I am still shopping around for a used sailboat. I am curious if there is anyway of valuing a boat other than doing comparables. Is there a "blue book" for yachts? Also, if a seller list a boat for $100k what would you offer? Thanks again
Asking Price vs. Taking Price
- Thread starter Tai Chi Sailor
- Start date
- Status
- Not open for further replies.
S
Steve
Asking vs Selling Price
There are three popular "blue books"; ABOS, BUC, and NADA, but you'll find variations among all three on the same boat. Therefore, the only value that counts is what you want to pay. The owner loves his/her boat and has an inflated view of its actual value. Be cold, bid low, and be willing to walk away. The fleet only gets larger. The words you want to hear from the seller are "forget it! I'll sell it to someone else." At this point you are near the bottom of their range . . .
There are three popular "blue books"; ABOS, BUC, and NADA, but you'll find variations among all three on the same boat. Therefore, the only value that counts is what you want to pay. The owner loves his/her boat and has an inflated view of its actual value. Be cold, bid low, and be willing to walk away. The fleet only gets larger. The words you want to hear from the seller are "forget it! I'll sell it to someone else." At this point you are near the bottom of their range . . .
NADA
Try the NADA link below. There are many variables to consider when negotiating a purchase price with a buyer. The best advice I can give you is to hire a marine surveyor to determine the boat condition and fair market value before presenting an offer. Any problems found should be deducted from the asking price. If the seller's asking price is a very round number like exactly $100K or $50K I would treat it as a signal that the seller has only guessed the value and there is potentially alot of room to negotiate a final price. Good luck!
Try the NADA link below. There are many variables to consider when negotiating a purchase price with a buyer. The best advice I can give you is to hire a marine surveyor to determine the boat condition and fair market value before presenting an offer. Any problems found should be deducted from the asking price. If the seller's asking price is a very round number like exactly $100K or $50K I would treat it as a signal that the seller has only guessed the value and there is potentially alot of room to negotiate a final price. Good luck!
D
Don
one more thing to consider
Monty had it correct except for one thing - the offer should precede the survey. If not, you stand the chance of paying for a survey of a boat the owner sells to someone else. The conventional approach is to negotiate a tentative purchase price defined in a purchase and sales agreement subject to change or cancellation should the boat not survey well. Don
Monty had it correct except for one thing - the offer should precede the survey. If not, you stand the chance of paying for a survey of a boat the owner sells to someone else. The conventional approach is to negotiate a tentative purchase price defined in a purchase and sales agreement subject to change or cancellation should the boat not survey well. Don
W
Warren M.
A boat's price...
is what you, the buyer, is willing to pay. Having worked as broker, clean boats in really good condition (every thing works) that are priced "fairly" sell quickly. As others suggest below, once you get a sense of the price range for the boat you are interested in from the many sources available (and my sense is that comparables in your area are the most useful measure as NADA guides, etc., always seem to overprice boats), you negotiate a price with the seller contingent upon having the boat surveyed by a surveyor of your choice, which should include a sea trial. In this area (mid-Atlantic), most buyers begin the process by offering about 90 per cent of the asking price, if the original asking price was, in your opinion, fair to begin with. You also need to come to agreement with the seller about what the results of the survey may mean in regard to the final price. Some sellers will negotiate a price reduction for items found during survey, others will not. Find out before the survey. Good luck.
is what you, the buyer, is willing to pay. Having worked as broker, clean boats in really good condition (every thing works) that are priced "fairly" sell quickly. As others suggest below, once you get a sense of the price range for the boat you are interested in from the many sources available (and my sense is that comparables in your area are the most useful measure as NADA guides, etc., always seem to overprice boats), you negotiate a price with the seller contingent upon having the boat surveyed by a surveyor of your choice, which should include a sea trial. In this area (mid-Atlantic), most buyers begin the process by offering about 90 per cent of the asking price, if the original asking price was, in your opinion, fair to begin with. You also need to come to agreement with the seller about what the results of the survey may mean in regard to the final price. Some sellers will negotiate a price reduction for items found during survey, others will not. Find out before the survey. Good luck.
Talk to a broker in the area.
