Let's talk about salt water boats and the issues when selling and a deal goes south

[Steve500dancer]

I just had a deal blow up on my boat even after the survey was done and came back above average and the appraisal was well over the purchase price. The guy even new the boat had spent 8 years in salt and the past two in fresh water, the risers and manifolds were changed out just prior to my purchase of the boat and have not seen salt water since.

This guy verbally released the boat contingency after the survey was done and even drove the boat and did another inspection after the survey. He went as far as removing things from the boat and taking them 400 miles away while we pulled the boat out for the bottom paint that he agreed to pay for.

Here is the list of items on the survey that he wanted corrected.

1-repair leak on generator heat exchanger end cap

2-repair vacu-flush system that appear to remain running after flush

3-strap up two hoses that run parallel to prop shafts

4-repair slow drip at prop shaft packing gland on port motor.

I agreed to fix all items, as well as rebalance props while boat is out. (my suggestion and expense) I wanted to do this because my max RPM was 3800 and top speed was 31.2 MPH

The survey also showed mild rust on the starboard side engine. And mounts. I also offered to have that area sanded, primed and repainted. (he was great with that) he expressed it wasn't a concern.

The day before the boat is to ship I receive a call that the has changed his mind because of two reasons.

1-his friends told him not to buy a boat that was in salt (disclosed to him several times)

2-the starboard side motor was replaced by Sea Ray and Mercruiser in 2002 under factory warranty. This was done with a new Murcruiser long block and was fully documented by sea ray and Mercruiser, the problem is that Mercruiser used a paper tag serial number on the Longblock. The paper tag is worn off. The compression test was great on both engines showing between 150 and 160lbs on all cylinders on a cold engine.

I just don't get this. Who cares if a boat was in salt water especially if the boat has a closed cooling system and the manifolds and risers have been replaced. A little surface rust is ridiculous on one engine, ****, I even offered to make the repaired although it wasn't a concern to him prior to his buddies yanking it up.

What do you guys think of these issues being reason to back out of a deal on a boat that looks and performs above average for a 10 year old boat. I could not believe it. Even the surveyor was in shock that he didn't buy the boat at the last minute. Sounded like a pretty darn good survey to me. This boat is upgraded to the max and everything works on it. It runs great, the generator works perfect. It fires up every single time

Opinions greatly appreciated
Steve

Steve

 

[Two Peas]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

It sucks. Plain and simple. My guess is that the guy couldnt afford the boat in the end...

 

[annie]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

Cold feet I would say. With closed cooling, new manifolds and shafts! Theres nothing else to worry about. All the best finding a new buyer.

 

[stephens013]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou


I sold a 31 ft Chaparral last December. In the year before selling the boat I had noless than 5 guys put money on the deal along with three surveys to boot. Severalof the prospective buyers flew in from out of state to Florida to see the boat. They would see the boat; go out on the boat;rave about the boat and then a few days later they back out on the sale. TheChaparral was a supper deal and the surveys always supported the great value ofwhich was being offered. Still the prospective buyers would get last minute coldfeet. This was my first boat sale andthe goings on to finally close a deal were illuminating.
Salt water; fresh water; if the boat is properly taken careof and the price is representative then it is just a case of “dose the guy reallywhat to buy your boat.” Buying or sellinga boat is not like buying or selling a car; it’s just as much, if not more, an emotionalchoice as it is financial; Just no wayto get around it. I finally got fed up and stopped jumping through hoops forevery prospect. Luckily I found a man that wanted the boat; realized the valuehe was being offered and the deal was done.

 

[John_Gault]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

It sucks. Plain and simple. My guess is that the guy couldnt afford the boat in the end...

I Believe Andrew hit the nail on the head. As I was looking this Summer, I heard stories like this from other private sellers - though not to your extreme. When I finally found my choice, I started by offering a purchase contract just to put any potential break-up concerns of the seller to rest.

