Walk me thru the boat buying process please...

[roguewave]

I've been around the block a few times but thought I would ask the people who have much more experience than myself This is a brokered boat in Virginia and I would prefer to deal directly with them (this is not etched in stone). I would be a cash buyer, the only insurance I would get would be the liability coverage (unless someone can convince me otherwise). I'm guessing the boat will sell for 150K.
This is a homework lesson for me, I have a contract in hand for a piece of Real Estate I have listed...its not a done deal but getting close. Should it close, I just might be a trawler owner.

 

[Carolena]

Just like buying a house. Look over the boat and if you like it, make an offer with an earnest money deposit. Offer may be accepted or there could be further negotiations. If the offer is accepted, closing will be contingent on a satisfactory sea trial and survey (like a home inspection). You pay for the surveyor, mechanic and cost to haul/launch. Problems from the survey? You either walk away and get your deposit back, or you renegotiate. Last boat took us about a month from the first time I looked at it until closing. Also like with real estate, you can use a buyers broker and it won't cost you - the buyers broker gets paid out of the comission at closing. If the seller has listed the boat with the broker you have to deal with the broker - there should be a contract between the seller and the broker just like with real estate.

 

[roguewave]

thank you

 

[Carolena]

You are very welcome. BTW, love the bike in your photo. Big fan of all black - have a Night Train.

 

[Phil Fill]

I did/would not make an offer until I am/was 90% sure/satisfied with in water survey, and had financing and insurance in place. Then I would make an offer on contingent on out of water survey, actual financing and insuring, my wife approval, my horoscope/felling that day, pray for a sign/guidance and of course sea trail.

Finance and insurance companies are good source for value, and what they would finance and insure for. Also they will not let you go to far wrong. I was hoping that the bank and insurance company would turn me down, but I must have pissed off some one as they approve me. I was not a happy camper, and I was buyers remorse for days after the signing. “What in the heck did I do and get myself into?” I guess it was meant to be!

 

[beachbum29]

When you buy cash, you can really hard ball negotiate because the seller knows they don't have hope for you to get financed.

When we closed on our last boat, they told us to just bring a personal check. I was very surprised.

 

[DavidM]

Virtually all sellers of brokered boats will not let you do anything dynamic with the boat before a contract is in place. That even include powering up instruments and definitely includes starting the engine.

There are good reasons for this.

You can poke and prod to your heart's content and open up all hatches that can be opened with a latch (but not a screwdriver).

Think about it. If you were selling your house would you want someone lighting your stove, switching the HVAC from heating to cooling, etc. if there was no contract in place.

David

 

[beachbum29]

Of all the boats we looked at only one broker started the engines.

 

[DavidM]

And unless he had explicit permission from the boat owner, he should get his ***** ripped by his boss, the head of the brokerage. Think of the liability. All the owner has to do is say that he screwed up his engine.

I was a broker for a short while in Annapolis. I would never, ever do this without the owner being present and turning the key himself.

David

 

[Phil Fill]

A survey can be broken down into parts; 1) a quick in the water walk through to see if it’s worth the time 2) a more detail to get the general feeling/idea, 3) a full survey including turning things on and an engine, 4) a out of water survey and 5) sea trial.

Some surveys the surveyor did not get out of his vehicle, couple lasted 1 to 15 minutes and some last an hour. In an hour a good surveyor and/or you should be able to tell/see if the boat is worth more time and expense. I was interested if the boat had a sound bases/foundation/back bone as the rest of is replaceable/up gradable. The dry rot under the salon windows did not bother me as it was not structural and out dated electroincs. Focus on the important stuff!

 

[beachbum29]

And unless he had explicit permission from the boat owner, he should get his ***** ripped by his boss, the head of the brokerage. Think of the liability. All the owner has to do is say that he screwed up his engine.

I was a broker for a short while in Annapolis. I would never, ever do this without the owner being present and turning the key himself.

David

And it was one that I missed. It was a mega clean carver with really low hours.

By the time we went back that afternoon, it was under contract. 2 days on the market.

 

[yachtbrokerguy]

You might considering hiring a local surveyor to do a walk through on the boat before you spend the money to fly to Virginia, rent a car, get a hotel, etc etc. You do not need a full survey, just a one hour inspection, including a start of the engines for the surveyor, pre-arranged of course.
Find a surveyor in the area from this website or other websites, not the broker who has the listing. Pay the surveyor for his time, ask if he will give some credit for that time if he gets to a full survey.

 

[roguewave]

Thank you all for the input.

 

[FF]

Of all the boats we looked at only one broker started the engines.

Wonder how the broker knew the engines were not laid up, the sea water was on and the exhaust not capped?

 

[beachbum29]

Of all the boats we looked at only one broker started the engines.

Wonder how the broker knew the engines were not laid up, the sea water was on and the exhaust not capped?

He seemed to be very familiar with the boat

 

[Conrad]

During our search last winter I only experienced the engine(s) started twice, and both times they were prearranged with the owner, not to start them for any prospective purchaser, but rather to give them their monthly exercise. I just happened to be there at the right time.

On both those occasions the brokers also fired up the furnaces, as otherwise the viewing experience would have been less enjoyable. Again, that was done with the owner's permission.