During the first look-over, my good friend Mad Dog and I had really torn the boat apart, checking all kinds of things. Looking at plumbing (hmmm), checking the bilge, looking over the engine, marveling at the electrical panel, etc. But I still felt that it would be prudent to have her hauled out of the water and have a surveyor run eyes over everything. While I spend a lot of time on boats, I'm not in the habit of critically eyeing everything ... especially from a non-biased position. You see, I WANTED everything to be OK, so I was going to see it in the best possible light. I figured a surveyor would be able to look at her in an un-glossed state.
So, I located a surveyor on my own, and made an appointment for him to take a good look at the boat. Unfortunately, because of the timing (it was going to be while I was across country, visiting family for Thanksgiving), I was not going to be able to be present during the survey. That seriously bummed me out.
However, the day came (the Friday before Thanksgiving), and the haul out happened, and the survey took place. And honestly, say what you will about brokers, I give Bob a major plus for actually calling me as the boat was being surveyed. He chatted with me about some of the things being observed. He was very up front about what was being seen, and I'm not sure that many brokers would do that, especially ones who are working on the seller's side.
Well, the survey was completed, and I received a very in-depth, no-holds barred report a couple of days later. I had been sitting on pins and needles waiting for this electronic document, and when it arrived, I read it with fear. However, even though there were a few things to consider, it wasn't all that bad. After reading the report, I called the surveyor, and we chatted about all of the concerns that he had. In the end, his final assessment was that she was actually a very fine boat, fit for crossing big, open water, and he would have no problem hopping on board and taking her on a long voyage, through any type of condition. Most of the major things that needed to be done to bring her back to good, safe condition were really only minor upkeep items that had been left too long.
Here's a list of the major dings:
1. The galvanic protection system did not appear to be functioning (not good, but easily fixed).
2. Because the galvanic system wasn't working, the prop had been destroyed (see photos below). But thankfully, the thru-hulls were in good, physical shape (non-corroded), and water tight.
3. The water lift muffler was old, made of metal, and was showing signs of corrosion (needed replacement).
4. All of the thru-hull valves were "stuck". They appeared to be in good condition, just hadn't been worked in a while, and needed to be "unstuck". Most were in an "open" condition and needed to be closed if she were to be left sitting at a marina unattended.
5. The navigation lights were non-functional, and needed rewiring.
6. Many of the hoses (drain scuppers, head, etc.) were old, and becoming brittle, and most all of their hose clamps were of inferior materials and corroded ... they needed to be replaced (see photos below).
7. The galley plumbing was a Rube Goldberg affair of rigid PVC ... the surveyors note was "there is no excuse ... get rid of it" (see photo below)!
8. The propane system needed a complete overhaul.
And really folks, that was about it, aside from a list of several other very minor things (make sure enough life vests are on board, affix the CG documentation number, make sure the required signal flares are present, install both a CO monitor and smoke detector, install a bilge high water alarm, etc.). Things that won't really "sink the boat", and won't "break the bank".
After going through it all, and making a few phone calls to get ideas on what it would cost to repair or replace the major items, I called Bob the Broker and we chatted about making a revised counter offer. I freely shared the survey with him and the owner, so that they weren't in the dark about why I was making a counter offer. Basically, I said, let's either drop the price and I buy her and fix the items myself, or the owner fixes the items, and we keep the initial agreed upon price the same. Bob was a little worried that the owner would balk at those terms, but he passed them along. Secretly, I think he was afraid of losing a tiny bit of commission if things went the way of a lower price. Anyway, it was the next day when Bob called me back and said that the owner agreed to the new terms: I buy her as is, for the new price, and I fix things on my dime. The only other thing they asked for was that I pay the two months of keeping the boat at the broker's berth at the marina. I decided that it really wasn't worth quibbling over, and said let's make the deal.
Here's how the price game went:
Initial asking price was $49,000
At my initial viewing, she had recently been reduced to $39,000
I offered $35,000 (pending survey results)
Owner countered with $36,000
After survey I countered with $33,000 - as is
Final price was $34,000 (I ended up paying two months of brokerage slip fees)
Fair market value was estimated at about $35,000
The estimated replacement value was $350,000 (keep in mind that she's a 1981 vintage, and you're not going to sell her for her full estimated replacement value)
So, I pretty much paid what she was worth ... not a bad deal.
And then, a few hours later, it struck me ... I just bought a boat ... a really nice boat! And I just couldn't wipe the grin off of my face!! It was one heck of a Thanksgiving!!
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