Spent 4 hours showing the boat yesterday

Discussion in 'General Discussion' started by mrsrobinson, Sep 15, 2008.

  1. sbw1

    sbw1 Well-Known Member

    Oct 10, 2006
    West Michigan
    This is listed in my signature
    This is listed in my signature
    Of course it's refundable. Most contracts specify the deal is subject to a sea trial and survey. If the prospect does not like the boat after running it, there is no survey. Customer gets the deposit back.
     
  2. Dancin Dave

    Dancin Dave Active Member

    Oct 9, 2006
    Rowayton, Ct
    580 SSS 1997
    CAT 3408 800 hp
    practice? get it straight and sell the boat.
     
  3. mrsrobinson

    mrsrobinson New Member

    Mar 9, 2006
    Richmond, Virginia
    1995 Sea Ray 330DA - Sold
    2001 Regal 3780 - Sold
    Big ones
    I have heard mixed stories about the deposit. It's not refundable "just because", there has to be a reason that comes out of the survey/sea trial. Otherwise, the buyer wakes up and decides nah, not the boat for me. So, they buyer can get their refund back for no reason at all?
     
  4. Boulder GT3

    Boulder GT3 New Member

    336
    Jan 28, 2008
    Fort Lauderdale
    56 Viking
    MAN cr1550
    C12
    Good luck with the sale this weekend. After looking for 6 months I just bought a boat on Tuesday. The shopping was a horrible experience. So many boats that weren't represented truthfully. The gap between the yachttrader listing and reality has never been greater IMO.

    You may have some rough spots with a couple of potential buyers but having just been through the cycle, I feel stronger than ever that a correctly represented boat with an honest seller is still the high card. Don't panic.

    Best of luck again.
     
  5. sbw1

    sbw1 Well-Known Member

    Oct 10, 2006
    West Michigan
    This is listed in my signature
    This is listed in my signature
    If the prospect does not like your boat after running it, the conventional approach is he gets his deposit back. There is a reason. He does not like it.
     
  6. osd9

    osd9 New Member

    Oct 3, 2006
    MidAtlantic
    2003 410DA
    Caterpillar 3126-TA w/ ZF 80-IV
    I've looked at few brokered boats in my time. Most, not all, wouldn't even start the motors, let alone go for a ride, until they had a signed contract with a sizeable deposit.

    In my experience buying/selling boats, there are many contingencies in a boat contract, but the ones that are 'outs' for the buyer usually say something along the lines of ...."This contract is subject to a satisfactory seatrial, engine survey and hull survey." The key word being 'satisfactory'....define how you want.
     
  7. Boulder GT3

    Boulder GT3 New Member

    336
    Jan 28, 2008
    Fort Lauderdale
    56 Viking
    MAN cr1550
    C12
    I just had the opposite experience. Everyone was very anxious to take me out for a 15-30 minute run. In fact, I never had to ask, it was offered.

    I wouldn't go forward with a deposit unless I took it for a short spin. I don't want to be tied up in a transaction if I'm not 90% sure the boat will pass muster.

    I've got a fair amount of time on a 410. Great boat.
     
  8. comsnark

    comsnark New Member

    Apr 10, 2007
    NJ Shore
    SeaRay SunSport
    5.7LX
    This was my experience as well. NOBODY would let me on the water without a contract. And I could not, in good faith, sign a contract without having the vaguest idea of if I liked how I would like the boat on the water.

    This drove me completely out of the new boat market. Too much money for the risk. I went used to reduce the financial risk, and gambled.

    - - - - -

    The contract I signed was clearly written with the "satisfactory" type language in it. I felt I could back out at any time for whatever reason. BUT. . .clearly the "setup" was to take a short 1 hour cruise with a surveyor to get a feel for things. That is not like a car where you may take a few drives over a few weeks, look for bumpy roads, try to drive in the rain. . . .

    The contract process is clearly meant to keep the joyriders off the water, but give the honest buyers an honourable out if they need it.

    - - - -

    Greg: The relatively "refundable" deposit is why you ask for a significant deposit. Sure. . you might have to give it back, but it demonstrates that the buyer is not a complete pauper.
     
  9. Alex F

    Alex F Well-Known Member

    Nov 14, 2006
    East Coast
    2005 420DB with AB 11 DLX Tender, Raymarine Dual E120 MFD/Radar/XMWeather, ST7001 A/P, AIS, SeaLift
    T-Cummins 450Cs Straight-Drives, 9KW Onan Generator, 40HP Yamaha for tender.
    I would totally agree that Dominic's post pretty much covers the key points. So, there's no guessing here. It all depends on how the contract is worded. If you don't have these or any other contingencies in your contract, keep the deposit :thumbsup:, the buyer will have extemelly hard time getting anything back, especially if you have statement somewhere that the boat is sold as-is with no worranty.

    Good luck,
    Alex.
     
  10. Alex F

    Alex F Well-Known Member

    Nov 14, 2006
    East Coast
    2005 420DB with AB 11 DLX Tender, Raymarine Dual E120 MFD/Radar/XMWeather, ST7001 A/P, AIS, SeaLift
    T-Cummins 450Cs Straight-Drives, 9KW Onan Generator, 40HP Yamaha for tender.
    Along the same lines, I wouldn't give a dollar if I didn't think this is a boat I see myself owning based on it's appierance and performance, and this is before I even think about surveying the boat. In most cases, any money you spend on any boat you will end up loosing some of it, in case if you back out of the deal. So, the idea is to do most of your homework and know what to look for, get most out of the boat, including test ride, before you start spending anything on it.

    Alex.
     
