You do economics almost as well as you sail.Sea Hunt wrote:The above being said the current economic situation is a relevant factor to consider in pricing for anything - houses, cars, planes, boats, computers.
Marine Surveyor on Martha's Vineyard or nearby Falmouth area
Moderator: Jim Walsh
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Neil Gordon
- Posts: 4367
- Joined: Feb 5th, '05, 17:25
- Location: s/v LIQUIDITY, CD28. We sail from Marina Bay on Boston Harbor. Try us on channel 9.
- Contact:
Used boat price
Arriving at an agreed price when buying a boat is, to me, one of the hardest parts of buying a boat.
We all understand the law of supply and demand:
High Supply/Low Demand = Lower Price
Low Supply/High Demand = Higher Price
In times of a depressed economy we can expect demand to fall causing prices to fall.
Shopping for a boat that is special to you and is in low supply breaks these rules. Instead we have:
Low Supply/Low Demand = neutral pricing
Anxious Seller/Uncommitted buyer= Lower Price
Anxious Buyer/Uncommitted seller = Higher Price
So we try to appear uncommitted while analyzing the seller for anxious qualities!
Maybe we should just ask him!
Buyer, "I know you have given this a lot of thought, what is the best price you are willing to sell me this boat for?"
I'm not commenting on anything Sea Hunt is arranging during this part of the CD25D transaction, just commenting in gerneral of the difficulties in determining whether we paid a fair price or not.
We may never know until we sell the boat!!
Good Luck Sea Hunt, it ain't easy.
Gary
We all understand the law of supply and demand:
High Supply/Low Demand = Lower Price
Low Supply/High Demand = Higher Price
In times of a depressed economy we can expect demand to fall causing prices to fall.
Shopping for a boat that is special to you and is in low supply breaks these rules. Instead we have:
Low Supply/Low Demand = neutral pricing
Anxious Seller/Uncommitted buyer= Lower Price
Anxious Buyer/Uncommitted seller = Higher Price
So we try to appear uncommitted while analyzing the seller for anxious qualities!
Maybe we should just ask him!
Buyer, "I know you have given this a lot of thought, what is the best price you are willing to sell me this boat for?"
I'm not commenting on anything Sea Hunt is arranging during this part of the CD25D transaction, just commenting in gerneral of the difficulties in determining whether we paid a fair price or not.
We may never know until we sell the boat!!
Good Luck Sea Hunt, it ain't easy.
Gary
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Joe Myerson
- Posts: 2216
- Joined: Feb 6th, '05, 11:22
- Location: s/v Creme Brulee, CD 25D, Hull #80, Squeteague Harbor, MA
Good summary
Gary,
You put the economic situation in a nutshell.
Taking advantage of the economic situation is not necessarily exploiting other people's misfortune.
(And this comes from somebody who has been without regular employment since July--but no, Robert, Creme Brulee is NOT for sale!)
--Joe
P.S. Sorry to be repetitive about "Blue Moon."
You put the economic situation in a nutshell.
Taking advantage of the economic situation is not necessarily exploiting other people's misfortune.
(And this comes from somebody who has been without regular employment since July--but no, Robert, Creme Brulee is NOT for sale!)
--Joe
P.S. Sorry to be repetitive about "Blue Moon."
Former Commodore, CDSOA
Former Captain, Northeast Fleet
S/V Crème Brûlée, CD 25D, Hull # 80
"What a greate matter it is to saile a shyppe or goe to sea."
--Capt. John Smith, 1627
Former Captain, Northeast Fleet
S/V Crème Brûlée, CD 25D, Hull # 80
"What a greate matter it is to saile a shyppe or goe to sea."
--Capt. John Smith, 1627
.02 -- or whatever its worth today
As a buyer, I think you ought to try to get the boat you want for as little money as you can. You shouldn't feel bad about that. Anyone who tells you otherwise isn't buying a boat. I also think you can and should try to do that without being a jerk about it. John's last comment seems right on the money to me: having a broker between you and the buyer should make it pretty easy to pursue both goals.
Having recently bought a boat (which BTW, I consider to be a significant monthly obligation with zero asset value) from what I saw, the sailboat "market" is devastated. There are many boats which have been on the market for years. A lot of those boats seem to have owners who aren't listening to the brokers. I had one broker thank me for an offer of 60% of asking price and tell me that it was a good and fair offer. Seller said no and I believe the boat is still for sale. 24 months later slip space, storage and routine maintenance have probably eaten up most if not all of that price / offer gap -- and the boat is still unlikely to sell for more than 60% of ask. Another boat I offered 50% of value for just sold 2 years later -- for a bit less than I had offered. The owner may have been offended by my offer, but the offer wasn't offensive.
The "bristol" boat is always going to be something of an exception price wise (how much is debatable), but even then it won't be immune from the relative market valuation. Remember, it costs serious money to keep a boat in that way especially while it is f/s..
I bought my boat for maybe half of the original asking price -- about half of what it had sold for 2 years earlier (when it was in essentially the same condition). The market clearly was the difference. The market might firm up if the economy recovers the way it seems to be. Until then, I'd be polite -- but not shy. Figure you have little if any pressing competition (there is always another boat). And, while I am a huge fan of civility, don't let anyone convince you that normal bargaining should be set aside as a result of some boat etiquette (whenever I hear something say something special because "it's a boat" I check to see that my wallet is still there). Anyway, you'll soon be spending all that money you "save" on your new baby.
Matt
Having recently bought a boat (which BTW, I consider to be a significant monthly obligation with zero asset value) from what I saw, the sailboat "market" is devastated. There are many boats which have been on the market for years. A lot of those boats seem to have owners who aren't listening to the brokers. I had one broker thank me for an offer of 60% of asking price and tell me that it was a good and fair offer. Seller said no and I believe the boat is still for sale. 24 months later slip space, storage and routine maintenance have probably eaten up most if not all of that price / offer gap -- and the boat is still unlikely to sell for more than 60% of ask. Another boat I offered 50% of value for just sold 2 years later -- for a bit less than I had offered. The owner may have been offended by my offer, but the offer wasn't offensive.
The "bristol" boat is always going to be something of an exception price wise (how much is debatable), but even then it won't be immune from the relative market valuation. Remember, it costs serious money to keep a boat in that way especially while it is f/s..
I bought my boat for maybe half of the original asking price -- about half of what it had sold for 2 years earlier (when it was in essentially the same condition). The market clearly was the difference. The market might firm up if the economy recovers the way it seems to be. Until then, I'd be polite -- but not shy. Figure you have little if any pressing competition (there is always another boat). And, while I am a huge fan of civility, don't let anyone convince you that normal bargaining should be set aside as a result of some boat etiquette (whenever I hear something say something special because "it's a boat" I check to see that my wallet is still there). Anyway, you'll soon be spending all that money you "save" on your new baby.
Matt