What is considered a "reasonable offer"?

[Thepipdoc]

OK, I realise that there isn't a right or wrong answer to this question but I'll ask it anyway.

Lets assume I want to buy a boat that is up for sale at £80k.
Assuming I want to buy the boat at the lowest possible price but not bid so low that it's going to stop the seller from wanting to negotiate, what would be considered a reasonable opening offer?
I should add that the boat was originally up for sale at £110,000 and at this price I wouldn't have given the boat a second glance because it was well and truly out of my price range but now that it has been reduced by around £30k it's looking more and more attractive every time I look at it.
I have my own ideas but would appreciate your thoughts.
Thanks

 

[BGW]

OK, I realise that there isn't a right or wrong answer to this question but I'll ask it anyway.

Lets assume I want to buy a boat that is up for sale at £80k.
Assuming I want to buy the boat at the lowest possible price but not bid so low that it's going to stop the seller from wanting to negotiate, what would be considered a reasonable opening offer?
I should add that the boat was originally up for sale at £110,000 and at this price I wouldn't have given the boat a second glance because it was well and truly out of my price range but now that it has been reduced by around £30k it's looking more and more attractive every time I look at it.
I have my own ideas but would appreciate your thoughts.
Thanks

Perhaps you should start with what you would expect to get if selling it.

Was the original price just out of your budget or an unreasonable amount?
How does it compare to other boats of the same make/year?

 

[capsco]

BGW answer is a good one, if you are honest with your self answering the questions he poses you "should" arive at the right price.

 

[Tranona]

"Reasonable" does not come into it because it is meaningless in general, although you may have your own view as to what it means!

Ask yourself why it did not sell at its original price? Why is it still not selling? and most importantly what do you think it is worth compared with asking (hopefully also selling) prices of similar boats.

If you are happy offering £80k then that is reasonable. If you think it is only worth £60k to you, that is reasonable - but don't expect the seller to agree - but if he does run a mile! he knows something you don't - or you have a bargian, but only you can decide that.

 

[Sneaky Pete]

It is a difficult one, I have been looking at different sail boats for months now, I am comparing like for like trying to establish an average price. Anything advertised on E-Bay rarely achieves what the owner is asking either the buy it now or reserve price. How desperate is the owners to sell are they looking at another boat and this one is money towards that. I have spoken directly with some owners to get a feel for what their expectations are. Look at what the boat has to offer how much would you need to spend to bring it to a standard acceptable to yourself and if this was done would it put you into a negative equity value on the boat. There are a lot of parameters on this one just got to try them all. If the seller doesn’t like the offer move on there are other boats. There are many boats on the market for 6 months or a year they all have one thing in common, they are overpriced.

 

[Thepipdoc]

Intersting - Thanks All

 

[Powersalt]

You can ask any price when selling, it does not mean a thing. Its more about what the market will stand. I once wanted a sailing boat on the market for £150 k, it got reduced to £130 k and I went for an offer of 110K and it was accepted, Both buyer and seller were happy. Good deal for both.

I can also tell you there are a lot of desperate sellers out there and so bargains to be won for those wanting to buy. I have heard from one broker friend on the south coast telling me of asking prices like £75k going in the ned for £40k earlier this year. One yacht asking £45k went on an one and only offer of £20k. The market is still fragile, past ideas of embarrasing offers!!!!......................forget it. Go have a pitch and see how you get on.

 

[Deleted User YDKXO]

OK, I realise that there isn't a right or wrong answer to this question but I'll ask it anyway.

Lets assume I want to buy a boat that is up for sale at £80k.
Assuming I want to buy the boat at the lowest possible price but not bid so low that it's going to stop the seller from wanting to negotiate, what would be considered a reasonable opening offer?
I should add that the boat was originally up for sale at £110,000 and at this price I wouldn't have given the boat a second glance because it was well and truly out of my price range but now that it has been reduced by around £30k it's looking more and more attractive every time I look at it.
I have my own ideas but would appreciate your thoughts.
Thanks

There's no such thing as unreasonable offer, only an offer that the seller doesn't accept. The one golden rule of price negotiation is to start low and work your way upwards because for sure, you can't do it the other way round. The first thing to do is to make it clear to the broker that you are a serious buyer and have the funds to proceed. Then make your offer. It is possible that the broker says straightaway that he won't even pass the offer on to the seller because he knows he won't accept it but remind him that he has an obligation to do so. Assuming your offer is declined, then move up in small increments, aiming to wear the seller down. Ignore any comments from the broker about a minimum figure that the seller will accept. You can counter with your own comments to the effect that you are also looking at other boats on the market and you have your own maximum limit. Under no circumstances agree to waive your right to a survey and sea trial. How far you move up from your original offer is up to you and how much you want the boat
Where to start is down to you but I would say that it wants to be 25-35% below asking price depending on how the price of the boat compares to others. If it's an unusual or one-off type of boat, start even lower

 

[capsco]

There's no such thing as unreasonable offer, only an offer that the seller doesn't accept. The one golden rule of price negotiation is to start low and work your way upwards because for sure, you can't do it the other way round. The first thing to do is to make it clear to the broker that you are a serious buyer and have the funds to proceed. Then make your offer. It is possible that the broker says straightaway that he won't even pass the offer on to the seller because he knows he won't accept it but remind him that he has an obligation to do so. Assuming your offer is declined, then move up in small increments, aiming to wear the seller down. Ignore any comments from the broker about a minimum figure that the seller will accept. You can counter with your own comments to the effect that you are also looking at other boats on the market and you have your own maximum limit. Under no circumstances agree to waive your right to a survey and sea trial. How far you move up from your original offer is up to you and how much you want the boat
Where to start is down to you but I would say that it wants to be 25-35% below asking price depending on how the price of the boat compares to others. If it's an unusual or one-off type of boat, start even lower

Is this the type of offers that you have been getting for your boat Mike?

 

[Deleted User YDKXO]

Is this the type of offers that you have been getting for your boat Mike?

Yes capsco, I have been getting offers as low as 25% less than my asking price. I have'nt accepted those offers because I'm not desperate to sell but, had I been desperate, I might have done. Certainly boats have sold in the Med this year and last year for 30-35% less than asking prices but, obviously, those boats had keen sellers