Hi All, We found the boat, had an offer accepted dependant on sea trial and pre purchase survey findings & have paid a deposit. Lift & survey is booked in. Spoke to the broker about how we deal with anything (hopefully nothing) the survey might show. He pretty much said that anything related to lack of maintenance found would be our problem. Is this how it works? Is it just 'big' issues that can be negotiated with the owner & what is considered a 'big' problem? If sail drive seal is dodgy & needs replacing or it has dodgy sea cocks etc is that able to be negotiated for a price reduction? Can anyone clarify?
Thank you in advance!
Everything is negotiable. Don't be bullied by the broker. Obviously fair wear and tear depending on the age of the vessel is acceptable depending on how much work you want to do or are willing to accept but seaworthiness is another issue.
There are many more sellers than buyers
Your call.
There is always another boat as well!
Theoretically, the surveyor should identify information about significant safety and cost issues - evidence of oil canning, corroded/cracked rigging and fittings, dodgey electrical connections, damaged engine mounts, corroded exhaust, steering gear problems (loose, binding) etc. If the report identifies that it'll cost $3-6k to get the boat fit for purpose, then take that to the price negotiations. As per recent Seabreeze member experience, the terms of your deposit may come back to haunt you if you decide not to progress with the purchase. Also keep in mind that surveyors miss stuff. One of my post surveyor purchases had only single hose clamps on under water through hull fittings, and two of those were corroded through. Peace of mind on the water requires an unhurried inspection of your boat, inside and out, end to end, with a good torch, screwdriver to tap and prod everywhere, and a mirror to see what you can't easily get to.
All that before the rigger points out a (thankfully repairable) crack half way up the mast when you go to replace standing rigging for insurance :)
Select to expand quoteBushdog said..
Theoretically, the surveyor should identify information about significant safety and cost issues - evidence of oil canning, corroded/cracked rigging and fittings, dodgey electrical connections, damaged engine mounts, corroded exhaust, steering gear problems (loose, binding) etc. If the report identifies that it'll cost $3-6k to get the boat fit for purpose, then take that to the price negotiations. As per recent Seabreeze member experience, the terms of your deposit may come back to haunt you if you decide not to progress with the purchase. Also keep in mind that surveyors miss stuff. One of my post surveyor purchases had only single hose clamps on under water through hull fittings, and two of those were corroded through. Peace of mind on the water requires an unhurried inspection of your boat, inside and out, end to end, with a good torch, screwdriver to tap and prod everywhere, and a mirror to see what you can't easily get to.
All that before the rigger points out a (thankfully repairable) crack half way up the mast when you go to replace standing rigging for insurance :)
Thanks Bushdog, that is helpful information.
In light of similar threads recently, it appears that the whole vessel purchase via a broker is a dodgey exercise, ie you give a hansome deposit before you have a survey and if you don't like what you find you stand to loose the deposit ? As well as the slipping and survey cost, It seems to be geared in the brokers favour whom know doubt gives the vendor the same kind of treatment and charges like a wounded bull for running a couple of adds ! At least their counterparts in realestate have to work between legislated protocols, while screwing both sides for what it's worth.
Select to expand quotewoko said..
In light of similar threads recently, it appears that the whole vessel purchase via a broker is a dodgey exercise, ie you give a hansome deposit before you have a survey and if you don't like what you find you stand to loose the deposit ? As well as the slipping and survey cost, It seems to be geared in the brokers favour whom know doubt gives the vendor the same kind of treatment and charges like a wounded bull for running a couple of adds ! At least their counterparts in realestate have to work between legislated protocols, while screwing both sides for what it's worth.
Hi woko, it seems that way to me too. The brokers hold all the cards!
Select to expand quoteDenick said..
had an offer accepted dependant on sea have paid a deposit. Can anyone clarify?
Please copy the clauses from your contract when you paid the deposit, then we can let you know how it works.
If it is a standard contract it would be acceptable survey and sea trial to the purchasers satisfaction. Therefore if you do not like the way the boat sails you could pull out. You would be up for the cost of the survey and the lift out of the water. I purchased a yacht recently and ended up reducing the price by $25k to account for the issues found during the survey. This included exhaust manifold holed, possible problem with the heater exchanger, missing chartplotter, issues with diesel generators, issues with seacocks and attached plumbing, batteries stuffed, stove / oven illegal and needed to be replaced, alternator defected, sea water strainer leaking. Like a few other posters said, everything is negotiable. Anything you find wrong and you cannot get the seller to fix, or reduce the purchase price by an acceptable amount is also grounds for walking away.
Whether something is a "maintenance" issue depends on the circumstances. If the yacht has been advertised as "ready to sail" then anything that prevents the boat from sailing is the sellers problem. If it has been sold "as is" then maintenance is probably your problem. However everything is negotiable.
Ilenart
Select to expand quoteIlenart said..
If it is a standard contract it would be acceptable survey and sea trial to the purchasers satisfaction. Therefore if you do not like the way the boat sails you could pull out. You would be up for the cost of the survey and the lift out of the water. I purchased a yacht recently and ended up reducing the price by $25k to account for the issues found during the survey. This included exhaust manifold holed, possible problem with the heater exchanger, missing chartplotter, issues with diesel generators, issues with seacocks and attached plumbing, batteries stuffed, stove / oven illegal and needed to be replaced, alternator defected, sea water strainer leaking. Like a few other posters said, everything is negotiable. Anything you find wrong and you cannot get the seller to fix, or reduce the purchase price by an acceptable amount is also grounds for walking away.
Whether something is a "maintenance" issue depends on the circumstances. If the yacht has been advertised as "ready to sail" then anything that prevents the boat from sailing is the sellers problem. If it has been sold "as is" then maintenance is probably your problem. However everything is negotiable.
Ilenart
Thanks Ilenart.
Whilst there are many good brokers, some simply don't know what they are talking about. The comment about "maintenance" is nonsense.
The offer price is based upon the obvious condition / features of the boat plus information from broker / owner. Anything else negative discovered during survey either allows walk away or price negotiation depending upon severity (unless it is a non-standard contract).
It is reasonable to assume that equipment has been maintained appropriately - if damage caused by failure to maintain is discovered, that is not in some way excluded from renegotiation.
Cheers
Bristol
Select to expand quoteBristolfashion said..
Whilst there are many good brokers, some simply don't know what they are talking about. The comment about "maintenance" is nonsense.
The offer price is based upon the obvious condition / features of the boat plus information from broker / owner. Anything else negative discovered during survey either allows walk away or price negotiation depending upon severity (unless it is a non-standard contract).
It is reasonable to assume that equipment has been maintained appropriately - if damage caused by failure to maintain is discovered, that is not in some way excluded from renegotiation.
Cheers
Bristol
Thanks Bristol. It is a standard contract and the offer was made in writing subject to sea trial and survey report. I'm hoping the survey is good.
