How much should you offer on a brokerage boat?

[Bloater]

Sorry if this has been discussed many times before but I'm a newbie to the yachting forum.

I've decided that my next boat will be a sailing yacht and I was wondering if the same rule applied as for the power boats - that you generally offer 10% under the asking price and the vendor isn't too offended.

For instance I'm looking at some nice condition boats that are up for £70k... how much should I offer?

 

[thurloo]

hi go as low as you can. then let them ,decide if they will take ,,or just ask whats the lowest theyll take, and if you think its worth it do the deal . dut never ever pay what they ask as it is useualy well above what its selling price realy is so go get them and be firm,there are no levels to start or end in offers, they take them or leave them but youll both be happy in end .. good luck dave

 

[saltwater_gypsy]

Go really low and then the broker will slam the folder shut and cry "impossible"
Then ask what is the lowest that the seller would consider and drop by 20%.
Then the broker will ask if you are really interested and the answer is "Yes but call the owner and let me meet him/her"
If you are still interested then get a survey and subtract the cost of remedying all the faults professionally from your last offer. I think we are at £30- 40K here
At this point the owner will be sobbing and the broker will be whimpering. Then you make your FINAL offer. Good luck.
PS I hope you never come to buy MY boat!!!!!

 

[thurloo]

your a man after me own , thats it in a nut shell , and thats how ive always got all mine , so i know it works . all sellers have bottom price , all you got too do is get it out of them ???? any way you can ...dave

 

[Iota]

It will often depend on type of boat. At the risk of upsetting the assembled company....

Where you have many of a certain type on the market for instance Bavaria etc then the chances are for a better deal. If there are less for instance Halberg Rassy's then there is less likely to be extravagent negotiation.

What have you been looking at and age ? A better view if we have your target boats.

Iota

 

[Seven Spades]

I disagree Iota, with popular boats you can price them really accurately as there is a ready and active market. You will only get a big reduction if the boat was over priced or in poor condition in the first place.

With quality boats pricing is more problematic as it depends almost entirely on how many are on the market at the time and price bracket. If you have an expensive quality say 40'+ boat the number of buyers is limited and the chances of getting a good deal is much higher. On smaller boats such as the HR34 or HR342 then the seller will get very close to the asking price.

 

[Iota]

Tosca, your post is very logical but contrary to the words of wisdom from a friend who is a broker. His rationale is that with many of a certain type there will always be someone who will sell 'discounted' whereas with a quality boat is likely to be priced at a price that will hold. Brokers apparantly have a database of prices paid by boat type for the previous year and advise their clients accordingly. Perhaps a broker on this forum can shed some light.

Iota

 

[Bloater]

OK, lets say if I wanted to spend £70k and I was looking at manufacturers such as Bavaria, Jeanneau and Beneteau - would it be unreasonable to be making offers on boats advertised for £80k?

I really don't want to be searching around at £80K boats only to find that I would be expected to pay very near the ticket price.

 

[Phoenix of Hamble]

There is no answer to this..... some boats are priced realistically, and some optimistically...

You need to get a 'market feel' by looking at similar boats and comparing prices..... if the boat you then like is at the market rate, the price you'll pay will depend upon whether the vendor is desperate to sell or not.... if it is above the rate, then you'll need to be good at negotiating, and if its below the rate then again it depends upon the owners personal desire to sell....

 

[jonic]

[ QUOTE ]
Tosca, your post is very logical but contrary to the words of wisdom from a friend who is a broker. His rationale is that with many of a certain type there will always be someone who will sell 'discounted' whereas with a quality boat is likely to be priced at a price that will hold. Brokers apparantly have a database of prices paid by boat type for the previous year and advise their clients accordingly. Perhaps a broker on this forum can shed some light.

Iota

[/ QUOTE ]


Yes we do have a database, its a bit like the land registry sold prices, but voluntary. It's not just for the previous year and goes back many years.

There is no real hard and fast rule because much depends on the sellers personal circumstances, but like all markets it's driven by supply and demand. Boats with low demand or over supply, with sellers who need the cash fast are more likely to to be discounted. sought after boats, with few models on the market will go for the asking price or very near.

Its a very diverse market with many variables. Some models have very few examples that were actually built, let alone for sale at any one time, others have hundreds and will be priced accordingly. Boats are not routinely "overpriced" as that's just a waste of the brokers time and money........but getting some sellers to be realistic is sometimes an issue.

 

[Nautorius]

Quo,

Most people with £70k looking at a Bene, Bav, Jeanneau will want a new one. For 70k you should be able to get a well specified nearly new boat. There are plenty around second hand but not all are well specified. Nearlt new boats can be a great deal. The technique is to go around and chat to some brokers with a few on their books and a proven track record.

There are deals to be had, but it may be false economy as they may be poorly specd yachts. This Bav 38 HERE seems to be available at a deal price and this Bav HERe
Seems fair value.

As always it pays to shop around, let brokers know you are a keen buyer, give them a list of options and let them do the leg work!

Cheers

Paul /forums/images/graemlins/smile.gif

 

[chrisgee]

It`s very much a buyers market at the moment and don`t be put off by brokers who tell you the owner " would not accept that offer" get them to earn their money and insist that they ring the owner in front of you if are a serious buyer.
My last purchase went like this
Broker to seller" I have an offer much less than your asking price with the prospective buyer sat in front of me with the money ready to buy". --I got it at a v good price and the seller didnt have to wait another 6 months ( or maybe more) for his cash.
I recently put in an offer on a £90000 yacht at £ 65000 and it was accepted!!.

 

[MarkGrubb]

I've always worked along similar reasoning to Morgana's suggestion. Have a good look round the market at boats that are in your price range, and then above and below what you can pay. That will give you a good idea of what your money will buy and put you in a far better negotiating position.

 

[asj1]

I think it really does depend on the boat and the time in the economic cycle. 5 years ago I put in a couple of offers within 5% of the asking price and was rejected and the boats sold within a couple of weeks. But now prices are definitely falling and there must be some good deals to do.