Negotiating final purchase price

[robinm 2]

So we have an offer in on a boat and are getting the survey, rig and mechanical inspections. The mechanical inspection has turned up a leak in the cooling system, potential leak in the hydraulics and a poorly mounted alternator. What is the process from here, these are all pretty small things, should we expect that they be fixed or further negotiate on price? I'd really appreciate your advice on what you guys would do.

 

Thanks

Robin

[Island Time 1,239]

Up to you. You can negotiate a discount so you can get the issues sorted how you want, or you can ask for them to be fixed. Depends on whether you want to see it fixed your way, or their way.

[Winter 42]

I got quotes or estimates from the boat yard, addedd 10% for the inconvenience and asked if the vendor wanted to rectify or you would adjust the offer to cover it. And be happy with either outcome

[AlastairW 15]

Like you say, small things. We found a couple of similar things when recently purchasing, could have asked the vendor to rectify them, or started haggling about the price. In the end, the boat was what we wanted, and for us it was more important to have the goodwill of the vendor, so we just accepted there was a wee bit of work needed, and left it at that. At the end of the day, it's a very small percentage of the overall cost.

[too_tall 15]

Figure out what it will cost to rectify the issues properly. Then, if you wish to, negotiate some or all of the repair price out of the purchase price.

 

I have had 3 different surveyors recommend that you never let the seller do the repairs as you are most likely to get corners cut, and more often than not end up in a small claims tribunal or court.

[Myjane 40]

Usually the vendor is made aware of the defects and has the choice whether he is to fix these , or price adjust , these sound like small defects , if he does not want to fix the items , you have the right to walk from the deal , some buyers get prices from engineers to fix the items , but most sellers shy from these estimates as they are high , if you love the boat then buy it and fix it your self

[BMW56 12]

It's like buying a used car or a house. There will always be something that needs attention, or that you would prefer to be different. My advice would be to buy it as you see it, so long as the work needed is only minor, for a price you are happy to pay and the vendor is happy to accept. If the vendor is happy to fix things to secure the sale, all well and good, but there shouldn't be an obligation to make the boat perfect. Otherwise, if you choose to look after the work yourself, just like the all the ongoing repairs and maintenance you will need to do for so long as you own the boat, you can decide the priority and standard of the work as you see fit and can afford. Any outstanding work that was not immediately obvious might be helpful for negotiating the final price, but otherwise 'what you see is what you get'.

[Battgirl 23]

Sometimes apparently minor things become major ones. What you can consider is a clause in your sale and purchase agreement to the effect that if the issues turn out to be major - even going so far as to put a $ value on that - you and the vendor share the cost of repair. I did this when I bought my current yacht. The only issue might have been osmosis.The vendor and I agreed that if there was more than localised blistering we would share the cost of repair. We were both happy and in fact I found only 3 small blisters on the entire hull.

[harrytom 648]

Is the deal being done as a private sale or through broker?

Private sale would like buying a car.No come back on seller. Buyer beware!

 

What has the surveyor advised you to do?

[robinm 2]

Thanks for the responses, everyone. I expected it wasn't so straightforward as I was hoping. 

Harrytom - it's through a broker, but I'm not sure the broker takes any responsibility anyway? We have the survey and sea trial on Wednesday, so far I've only had the mechanical inspection, but I'll be sure to ask advice of the surveyor.

[harrytom 648]

Interesting for me is how would the consumers guarantee act work?As a broker is merely putting buyers in contact with sellers and helps with negotiations,so my way of thinking is go with a independent surveyor.

I to buy a yacht via a broker and he gave me a surveyor report from a previous enquiry to use but went with a independant,turned out the shaft strut was loose and area around strut needed major work.no sale.I had to pay lift out and report,money worth spending.

Got caught slightly on the yacht I have now took a chance,paid the money picked boat up following weekend and water in bilge,rang previous owner and he said bad luck,turned out seal had gone dripless shaft seal.

[too_tall 15]

Brokers are a bunch of crooks in general from my experiences!. 

 

I accept that any yacht purchased second hand will have minor work required - its the majors that you need to consider when purchasing. Minor work you almost accept as you will have to sort yourself, I feel.