Making an Offer Question???

[GalaxyGirl]

Hello all,

Quick question.

When making an offer, is there an "Offer to Purchase Agreement" like with house buying or do you go straight to a "Purchase Agreement"?

Also, I made an offer subject to satisfactory viewing/survey. The broker wants 20% down as earnest money, but I haven't viewed yet. (This is a low offer, I told them that I would take it after viewing, but I'm not going to fly there unless they like my price, because it's low)
Is it standard practice to put down 10-20% BEFORE viewing? I was thinking more like a couple grand earnest money and a real deposit, after viewing?

Also, I don't think I'm comfortable with the broker holding the deposit. They are not a big brokerage. Is there any way around this? Can I use a marine title company or marine attorney to hold the deposit? Is this customary practice?

[scoobert]

i came across a few money down for offer types. try and find a way around it.
make some demands. and make the offer.
most of those hold your deposit 30 days. and if the boat turns out to be actual junk, and they think its fine, you have a dispute over getting the money back.

just say no. i am not giving you money to make an offer, if you want to sell this boat, take my offer, if not, bye.

you can also contact the owner directly to make an offer, just look up the owner on USCG website.

[Ocean Girl]

You make an offer, you put earnest money down, that is the only way to "hold" the boat.. This money should be held in escrow, safe. And it is subject to viewing, seatrial, then survey. At each stage you can say no and walk away with your money, untill final offer is accepted with no conditions. But I'd deal with a reputable brokerage house when dealing with the kind of money you are spending.
I hope that made sense. Do you have a broker? One you trust?

[Dulcesuenos]

If the seller has t listed with a broker they cannot just sell it without paying the brokers commission. Most brokers have a 3-6 month contract that the seller signs. 10% is the normal deposit. 20% sounds fishy. Some brokers will take a smaller deposit. Some wont. For them to hold the boat pending your inspection they almost always want a deposit. However they can still sell the boat out from under you and your only recourse is suing to get your travel and time expenses back if that happens. So they could say no deposit no guarranty but in reality its up to them.

[scoobert]

Originally Posted by Dulcesuenos

If the seller has t listed with a broker they cannot just sell it without paying the brokers commission. Most brokers have a 3-6 month contract that the seller signs. 10% is the normal deposit. 20% sounds fishy.

this is true, but you can see if the seller will accept your offer without going thru the broker.

and yes, money down is the only way to hold the boat.

[CSY Man]

To be taken seriously you should at least inspect the boat, THEN you make an offer subject to sea-trial and survey, and you pay the 10% to be held in escrow in case you are not happy with the survey and sea-trial.

If you really like the boat and it fits your budget and requirements, then be prepared to pay closer to asking price, if it is a wreck and you don't really like it, then you low-ball...

[rw58ph]

Originally Posted by GalaxyGirl

Hello all,

Quick question.

When making an offer, is there an "Offer to Purchase Agreement" like with house buying or do you go straight to a "Purchase Agreement"?

Also, I made an offer subject to satisfactory viewing/survey. The broker wants 20% down as earnest money, but I haven't viewed yet. (This is a low offer, I told them that I would take it after viewing, but I'm not going to fly there unless they like my price, because it's low)
Is it standard practice to put down 10-20% BEFORE viewing? I was thinking more like a couple grand earnest money and a real deposit, after viewing?

Also, I don't think I'm comfortable with the broker holding the deposit. They are not a big brokerage. Is there any way around this? Can I use a marine title company or marine attorney to hold the deposit? Is this customary practice?

You are not even close to making an offer without at least have an in water appraisal/survey, talking to insurance companies, and marina.

My advise is to talk/use a bank/finance! At least use a marine title company which a bank would require you to use. Again talk to a bank/finance as they have list of surveyors and title companies. At least you can use them, you don’t have to actually take out a loan.

I would have a quick in water survey done, make an offer with no deposit. Then if accept for hold/sale pending a deposit would be required contingent of out of water survey, sea trial, what ever. I would not give a broker the money to hold especially a small officer with a short history. That is what a tile company is for.

