pachanga

LOL! If you have a pump out head,kitchen of sorts, and somin ta sleep on it was allowed to be written off on taxes as a 2nd home!

I would have no problem putting 10% down if I was making an offer on a boat. The only reason I could see someone having a problem doing so is if they were not serious or being a WAT(Waste a Time). I get those in my business all the time!

bluellama

So if you put a 10% deposit down on a boat, and the seller doesn't accept your offer, then your cash-flow is out the 10% until you can get the money returned and cleared through your bank.....

So you offer on a $100K boat with a $10K deposit, while you go back and forth the cheque gets cashed, you can't come to an agreement on price, while you are waiting to get your $10K back you see the next boat you want, send in your next $10K deposit, can't get to an agreed price, and have to wait for that $10K to be returned.......

You are now out $20K and the perfect boatg comes along, but you can't put an offer in because you don't have another liquid $10K kicking around....

That's why you offer a deposit "upon acceptance". Once you and the seller come to an agreement on price and terms, then you hand over a deposit....

When I write a real Estate offer I usually offer a certain amount upon acceptance, another deposit upon waiver of conditions (inspection, financing) and the balance upon close.

If I walk into any dealership today, they don't ask me for money up front, before we agree upon price and terms, why should a broker be any different...

Zudnic

I've done this on higher end cars and more rare collector type stuff. Sure its protecting that commission, but in some cases when work is involved. That person is entitled to get paid! Granted in this case for the work involved, asking a bit much! Stiffing a broker thats been working hard doing all selling and the buyer does a side deal with owner direct. Cutting out the broker happens a lot. I'd make people put up for my protection as well.. But I would not be greedy like this......

pachanga

I would think the check would not be deposited unless the owner accepted the offer. I have never had a deposit check cashed if the offer was not accepted. Was always given my check back. Has me scratching my head wondering if you are dealing with a snake instead of a good broker. I recently made an offer on an out of state boat on the phone...no deposit,etc. Broker contacted the owner and called me back the same day.

I also agree with you on the deposit amount. I would think $1-5K would be more than enough to show an owner you are serious,regardless of whether the price was $50K or $500K!.

bluellama

I agree that's the way it should be, but if you take a look at CustomRyders first post, this broker originally wanted 10% up front, before he would deliver the offer....

Jigsaw89

IMO, the tax benefits of owning a boat with certain options being similar to that of a home doesn't mean that the transaction must be handled like that of real property. I understand that once a broker gets involved in any sale that he is going to require terms that protect his commission and ensure that he is dealing with a real buyer. This is to be expected. It sounds like you may be caught up on the tax benefit aspect of things, but to each their own.

The point is that if a broker (of any type) is involved in a transaction and requests unreasonable terms in order for him to simply present an offer, I'll be the first one to fly the BS flag. As someone previously mentioned, it seems the broker in Customryder's situation might do more than simply 'hold' the check until pricing and sales terms could be worked out. There must be a happy medium b/w asking reasonable terms and being an asshat.



I totally agree with your post below and feel that's how a boat broker should handle a prospects deposit check until sales terms can be worked out.