Normal to Reduce Offer Post Survey?

[Dave_R]

First time buyer--thanks for all the communal support so far!

How common is it to reduce your offer on a purchase, after the survey?

I have an offer in on a 1984 Gulfstar 44. One big issue, and numerous small issues.

The big issue, there's a crack at the aft end of the keel, where it meets the hull, that had been repaired before (poorly) and re-cracked. Too much epoxy and filler, not enough glass. Owner has already agreed to repair, and allow me to monitor the repair.

The other issues are numerous and small. I'm inclined to reduce my offer by about 5%. Is this normal or abnormal?

I know in home purchases, its pretty typical...

[rbk]

Very common. Just make sure there isn’t another buyer waiting to take it with the same or better offer.

[BlueH2Obound]

If the crack is repaired to your satisfaction
and the other issues are truly small
and if you really like the boat
and feel that you've already negotiated a fair price . . .

personally, I'd just let it ride. Often times there are other leftovers that the seller forgot he had, that he will give to you, or offer up later.
Another reason, at least for me, is the good will that you will "buy" by not nickel and dimeing the seller to death. We were fortunate in that the sellers are fantastic people, and I can't count the number of times we've called them to ask questions. They've always been extremely helpful with us in our exploring and learning our new to us boat! If they feel that you are nitpicking, they may not feel the same way. JMHO

[rbk]

What ever the survey found there will be many issues that were missed.

[ChrisJHC]

If you’re buying a nearly 40 year old boat, I’d expect the small issues to be included in the price.
It’s a bit unrealistic to buy a boat that old and expect it to be issue-free!

Absolutely agree with reducing the price to allow for the big issue. I would probably do it as a dollar figure rather than a percentage, however that’s only semantics.

[zstine]

I think it is normal to expect the seller to pick up the cost or repair an 'atypical' survey items found. If you think you are over paying b/c of an issue(s) found during survey, ask the seller to either fix it or give you a credit. He can say No, but he cannot 'end the deal' as he still is obligated to sell at the original price. Another buyer cannot 'sneak in'. Though he can say take it or leave it at the original price.

[valhalla360]

I'd rather have a dollar amount off for the big repair and leave the prior owner out of it. That way you don't have to worry about him cutting corners. The downside is you take the risk if it turns out to be more expensive.

Small issues...we really need to know what they are.
- Are they items you should have noticed when you first viewed the boat?
- Are they just normal wear & tear?
- Did the seller make the issues available prior to you putting in an offer?

In general terms, it is common but depends on the specifics. Also, how in love with the boat are you? If you are willing to walk away, you can play hardball but if you really want this boat, you can't be as aggressive or the seller may walk away from the deal.

[meirriba]

If the major issue is repaired and paid by the seller, I would go with the agreed price.
When you buy on old boat, the agreed price is already including a lot of small issues reflecting the age of the boat. You cannot expect the 40 years boat to be like new.
When I worked as a surveyor, my advice to buyers of old boats was to add a stipulation in the agreement, that the surveyors report will be submitted to (agreed in advance) boatyard, to get a quote to repair everything. And, the seller will pay anything over an agreed percent of the contract price (e.g. if repairs cost more than 5 or 7% of the agreed vessel price).

[CCCruiser]

Originally Posted by Dave_R

First time buyer--thanks for all the communal support so far!

How common is it to reduce your offer on a purchase, after the survey?

I have an offer in on a 1984 Gulfstar 44. One big issue, and numerous small issues.

The big issue, there's a crack at the aft end of the keel, where it meets the hull, that had been repaired before (poorly) and re-cracked. Too much epoxy and filler, not enough glass. Owner has already agreed to repair, and allow me to monitor the repair.

The other issues are numerous and small. I'm inclined to reduce my offer by about 5%. Is this normal or abnormal?

I know in home purchases, its pretty typical...

In both of my boat purchases, I've negotiated items that require repair. Usually the surveyor will categorize issues. My input is that anything that is a safety item or a required ABYC issue should be fixed or compensated. I would advise at least getting an estimate on the costs of repairs on all. Likely, your insurance company will require you to fix all of the issues unless the surveyor has indicated an item as cosmetic. I would not use a fixed percentage. It's not clear from your note that the owner may have indicated that the only repair he agrees is the keel issue. Ultimately, buyer and seller have to find common ground or walk away.

[double u]

Originally Posted by Dave_R

... One big issue, ...
The big issue, there's a crack at the aft end of the keel, where it meets the hull, ...

R U N!!!

(apparently the boat has been sailed with a serious grounding damage that wasn't repaired properly, possibly (probably) incurring plenty more (unseen) damage)

[tkeithlu]

I'm not sure that I would conclude "R U N," but you shopuld be aware that a crack in that location means that the boat/keel ran into something big and hard at speed. If you haven't already, look at the leading edge of keel/hull joint for corresponding damage, and in the bilge check the keel bolts. Also check that the keel is back in it's original position, both fore/aft and laterally.

[double u]

check the floors & stiffeners in the bilge, particularly at the aft end of the keel, check for failure in tension, delamination, very closely examine rudder-tube where it's laminated to the hull , check chainplates on aft leading stays/shrouds; verify humidity in hull-bottom: are moisture-readings higher around the crack?
(after discovering cracks at aft-end of keel, anything the seller says is to be mistrusted)

[geoleo]

Originally Posted by Dave_R

First time buyer--thanks for all the communal support so far!

How common is it to reduce your offer on a purchase, after the survey?

I have an offer in on a 1984 Gulfstar 44. One big issue, and numerous small issues.

The big issue, there's a crack at the aft end of the keel, where it meets the hull, that had been repaired before (poorly) and re-cracked. Too much epoxy and filler, not enough glass. Owner has already agreed to repair, and allow me to monitor the repair.

The other issues are numerous and small. I'm inclined to reduce my offer by about 5%. Is this normal or abnormal?

I know in home purchases, its pretty typical...

Reduce 10%--5% is chump change

[zstine]

Originally Posted by valhalla360

I'd rather have a dollar amount off for the big repair and leave the prior owner out of it. That way you don't have to worry about him cutting corners. The downside is you take the risk if it turns out to be more expensive.

Small issues...we really need to know what they are.
- Are they items you should have noticed when you first viewed the boat?
- Are they just normal wear & tear?
- Did the seller make the issues available prior to you putting in an offer?

In general terms, it is common but depends on the specifics. Also, how in love with the boat are you? If you are willing to walk away, you can play hardball but if you really want this boat, you can't be as aggressive or the seller may walk away from the deal.

Assuming the buyer is using a 'yacht broker association of America' accredited broker, or at least a P&S copied from one, then the seller cannot walk away just because the buyer asks to negotiate price. the Seller is Obligated to sell at the original price on the date specified, free and clear or pay the buyer any loss including the survey fee, brokers fees, etc. the seller cannot walk away from a P&S!

[goboatingnow]

Originally Posted by geoleo

Reduce 10%--5% is chump change

If you discover serious defects then clearly you need to negotiate the remedy with the seller , the most common result is an allowance from the agreed selling price.

After that don’t nickel and dime the seller , he’ll just say no.