Selling a boat for cash, payment methods

[BobHorn]

Selling our boat, hopefully, for cash. What methods have people used to receive cash? Wired to an account, Zelle, PayPal, bag full of small bills?


Looking for something safe that does not give the buyer access to my account and also where I can verify the money is really there.


Thanks,


Bob

[S/V Illusion]

Escrow accounts are your friend.

[Chotu]

Wired, actual cash, cashiers check from a bank.

Once, a guy showed up with a suitcase of gold bars. I figured they were fraudulent, fake. To my surprise, we went to cash them in together and they were real.

[LarryDW]

When I bought my boat, I wired the money from my account to the seller, while we were at the bank, with the notary transferring ownership. Bill of sale, along with signing over the USCG Documentation.

[Dennis.G]

Not a cashiers check - don't do that, too much fraud there. Wire transfer is the way. Yes he will need your account and routing number. Of course that information is on any check you write so not really some secret.
Cash is good up to $10,000, but if over that the bank must report it to IRS when you deposit it and can result in unwanted hassle.
BTW if you do a wire transfer have the buyer set it up with their bank ahead of time and it can happen pretty fast. If it is not setup with the bank can take hours. If a broker is involved this can all be done via an escrow account which has advantage of making the transaction a two-step process with verification in between.

[Joh.Ghurt]

If you're in country with a modern banking system - this excludes the USA - a simple bank transfer works fine. Cash only if this doesn't pose a problem for you. In all other cases use an escrow account and stay away from Paypal, cheques, Venmo etc.

[Stewie12]

Bank wire transfer is the safest.

[sail sfbay]

Originally Posted by BobHorn

Selling our boat, hopefully, for cash. What methods have people used to receive cash? Wired to an account, Zelle, PayPal, bag full of small bills?

You did not say how much you are selling your boat...........If it is a large amount then wire transfer, if small amount then cash or Venmo (where the buyer can pay from his bank account OR credit card) have worked for me.

[Cheechako]

This is where a title company is a benefit. The buyer feels secure, the seller's account is secure. The money and title is in escrow until things are right. I did a sale using an agent in Fl and neither the seller (me) or the buyer were in Florida. They transferred title etc when funds had cleared. A $500 fee on a $250k sale isn't bad. Probably more now though.

Any deposit you accept at your bank is contingent on a waiting period for funds to clear. Speak to your bank about the terms of a wire transfer.



Paypal is good for some things but they can chose to stop payment, allow return of the item, etc at their discretion if the buyer complains. You don't want that.

[Sand crab]

I have bought and sold a boat with wired funds. I also bought a boat with a cashiers check but I could leave the boat on the sellers mooring for a while so he had the check and the boat. Wired funds clear instantly btw. Cash also works, I sold a truck for $25,000 all $100s. Just don't stick it all into your account at once and there will be no red flags.

[kmcshane]

For the buyer to wire you the money to your account, you may want to look into an unbeknownst (to me at least) routing number associated with your account: your wire transfer number.
I assumed and was initially assured in person at my bank that for the buyer to wire money, he needed only my checking account number and my check 9 digit routing number: no so.
I went online at my bank's website to verify my account and routing numbers, and found that I had three different routing numbers, and one checking account number:


1) paper routing number;
2) electronic routing number;
3) wire routing number.


All three nine digit numbers were different.


I called the bank (Bank of America). The wire transfer department verified that I do have a distinct routing number for wire transfers, and the buyer should wire the funds to that number.


Another logistical aspect: banks allow wire transfers to accumulate once in the morning, and then again in the afternoon, before they are sent as a bundle to the Federal Reserve for processing to the destination (seller's bank).


The process may occur differently at your bank, but BofA says the morning accumulation of wires takes usually a couple of hours to be verified, then wired to the seller's bank. Should be able to see a morning wire transfer in the seller's bank before noon. Same for the afternoon bundle. There can be a third wire transfer bundle during a business day should it be needed.


Once the wire has been initiated at the buyer's bank, it is highly unlikely it can be rescinded, but ask your bank about that. My bank said if there was an error code, or some mistake, yes...it could possibly be rescinded.


So I took the precaution of not signing over title til the money was in my account. I did however write up and sign a note that assured the buyer that once the money was in my account, the boat title and bill of sale were his.

[skipmac]

Originally Posted by Dennis.G

Not a cashiers check - don't do that, too much fraud there. Wire transfer is the way. Yes he will need your account and routing number. Of course that information is on any check you write so not really some secret.
Cash is good up to $10,000, but if over that the bank must report it to IRS when you deposit it and can result in unwanted hassle.
BTW if you do a wire transfer have the buyer set it up with their bank ahead of time and it can happen pretty fast. If it is not setup with the bank can take hours. If a broker is involved this can all be done via an escrow account which has advantage of making the transaction a two-step process with verification in between.

Cashiers checks are worthless. Counterfeit ones are everywhere.

Wire transfer is the way. I send and receive large wire transfers in my business account constantly and, as you say, giving someone your account and routing numbers is not a concern. Only if you give them your password, answers to your secret questions AND they steal your cell phone are you at risk.

As far as I know, once your bank receives a wire it is done and irrevocable.

[BobHorn]

Thanks all. I'll have a look at the "wire routing number" with my bank. May just go with a documentation company and use their escrow account.

[Sand crab]

The documentation company, benefits the buyer. If you have his money then why bother.?

[sail sfbay]

Originally Posted by BobHorn

Thanks all. I'll have a look at the "wire routing number" with my bank. May just go with a documentation company and use their escrow account.

Sand crab is correct.......just have the Buyer sign a bill of sale, then you sign it in front of a notary and once the funds wire transferred provide the notarized bill of sale to the Buyer. Buyer can decide to document with the USCG himself or spend $500 for a marine title company to do it OR register with the state DMV.