10% deposit, anyone negotiated less?

[BobHorn]

We are in the process of looking for a boat and are wondering if anyone or how many people have negotiated a less than 10% deposit.
thanks,
Bob

[belizesailor]

Ive sold a couple of boats to people with zero deposit, but these were serious buyers who I knew, and knew they could pay cash.

However, under more typical circumstances, if a buyer started wanting to negotiate down on the deposit, it would cause me to suspect they were not that serious.

[Cheechako]

I've never left that big a deposit. They just need to know you are serious. Let's see... a $265k cat I deposited $2500, A $332k mono I think it was $3000? Actually the cat deposit was just a photocopy of a check sent by email. I didnt ask, I just said "i'll leave you xxx for deposit"
"Let's see, shall we accept a few thousand deposit or let the boat keep sitting....?"

[SailsWithFists]

Originally Posted by BobHorn

We are in the process of looking for a boat and are wondering if anyone or how many people have negotiated a less than 10% deposit.
thanks,
Bob

A typical contract should show that the deposit is refundable in the event of rejection by the buyer after inspection and/or survey and/or sea trial, etc.

I am sure that you can negotiate less, but if you are seriously interested, and protected by a contract, then why worry about it?

All of our previous purchases were less than 10%, with the exception of the last boat.

[Suijin]

In short you can try, but it might be rejected. One purpose of the deposit is as a sign of good faith and that you expect to complete the transaction barring any hiccups regarding the boat being as described and the survey.

As soon as you make a deposit the seller and the brokers involved have work to do. The deposit ensures that you're not wasting everyone's time and that you're serious.

[Cheechako]

Another thing to read carefully and watch for is the inspection, approval, rejection wording on the contract. In the past it's been that you can use any excuse you want to reject a boat. I have heard (but not seen ...as I havent bought in a long time) that some brokers have changed wording such that if the seller fixes it, you have to accept or have some liability. Just saying be careful.

[belizesailor]

Originally Posted by Cheechako

I've never left that big a deposit. They just need to know you are serious. Let's see... a $265k cat I deposited $2500, A $332k mono I think it was $3000? Actually the cat deposit was just a photocopy of a check sent by email. I didnt ask, I just said "i'll leave you xxx for deposit"
"Let's see, shall we accept a few thousand deposit or let the boat keep sitting....?"

I dont think the actual amount matters that much, just the fact that there is enough of a deposit that buyer wont want to walk away from it. Its more psychological than really about the absolute dollar amount I think.

[belizesailor]

Originally Posted by Suijin

In short you can try, but it might be rejected. One purpose of the deposit is as a sign of good faith and that you expect to complete the transaction barring any hiccups regarding the boat being as described and the survey.

As soon as you make a deposit the seller and the brokers involved have work to do. The deposit ensures that you're not wasting everyone's time and that you're serious.

Yes, the deposit does need to be enough to compensate folks for wasting their time...and taking your asset off the market. Had that happen on a real estate deal once. Bone head buyer signed contract and paid deposit (10% in that case). Unbeknownst to us he was banking on another transaction to complete, but did not make that a contingency (which I would not have accepted any way). Predictably, it didnt complete...ooops...at least those of us involved in the deal got something for stupidly wasting our time.

[BobHorn]

Thanks for the responses. I guess it wouldn't hurt to try.

[Paul L]

There's nothing to negotiate on the deposit. It is completely up to you to offer what ever you want to. You are negotiating the price and terms of the purchase. The price being the big issue to the seller. The deposit just shows you are serious. Just put together a good offer and include a basic deposit. No seller is going to focus on the deposit.

[S/V Illusion]

Some brokers will insist on a 10% deposit which coincidentally is their commission which they view as assurance they get their money. It is a bad business practice but many do deal that way.

[Attikos]

It hardly matters. If you don't have the money, don't buy the boat. If you do, you're not losing anything of value by putting in a 10% refundable deposit given the banks are paying you less than inflation for your cash.

[denverd0n]

Kind of depends on how much boat you're talking about. If you're buying a $50k boat, and cannot come up with $5k for a deposit, that's going to be a very big, red flag for the seller. If you are buying a $500k boat, and offer a $20k deposit, that may very well be accepted. It's a matter of putting down enough to demonstrate that you are serious, and that you have the ability to close the deal.

[Suijin]

Originally Posted by S/V Illusion

Some brokers will insist on a 10% deposit which coincidentally is their commission which they view as assurance they get their money. It is a bad business practice but many do deal that way.

There's no correlation. If for any reason the deposit is forfeit it does not go to the broker, it goes to the owner. The broker gets a commission on the final sale, not on deposits.

[valhalla360]

I don't understand what you are trying to accomplish.
- If the sale goes thru, you are out the 10% regardless.
- If the sale doesn't go thru for a listed contractual reason, you get the 10% back.

The only reason I can see even asking is that you are trying to pull some sort of scam on the seller. I assume that's not the case, so what is the goal?