Broker tactic?

[FF]

Sellers and brokers may try to hide defects , but

"A '78 CHB with a completely rebuilt Lehman (150 hrs) with fresh engine bed, brand new 150gl aluminum fuel tanks (looks like they were assembled in place), teak decks removed and non-skid glass deck, new windows, engine room and bilges looked immaculate and very tidy wiring.'

Sounds like this information should have been touted , not ignored.

Craig's list would have been better than this "broker".

 

[SvenG]

... survey is available at 1/2 price. ... -Steve

I would not want a sellers survey unless it was just for a preliminary evaluation that I'd follow up with a survey by our surveyor. BTW, who was selling the survey, the previous buyer or the broker ? -Sven

 

[Stowawayjoe]

That's why I think it's a good idea to use a buyers broker. Find a broker that you like and let him make the initial contacts for you. If you eventually purchase the boat he gets part of the commission the seller pays.

 

[exmaggiedrum]

Buying a previous survey

I was in the process of buying a boat from a prominent Seattle broker on Lake Union. I put the survey as a contingency and schedule it with the broker. It had to be done in a certain time (for other reasons) so I booked it well in advance. This surveyor is supposed to be one of the "good" ones in Seattle with a good reputation.


I did not hear back from the surveyor so expected everything was all set. But I called the day before since I had a 2hr drive to get there. He said that since he did not hear back from me he assumed that I didn't want to proceed?????? He didn't call me to ask. He didn't call this very prominent broker to ask them????


So the contracts says I have to meet this contingency by either putting it aside or doing it and then accepting or not the boat or just call the deal off. The broker said that a previous "buyer" had a survey done by one of the best surveyors in the state - Matt Harris, and that the purchaser of the survey may give it to me. He wanted $200 for it. I wasn't happy about all this but it was a recent survey and the boat had been at the brokerage's dock since then.


I had selected Matt Harris for my previous boat and it was a great decision as he is a very thorough and tough "buyer" surveyor. I ended up buying the new boat based partly on this good survey. The broker ended up crediting me the $200 (a small fraction of their fees).


If it had been some other broker I didn't know I would have declined and got my own or cancelled the contract.



Regarding broker communication, that has always been a mixed bag. Some do it well and some almost not at all. In the OP's situation unless I knew the broker told a lie along the way I wouldn't find it very strange at all and would welcome the news he put out even if I didn't like it.

 

[Alaskan Sea-Duction]

Walk away.

Hire yourself a buyer broker.

 

[Comodave]

We were looking at Bayliner 4788. When I got down to the engine room and looked at the engines, they were in mint condition. I asked the broker how they had kept the engines looking so good, he said that it had been repowered a couple of years earlier. He never brought that “minor” fact up when we were talking about the boat and it was not mentioned on the Yachtworld listing. I couldn’t understand why that was not the first thing mentioned in big bold writing in the Yachtworld listing. It must have cost $80K plus to do the repower and the broker didn’t mention it, strange. But brokers do strange things all the time.

 

[OldDan1943]

Yep, "Hurry! This boat won't last long at this price!" . . . . a short search reveals that boat has been for sale for 9 months at that price . . . . Of course, they may be speaking in geological terms, as in thousands of years . . . .

And the salesman said, "Better make a decision because others are interested in the car." I told him to sell the car to the other folks. SHRUG

Had the same thing happened with a boat..... I told the broker, I didn't want to disturb his pending sale but, I did buy a different boat from him.

 

[FF]

"I couldn’t understand why that was not the first thing mentioned in big bold writing in the Yachtworld listing. It must have cost $80K plus to do the repower and the broker didn’t mention it, strange

Perhaps the broker feared the questions,

WHY were the engines replaced? or,, HOW were the engines replaced?

 

[NewbieFromNJ]

The way to secure the boat for yourself is with a contract. They are always subject to inspection, survey, etc., so you have no obligation at the onset. For all intents and purposes, the contract initially is nothing other than a reserved right to purchase the boat, i.e. it blocks someone else from stepping in in front of you. If you want to see and evaluate the boat before making an offer, then you risk someone else stepping in and getting a contract ahead of you.


All in all I think it's pretty fair. A seller isn't going to stop accepting offers just because you said you are interested or that you are coming to see the boat. In my experience selling boats, there are a lot more lookers and talker than there are buyers. I'll take you seriously when you present an offer and contract. Before that you are just another looker and talker.

What is the typical deposit on a written offer?

 

[Alaskan Sea-Duction]

What is the typical deposit on a written offer?

10%

 

[tiltrider1]

The reason it’s 10% is to qualify the buyer. If you can’t do 10% then it’s pretty unlikely you will be able to come up with a loan to buy the boat.

 

[Action]

Typically who holds that deposit?

 

[dhays]

Typically who holds that deposit?

Broker in my experience.

 

[Comodave]

What is the typical deposit on a written offer?