Good luck!
Laurence

 

[ZZ13]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

Salt Water paranoia is widespread among fresh water boaters. They don't know what they are missing. I've lived and boated on several lakes, including the lovely Lake Champlain and I'll take boating on the salt water seas here in the Low Country over that every time. There is a little more to pay attention to, but that's part of the enjoyment of ownership. I think 8 years in salt water is going to be a hard sell inland and almost impossible to sell to a new boater. As you found, the buyer will look for reinforcement from his/her pals that they are getting a great deal (everyone wants to have the deal of the century), and someone will tell them to be very afraid of the salt water history.

 

[fwebster]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

How far you want to pursue this is up to you, but as I read your post, you had a contract for the sale of your boat with contingencies, they buyer removed the contingencies and then refused to close. Unless there is some gray info about the repairs you offered to do and another contingency was agreed to and if you have documentation of the release of the survey contingency, I think you can force the buyer to close and pay you for the boat by suing him for specific performance under the contract.

To the uninitiated, these contracts are indeed contracts. When you sign one agreeing to buy a boat, you better do your homework and expect to close the sale. For sellers, do it all in writing or use a qualified broker whio will insist on proper documentation and contingency releases.

 

[Steve500dancer]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

As far as props go. The boat is within about 100-200 rpms of what Sea ray calls for. It has 4 blade props that are 18" with a 19 pitch. They didn't show up as an issue on the survey. I did take them into the prop shop where I bought them to have him take a little pitch out of them to get the RPM's up a couple hundred as well as checking for balance and cup.

I did use a broker to handle the sale. He says that he has never seen anything like this. He has never had a deal go this far and fall apart, the contract says that he can call the deal off until sept 25. However, he is responsible for all expenses incurred. So he is going to have to pay for the bottom paint, all my time, haul out, any repairs that I had the mechanic do from the list he gave me, removing and re installing everything on the boat. So I would say his $7500 deposit is gone. That doesn't even inclusde that the boat being off the market, if the boat sells for less not that would be considered an expense. We will see how this shakes out.

Stece

 

[Nehalennia]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

In addition to Frank's advice, there are many people spooked by saltwater. Around here, there are many boaters that are scared of the saltwater. There are also many boats that are not maintained well and show the affects of saltwater. If you're a serious boating in my area though, you're boating in saltwater and maintain the boat to deal with it. There are many, many well maintained boats that are in saltwater. It's not a death sentence by any means. This clown just sounds like someone who doesn't realize how he's wasted someone's time. It sounds like you have a nice boat and the right buyer will come along. I agree his deposit should be yours to cover those expenses + anything else that is related.
Best of luck

 

[sbw1]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

How far you want to pursue this is up to you, but as I read your post, you had a contract for the sale of your boat with contingencies, they buyer removed the contingencies and then refused to close. Unless there is some gray info about the repairs you offered to do and another contingency was agreed to and if you have documentation of the release of the survey contingency, I think you can force the buyer to close and pay you for the boat by suing him for specific performance under the contract.

To the uninitiated, these contracts are indeed contracts. When you sign one agreeing to buy a boat, you better do your homework and expect to close the sale. For sellers, do it all in writing or use a qualified broker whio will insist on proper documentation and contingency releases.

Sure, you could sue him. Anyone can file a lawsuit. It is unlikely that the legal expenses involved with a purchase of this magnitude would be worth the recovery if the suit is successful. He would still have to collect which can also be an issue.

 

[fwebster]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

The idea isn't to sue him, but to force him to close. However, it is a moot point since it appears that the contract allowed a get out of "jail free card" up to Sept 25.

 

[Hellman Huddle]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

It is my understanding that the buyer can back out for any reason they want after the survey is completed. If he requested certain repairs and you agreed to them, then a contingency contract is signed by both parties (was this done?). If not you are out of luck. If so, then he is contractually obligated to purchase and if he doesn't he forfeits the deposit. I don't think you are entitled to any additional funds. He is already paying for the survey which should not come out of the $7500. Therefore, he is out the survey & the deposit. Sounds like he got real cold feet in order to give a $10,000 plus. It also sounds like he didn't do his research upfront. Be patient, somebody else will come along. Sounds like a great boat, the only thing that would scare me off is those gas engines. In todays economy, I think most people are looking at diesels.