[1000 islands]

Originally Posted by CSY Man

To be taken seriously you should at least inspect the boat, THEN you make an offer subject to sea-trial and survey, and you pay the 10% to be held in escrow in case you are not happy with the survey and sea-trial.

If you really like the boat and it fits your budget and requirements, then be prepared to pay closer to asking price, if it is a wreck and you don't really like it, then you low-ball...

I agree

[Ocean Girl]

Yes, 20% makes no sense considering the brokerage fee is usually no more than 10%.

[Cheechako]

I have made deposits as low as $500 on expensive boats. Ask a bunch of really pointed questions before doing anything if the boat is not local. Tell the broker you are serious but dont want to travel before getting some detailed info. Ask the broker to go to the boat and call you. Then ask him to rate things hes sees like deck gelcoat condition on a scale of 1-10 etc. smell? Upholstery condition? Rust etc in the engine room.
Then make your offer and include the amount of deposit in your offer. (be absolutely sure there is a time limit on your offer, not all brokers put this in) I have avoided all the paper work a couple times and just told the broker "I want to pay xx $ for the boat, call the owner and see if he will entertain that... If he will we will put it in writing.." IF the broker understands you are serious, he will go for that, or he's a dimwit. (does he want to sell boats or show them?) The owner might say no, but I'll take XX. That's OK. I made an offer and faxed a copy of a deposit check to the broker in Fl on a Catamaran once. When I got out there to look at the boat I decided I liked another one they had on the dock better. Bought that instead with no issues. BTW... it worked well pitting the two owners against each other! Broker called the owner of the one I wanted (not the first one i came to look at) and said he had a potential buyer that came to buy the other one but wants to make an offer on yours... the threat is I'm going to buy or offer on the first one... but making him an offer first!
I actually bought my last house this way, couldnt decide between two houses... told broker I couldnt decide so was going to make low offers on one, then the other, raising only slightly until I get one! These guys dread me!
Above all remember: it's your money, you can make any kind of offer or deposit you want!

[Cap Erict3]

It is the brokers way of having his commission in hand and to hinder you from going elsewhere with your money. It is a buyers market.

Would you put down a deposit before buying a used car?

[dugout]

Originally Posted by GalaxyGirl

...I made an offer subject to satisfactory viewing/survey. The broker wants 20% down as earnest money, but I haven't viewed yet. (This is a low offer, I told them that I would take it after viewing, but I'm not going to fly there unless they like my price, because it's low)
Is it standard practice to put down 10-20% BEFORE viewing? I was thinking more like a couple grand earnest money and a real deposit, after viewing?

It is not common practice to make an offer prior to viewing.
Usually it is viewing, then offer w/survey and sea-trial contingency, and maybe a token deposit, like a grand.

[Sandero]

I wouldn't make give a deposit sight unseen... that sounds unwise. Understandably you don't want to fly off to see something which is more than you will pay in the end. Submit an offer and tell them if they would consider it you will see the boat and give them a reasonable deposit and the closing is subject to survey results. Escrow sounds like a smart approach.

[Dennis.G]

Make sure broker is CYBA certified (and verify with CYBA). Likely safe making deposit if so certified. Screwing with deposit is almost a sure way that brokerage would loose CYBA certificate.

Deposit amount is negotiable. 10% would seem like limit to me. I think my deposit was 5% on current boat. Also depends on price of boat.

If going to expense to travel and see boat, a deposit is to your advantage to hold boat until inspection.

Almost no case where you would legally loose deposit. Purchase is subject to inspection, survey, sea trial, financing etc. Lots of outs for a buyer. In my talking to broker they said they almost never see deposit be lost to seller if deal falls through (not to say never happens).

Usually broker will just stick deposit check in drawer until at least inspection, and then put into escrow after both parties agree on price etc. and looks like deal is going to happen.

[Cap Erict3]

You cannot make an informed offer until after a survey.

A lot of folks are fulfilling a dream when they buy a boat. The purchase is not a dream. It is a business deal.