Room to Maneuver

[Snug Harbor]

As a broker of 20 years my experience is that asking prices are 7-10% less than what the seller will accept. That statement is assuming the boat is in the ballpark of being fairly priced and no unusual circumstances.

How do you determine what a fair price is? That can be very difficult depending on the boat. A 2004 Sea Ray 280? I can tell you with great confidence what it's worth. Many if not most of the boats discussed on this forum? Pretty difficult! And every deal is as different as the owners/sellers are different. Do your homework as suggested by other posters and try to arrive at what you believe fair value is. As someone else suggested, don't present your offer as "This is all your boat is worth". The last thing you want to do is insult the owner, you can make a low offer diplomatically. Just remember you can always increase your offer, it's hard to reduce it.

 

[AlanT]

I know that this might be a difficult questions to answer, but, typically, in a boat listing for, say, $400K, how much room for negotiations is built into that price - typically. 10%, 15%, 20%?

There is no good answer to this. The largest factor has little to do with the vessel or the price. It is seller motivation. That is something a good buyer's broker can help you with, and sometimes a seller's broker wanting to move things along. The broker can also help the negotiation by assuaging the hurt feelings of a seller being offered a price which he/she may feel is grossly inadequate and is tempted to walk away from. Seller motivation depends on so many factors that it is impossible to generalize. Some of those factors are; time on market, personal finances, does he/she have another boat already, is he/she relying on the sale to close on another boat, illness sale, inheritance sale. So you can see that you really need someone to help you understand the seller if you want to strike the best price.

Of course you can barrel in there with a low ball offer, you can always go back at a higher price.

Final thought. Friends really, really wanted a particular boat. They befriended the sellers, wrote a long letter about their plans for the boat and the adventures they were going to have with the boat. They offered a low ball price because they legitimately said it was the most that they could afford. The seller was deeply emotional about his boat and this approach resulted in a sale. The friends were advised in this approach for this particular seller by their broker. It worked.

~Alan

 

[NashBrent]

Boat buying rules

1. Don't fall in love with a boat before you buy it (after survey)!
2. If you want a "deal" start at about big (40%ish) discount. Note your broker can usually find out what others have paid via Yachtworld pro data.
3. Then again, if it's the right boat, be prepared to pay more than you otherwise would and just buy it! Your going to loose your arse anyway when you sell.

 

[slolooper]

Scuttlebut
t is 10%

 

[Bonedoc]

Agree with all said above. 20% is fine if the boat pricing is similar to others of same brand/year... and you are interested. You’ll find out if the seller is motivated to negotiate. But offering 20% less on a boat that is over priced by 50% doesn’t make sense. Sooooo..

1. What is market value for similar brand/year for that vessel?
2. Is the offering price in range of those?
If it isn’t- why not? New motor, electronics, garaged?
3. Every boat has issues and you need to rule out major problems that may cost you $$ or worse.

 

[boatpoker]

Ok, story time

1st boat - 1971 37' C&C (one-off) trawler asking $64k (and worth it)
Got it for $23k and got the registration changed 1/2hr
before the bailiff showed up. Sold it 16yrs later for $80k

2nd boat - 1981 40' Trendsetter (one of 3 built) asking $125k
Got it for $100k and soldit 6yrs later for $90k

3rd boat - 2002 Benford 38' (one off) asking $89k
Got it for $25k currently insured for $130k

Boat values make no sense at all.

 

[Goldcar]

Understand the market, what are boats selling for? Understand the inventory, are there many choices? Information is your most powerful tool. We recently were shopping in Florida (we live in PNW) and we made offers (in some cases) $225k less then asking price. The price of any item is set by the buyer/mkt. If someone wants to sell, they will sell. However if you're making a "lowball" offer, make sure you have the stats and info to back up your offer.

 

[AlanT]

Easiest boat to buy: An inheritance boat, or someone's last boat in an expensive marina with a loan outstanding.

Most difficult boat to buy: A "my pride and joy" boat with no loan, moored at owner's dock.

