Selling a boat with a broker questions

[Baker]

On one, the owner agreed to his requested price reduction and he still backed out.

He is still within the confines of the contract and still bound by it...IOW, he has to buy if the owner is in agreement to the reduction.

 

[BandB]

He is still within the confines of the contract and still bound by it...IOW, he has to buy if the owner is in agreement to the reduction.

No, he doesn't. Once he's declined the original contract, there is none. Only if the two of them agree to new terms and they didn't. There was email discussion, but never an agreement. It's a very bad part of boat contracts (houses are the same). Do I think morally, ethically, what he did was wrong? Yes. I think it was bad faith. However, he rejected the boat based on survey. Seller agreed to compensate for the issues, buyer declined a new deal. In this case, I know what happened. He'd offered more than he originally planned to spend and had now gotten cold feet. He didn't even realize it, but he was looking for a reason to say no.

In reality, today's contracts give the buyer virtually unlimited ability to back out of a contract up until closing. Buyer's reasons for rejecting don't have to be valid. Simply, after trial and survey, I reject the deal. I didn't like it. There's never been a used boat with a perfect survey.

Here's typical wording:

Acceptances of the above contingencies are at the sole discretion of the BUYER. To accept or indicate satisfaction of these contingencies BUYER need take no further action. For BUYER to reject VESSEL or not consummate the purchase by reason of contingencies, BUYER has until at 5 PM EST to notify SELLING BROKER in writing of rejection. If no notice is received by SELLING BROKER by the specified date it shall be deemed that that contingency has been satisfied or waived.​

A small percentage of contracts lead to actual sales. I've heard numbers from 15% to 50% from various brokers. My best guess is it's between 20% and 35%.

I look at boat contracts and houses and building contracts the way they're written today as nothing more than options. It's you've agreed to let me check it out based on my deposit and to sell it to me at this price if I still want it two weeks or whatever time period from now. There's one home investor in South Florida abusing the system weekly and putting the selling brokers in very difficult situations. He makes offers, has seven days to inspect. He returns with a ridiculous reduction proposal. The selling broker is legally obligated to present the offer to the seller. What can she legally say about the one making the offer? He/She has to be very careful. He's threatened suit and going after their license.

 

[Sailor of Fortune]

No matter what the contract says, you can't make a buyer, buy. You may be able to hold some money once the contingencies are lifted. Much better to just find a new buyer.

 

[Jeff F]

I look at boat contracts and houses and building contracts the way they're written today as nothing more than options.

I think that's the right way to view them. Doesn't seem fair to sellers, but I guess in a perceived buyer's market it's the reality.

 

[Ron T]

Using the Grand Banks Owners web site, the Trawler Forum you can reach 1000s of possible educated buyers. Using YachtWorld to get a good idea of market pricing why can't you give it a go yourself? Who knows the boat better then you? Plus 10% is just way to much for what they do!

 

[kolive]

Ron T,
Thanks for your reply. I have posted on the GB Owners site, just waiting for a buyer before I list her. Doing some light cosmetic work and cleaning before we list.

 

[Bigsfish]

Ron

In my world I think the 10% is cheap for all the paperwork they do and all the pressure they take off my shoulders. If I didn't use a broker I would still need a lawyer. It complicated when millions of dollars are changing hands. Not only that but a good broker knows his customers and can prequalify them.

 

[Nomad Willy]

"Millions of dollars"?

Perhaps we should call you "BigBucks"?

 

[yachtbrokerguy]

I have enjoyed reading this thread!
The price of the boat is critical, the higher a price the more you need a broker. With a boat in the price range of your 43 year old Grand Banks you will find a local buyer, and there will be more buyers in that price range.
There is a lot of good advice here, I agree with much of it, especially telling the OP to move the boat to the broker's office. The closer to the office, the more likely potential buyers will look at the boat. A buyer may visit your broker to see another boat and might look at yours as it is right by his office. Maybe that buyer might like yours better!
Just last week a potential buyer came into my office to look at boats 50 to 65 feet. I had a new listing that arrived here at the boat yard a few days before that and we inspected that new listing. The boat was not on the internet yet and we had the first showing.

 

[kolive]

Yachtbrokerguy,

Thanks for your input. I agree, lots of good advice here. We are getting her ready to list, cleaning, buffing, removing all personal stuff and putting bung plugs in the decks from the winter.

 

[Bigsfish]

Eric

If your selling a boat over 500k and buying a boat over 500k your talking over one million. It goes up fast. ?

 

[BandB]

I very much respect good brokers, carefully selected brokers, and feel they more than earn their commission. I wouldn't do what they do for 10%.

 

[Bigsfish]

Well said.

 

[Baker]

I very much respect good brokers, carefully selected brokers, and feel they more than earn their commission. I wouldn't do what they do for 10%.

Amen to that and I fully agree. I have had 6 "big boats" thru my boating career.
I have sold one by FSBO. I have bought 2 by FSBO. There is one broker in my area that I use all the time. And I also drive friends to use him. If it were not for him, I would not have the current boat I have. There was so much wrong with it I had walked away. But he priced out every issue(without me asking) and came up with a counter offer that was about half the initial price we went to survey with. Also one of my close friends is currently under contract with him on a Selene 53.
They should be closing today!!! My friend is 39 and buying his first boat!!!! They say to "buy your second boat first!". I think he is buying his 5th boat first!!!! Exciting times for him!!!

And thanks for the perspective on my earlier post about still being in the contract! Makes perfect sense!!