I've been looking hard at used sailing yachts for a while primarily in the 35-45 foot range.
Too often I come across a guy who is selling an unfinished "project" typically claiming that way more
money has been spent than he is asking now. Too often the story I get suggests someone who was overly optimistic or overconfident. But lately I've begun to suspect even another wrinkle and I don't want it to happen to me.
A guy buys a
boat in obvious need of
repair, manages to get it towed to a yard who sets it up "on the hard" and they immediately start
sanding and mending the
hull. This seems to happen before the
rudder is repaired,
rigging estimates, re-power, etc. The
hull work, given the hours of effort, seems to be charged reasonably as are the
storage fees for the first two or three months.
Then before you know it, there are additional thousands of dollars, an
engine removed and waiting for
parts, packing,
transmission,
keel bolts, sail
repair... OK, you get it. Together these easily exceed any reasonable expectation of selling
price, but not the "It will be worth $50-$75k when completed." As if to add insult to injury, the yard now wants perhaps $600 per month on the claim that the customer agreed to that after the first X months and is not "cooperating" on getting the
repairs completed.
The "scam" question is: Doesn't the yard know where this is likely headed? Do they get legitimate "approval" for the hull
work or just simply start as soon as the
boat is out of the
water on the theory that there would be no further work needed if the hull is not sound? Does customer "approval" come simply by having the boat pulled out of the
water?
Am I paranoid? Is there a way to avoid what appears to be common practice?