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Old 29-04-2020, 13:03   #1
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Boat buying amid Covid 19

So here goes. I started the boat buying process prior to the onset of Covid 19 and even came to an agreed upon price with the seller. However, before the survey and sea trial could take place, Covid 19 totally disrupted everything. To make a long story short the survey & sea trial still haven't happened and the economic outlook is uncertain at best let alone the thought of sailing this year. Due to the current state of affairs and all the uncertainty we feel we should renegotiate the price. The general consensus is the market has fallen 20% to 25%. Is the boat still worth the same as before the pandemic hit? Obviously if your the seller you're praying the deal still goes through as is. But if your the buyer, should you really be paying the pre-covid price? Reality check here. What would you do?

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Old 29-04-2020, 13:34   #2
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Re: Boat buying amid Covid 19

The general consensus is the market has fallen 20% to 25%.


Surely the consensus isn't that the boat market has fallen that much.

If you want to bail on your deal and find another boat, I'm sure you can do that. But I would guess that if you've already gone through an offer and acceptance, the seller isn't going to give you a "coronavirus discount" over what you've already agreed is a fair price for the boat because the economy has taken a dip.

From reading posts on here, there is no shortage of buyers ready to hit the market.
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Old 29-04-2020, 14:51   #3
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Re: Boat buying amid Covid 19

You can walk away from the sale if the terms have not been met. My guess is the P&S is subject to a Successful Survey, Sea Trial and closing on a mutually agreed upon date. I'm not sure what would happen if the closing date was missed as a result of not being able to survey and sea-trial. Normally, you'd amend the contract closing date as a result of extenuating circumstances.

You can attempt to propose a lower offer on an existing P&S however the seller isn't obligated to accept it, nor does their refusal to accept the amendment relieve you from your contractual obligation. If you breach the contract you'll, at best, loss any earnest money already submitted.

The seller would be crazy to accept the lower offer, but then anything is possible.
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Old 29-04-2020, 15:06   #4
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Re: Boat buying amid Covid 19

Your analysis of the boat market is off. It’s very brisk. There haven’t been large price drops as you are saying.

If you have evidence of sisterships dropping 20-25%, show the seller and attempt to renegotiate the offer if you think you can get away with it.

However, do you really want this particular boat? Are there others just like it you can get if the seller tells you to get lost and refuses to sell to you after you try to change the deal midstream?
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Old 29-04-2020, 16:03   #5
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Re: Boat buying amid Covid 19

Covid19 is a game changer. The world will not be the same once all this is over. When will it be considered over? I mean truly over? The economic impact that we are seeing today is only the beginning. We have yet to see the real ripple effect. Those of us that remain employed are very fortunate but wait until the ? trillion stimulus package(s) hit the economy and watch where inflation goes. Maybe not this year but just wait. Do I want to see everything return to “normal”? Absolutely! We all knew what to expect, how to anticipate, plan and see our way forward. I’d like to hear from just one person that can tell me exactly what things will look like just a month from now. Are boats really still selling like they were this same time last year? Not from what I hear. Many buyers stopped dead in their tracks to “wait and see”. After all, paying the mortgage and putting food on the table comes before buying the new boat they’ve been dreaming of. So I ask again. If I’m the seller and I want to unload this boat, what’s my appetite for accepting a modified offer? Take what I can get (with-in reason) or wait it out maybe another year for my price? All the while the boat becomes another year older and paying the storage and maintenance fees to keep her looking good.
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Old 29-04-2020, 16:07   #6
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Re: Boat buying amid Covid 19

Quote:
Originally Posted by 89zorro89 View Post
So I ask again. If I’m the seller and I want to unload this boat, what’s my appetite for accepting a modified offer? Take what I can get (with-in reason) or wait it out maybe another year for my price? All the while the boat becomes another year older and paying the storage and maintenance fees to keep her looking good.
I thought the same thing last year. And yet there there are, all those rotting boats that I could be working on. Priced too high.

