Post Survey Questions...

[sopwith camel]

Hi all,

Had our survey done on the Gemini and just received our surveyor's report. I had a question that you might be able to help us with.

The valuation listed on the survey by the surveyor was $9,000 more than what is listed on BUC for the same boat in average condition. We thought the boat was slightly below average, lots of maintenance items not taken care of, a dinghy with a seized motor, a bulkhead saturated with water from the chain plates, etc.

I then checked NADA (not the best source I know) and the survey is $17,000 more. Then just for laughs I checked ABOS, but could not get the same year. I did get a year earlier, and that was $37,300 different, granted you have to make adjustments for the difference in years.

I then called the surveyor to see what he used for his valuation and was told he didn't just use BUC or ABOS but figured market conditions as well. Is this accurate?

Based on the condition of the vessel and the items that have to be addressed we were planning on lowering our asking price to take care of them and bring us more in line with BUC guidelines of a vessel in BUC condition or slightly below. Now I'm not sure that we can...

[GordMay]

You went to survey, agreeing that the price reflected the boat's value, in it's declared & known (to you) or apparant condition.
It's legitimate to reduce your offer, based upon findings that are "unusual",for a boat of that vintage, and etc.
If you knew about the obvious below-average condition, you'd have to discover "hidden" defects, to reduce your offering price.

[S/V Elusive]

First, the survey results are confidential between you and the surveyor. You are under NO (and shouldn't) obligations to share that information.

Second, the HIGHER value of the Survey will be used when you negotiate your insurance.

Third, IF you pay taxes, it is the selling price not the survey value from which your taxes are determined.

YOUR survey of the boat is device you can use to help negotiate your final buying price - that and the Sea Trial. There are probably a number of items that the surveyor was unable to confirm as operational - Either the owner/broker can demonstrate their operability, or they don't operate and should be deducted from the price.

Have fun.

[sopwith camel]

We were told at the time of survey, by the surveyor, that it was a good idea to share the survey with the broker to make additional negotiations easier with the seller. Obviously, we should not have listened to him as his value is much higher than what we feel the boat is worth. At least now we know better.

I think we'll make another offer based on what we feel the boat is really worth, and if it's turned down, so be it, and we'll keep looking. We have time.

[High Cotton]

Regarding Insurance Value......
my insurance company would ONLY insure for the purchase price, not the Survey price, which was $10,000.00 higher......

But I'm in South Florida, so I don't know if that had something to do with it or not....

[colemj]

The BUC and NADA values are very inaccurate. In almost all cases that I have used them for, their estimates were way below market selling prices. For several boats I looked at that were one year old (practically new), the BUC values were 60% of the cost of a new boat of the same model and equipment. I know the boats didn't lose that much value in one year.

I would ignore the BUC and NADA values for boats.

Mark