Just my 2cents

 

[Khays]

Buying Boats

I believe always have a business plan when spending lots of money on anything. For boats, for me, the business plan is how to reduce risk on the downside-what am I willing to spend and how much of the investment I want to get back when I sell it-what is the threshold of pain on the other side. I search for boats with in a listing price range bracketing my budget by 30% each side. I also do research to know what different types, makes and models have been selling for. A broker will usually run the sold-boats for you. When I find a prospect that is within my range, regardless of asking price, I then do a budget to purchase, remedy known issues, and to add equipment/gear I know I'll want. Then I compare that to my budget and my risk factor (I'll spend $100K total and I want 80% of that back when I sell in 5 years, etc.). If budget is way over the range then probably wasting your time even negotiating. If budget is within 30% of asking price and you really like the boat then begin negotiations.
I will say, as others have pointed out, some sellers are not really ready to sell so they make their broker list the boat high and never budge. Nothing you can do about this. Everyone else is ready to move on and if you present an offer based on the facts of costs and value in the market you often get traction. The boat I bought in may 2020 was a success using this approach. My last two boats were successful as well. So for me this approach works but I am also not an impulse buyer, anymore. There were some hard lessons when I was younger, a much higher earner and generally living with no fear!

 

[Irish Rambler]

For all the reasons why and why not I would suggest you do your research thoroughly with a list of what you want and what you don't want and buy with the wallet not with the heart.
Remembers the old soldiers maxim. Time spent on reconnaissance is never wasted.

 

[Bryant]

price offer

I know that this might be a difficult questions to answer, but, typically, in a boat listing for, say, $400K, how much room for negotiations is built into that price - typically. 10%, 15%, 20%?

There is really no rule of thumb. It all depends on the economy, availability of what you want, pressure to sell by the owner, and current market value of that particular boat. Research what that boat is currently selling for. Make an offer on it, based upon what you can afford and are willing to pay. All they can say is "yes" or "no".

I've found that an effective strategy is to make an offer based upon what you have to spend and just say "This is what I have, would you consider this offer"?

Good luck.

 

[Boatcrazy]

following.

 

[Laredo]

Boat Values - My Experience

Six years ago there was a 1997 Sea Ray Sundancer 330 listed for $49,900 in Nashville TN, I ended up buying it for $41,000. The seller would not go to $40,000. My family enjoyed it for almost three years and we cruised it to Florida. In Palmetto Florida, I listed it with the broker and I forgot the original sales price and related sales expense but I do remember getting a check for $36,000. Not long afterward, I fell in love with our current boat, (ironically another 1997 model) Navigator 4200 at Green Turtle Bay Marina in Kentucky. It was listed for $159,900 and I bought it for $130,000. In that deal, I promised my wife I would not go above $120k but the seller (through another broker) would not go below $130k. The stand off lasted two weeks and it was Spring, Green Turtle was having their boat show the next week, so I gave in on the last $10,000. I'm thankful I did and have never looked back. I hope that helps.....

 

[FoxtrotCharlie]

Is it common for a buyer to use a broker, as well as the seller?

We did. Was nice having someone on our side - handled everything.

 

[Jimintheair3]

The Right Answer

I don't understand why nobody can just offer their opinion. Say 10-15% or 15-20%. I am not asking for a perfectly-accurate answer, but just a ball-park answer from what your experience is. Of course there are lots of variable, of course you can't give a "for certain" answer, but at least a ball-park answer would be do-able.

It is my initial position to make an offer with a 20% discount and go from there and let the seller respond. Is that unreasonable under typical conditions?

Make the offer "What I will pay for the boat!" No dancing, nothing perfectly-accurate. The answer to your OP, "NONE typically".

The seller's say, "how much typically is a buyer willing to come up?"

That's another post!

 

[Steel N Time]

I am just asking for typical, ball-park info, not a specific answer for a specific set of circumstances.

Of course I am going to learn what I can about the boat before making an offer. Why would you assume to the contrary?

I am just asking for general information under "typical", i.e. average circumstances. People keep reading more into this question, which should be easy to answer.

So you ask a question and the majority of responses are that there is not set amount. Period! You don’t like the answer, you you act like and ass!

There is no ball park... get it?!? Do your own research and figure it out on your own, if you don’t want to read and understand the great advice given to you by many on here!

Sheesh!

 

[Bryant]

Maneuver room

So from what you say, a typical listing for a reasonably "priced" vessel would garner a starting offer approx 80% of asking price?

So many factors to consider but first and foremost is owner motivation to sell. Death of spouse, divorce, bankruptcy, time on the market, sellers age and so many other things.
Remember, the owner has to pay 10% to the broker. That means a 20% reduction is in reality, a 30% reduction.

