phughes69

I am looking at getting another boat to use while I work on the engines for my Scarab. I have always liked the late 70's 24' Sea ray SRV flybridge models. Small enough to trailer, dual helms so I can still be boating in September and October. I found one for sale in Colorado that has twins in it. I have ad a survey performed on it and just from the verbal conversation from the surveyor, the hull and stringers check out good. It does have some deficiencies, but minor ones, the alternator belt on one engine is missing, one trim tab actuator is leaking, but nothing that is a deal breaker. The surveyor suggests that the purchase agreement have wording that states it is contingent upon a satisfactory survey. Here are my questions?
1. On the purchase agreements it usually states the purchase price. Is this price still negotiable when I actually see the boat and find something the surveyor missed? (missing electronics, something not fixed that was mentioned on the survey).
2. I will be driving out to pick up the boat, should I use an escrow account to pay for it?
Any other suggestions?

cigrocket

iTrader: (3)

I am assuming that the purchase price isn't huge. What you could do is bring a certified bank check for an amount and then some in cash. Then you can negotiate the short comings of the deal. I would just bring it all in cash, but that is me. Some people may want a combination of cash and check to be more comfortable.

Another way is to set up a wire transfer with your bank. When you show up, make the deal you want with the owner. When you make the agreement, wire the money. Money shows up usually withing an hour, and then you done. you have the title, you have the boat and the seller has his money. All parties are then happy.

phughes69

Sellers asking price is $8K. I will send him a deposit , but I want to make it refundable if the sea trial is not satisfactory and the deficiencies that are found in the survey are not repaired (if that is what we agree to). Does that sound reasonable.

partlowr

I agree with you on the all cash part, that's exactly how I bought my boat. I had to drive over 250 miles to see and sea trial the boat so we never negotiated a price in advance but the seller had it listed for a fair and realistic number. I had a number in my head and I put that exact amount of cash in a backpack and a little more in the glovebox in case he didn't bit on my first offer. Once I got there I threw the guy a somewhat lowball offer as I reached into my backpack and pulled out several stacks of 100 dollar bills totaling the amount of my offer, at that point the seller knows you are serious, there is always something about cash that helps in the negotiating process. I ended up getting the boat for my offer price. As I mentioned in another thread although I was happy about what I paid I was still wondering and second guessing myself on the drive home if I could have gotten the boat for even less, but at the end of the day I still feel I scored a great buy.

phughes69

The other thing is that I wont be able to get the boat for 3 weeks. My school schedule prevents me from getting away for a few days to get it. The drive is 1200 miles one way and I figure It will take me 4 days total.

rak rua

Subject to a survey is preferred but difficult because of everyone's different opinion of what is fair wear and tear, what is acceptable and what needs repair. Also, sounds like he's got to do a couple of things before a sea trial, alternator belt and trim tab for a start.

Put everything in writing on the contract and remember, If it's not on the contract, then it's not in the contract

You probably have to assume he's a straight up guy and he's assuming you are too. Send him the smallest deposit you can get away with and take cash. Two good blokes should be able to negotiate the rest on the day.

Good luck!

RR

phughes69

Just talked to the seller about moving forward with this. I told him I could put a deposit down on it but wont be able to pay the balance for 3 weeks. He is in hurry because he is selling the boat for a woman who's husband died and she needs the money. He is also stating that he has a buyer that is willing to give him his full asking price of $8900. I want to wait till I see the full survey and then negotiate the price and/or repairs then and make it contingent upon the boat passing a sea trial with me on board. The surveyor found that the upper helm was not working ( the steering is hydraulic and from what I read they need to be refilled sometimes, its a closed hydraulic system). The trim tab actuator on the port was leaking horribly on the outside. There was no belt on the port engine so the survey could not run the engine long. The bilge blowers were barely working. It needs to have a good bottom paint put on. It needs batteries.

cigrocket

iTrader: (3)

I would assume the seller knows you are being straight up if you are paying for a survey on a 8k machine. You are traveling along distance for a common boat. I would send him a personal check for $250.00 Which he can hold on to if it makes him feel better.

Just my humble opinion, but you being from MI, seems like you should be able to find something in your area that is 8K that meets your criteria. 2400 mile round trip for a sea ray seems like a haul.

Good luck with your deal. But I think you know what you are doing and just speak clearly with the owner so you both feel comfortable with the transaction and expectations and I think you will be fine.

Enjoy

partlowr

Don't fall for the "He's got another buyer on the line" trick, that's the oldest one in the book followed closely by "I've got two more people coming to see it later today after you". If he had another buyer offering him full asking price he would not even be talking to you. I'd say roll the dice and disappear for a week and make the guy sweat it and then wave $7500 under his nose and he will bite, I guarantee it.

phughes69

I found this purchase agreement on another forum. The part I like about it is if as the buyer I am not satisfied, the deposit is refunded to me.

VESSEL PURCHASE AND SALE AGREEMENT
Buyers Sellers
Address:
Phone:
Name of Vessel
Make and Type Year
Registration Number
Hull ID
Deposit and Payment
Buyers offer to purchase all right, title and interest in the above vessel together with all of its gear, machinery, equipment, furnishings, boats, appurtenances and other articles aboard or ashore, including, without limitation, all items set forth in the list of inventory attached hereto, (collectively, the “Vessel”), subject to the terms and conditions of this agreement. The purchase price of the vessel shall be ($). Buyers have delivered to the sellers a deposit of ($). The balance is to be paid within xxxx (x) days of completion of the sea trial, engine survey and marine survey. Final payment is to be made in the form of a cashier’s check.
Performance and Condition
Offer is made subject to Buyers’ satisfaction with the performance of the vessel and to their acceptance of the condition of the vessel as put forth in an engine survey and marine survey made in their behalf. Buyers agree to hire and pay for services of the surveyors of their choice and to pay for haul out charges in connections with the surveys.
Deposit Refund
Should the vessel prove unsatisfactory to the Buyers due to performance or condition as determined, by the Buyers, during sea trial and surveys, the deposit will be refunded less any expenses incurred for the Buyers’ benefit.
Title
Sellers are to furnish clear title to the vessel in accordance with regulations of the Tax Departments of the City, County, and State. Title to the vessel shall remain with the Sellers until payment in full has been made.
Liens, Bills, etc
The Sellers are to discharge all liens, mortgages and bills of any kind now held against the vessel, or any which may be incurred in their behalf before passage of title and possession to the Buyers.
Condition not Warranted
Vessel is offered to the Buyers “as is, where is and with all faults”. No representation as to the condition of said vessel is binding upon the Sellers. No warranty is either expressed or implied other than specifically set forth in this agreement.
Buyers Offer
By signing below, Buyers offer, as of the date indicated, to purchase the Vessel from Sellers under the terms and conditions of this Agreement.
Buyer:
Date:

Sellers Acceptance
By signing below, Sellers agree, as of the date indicated, to sell the Vessel to Buyer under the terms and conditions of this Agreement.
Seller:
Date:

Sea Trial Approved Engine Survey Approved
Buyer:
Date:

Marine Survey Approved
Buyer:
Date:

Buyers Final Acceptance
By signing below, Buyers acknowledge that pursuant to the provisions of this Agreement, Buyers have approved of the Vessel in all respects, and that all contingencies have been satisfied.

Buyer:
Date:
Inventory list
The following items shall be considered to be part of the Vessel and shall be included in the purchase price set forth in this agreement.
Inventory not included