GregBrannon
Guru
I promised in my Welcome Mat intro thread to give results of my survey which happened this last Monday. This is the summary I wrote before providing the blow by blow:
I’m not writing for suspense, so I’ll summarize the ending: The day of the survey taken in total was one of the best days of my life. It was about as perfect as it could be. An incredible amount of effort to make the day a joyful experience was expended by the owners, myself, the surveyors, a friend I’d invited along for the ride, and the yard. All of that effort resulted in a day that was not only successful, but fun and exciting. And Mother Nature did her part, delivering sun, warmth, a little breeze when one was needed and calm when it wasn't. It was just a darned good time. May all your surveys be similar.
That was written while I was still glowing from the nearly perfect day, thinking that I'd just returned from what might have been my first cruise on the boat that would soon be mine. No, the boat's condition was not judged to be perfect, but I accepted that going in.
Now that I have the surveyor's report and evaluation in hand, I have questions about the unknown territory ahead. Realize that I can't give specifics, but I think I can talk in generalities to explain the situation and get some useful guidance. Here goes:
Assume the boat will be financed with an 80% loan. I've read that the lender includes an estimate of the value of the boat in their decision whether to finance and to determine how much they're willing to risk. Lenders either do their own estimate of the boat's value, or they base it on the pre-purchase survey. Maybe they consider both when they have that luxury. From there, does anyone know if there's a general rule for how much of the estimated value the lender will loan? For example imagine a hopeful buyer has agreed to buy a boat for $200K and is applying to finance 80% of that, or $160K. The pre-purchase survey evaluates the boat's value to be $160K. Will the lender risk the entire $160K the buyer hopes to get or limit the loan to some fraction of the estimated value? If a fraction, does anyone know what that fraction typically is?
That question is less significant (to me) but it sets up the next question about insuring the boat:
What does the insurance company use as their insurance limit for a total loss? I've heard they typically insure to some percentage of the boat's value, leaving the owner to come up with the remaining portion as the deductible in the case of a total loss. In the case described above, is the insured value a fraction of what the owner paid for the boat, $200K, what the surveyor determined the boat's value to be, $160K, or some other number? What's the fraction?
Thanks for any and all inputs. More details to come when I can share them.
I’m not writing for suspense, so I’ll summarize the ending: The day of the survey taken in total was one of the best days of my life. It was about as perfect as it could be. An incredible amount of effort to make the day a joyful experience was expended by the owners, myself, the surveyors, a friend I’d invited along for the ride, and the yard. All of that effort resulted in a day that was not only successful, but fun and exciting. And Mother Nature did her part, delivering sun, warmth, a little breeze when one was needed and calm when it wasn't. It was just a darned good time. May all your surveys be similar.
That was written while I was still glowing from the nearly perfect day, thinking that I'd just returned from what might have been my first cruise on the boat that would soon be mine. No, the boat's condition was not judged to be perfect, but I accepted that going in.
Now that I have the surveyor's report and evaluation in hand, I have questions about the unknown territory ahead. Realize that I can't give specifics, but I think I can talk in generalities to explain the situation and get some useful guidance. Here goes:
Assume the boat will be financed with an 80% loan. I've read that the lender includes an estimate of the value of the boat in their decision whether to finance and to determine how much they're willing to risk. Lenders either do their own estimate of the boat's value, or they base it on the pre-purchase survey. Maybe they consider both when they have that luxury. From there, does anyone know if there's a general rule for how much of the estimated value the lender will loan? For example imagine a hopeful buyer has agreed to buy a boat for $200K and is applying to finance 80% of that, or $160K. The pre-purchase survey evaluates the boat's value to be $160K. Will the lender risk the entire $160K the buyer hopes to get or limit the loan to some fraction of the estimated value? If a fraction, does anyone know what that fraction typically is?
That question is less significant (to me) but it sets up the next question about insuring the boat:
What does the insurance company use as their insurance limit for a total loss? I've heard they typically insure to some percentage of the boat's value, leaving the owner to come up with the remaining portion as the deductible in the case of a total loss. In the case described above, is the insured value a fraction of what the owner paid for the boat, $200K, what the surveyor determined the boat's value to be, $160K, or some other number? What's the fraction?
Thanks for any and all inputs. More details to come when I can share them.