Some time ago a buyer commented, 'your process is too complicated.' It should be just like buying a car. Obviously they did not know what went on in the back office when they last bought a car. To this person it was as easy as handing over the cash and taking the signed off title in return, hooking up the boat to the car and leaving. I did not know them only having talked to them that afternoon. What I inferred was they knew exactly what they wanted, the boat I had listed filled those wants and the fact it was a cash transaction should make the whole process very simple. If it were always so easy.
Buying a boat is much more like buying a house than a car. There are far fewer variables buying a car than a boat, some may argue not true, and the investment of money is different. Most people do not spend a low five digits for cars that are twenty years old or anywhere in between. Even older boats may have values approaching mid five digits. So how could that kind of expenditure be compared to buying a car? Many people sell boats on their own, and I am sure there are many transactions of that nature which are satisfactorily concluded. My experience tells me the percentages are low for success, and just last week received an email from a former buyer he bought a boat on line (not from us) and "got screwed." He did not elaborate, but did tell me he would be looking again. Of course this is anecdotal evidence and hard data might be difficult to obtain. There is just inherent risk in buying high dollar items from people you do not know.
Typically a transaction goes something like this:
*Contact a broker and discuss your goals for a purchase, total budget, and features you would like to see. You might discuss your experience in boating or with the particular type of boat you are shopping. In addition you will learn about the broker, their experience as a boater, and knowledge of the industry.
*The broker goes looking.
*Possibilities are discussed and perhaps arrangements are made to view the boat. You make an offer and the necessary paperwork is completed. The broker contacts the owner of the boat to present the offer. There may be negotiation or there may not. The broker will have consulted with you about the offer and its probability of acceptance and understand your willingness to negotiate.
*The offer accepted based on contingencies**. Your broker will guide through each of these steps. The typical contingencies are inspection and or survey, and water trial. The offer is finally accepted, you place a deposit, (to the brokerage trust account) and arrangements made to satisfy the contingencies. The contingencies are satisfactorily met and the transaction is completed. If they are not your deposit is refunded.
Now each step deserves its own analysis and commentary which are upcoming. For now consider; would you had over several thousand dollars to complete the transaction without some opportunity to inspect what you are buying? Would want to make sure the seller has the authority to sell the vessel? Would you want to make sure you have a clean title? Would you want some assurance the vessel is capable of doing what it is you want it to do?
The broker should be functioning as your consultant on your journey to buying your boat. Ask questions, even the ones you may think are dumb ones (there are not any dumb ones.) The broker should be willing to discuss boats and boating in general and share their knowledge. They should also tell you want they don't know.
**Costs are borne by the buyer
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