Best ways to reduce cat's asking prices

[arizolac]

I'm planning to go cruising in 2008. I would like to buy a 47' to 50' cat and my budget is between $500K and $650K
I have been following cats for sale for the last 18 months and most of the cats in that price range are still for sale, but brokers are asking the same price they did almost 2 years ago. I have read that the best thing to do is to try to contact the owner because they are usually more interested in droping the asking price than the brokers. Is it a good idea to sign a buyer's broker agreement? I do not think it will be in their best interest to drop too much the asking price. Any idea how to contact the boat owner, once you find the boat you are looking for?
Any advice on this subject will be greatly appreciated.

[Jeff H]

In my experience you have it exactly backwards. Actually, its the brokers that are more interested in dropping the prices than the owners. Brokers want quick sales, they realize that we are currently dealing with a buyers market and they don't want to be advertising the same boats month after month since that costs them money and prestige.

Owners are not trading in the marketplace and so they adopt an attitude that they know what they paid, and their boat is in good shape, so that must be what it is worth now. Of course it was a sellers market when they bought thier boat and, as any good broker now knows. it is a buyers market today.

A good broker is your best tool in getting a good price on a boat. I would find a broker that you trust and work with him in making your case. Discuss it in detail. Show the broker listings that you have followed for years so that he can refer to those specific boats.

In framing your offer it sometimes helps to include a note with your offer that explains your offer in terms of the market place perhaps mentioning that the average time on the market for the brand that you are considering is two years or what ever.

Approaching an owner directly with a low offer is only likely to piss off that owner. I know it did me. I refused to deal with that buyer because his behavior reflected someone who seemed to be trying to pull a fast one and therefore could not be trusted.

Jeff

[Sunspot Baby]

If the boat seems right, make an offer at a price you're willing to pay. Don't worry about insulting the owner, you're not trying to make a new best friend, you're trying to buy the right boat at the right price. If the boat has been on the market for 2 years, the owner could be very motivated.

George

[Tropic Cat]

I'd like to remind you guys that the negotiated sales contract price isn't the end of negotiations. Your accepted offer will of course have an ammendment stating the offer is "good" pending the boat survey. Now folks, I've never seen a boat that is flawless. The survey report will note areas that need work/replacing. Get quotes on this work and start subtracting from your accepted offer. The result is a much lower price.

I apologize in advance if it seems I'm stating the obvious.

Rick in Florida

[Jeff H]

I did not mean to suggest that you should not make as low an offer as you think you can justify. I only meant to say, if you plan to make a low offer, do not approach the owner directly if the boat has been listed with a broker. That is less likely to get you to a deal than working through a broker you trust.

Jeff

[arizolac]

Thanks for the advice. I guess trying to go directly to the owners might not be the best way to do it. Jeff, I think you are right about sellers (owners) not accepting that we are in a buyers market today, there are 19 Lagoons 470 for sale, if I make low offers and upset a few owners but one accept my offer that is all I need. A St. Francis 48' just droped its asking price by $200K so there are some room for negotiation. George, you are right I am not looking for friends just a boat. Rick, thanks for the info on the survey. Now, all I need to do is find a good Broker and a good Surveyor. Great. Thanks agains for your help.
Cesar

[irwinsailor]

I agree with Jeff on many of the points he made. A broker is a great tool to use to make a good deal. Also the subjest to survey clause is very important. Only show the the page with the listed problems. NEVER show the surveyors value for the boat.

[RandyAbernethy]

You may have run across Margaritaville II a Lagoon 470 in the BVI. This is a very nice boat in great condition (rarely used). It hit the water last year and was the last 470 I believe. I sailed on her and went through her systems in detail a few months ago and I would recommend her. I think you could get her within your range.