Find a broker in the area where the boat is. Brokers love to talk boats. A good broker has the pulse of the market for that type of boat in that specific area. Blue book values can't give you that kind of information. The broker may have already checked out the boat your interested in or may know the history of the boat. I had a boat on the market and was not selling. After talking to a local broker I found that there was a ton of boats on the market similiar to the one I was selling and it was defintely a buyers market where I live. He gave me some great tips on where to advertise and suggested that I lower the price a little. I took his advice and got 3 calls immediatley and sold the boat. One interesting thing he told me was "The first offer is usually the highest offer a seller will see". Ted
Find a broker in the area where the boat is. Brokers love to talk boats. A good broker has the pulse of the market for that type of boat in that specific area. Blue book values can't give you that kind of information. The broker may have already checked out the boat your interested in or may know the history of the boat. I had a boat on the market and was not selling. After talking to a local broker I found that there was a ton of boats on the market similiar to the one I was selling and it was defintely a buyers market where I live. He gave me some great tips on where to advertise and suggested that I lower the price a little. I took his advice and got 3 calls immediatley and sold the boat. One interesting thing he told me was "The first offer is usually the highest offer a seller will see". Ted
P
Pat
M
Marc
Bid low...
like Steve says and be willing to walk away! I saw my boat at a show for 72K (used.) Weeks later saw it reduced to 59K, that's when I got interested. I offered 40K, they countered with 52K (what they owed the Bank) and I accepted. I would offer 60-75K, put down 10% and make sure the contract is "subject to survey" That is an out for you. A lot has to do with how long the boat is on the market. These days, there are lots of boats for sail. Have fun and Good luck, MArc
like Steve says and be willing to walk away! I saw my boat at a show for 72K (used.) Weeks later saw it reduced to 59K, that's when I got interested. I offered 40K, they countered with 52K (what they owed the Bank) and I accepted. I would offer 60-75K, put down 10% and make sure the contract is "subject to survey" That is an out for you. A lot has to do with how long the boat is on the market. These days, there are lots of boats for sail. Have fun and Good luck, MArc
M
Marc
BTW,
the 10% is "earnest money". You will probably have to put down a total of 20% for the loan. The 10% lets them know you are serious. The broker should not cash that utill the deal closes. Marc
the 10% is "earnest money". You will probably have to put down a total of 20% for the loan. The 10% lets them know you are serious. The broker should not cash that utill the deal closes. Marc
Watch boats here on West Coast carefully on
Yachtworld and other online sites. Boats here will start high & move down, notice the brokers have various locations, if a vessel doesn't sell this year in Channel Islands next year it'll be in Marina Del Rey or Newport. And the asking price will go back up again for the "new audience". Many times you can find the boat on a couple sites for different prices and locations
Yachtworld and other online sites. Boats here will start high & move down, notice the brokers have various locations, if a vessel doesn't sell this year in Channel Islands next year it'll be in Marina Del Rey or Newport. And the asking price will go back up again for the "new audience". Many times you can find the boat on a couple sites for different prices and locations
wait look and save
Remember the old saying. There are only 2 times a boater is happy, when they buy it and when they sell it. Now this is not always true but I would look for this person first. I helped a friend buy a boat last year, the seller had just bought the boat 2 years before great condition and had put it on the market because it was not big enough, and got the bigger bug, We offered 140000 for the boat and after making my friend wait just over 30 days the seller agreed on 160000. He dropped 40000 because he wanted bigger. The key is wanted. Find some one who wants out, and help them in do this. Unless you are set on a particular boat that is rarely on the market you can find the person that really liked his boat but for some unknown and unforeseen reason cant keep it. Be patient and it can save you thousands.
Remember the old saying. There are only 2 times a boater is happy, when they buy it and when they sell it. Now this is not always true but I would look for this person first. I helped a friend buy a boat last year, the seller had just bought the boat 2 years before great condition and had put it on the market because it was not big enough, and got the bigger bug, We offered 140000 for the boat and after making my friend wait just over 30 days the seller agreed on 160000. He dropped 40000 because he wanted bigger. The key is wanted. Find some one who wants out, and help them in do this. Unless you are set on a particular boat that is rarely on the market you can find the person that really liked his boat but for some unknown and unforeseen reason cant keep it. Be patient and it can save you thousands.
- Status
- Not open for further replies.