brokers earn their money. It should be paid by the owner after the sale though.

I have always been on the buyer end with the highest cost being around $750 million. My employers money and vessel. Even with a successful sale there is often plenty for the lawyers to make money on post sale.

The basic rule has to be CYA. I'm happy to pay a good mechanic to check an old engine.

I love throwing the post purchase party. The brokers and owners seem to enjoy it also.

Prior to the purchase I am all business.

[barnakiel]

When we bought ours, I did not make any pre-payments nor any pre-offers.

And I would not pay any percentage of the deal before I have a contract in hand.

b.

[Rocketman]

Gallaxy Girl

The biggest mistake you can make is getting in to big of a hurry to buy something as expensive as a big boat. I know you are wanting to do this now, you have a contract and closing date on your house and so on, but don't get in a hurry. Don't make an offer on anything you have not seen in person, no matter what. It's going to take some time, and money to buy the perfect boat. It's going to cost you a lot more to make a bad choise. Luck doesn't just happen it is earned.

[Suijin]

If you're going through a selling broker, then it is customary, or at least accepted practice to make an offer sight unseen, and to fork over 10%. That said, the offer is contingent on the boat being as represented. After the visual inspection, you are entitled to walk away even if you simply don't like the color of the bootstripe. Assuming the broker is licensed and the funds are held in escrow, you will get them back. As to what that earnest money actually gets you, it really only buys you the seller's and broker's attention and their desire to make a deal, provided the offer is accepted.

After the visual inspection, survey, and sea trial you are entitled to adjust your offer based on what has been observed/uncovered. It does not need to come from the surveyor's report, it can also be based on items that you observed/discovered that are again "not as represented".

20% is high. 10% is the norm. But shelling out earnest money before you have seen the boat, provided you are dealing with a licensed broker working with a reputable firm, should be no risk. It establishes you as something other than yet another tire kicker come to waste a huge amount of the broker's time.

[meme]

Originally Posted by Suijin

If you're going through a selling broker, then it is customary, or at least accepted practice to make an offer sight unseen, and to fork over 10%. That said, the offer is contingent on the boat being as represented. After the visual inspection, you are entitled to walk away even if you simply don't like the color of the bootstripe. Assuming the broker is licensed and the funds are held in escrow, you will get them back. As to what that earnest money actually gets you, it really only buys you the seller's and broker's attention and their desire to make a deal, provided the offer is accepted.

After the visual inspection, survey, and sea trial you are entitled to adjust your offer based on what has been observed/uncovered. It does not need to come from the surveyor's report, it can also be based on items that you observed/discovered that are again "not as represented".

20% is high. 10% is the norm. But shelling out earnest money before you have seen the boat, provided you are dealing with a licensed broker working with a reputable firm, should be no risk. It establishes you as something other than yet another tire kicker come to waste a huge amount of the broker's time.

Especially when traveling to view a boat. Too much money & risk to do it any other way. That is what happened with the Dixen, guy offered subject
to satisfactory viewing, thereby ensuring his foot in the door at least til he arrived.
Only way to go if it is the target boat and you are traveling to view.
We have always gone direct to the listing broker in RE & will now too.
Listing broker holds the sway & wants both sides of the sale.
Doesn't mean he always gets it, as in the Dixen, but, IMO, gives the buyer
an added advantage.

[chrisjs]

Having been on the receiving end of a couple of low ball throw away bids from "buyers" wanting to bid before seeing, I can tell you it does not initiate a good reaction from the seller. If I listed my boat on Ebay or Craig's List it might be different. IMO,if a buyer lacks the commitment to even show up before throwing a number arbitrarily reduced by 20%, it does not get a deal off to a good start. Buying a boat should involve looking a vessel over, preferably with a knowledgeable helper before discussion of price that should be relative to other similar vessels. Then typically a 10% deposit and a survey/sea trial. The deposit is an indication that the "buyer" has the ability to follow through before the seller goes through a survey/sea trail.

Now I am sure there are a number of desperate sellers (though probably fewer than there were a few years ago) who will sell at a low ball price, but you have to ask yourself what you are buying!! Also, there is a lot to be said for some "good will" in the purchase. Some truth in the saying " you get what you pay for ".

In addition, average "buyers" making long distance offers without even looking at boats, do not get to understand the trade-offs between different types of vessels, different lay-outs, different conditions, etc, so they remain uneducated buyers.

And for all those posters who advise "going for the jugular" just remember that what goes around comes around. You will want to sell some day as well!!

[FLLCatsailor]

As a broker I write offers for clients on boats sight unseen all the time, and collect a deposit in escrow. This prevents the boat from being snatched up by another buyer. I have never held a clients deposit "hostage."

If a buyer isn't happy with the boat we've made an offer on, why would I be a pain in their ass? It is in my best interest to return their deposit in a timely fashion, and keep them happy so they will hopefully buy another yacht from me. If I were to play games, then the chance of selling another yacht decrease significantly...

In the state of FLorida a 10% deposit on the offer amount is the norm.

I will not survey/seatrial any of my listings without a purchase and sale agreement, and deposit in hand. I don't know of a single broker who would...

[rw58ph]

I had my surveyor meet me at the boat. Couple of surveys lasted about 15 minutes and couplke of times he did not even get out of the car. Also they often told me about other boats that we might be interest in. I would much rather pay/give a surveyor money than give to the broker. Also it showed the broker I am a serious buyer. I mean 50 to 100 bucks is well spend when purchasing a 200+ grand boat. Then after the survey a offer was made, with no money. My general rule is: If it’s meant to be, It will be!

When I say apprasial/survey is more of a cheap survey like for insurance. I do no mean a full blown detail survey, just a general rap tap, observation feeling if the surveyor and I felt it was worth spending more time for a more detail one. I was more interest in the appraised value and general condition of hull, deck, supper engine and running gear as the rest of the stuff can be replace/up graded.

If I made an offer I walk, take it or leave it. If the buyer made a counter offer then I knew they were willing to negotiate.

[jannw]

so ... since this post has followed on so quickly from your last thread of "$5k if you find me a boat" ... we are all dying to know ... which one of us are you in the process of writing out a $5,000 check to.

Or, are you, perhaps, not busy with that check book?

We are all dying to have our curiosity sated.