What would your initial offer on a home be?

My original advice is sound. If you have found the boat you really want, offer what you can afford or are willing to pay and have the broker explain that you aren’t interested in a counter as that’s all you have available to spend. Or make an offer of 15% less and dicker. I certainly would not go over a 20% reduction as that’s just going to insult them. Of course, if you are willing to miss out on a lot of nice boats that sell for a fair price, you could just make one lowball offer after another. Eventually someone will say yes. Not my cup of tea but to each his own. Again, there is no “typical”.
Do research and offer going price, as in Real Estate Comps.

Anyway, just my opinion.

 

[Art]

Purchased our Tollycraft September 21st 2008. Have purchased 4 other boats since. Still have two of the four + the Tolly. We cover dock and use of our Tolly tri cabin in SF Delta swimming-warm fresh water; 100 miles from our home.

Here's the story:

Noticed the Tolly from first day it came up for sale, at a then reasonable price. Watched the price substantially, repeatedly decline every week. Finally, in the fifth week, it got so reduced that I could not help but take a look. Found it to be in near perfect condition. Marine mechanic owner had just completed refurbishing it [top to bottom] for he and wife. She suddenly divorced him. Bad shat happens! He just wanted OUT ASAP. We quickly agreed on a cash deal; I put a down payment, did sea trial, hired a surveyor, hauled and re-splashed. Linda and I have been exceptionally pleased ever since. For 12 years of spring, summer, fall fun - all that's been required is just general maintenance performed by me, as well as $2,500 +/- total spent on professional mechanic and parts.

One of the other three boats [a 1973, 31' Uniflite] I sold after we used for it for a couple years. Kept it in SF Bay. Got nearly double $$ what I payed for it.

The other two great boats [a 19 cuddy cabin i/o ski boat and 15' tow behind o/b runabout] are currently not for sale. One we've owned for a couple years, the other for eleven years. No doubt that a tall profit will ensue upon sale of either...

Regarding what the PO asks in #1 post: There is no such thing as an average %age off to offer on anything that is for sale [boats most certainly included]. My grand pop taught me "Horse Trading". And, his horse ranch was one of the last in Nassau County LI!! Was established in the family early in 1800's; closed down 1959, property sold off 1965!

 

[backinblue]

I don't understand why nobody can just offer their opinion. Say 10-15% or 15-20%. I am not asking for a perfectly-accurate answer, but just a ball-park answer from what your experience is. Of course there are lots of variable, of course you can't give a "for certain" answer, but at least a ball-park answer would be do-able.

It is my initial position to make an offer with a 20% discount and go from there and let the seller respond. Is that unreasonable under typical conditions?

Everybody is offering their opinions and they are all valid. If you just want a number, I'd say 10% is probably expected. But it's very variable based on lots of factors. As a buyer, I think I would have a good idea what a fair price is based on the current market and comparable boats. If you find a boat you really want to buy, make a fair offer. If you low-ball the seller, you'll insult him and he may not even reply, or if he does he'll be less likely to work with you on issues that come out of the survey. I got offered asking price for a boat I was selling and was more than happy to fix any issues found because he was paying what I thought the boat was worth without any issues. You also don't want to lose a very good boat to someone else because you are trying to squeeze the seller. Remember the saying that the best deal is when the buyer and seller both feel they got a good price.

 

[Group9]

Easiest boat to buy: An inheritance boat, or someone's last boat in an expensive marina with a loan outstanding.

Most difficult boat to buy: A "my pride and joy" boat with no loan, moored at owner's dock.

Just my 2cents

Yep. I knew a guy here with a boat we looked at, who was too old to run it any more. He had put a lot of time and money into her, and couldn't look at her objectively at all. He priced it where no one wanted it. We looked at it, passed, and bought another boat.

He died, and his sons (one of whom owns a boat dealership) put a reasonable price on it (that we would have happily paid) and sold it in a couple of months.

 

[Shrew]

Depends
I have seen boats start at $800k and sell for $100k

Life is full of exceptions. This is like saying "My grandfather smoked a pack of unfiltered cigarettes and drank a quart of scotch a day and lived to 98".

 

[backinblue]

Life is full of exceptions. This is like saying "My grandfather smoked a pack of unfiltered cigarettes and drank a quart of scotch a day and lived to 98".

good point