  11. tobnpr

    tobnpr New Member

    Nov 12, 2006
    New Port Richey, Florida
    1988 300 DA
    tw 350's w/ Alphas
    Yes, the buyer can get their deposit back if they so choose.
    There does not have to be "hard" reason- like an an overheating engine.
    "Satisfactory" sea trial means just that- satisfactory to the buyer. Maybe the buyer doesn't like the way the boat handles in quartering seas, maybe he feels it's underpowered, maybe he decides he doesn't like the cruise speed. If the buyer wants a way out, he's got it.

    The deposit is simply a way doing a preliminary prequalification- is the buyer (CAN the buyer) plunk down 5, 10, or 15 grand to "hold" the boat until he has an opportunity to check it out-survey and sea trial. I don't believe many buyers are going to jerk your chain here- "wake-up" as you put it. Once the contract is signed and the deposit is given, the buyer is committed to spending some money whether he ultimately buys the boat or not. Between survey and haul-out expenses, the buyer is going to spend something in the neighborhood of a grand that he's not going to get back if he refuses the boat. I had to turn down the first boat I looked at, and wasn't happy about losing the $$, but that's life...
     
  12. sbw1

    sbw1 Well-Known Member

    Oct 10, 2006
    West Michigan
    This is listed in my signature
    This is listed in my signature
    In my experience selling boats required a deposit and contract but not until the day of the sea trial. I held the check and simply returned it if the deal fell through. Only had to do that once. Most people are pretty honest and the phonies are pretty easy to spot as you chat them up.
     
  13. highslice

    highslice Active Member SILVER Sponsor

    Mar 28, 2008
    Table Rock Lake, Hollister Missouri
    270 SLX
    496 Mag
    Bravo III
    Corsa
    Doesn't just have to do with honesty. I signed a contract and put a deposit on a boat this spring that I had every intention of closing on. Went on on the sea trial, and the ride sucked. I had the "sea trial" contingency in the contract - got the deposit back.
     
  14. sbw1

    sbw1 Well-Known Member

    Oct 10, 2006
    West Michigan
    This is listed in my signature
    This is listed in my signature
    Yes. Of course. Did not mean to imply that getting your deposit back means a person is dishonest. This thrread seemed to be going in the direction that prospects are just looking for a boat ride and cashing their check would screen those folks out. I'm just saying that a check and contract are important, but you really need to size people up and can usually spot a tire kicker. I drove all the way to the east side of the state to do a sea trial on a really clean boat. The performance was terrible and the worst thing about it was I was looking right at the top of the windshield which blocked my view. The test was done at the SR dealer in the thumb area of Michigan and no contract or deposit was required so this process does vary by seller. I think the fact that I called them and drove 300 miles to see the boat sort of prequalified me. I did end up buying a new boat, but not from them.
     
  15. osd9

    osd9 New Member

    Oct 3, 2006
    MidAtlantic
    2003 410DA
    Caterpillar 3126-TA w/ ZF 80-IV
    Not counting for sale by owner boats, there are three (basic) types of boats to buy: New, Used and Brokered. Although there are many similarities when buying them, there are also many very distinct differences.

    For example, you call a salesperson at a new boat dealer who took a boat in on trade, or a new boat, and that boat is in the water at their docks, and you ask for a test ride, there's a good chance you'll be boating that afternoon burning OPF...provided you pass some basic pre-qualification interview. You ask that same salesperson to take you out on a customer's boat that is listed with their brokerage department, and, around here, you'll have to sign a contract before you start burning off any of that boat's fuel.
     
  16. Boulder GT3

    Boulder GT3 New Member

    336
    Jan 28, 2008
    Fort Lauderdale
    56 Viking
    MAN cr1550
    C12
    That's not the experience I had. In every case, the salesperson called the owner on his cel and we were underway in <5 minutes. In every case, I tried to send a note that night on what I liked about the boat and any concerns I had. It seemed like the right thing to do. About half the time I got a note back thanking me for feedback even if I wasn't going to pursue the boat. I always offered to pay for fuel and nobody took me up on it.

    It could be that the SoFla market is so soft that if you're a real buyer there isn't much hesitation to try and do what the buyer needs.
     
  17. Kameroo

    Kameroo Member

    683
    Feb 1, 2007
    Louisville, KY
    12' Kayaks
    Human
    Lots of good discussion here. When things get serious, just get things in writing to protect both you and the other guy. Very simple, and it can save trouble down the road.

    I recently helped a buddy sell a piston-powered aircraft. To save $500, they declined using an escrow service. Long story short is they took a $10,000 deposit check (didn't cash it), then nothing happened for over a month. When questions started coming up like "can you have them fix one more thing..." or "I can't close this week, so how about next, or the next," things got a little murky. There were other buyers turned away, the economy tanked some more and I really wondered if the thing would happen. The sale eventually went through, but it would have been better for everybody with some simple language in place up front.
     
  18. chollyjohn

    chollyjohn New Member

    126
    Sep 27, 2008
    Richmond & Morattico, VA
    1992 Sea Ray 310 Sportbridge - Only 41 Made by Brunswick
    Twin 8.1L Mercruiser; 370HP each; Inboard Zurth Str8 Drives
    It took me over 1-1/2 years to find the right boat. Previous 268 Dancer owner and sold on Sea Ray quality in early 90's. Knowing too much can be a disadvantage to the Seller but information best kept to yourself. Stress the bells and wistles and QUALIFY your buyer by asking questions and limit your comments only to responces to his/her questions. The best buyers are those who KNOW what they want; boat, size, options etc. Finally, know your competition and in todays market a broker should be considered. They can provide an advantage to CLOSING a Deal with the Purchaser with special financing if needed. Not too many people are in a cash position with this economy and lenders are being tight on loans. Best of Luck to you.
     
    Last edited: Sep 27, 2008

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