Advice regarding Brokers and boat purchase!

[Galadhlinn]

Originally Posted by Robert E

Bob, Alison Mason is one of the very best marine surveyors in the Northwest. I would pay for her to come to Seattle to survey any boat I was considering buying without hesitation. Home. Best, Robert

Thank you Robert for your reply and recommendation. I will absolutely keep Alison Mason in mind when I reach that stage.

-Bob

[x_HoldFast_x]

Originally Posted by denverd0n

You've just given him a great incentive for directing you towards boats with inflated asking prices. And, believe me, there are a lot of those out there!

So, let's say there are two boats in the area that are generally what you're looking for. Both have a market value of about $50k. One has an asking price of $55k and the other has an asking price of $65k. Which one is he going to strongly steer you towards? Obviously the one with the inflated asking price. He stands to make much more on that one, though the other one might have been a much better deal for you.

You may imagine that there are not a lot of boats out there that are worth $50k, but have an asking price of $65k. In fact, there are lots and lots of boats out there that are worth about $50k but have asking prices of way more than $65k!

so how do you determine the true value of a boat knowing that the asking price is inflated? Can you get a sense of the true value BEFORE doing a survey?

[john61ct]

There is no such thing as true value.

Market value is unique for every used boat, and cannot be learned until a sale is complete.

By observing a lot of sales over time for a particular boat model you can get a feel for the market, but there are way too many variables involved, who knows what the true condition is unless you're there in person or maybe get a copy of a survey report.

Location, time of year, state of the economy, all are also major factors.

[x_HoldFast_x]

Originally Posted by john61ct

There is no such thing as true value.

Market value is unique for every used boat, and cannot be learned until a sale is complete.

By observing a lot of sales over time for a particular boat model you can get a feel for the market, but there are way too many variables involved, who knows what the true condition is unless you're there in person or maybe get a copy of a survey report.

Location, time of year, state of the economy, all are also major factors.

Yes, I see. How can you find final sale prices? I know the boat I want. But I can't get a sense of an average selling price. Though, that may be a futile quest.

[CarlF]

The often overlooked conflict of interest with both buyer's and seller's brokers is that they only get paid if you do the deal. If there's no deal, they don't get paid. They have a business. That is how it works.

In every sale the seller wants a high price. The buyer wants a low price. But the two brokers don't care who comes out better as long as a deal get's done. They get almost the same commission if the boat sells for 10% more or 10% less.

In most cases the two brokers will talk secretly between themselves about what it will take "to do the deal". The seller's broker will then lean on the seller to take a lower price. The buyer's broker will lean on the buyer to up his offer or not worry about a problem with the boat. Neither broker will tell you that it's the wrong boat for you.

As a buyer, there's nothing wrong with using a buyer's broker as long as you keep this conflict of interest in mind. Never tell them your strategy or how far you might go on price. Always seem like you're about to give up and walk away. Assume everything you say to your buyer's broker goes right to the seller's broker.

[john61ct]

Originally Posted by x_HoldFast_x

Yes, I see. How can you find final sale prices? I know the boat I want. But I can't get a sense of an average selling price. Though, that may be a futile quest.

Put a lot more time and energy into the process than most are willing to.

There is a list of boat models I've been following for about a year now?

Many of them are sold frequently enough for me to have a feel

"That'll go quick"

"That seller's dreaming, totally unrealistic"

and then those in between.

For sure when the former come along, be ready to hop on over there contract and cash ready to go, lock it up subject to survey & sea trial.

And don't nickel & dime unless you're willing to lose it and have to wait maybe a long time for the next one to come along.

Depends on the boat and price range of course.

Pearson 26's under $5K are a dime a dozen, some in really nice shape, but

Nor'sea 27s might only see three in a year and $30K may be an example needing at least that much to get ready to take offshore.

[Fiveslide]

Originally Posted by x_HoldFast_x

Yes, I see. How can you find final sale prices? I know the boat I want. But I can't get a sense of an average selling price. Though, that may be a futile quest.

There is a database for broker sold boats. Brokers have access to selling prices as entered by the broker involved in the deal.

If the brokers involved honestly documented the final amount changing hands, then your buyer's broker could tell you that. Some people are skeptical that the final sales prices don't get inflated by brokers as just another way to further line their pockets by manipulating the market. I'm sure, like everything else with brokers, some do, some don't...