Dodgy broker actions

[Matt.Mac]

Has anyone every run into a “bait/switch” broker… where they advertise one price on their website/apps… and when you send them a query, suddenly the price jumps $20,000 before they respond to you? And the frustrating part is… the first price was $20,000 over JD Powers estimate on the specific boat (so the jump is now $40,000 over the market estimate)!
They’ve been sitting on my query for about 3 days and no reply. How do you handle making an offer on the boat? Ignore their crappy tactic and make an offer? Do you call them out on it, and make an offer? Or do you walk away from them completely?

“I noticed the listing price was recently adjusted. Based on JD Power valuation and comparable R25 sales, fair market appears to be in the $X range.
I’m prepared to submit a clean offer at $X, contingent on survey and sea trial, with deposit upon acceptance.
Please let me know if the seller is interested in serious offers in that range.”

 

[scross]

Not responding to the dealership integrity but to the use of JD Powers to value a boat.
In my opinion JD Powers boat valuations are crap. Way, way too low. Consistently way too low by as much as 20-30% under real value. You may have dealers and owners continuing to react to JD Power based offering prices with complete silence. And I’ve done the same by totally ignoring lower than lowball offers on the last 3 boats I’ve sold in the past 12 years.
The best way to estimate real value for a boat is the same method for home sales. Look at the actual final sales price of compatible homes or boats in this example. The boat dealerships have access to closed boat sales data. If you have a broker representing you as a buyer the broker may share that info with you.
Otherwise, look at the asking prices on Yachtworld to see what owners ad brokers are asking for comparable listings. Especially for listings that have had downward movement in the asking price. The asking prices should give you an upper end estimate.

 

[Matt.Mac]

Not responding to the dealership integrity but to the use of JD Powers to value a boat.
In my opinion JD Powers boat valuations are crap. Way, way too low. Consistently way too low by as much as 20-30% under real value. You may have dealers and owners continuing to react to JD Power based offering prices with complete silence. And I’ve done the same by totally ignoring lower than lowball offers on the last 3 boats I’ve sold in the past 12 years.
The best way to estimate real value for a boat is the same method for home sales. Look at the actual final sales price of compatible homes or boats in this example. The boat dealerships have access to closed boat sales data. If you have a broker representing you as a buyer the broker may share that info with you.
Otherwise, look at the asking prices on Yachtworld to see what owners ad brokers are asking for comparable listings. Especially for listings that have had downward movement in the asking price. The asking prices should give you an upper end estimate.

To be clear… I didn’t say anything about a price in my query. Just a “hey I see you have a Tug for sale can you tell me more about it” via the third party app and a direct email to the broker two days after they didn’t respond. And mysteriously, the price shot up $20K!
And furthermore… the new price is double the JD Power estimate!

 

[William Sanborn]

To be clear… I didn’t say anything about a price in my query. Just a “hey I see you have a Tug for sale can you tell me more about it” via the third party app and a direct email to the broker two days after they didn’t respond. And mysteriously, the price shot up $20K!

I wouldn't worry to much about the Selling Price they are posting or changing, if a broker the seller could be jumping around. Make your offer with the conditions to the Broker and he will present to the Seller, who if willing to accept or counter. Three days could be a short time for all the decisions to be made, unless your in their Office and talking across the desk. They might consider you a "Lookey Loo", or "Tire Kicker", and they should have shown photos or video to answer a lot of questions. The poor Broker is sometimes trapped between a difficult Seller or difficult Buyer, and there could be other deals pending on this one boat (Don't ask how I Know all this.)

 

[Jcat2010]

As to valuation, its a tricky market right now. A lot of covid boats coming to the market and a lot of sellers think the value of a boat is the value of the loan payoff, which is usually not the case. You're in a good place, as you have a single boat model. Check with your bank and insurer, as they have access to database of sold boat values- as they won't finance or insure beyond certain limits.