It's been a buyers' market for a long time, and yet there are plenty of boats priced for buyers who aren't going to show up, by owners who value them differently. They remember the new sails and rigging that are 5 years old, and the new bottom job they got three years ago. Until those boats finally sell, several years later for a lower price, but by then needing a lot more work.

Selling (or buying) a boat is an inherently emotional process. Trying to re-negotiate a deal you already made isn't likely to go well.

If you've found a boat that meets your requirements, I suggest you buy it. If it doesn't, keep looking.

There are good boat purchases, and deals. Those don't fall into alignment nearly as often as you'd hope.
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Old 29-04-2020, 16:15   #7
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Re: Boat buying amid Covid 19

Quote:
Originally Posted by 89zorro89 View Post

I’d like to hear from just one person that can tell me exactly what things will look like just a month from now.
...

So I ask again. If I’m the seller and I want to unload this boat, what’s my appetite for accepting a modified offer? Take what I can get (with-in reason) or wait it out maybe another year for my price? All the while the boat becomes another year older and paying the storage and maintenance fees to keep her looking good.

For the same reason that we can't tell you what things will look like a month from now, no-one can tell you what's in your seller's head, either.

All depends on the boat, the seller, and the reason for selling. You always have the right to ask...

Is there any kind of contract already? Did you pay a deposit?
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Old 29-04-2020, 16:19   #8
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Re: Boat buying amid Covid 19

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Originally Posted by Lake-Effect View Post
For the same reason that we can't tell you what things will look like a month from now, no-one can tell you what's in your seller's head, either.

All depends on the boat, the seller, and the reason for selling. You always have the right to ask...

Is there any kind of contract already? Did you pay a deposit?

This was in the OP's post:



I started the boat buying process prior to the onset of Covid 19 and even came to an agreed upon price with the seller.
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Old 29-04-2020, 16:38   #9
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Re: Boat buying amid Covid 19

I’ve said it before and I’ll say it again. The boat market is on fire!

People want boats right now because they have figured out what’s important in life.

Results of the last couple days on my one ad.

Holding this boat and not selling for a few months. Literally a dozen people offered full asking price in cash. We just need to use it for a few months for quarantine before parting with her.

The emails are 2-4 per day, every day after stripping out scammers and low ballers. The texts are rare, but do happen.


Quote:
Originally Posted by 89zorro89 View Post
Covid19 is a game changer. The world will not be the same once all this is over. When will it be considered over? I mean truly over? The economic impact that we are seeing today is only the beginning. We have yet to see the real ripple effect. Those of us that remain employed are very fortunate but wait until the ? trillion stimulus package(s) hit the economy and watch where inflation goes. Maybe not this year but just wait. Do I want to see everything return to “normal”? Absolutely! We all knew what to expect, how to anticipate, plan and see our way forward. I’d like to hear from just one person that can tell me exactly what things will look like just a month from now. Are boats really still selling like they were this same time last year? Not from what I hear. Many buyers stopped dead in their tracks to “wait and see”. After all, paying the mortgage and putting food on the table comes before buying the new boat they’ve been dreaming of. So I ask again. If I’m the seller and I want to unload this boat, what’s my appetite for accepting a modified offer? Take what I can get (with-in reason) or wait it out maybe another year for my price? All the while the boat becomes another year older and paying the storage and maintenance fees to keep her looking good.
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Old 29-04-2020, 16:53   #10
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Re: Boat buying amid Covid 19

We were in the exact same scenario as the OP, but with one exception. We live in Texas, not MD (thought we're both from MD originally - small world).

Because Texas doesn't give a f#ck about anything except Lt. Governor Dan Patrick's hair cut, we were able to get the Sea Trial, and finish the deal. Last week we became the proud owners of our TY37. We honored the agreement and agreed upon price because the seller had zero reason to accept less - there were three people behind us for the boat.

