LET THE BUYER PREPARE —
LATITUDE / CHRIS
A scene from the 2017 Pacific Sail and Power Boat Show in Richmond. A boat show can be a great way to meet the right broker.
Page 100 •
Latitude 38
• September, 2018
What are you looking for? The most important consideration a buyer should take into account is exactly what kind of boat they are looking for. Will it be an entry-level daysailer, a round-the-buoys racer and weekend cruiser, a hot-rod race machine or a bluewater passagemaker? Are the buyers looking for performance and speed or comfort and safety? Will it be a monohull or a multihull? Full or fin keel, motorsailer or sleek sloop? At this point, the buyer should let the broker know what their price range is, which will help the broker zero in on boats to suit the buyer's wants and needs. The type and size of boat desired by the buyer(s) will partially determine the length of time it will take to complete a successful sale. You can assume that, generally speaking, a 20-ft daysailer on a trailer will not require the same time and resources to purchase as a fullyequipped 40-ft bluewater cruiser. Where does the buyer start the process? After a reasonable determination is made and the field is narrowed, let's assume our buyers have made a choice. How do they proceed? Make an Offer The first step is to make an offer on the boat. After all the searching, phone calls and research, the choice is narrowed down to one boat. The buyers like it, and decide it may do the job. They are ready to take the plunge. Assuming the boat is from a broker's listing, the buyers meet with the broker and discuss the boat and the listing price. They decide what they can afford (or are willing) to pay. Then, a written 'Offer To Purchase' is signed and the
buyers will submit a deposit, generally 10% of the offer, to indicate their good will and serious intentions. In the offer, the buyers will list, hopefully with some assistance and guidance from the broker, the terms offered. The terms usually include an on-thewater demonstration, haulout and marine survey. The offer should normally include a time frame or deadline, for both buyer and seller. For the buyer, a time frame for the seller to accept or reject the offer; for the seller, a time frame for the buyer to complete the sales transaction. Often, the offer will be subject to a buyer's ability to obtain financing, and may also be subject to several other conditions, and, occasionally, demands or whims. The broker will present the offer to the seller and, in most cases — unless the offer is significantly less than the listing price — the seller will either accept or counter. Buyers should note at this point that unless a seller instructs a broker otherwise, the broker by law must submit any offer that is signed and accompanied by a deposit. So buyers should be fair and reasonable, but shouldn't be afraid to take their best shot. As they say in the yacht sales business, "All a buyer has to lose is a boat that they don't own anyway." If you need some guidance about pricing and values, you can always look at comparable boats, and it shouldn't be hard to find similar boats listed for sale. One of the best sites for comparisons is www.yachtworld.com, which lists boats for sale all over the world. The prices on yachtworld.com are all broker listings; there are no private-party sales. Therefore, listing prices are generally at the high end of the scale, because sellers have to allow negotiating room as well as broker commissions. But this resource gives buyers a comparison to see whether the seller is in the ballpark. Yachtworld.com also has a site that LATITUDE / LADONNA
"T
he little lady and I are going to retire in five years and sail around the world," the client proclaimed to the broker with an air of certainty and self- importance, demanding, "What can you show us now?" He was dressed in cowboy boots, smoking a cigarette, and was ready to climb down the first open companionway he saw. His wife, dressed in high-heel shoes and a dress, was hurrying along unsteadily behind him. "We're in the brochure stage," he said, and added, "We're in no hurry." When the broker asked more specifically what they were looking for, he replied, almost dismissively, "We'll know when we see it." The broker woke up in a cold sweat, realizing that it was just another bad dream. While the "boat buyer from hell" might seem like an exaggeration, most brokers can relate. Some first-time boat shoppers are knowledgeable and ready to deal, but many others, through no fault of their own, are woefully unprepared for what may represent a major commitment of time and finances. Even in these days of information overload on the Internet, many first-time buyers do not understand the process of buying a used sailboat. Sometimes, just writing the check for the boat is the easiest part. So how do you go about the process in the right way? What should a buyer look for (and look out for)? Here are some questions and concerns that confront most first-time buyers. While this should not be considered a 'complete A to Z manual for buying a boat', hopefully it will serve as a rough guide.
