Negotiating a puchase

[CarlN]

Do you believe a car salesman when says he cares about your "future business". Really?
I don't hate brokers. I usually use them. But I don't kid myself. There is a conflict of interest. A commissioned broker only get's paid when the deal closes. They make about the same commission whether it's a good deal or bad deal for their client. They make nothing if the deal falls apart. This doesn't mean to never use brokers - the system is setup to make it much easier to use brokers than not - but just remember the two brokers are likely having offline discussion about how to get the sale to close - discussion neither you or the seller get to hear.

 

[Scott T-Bird]

If 2 brokers are talking about how to make a sale close, how is that a bad thing? Isn't that the point of the transaction? It's not a conflict of interest. Brokers are working for commission, the buyer is interested in purchasing and the seller is interested in selling, so broker(s) would be working toward that end. Where is the conflict? It's no different than my line of work when a client wants my service. There's only a conflict when something unethical is going on. The way brokers work isn't inherently a conflict of interest as you suggest.

 

[Ran Eason]

Does not make any difference if its a boat, car, plane, house or trambone the rules are the same.

1. Do your homework first. Know what is worth to you by looking at comparable sales taking into account current market conditions, season, level of activity, etc.

2. Never make an offer until the seller tells you what he has in mind first. In other words, don't negotiate against yourself.

3. If the seller is asking more than what you are willing to pay then bring him back to reality by going over your research with him and why you have arrived at your offer price.

While I agree that you are trying to buy a boat and not make a friend, you must convince the seller that the deal is fair.

In my experience people who think they got a steal usually find out that they don't.

 

[rockingham]

Lots of good advice already. To which I would add, convince yourself that you don't want the boat, then approach it as, perhaps, it would be nice to have but...... list all the added expenses. A "take it or leave it" kind of attitude though not actually verbalized will put you in a strong position to negotiate. Body language will do the rest. As you "chat the seller up" mention what could be done with money from a boat sale. Get the seller to think about what he could do with the money you are offering. If he is thinking about that new sports car he will buy with the boat sales money he is already moving onto the next big thing. Real estate salespeople listen for talk about what furniture would go where in the house they are showing. Those are signals that the person is ready to make a move towards buying something. Also, when the final moment arrives when you both have stated your prices, ...................................the next one to speak loses their position. Good luck.

 

[Gunni]

You late arrivers need to know NYSail has been shopping for a B423 for months. This isn't a small boat purchase.

 

[ALNims]

I don't know what the true condition of the boat is but one thing I always do is evaluate the condition, estimate the repairs needed and factor that in my bid and use that information during discussions.

 

[eherlihy]

so..... think we have found a boat. All the right stuff and reasonably good condition (prior to survey and short-haul to inspect bottom). How low do you go on your offer knowing this boat would work...... on market for a few months and not a ton of action. I figure around 10%.....

Make him a fair offer, and he is more likely to treat you fairly.

When I was looking at boats, I saw MANY that looked great in photos, only to look like salvage claims in person. For the boats that I still thought looked OK, I either offered >80% of asking price, or walked away without making an offer. I figured that if we were more than 20% apart, we would never come to terms, and I would be wasting both our time. Occasionaly the broker, or the seller would contact me for a follow up on boats that I did not extend an offer. If they asked. I would tell them why I didn't offer, and wish them well.

The boat that I eventually bought I offered 88% of asking price, and then after the survey where I learned more about the boat, I believe that I ended up getting it for 82% of asking price. I believe that both the seller and I were happy with that deal.

If I were selling (and I'm not), and you offered me 50% I would not respond. If you then followed up and contacted me, I would tell you to piss off.

 

[kenackerman]

There are certainly many approaches to buying boats as has been pointed out here. Those who favor being "sharks" made their case as early responders while RE and eherlihy who favor "fairness" came towards the end. Note that the "sharks" greatly outnumber those who see "fairness" as a better approach.

I think all of us want to make the "best" deals we can. It's also why the smaller fish don't swim too close to the sharks.