Our broker told us he's working his butt off right now - super busy - people selling and buying.
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Old 29-04-2020, 21:35   #11
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Re: Boat buying amid Covid 19

Quote:
Originally Posted by letsgetsailing3 View Post
From reading posts on here, there is no shortage of buyers ready to hit the market.
Funny.. I spilled my coffee all over keyboard... 15%-20% unemployment and economy is sinking?
To the subject.. If you able and local environment allows start sailing immoderately and you did your homework on finding exactly what you need - worth consider buying her.
If she sits on marina for another few months - walk away.
I don't see any economic fundamentals pointing on buying luckshery items in the next few months.
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Old 29-04-2020, 21:40   #12
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Re: Boat buying amid Covid 19

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Funny.. I spilled my coffee all over keyboard... 15%-20% unemployment and economy is sinking?
Poor people are unemployed. Not boat buyers.
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Old 29-04-2020, 21:48   #13
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Re: Boat buying amid Covid 19

Quote:
Originally Posted by 89zorro89 View Post
Covid19 is a game changer. The world will not be the same once all this is over. When will it be considered over? I mean truly over? The economic impact that we are seeing today is only the beginning. We have yet to see the real ripple effect. Those of us that remain employed are very fortunate but wait until the ? trillion stimulus package(s) hit the economy and watch where inflation goes. Maybe not this year but just wait. Do I want to see everything return to “normal”? Absolutely! We all knew what to expect, how to anticipate, plan and see our way forward. I’d like to hear from just one person that can tell me exactly what things will look like just a month from now. Are boats really still selling like they were this same time last year? Not from what I hear. Many buyers stopped dead in their tracks to “wait and see”. After all, paying the mortgage and putting food on the table comes before buying the new boat they’ve been dreaming of. So I ask again. If I’m the seller and I want to unload this boat, what’s my appetite for accepting a modified offer? Take what I can get (with-in reason) or wait it out maybe another year for my price? All the while the boat becomes another year older and paying the storage and maintenance fees to keep her looking good.
The post kind of started out as a question. It kind of seems like this second post is bending towards being a persuasive effort. You probably can’t talk the market up or down.

Cain’t none of us see what’s coming in a month or two. I guess if you believe the market is going to drop, then pull your offer and scoop up a big bargain next year.

If on the other hand the “obvious” fails to materialize, then you will hav to start all over. You pays your money, you takes your chances.
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Old 29-04-2020, 21:52   #14
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Re: Boat buying amid Covid 19

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Originally Posted by Chotu View Post
Poor people are unemployed. Not boat buyers.
"boat buyers" - way too wide term. There is the money around. People still trading stocks - but you have short options - not buy only. Small business owners sinking financially "poor people"?
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Old 30-04-2020, 04:20   #15
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Re: Boat buying amid Covid 19

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"boat buyers" - way too wide term. There is the money around. People still trading stocks - but you have short options - not buy only. Small business owners sinking financially "poor people"?
People who have assets have wealth. People who rely on over leveraging credit are poor. Simple as that.

People who barely make any income working retail out of work right now aren't even in the boat market so I'm not considering them.

If you ran your small businesses properly, you have a cushion to make it through. My small business closed up in the first week of March. I'm planning to be closed until September worst case but hoping for the best. I could hold out until next year if I needed to.

Poor boat buyers may be gone, but they aren't buying world cruising boats anyway. They are buying the 30' Catalinas and such. Local sailboats. Even those are going like crazy right now because people have discovered life is short. You could wait a year in hopes prices go down and you can save a few thousand or you could grab the boat you want right now and have a good time.

Life is short. One might die in a year or 2. I think a lot of people are realizing living a quality life is far more important than a couple thousand dollars after facing the possibility of death. That's boosting the boat market.

Real estate too. It's holding value and sales are increasing.

https://www.cnbc.com/amp/2020/04/29/...-recovery.html

Vultures salivating over people's misfortunes will have to wait it out and may die while waiting as the people with boats are living a good life.

Priorities have shifted.
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