Tips for closing the purchase of a sailboat

[dziedzicmj]

I don't know if this is popular enough in your area, but you can always try putting a sea trial condition (the sale won't close until a successful sea trial) and have an extra clause stipulating that if there is another offer, you would either remove your condition (let's say within 48 hours) or walk away from the deal. I have seen those in real estate transactions (usually, when the buyer puts a condition of selling his existing house), so i don't see a reason why this could not be used in this case. This protects you (you won't lose this boat unaware), but it also protects the seller (the boat is not off the market).

just my $0.02 (CAD)

Marek

 

[D.L.Bland]

You really should sail the boat first matey!

Hi Everyone,

I am ready to submit an offer on a boat and think that I need some assistance in crafting the offer to help eliminate most risk.

I have a buyers broker and also am using the standard purchase and sale agreement from the AYBA. My broker is very helpful and has recommended to add the appropriate wording to the offer that makes sense to me. The boat we have found is on the hard with the mast in storage. The boat is in New England and we are still 3 months away from a launch in these waters. My broker has always suggested that I offer with a 30 day close that is dependant on the survey and acceptance of the yacht. (My acceptance would be based on the dry land survey only). The survey will be a dry land survey and $10K held in escrow until the boat is launched.

Should I construct this offer differently, perhaps with acceptance of the yacht occurring with the sea trial in 3 months, or are there any issues about this that I should know about.
Thanks in advance,

Look, if it were me, I would never put much money on any boat that I had not even sailed,ever! That's askin for a beating, Look the hungriest broker should be on your side; anyway enough to set up a sale contingency to have the boat reassembled and available for you to sail , which is called a Sea Trial, without which, no one should put much more than a token of money and a survey on the hard of course is a good 1st step, which you must pay for, but trust experience brother, do the Sea trials , before closing the deal. you may be surprised but you shall not be sorry that you held tough, eh?

 

[AnchorDragger]

Lease it

I would agree to make a sale contingent on a buyer obtaining financing and insurance only if he/she gave me a deposit to hold the boat for a proscribed period. If the buyer withdrew before the end of the period he would be entitled to a prorated refund. If the period expires before the buyer is ready to close the sale he forfeits the deposit and the boat goes back on the market. In effect the buyer would be renting the boat (without getting possession of it) while he gets his ducks in a row. The "rent" would be applied to the purchase price.

 

[tahoemark]

Well perhaps I'm a more trusting sole?

It sounds like this may be an expensive boat, so all these comments are relative. Also in all the sailboat purchases I have had it is always the systems that are the weakest link. Having said that,
First, I would find the best, most detailed surveyor in the area, preferably one that has done several of your make and model. I had one surveyor years ago tell me that brokers didn't like him because he always found things wrong and was very picky...my kind of guy. You definitely need to be there with the surveyor. Talk with him ahead of time and let him know this, ask questions and learn everything you can. All boats have wear and tear, I of course want to know the major issues but I want to know now any minor issues or potential issues as well. Of course on the hard the surveyor can only do so much. But his survey and my personal observations will tell me know how to proceed. If the surveyor says it is one of the best examples he has seen, that would give me confidence that the boat had been well maintained. I might proceed to buy the boat, hold and acceptable amount back in escrow for any unforseen issues that crop up once the boat is in the water. Have the seller also guarantee that all systems were in working condition last fall and he will agree to repair anything not fully operational. Alternatively, if the boat is in average condition with a lot of little deferred maintenance type things I might try and work out a long escrow with the seller. Or make sure I hold back plenty of money in escrow. I also would try and talk directly with the seller to gauge his character. If I was the seller and you talked to me, I would tell you everything works fine, I expect you as the buyer to have a boat that everything works on, and if it doesn't I, as the seller, expect to make it right. Now, I as seller, am not going to give you a brand new equipment if something is wrong, but I will authorize the yard to repair or replace as necessary. On the other hand if the seller isn't willing to be co-operative and is vague with his answers, then keep looking and wait until spring and see if it is still available. Put yourself in the sellers shoes. I think an honest seller would have no problem agreeing to fixing things and holding back some money for that potential situation. But an honest seller would much rather have a sale with a hold back than no sale at all. I as a seller wouldn't want a long escrow as I'm looking for a sale, not to take my boat off the market. Get the survey and go from there

 

[rardiH36]

Presumably, the boat model is one that you already know that you will like for its sailing and handling and subjective characteristics.

If the several-months-away sea-trial issue is otherwise holding up the sale from the seller's point of view, then maybe a work-around is a clause or an understanding that only unknown mechanical deficiencies evidenced during the sea trial can modify or cancel the already agreed terms of the sale. The seller might then agree to the extended escrow period if he is confident that his vessel is "all systems go" as already disclosed and/or discovered by the on-the-hard survey and he knows that the buyer can't later walk after the sea-trial just because (for example) he doesn't like the way the boat sails, or the running rigging is arranged, or in the interim the buyer had developed a preference for a boat with a bigger engine; etc.

 

[ForeverYoung]

Dry land surveys are great, and will spot many things. However the sea trial will reveal any 'actual use' issues, especially those that will not appear whilst on land.
One boat I bought had been on the hard, and when we took her out the engine lost RPMs whilst under load (ran fine dockside), and we discovered 2 leaking thruhulls (had been painted over underneath, so surveyor hadn't spotted). Also the main jammed and the owner had to go up the mast to free it, but that was more comic relief.

Not having a sea trial is like buying a car sight unseen. If the price is good enough, and you can afford to fix anything that might crop up, then go ahead. Otherwise, I'd try to test as much as possible on land.

If you feel ok with any initial survey, I would still ask for the engine and generator to be run. Decommissioned doesn't mean 'can't be run at all'. Even on the hard you can run 'winterized' engines and generators. I have done so with literally a pipe providing water from buckets into the raw water intake/strainer.. If they're both diesel, the tanks should be full anyway.
Then all that needs to be done is re-run pink stuff through when done.
Of course, if their decommissioning included removing impellers or hoses or sundry pieces, forget everything I just wrote..

 

[Captn TJ]

+1 a lot of engine issues don't come out until the diesel is under load. And then what about the electronics/autopilot, etc etc. how about the sails? Most surveyors won't unpack the sails or are incapable of knowing if a sail is blown out

The surveyor and dealer will have all kinds of disclaimers. The seller after the fact can say your surveyor should have caught it etc etc.

At the end of the day the phrase buyer beware still applies

 

[hummingbirdbassist]

You see, you like, you buy!!!! CASH is KING! Get the middle man out the middle! Put Benjamin between your hand and owner. All else will work itself out

 

[Gunni]

I wouldn't do it. Wait till spring launch. Keep shopping. There are many boats in the sea. If it was meant to be, it will be.
Can almost guarantee you that one or more of the systems are going to have an issue that requires boat bucks.

 

[mark_swart]

Having sold quite a few boats, I can tell you that as a seller I'd probably laugh if you wanted me to hold a boat for three months for you.

Back to the original post question -- I think if you had strong feelings on this boat you would have already made an offer.

 

[Captn TJ]

All good thoughts and applicable depending on the size of boat. A survey alone is probably all you need for a trailer sailer or day sailer - boats with fairly simple systems.

On the other hand buying a 45' with a/c, complex electronics, sails that are expensive to replace, etc. - different matter altogether - not to mention March/April aren't that far off.