As far as suing, you will be throwing away money and the chances of getting anything are slim. Take the $7500 and run! Good Luck!

 

[Woody]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

As far as props go. The boat is within about 100-200 rpms of what Sea ray calls for. It has 4 blade props that are 18" with a 19 pitch. They didn't show up as an issue on the survey. I did take them into the prop shop where I bought them to have him take a little pitch out of them to get the RPM's up a couple hundred as well as checking for balance and cup.

I did use a broker to handle the sale. He says that he has never seen anything like this. He has never had a deal go this far and fall apart, the contract says that he can call the deal off until sept 25. However, he is responsible for all expenses incurred. So he is going to have to pay for the bottom paint, all my time, haul out, any repairs that I had the mechanic do from the list he gave me, removing and re installing everything on the boat. So I would say his $7500 deposit is gone. That doesn't even inclusde that the boat being off the market, if the boat sells for less not that would be considered an expense. We will see how this shakes out.

Stece

It would be interesting to see how this is worded in the contract.

 

[fwebster]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

If the contract had a contingency for canceling the deal anytime before 9/25, and a broker is involved, then the deposit is in the broker's escrow account. Keeping the deposit may be difficult unless there was wording covering any reimbursement for moneys you spent for items requested by the buyer.

 

[sbw1]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

The idea isn't to sue him, but to force him to close. However, it is a moot point since it appears that the contract allowed a get out of "jail free card" up to Sept 25.

Empty threats are just that....

 

[fwebster]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

You obviously don't understand negotiation.............but why even discuss it since the guy's contract lets him out of the deal on 9/25?

 

[sbw1]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

You obviously don't understand negotiation.............but why even discuss it since the guy's contract lets him out of the deal on 9/25?

The best negotiators take credible positions. Threatening a law suit is only credible if incurring the cost of litigation is justified based upon the amount of the potential recovery. That is not the case in this situation.

 

[sbw1]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

Salt Water paranoia is widespread among fresh water boaters. They don't know what they are missing. I've lived and boated on several lakes, including the lovely Lake Champlain and I'll take boating on the salt water seas here in the Low Country over that every time. There is a little more to pay attention to, but that's part of the enjoyment of ownership. I think 8 years in salt water is going to be a hard sell inland and almost impossible to sell to a new boater. As you found, the buyer will look for reinforcement from his/her pals that they are getting a great deal (everyone wants to have the deal of the century), and someone will tell them to be very afraid of the salt water history.

Who knows why the buyer backed out. Could be any number of reasons. However, many of us who boat in fresh water are not inclined to buy salt water boats because many of them have issues that are not easily identified at the time of purchase, even with a survey. As an example, we have a dealer on our lake who cleans up Florida boats and sells them in Michigan. I've seen one before and after the clean up process which is primarily cosmetic. He does a great job of making them look good, but they still have corrosion in places you can not see. With so many good fresh water boats for sale in this region of the country, many buyers feel salt water boats are simply not worth the risk.

 

[spfortjohn]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

I boat in salt water, I purchased my boat from a fresh water lake. I intend to keep mine as close to new as possible maintenance is the key. Sure the wearable items are going to go faster in salt but that is the price we pay to boat on the coast.

He backed out within his escape clause so I would think all he owes you is the cost of the changes and repairs he ask you to make.

Good luck with the sale in the future.

 

[Gofirstclass]

Re: Let's talk about salt water boats and the issues when selling and a deal goes sou

Salt Water paranoia is widespread among fresh water boaters. They don't know what they are missing.

No offense, but us freshwater boaters do know there's a difference, and the older the boat the greater the difference. Granted, there may be exceptions to this, but generally speaking there is a difference.

That's why, with all the boats on the west coast available to buy, I bought my boat from the Great Lakes and shipped it here. Fresh water, short season, indoor storage in the winter....all make for a nice boat.