Yes, 10% is the usual deposit. The broker should put it in an escrow account until the deal closes. Make sure the broker is reliable...

 

[Bacchus]

Yes
That being the commission isn't a coincidence I'm sure. That way the buyer pays the seller the balance and then the broker applies the 10% to commissions taking care of any splits w cooperating brokers, erc

 

[BruceK]

I`ve met brokers I`d be very nervous to give a 10% or other substantial deposit. Assuming they do have an escrow/trust account, they still administer the a/c. Look at the contract to see when they can access the deposit, and what restrictions there are. Again, assuming they take any notice of any restrictions.

 

[BandB]

I`ve met brokers I`d be very nervous to give a 10% or other substantial deposit. Assuming they do have an escrow/trust account, they still administer the a/c. Look at the contract to see when they can access the deposit, and what restrictions there are. Again, assuming they take any notice of any restrictions.

I'd recommend escrow with a Title/Documentation company as opposed to the broker. Initially, I'd only give the broker enough to make the offer binding. Typically, that could be as little as $500 or $1000. There is no rule that says it must be 10%.

 

[tiltrider1]

I'd recommend escrow with a Title/Documentation company as opposed to the broker. Initially, I'd only give the broker enough to make the offer binding. Typically, that could be as little as $500 or $1000. There is no rule that says it must be 10%.

I always use a buyer’s broker that I am very comfortable with. He has me sign a note that says i’ll make a 10% deposit once any offers are accepted. My broker is licensed and bonded. If I wasn’t comfortable with him I wouldn’t use him.

 

[BandB]

I always use a buyer’s broker that I am very comfortable with. He has me sign a note that says i’ll make a 10% deposit once any offers are accepted. My broker is licensed and bonded. If I wasn’t comfortable with him I wouldn’t use him.

Licensed? Then he's in California or Florida?

 

[BruceK]

I'd recommend escrow with a Title/Documentation company as opposed to the broker. Initially, I'd only give the broker enough to make the offer binding. Typically, that could be as little as $500 or $1000. There is no rule that says it must be 10%.

We don`t have Title/Doc coys here. Not looking forward to the conversation with a broker: "As you seem a total crook unable to lie straight in bed at night and likely to ignore the terms of the Sale agreement to favour your own private interests and pocket the deposit if it suits you, I`d like someone else to hold the Deposit. Is that ok?

 

[BandB]

We don`t have Title/Doc coys here. Not looking forward to the conversation with a broker: "As you seem a total crook unable to lie straight in bed at night and likely to ignore the terms of the Sale agreement to favour your own private interests and pocket the deposit if it suits you, I`d like someone else to hold the Deposit. Is that ok?

Do you have any licensing or bonding of brokers? Boat brokers are only licensed in two states in the US and those licenses are very weak.

I'd leave a lesser amount with a broker, but I would not leave 10% of even a $500,000 boat with any broker as I don't know their integrity or their financial stability. Two risks. One is misuse of funds and it happens periodically in the US, even a broker in a very reputable firm. The firm did make good on his transgressions. Second risk is bankruptcy.

Now I wouldn't be ignoring the terms of the sales agreement as I would not have signed such an agreement without changes.

The agreement is 100% able to be cancelled and the deposit 100% refundable so I don't see the need for such a large deposit up front. In real estate, there's another level and that is a binder. This is the amount initially sent with the offer and it's typically only a few hundred dollars. A full deposit isn't required until after Title is checked and inspection is completed and ready to complete the deal with neither party allowed to back out. Getting a large deposit with an offer on a boat serves no purpose since all the buyer has to do is say later he doesn't want the boat based on sea trial or survey or further inspection.

 

[Action]

Different states have different procedures for an earnest deposit in a Real Estate transaction.

In AZ the typical deposit is about 1% of the agreed purchase price. An offer is made by the buyer, once accepted by the seller, the buyer tenders funds that are close to that 1% amount to be held by the escrow company. A RE escrow company is held to a high standard when holding money. That same standard as a deposit bank.

 

[BandB]

Different states have different procedures for an earnest deposit in a Real Estate transaction.

In AZ the typical deposit is about 1% of the agreed purchase price. An offer is made by the buyer, once accepted by the seller, the buyer tenders funds that are close to that 1% amount to be held by the escrow company. A RE escrow company is held to a high standard when holding money. That same standard as a deposit bank.

Real estate brokers are regulated in every state. Boat brokers are not.

 

[Sailor of Fortune]

Real estate brokers are regulated in every state. Boat brokers are not.

Real Estate brokers are regulated in every state. I have bought at least 60 properties with $100 or less as an earnest money deposit. These are non broker transactions and all cash at closing. A dollar will bind a RE transaction..My offers are all cash, I pay all closing costs (so I can use my title company because I pay the title insurance). If owner objects, I tell them to call my title company to see if I close my contracts. I would never give an owner a significant amt of money as a deposit,simply not needed. Escrow service yes,owner,never.