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Step by step process of boat purchase?

Discussion in 'General Yachting Discussion' started by ShearPleasure, May 6, 2022.

  1. Can someone give me some insight on what the step by step process would be on purchasing a MY?
    1. Submitting a written offer
    2. When does $$$ get put down?
    3. Boat and engine survey process
    4. Sea trial process
    5. What if boat does not meet my standards after process?
    6. At what point are you obligated to carry through with purchase commitment?
  2. Steve Hubbard

    Steve Hubbard New Member

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    Jun 2, 2020
    Messages:
    9
    Location:
    Michigan,South Carolina
    For god sake do not sign the "acceptance of vessel" unless you are 100% sure you will be able to buy the boat including financing or risk forfeiting you deposit even if such things are written into the purchase agreement.
    Also from this experience NEVER use Hampton Yacht Group as a broker, run the other way.
    Never use a crook named JR Yuse (Broker) from Hampton Yacht Group. He will tell you anything to get you to sign the acceptance of vessel.

    Just my 55k mistake i would like to have somebody get the benefit of!

    My two cents contact Judy Waldman Yacht sales, she is honest and will steer you straight. I would use no other. (This is not a plug, just my personal experience)

    Cheers, hope you enjoy the boat buying process cuz it is meant to be enjoyable and should be.
  3. 993RSR

    993RSR Senior Member

    Joined:
    Jan 15, 2004
    Messages:
    429
    Location:
    Annapolis/ Palm Harbor
    simple stuff
    1) sign a written purchase agreement. If the seller accepts your offer amount and terms of your agreement including the time line they sign acceptance of the offer.
    2) wire 10% deposit to the selling agent
    3) survey and sea trial contingency typically done in one day on boats under 65 feet. Schedule your inspections, haul out etc and get the survey completed.
    4) now you have 3 options:\
    reject the boat in writing and your deposit is returned
    accept the boat conditional on a price adjustment which needs to be accepted by seller
    accept as inspected and move forward to closing
  4. Thanks!!
  5. Purchaser gets to select and hire surveyor, correct? I take it the boat and motor survey expense is owners obligation?
    Who is present at sea trial? Surveyor?
  6. Steve Hubbard

    Steve Hubbard New Member

    Joined:
    Jun 2, 2020
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    Location:
    Michigan,South Carolina
    the boat and engine survey typically the purchasers expense including haul out fees etc (in my experience), The sea trial is best done with the surveyor along. Absolutely imperative that you make the time to be able to attend. The surveyor is your safety net and for you (to find the things you did not see). With that said it is also imperative to get the best surveyor you can, not just any joe shmo, who will give you what you want to hear. Better to pay more now for an adequate survey than pay later for something the surveyor missed (he is not liable, in the fine print). Do you get the sense i made just about every mistake you could make? I did.....don't do what i did.
  7. Thanks for reply!
  8. olderboater

    olderboater Senior Member

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    Location:
    Fort Lauderdale
    You're really missing step one and it's imperative due to your lack of experience. Engage a buyer's broker that you're comfortable with and trust. They will help you through each step.

    Initial money is paid when submitting offer. Then surveys and sea trial at your expense. If the boat doesn't meet your standards, you get your money back and walk away, or you negotiate further to take the deficiencies into consideration.
  9. JWY

    JWY Senior Member

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    Thanks, Steve!! I too hope others will benefit from your unfortunate prior mistake. I don't think of it as much as your mistake as the broker not telling you the implications of the document he gave/pressured you to sign.

    To spell it out: Do not sign the Acceptance of Vessel until all other conditions of the contract have been secured (like financing and insurance), until after you have received and studied the written survey reports, received all outstanding reports such as oil analysis. Sign the AoV only when you are committed to providing the additional 90% of funds to complete the purchase.

    One point of clarification: I don't ask buyers to send their deposit with the initial offer. I wait until the price has been agreed upon, all signatures and initials in place on the contract, and then to execute the wire for the 10% deposit. Not all brokers play by that rule, but it makes life easier for everyone for those that do.
    SeaLion likes this.
  10. Can you use a yacht broker in Micigan to buy a boat in Florida or vice versa?
  11. JWY

    JWY Senior Member

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    You can use a broker in Michigan to buy a boat in Florida IF s/he has a Florida's broker's license. The only two states that require a license are California and Florida.
  12. Seasmaster

    Seasmaster Senior Member

    Joined:
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    Messages:
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    Location:
    USA

    Judy "ROCKS"!!! Used her for the purchase in 2016 & subsequent sale in 2021. She is Honest/Hard working/tenacious!! And if things are starting to go "south", she's a marvel at triage!!!! And the patient survives. . .
  13. Which brokerage is Judy with?
  14. Zud

    Zud Senior Member

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    Location:
    PA
    Times Three on the "Judy Waldman Experience" She was my (buyer) broker, I live in PA, She in FL at the time, and boat was in VA. Everything went off without a hitch.
  15. chesapeake46

    chesapeake46 Senior Member

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    I would add that you probably don't want a surveyor that is suggested by the sellers broker.
    We have all made mistakes in this world and that was one of mine.......
  16. gr8trn

    gr8trn Senior Member

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    Location:
    Portland, OR
    I don’t see a reply that indicates the monies down to secure the project/purchase must go into an actual escrow account, not the selling brokers checking account. Of course FL and CA have this covered, other states…

    The money in earnest can be negotiable as well.

    Do or have a boating buddy do a pre survey self survey. There are books and articles and forum posts where check lists will help guide as to what to look at. Professional surveys are vital, but they miss stuff. You or your buddy might see stuff that you can ask about here too.
  17. leeky

    leeky Senior Member

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  18. ranger58sb

    ranger58sb Senior member

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    I recently found it useful to include another "subject to" phrase in a purchase offer: subject to maintenance records review.

    We then reviewed the seller's maintenance records first; no cost to us. Since those records included absolutely nothing for engines, we walked. But then revisited later with a new offer lowered by the $$$$$ amount estimated to bring the engines back into compliance with the manufacturer's service recommendations. And that was eventually accepted.

    Seller could simply refuse to provide records, of course... or may not have much in easily sharable format...


    Yes, yes, surveyors (both marine and mechanical) and ideally YOU. (Take notes!) Plus often seller, sellers broker, buyers broker, maybe a hired Captain...

    -Chris
    gr8trn likes this.
  19. Thanks Chris. Good advise
  20. f3504x4ps

    f3504x4ps Member

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    All great information.