Wednesday, July 19, 2017

How to Buy a Boat

Found this on the web...

Most boats can be bought for 1/3 less than their asking price, at the end of negotiations.
Step 1. Every boat on the Market is not worth the asking price. Typically when making an offer bid 1/3 less, that’s right 33% less then the asking price.
Example: if a boat asking price is $100,000. I recommend writing your offer bid price for $67,000.
You may or may not insult the owner, but no worries, its business. I recommend to use a yacht broker, if you are emotionally involved person.
Step 2. THE COUNTER OFFER. The owner will counter offer with a higher price and go from there.
Example: Say they owner counter offers $85,000 on the $100,000 asking price. At least you know where here stands.
Come up half and meet the owner in the middle.
Example: Owner counter offered at $85,000, your offer was $67,000. So raise your offer back to $76,000. He make come back at $80,000, then accept.
Step 4. THE SURVEY (inspection) and SEA TRIAL
All vessel purchases are allowed a Survey and Sea Trial. This is the beauty of buying a boat and the advantage falls in favor of the buyer, not the seller.
I have never seen a boat that is perfect, they always have some issues.
Keep in mind, anything on a boat can be repaired. Just what is the cost? And that is precisely the point in this Art of Boat negotiations.
A. Sea Trial - Make sure you note the amount of fuel. Make sure both tanks are the same level. Many times the boat may list to starboard or Port because the owner added something and the boat is not level.
Take the ride. Notice the speed. You can always say the boat does not go fast enough for your desires. On your Notes knock off $5k. If the boat lists to one side, knock off another $3k.
B. Survey- The boat will be hauled out at the expense of the owner. His cost for this is $2k to $5k. Your cost will be getting the person to survey your boat. A list can be found online. It will cost you $500 to $1,500. Money well spent.
On the Survey Report you will get a list of about 50 items for repairs. They will be prioritized. (1) Sea Worthy required, Bildge alarms/pumps, (2) definitely needing repair, engine-generator etc. (3) recommended repaired, Risers, Impellers and Air conditions and (4) maintenance repairs -oil change and light bulbs and (5)cosmetic repairs cushions upholstery.
This is the big negotiable part and is your advantage in price. This can be anywhere from $10k to $30k survey + $5k Sea Trial (slow engines and uneven list)= $15k to $35k reduction in price more.
Step 5. Final negotiations will give you an advantage of knocking off another $15k to $35k.
You see, once the owner has spent this money on the haul out, by then he is emotionally committed in selling the boat. You might say he has already divorced himself from it.
Example: Counter Offer again based on the Survey and Sea Trial another $15k if you are nice and $20k if you drive a hard bargain.
Final Sales price: $65k. Like I said, most boats can be bought for 1/3 less of the asking price.
When is a boat owner the happiest? The day he buys his boat and the day he sells his boat. Ha!

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