Can I back out of a deal?

Leland Pate · 03-07-2006, 01:57 PM

I need some advice from my fellow P-heads on this subject.

To make a long story short, I put my boat on eBay because I need to sell it before going to Germany.

I owe $19,000 on it and have come to the conclusion that I am going to lose money no matter which way I swing it.

The eBay auction was only gettting up to ~$15K with the reserve not met. I had a local guy come out and look at it two days ago.
They first offered $17K. Then $17.7K, then $18.3K.
Yesterday, I really thought $18.3K was the best deal I was going to get so I verbally accepted over the phone.
As a courtesy to one of the other bidders on eBay, I wrote him a message saying the auction would be ended early because I accepted an offer.

Now, here's the tricky part. The other eBay bidder wrote me back saying he'd pay $18,800. This would significantly reduce the financial lose I'd take if I sold the boat to the local guy for $18,300.

But, a co-worker mentioned to me that I may have entered a verbal agreement with the local guy and he could potentially challenge me if I were to back out of the deal. Both these guys are getting a killer deal on the boat and either way I'm losing money. So, it's not like I'm being greedy here.

What do you all think? Would I be wrong to back out?

jkarolyi · 02:05 PM

If you verbally agreed to 18,300, then I would complete that deal. In spite of any legal considerations, it's the right thing to do. Besides, the 18.3K guy has SEEN the boat...that ebayer might see it and change his mind or try to go lower.

Verbal agreements are legally binding, but they are tough to prove, so you could weasel out of it easily if you wanted to. But it wouldn't be right to the original buyer, who is probably all excited about his possible new boat.

BTW...ALWAYS let ebay auctions finish. A lot of bidders wait until the last seconds to place their bids using sniping systems to avoid bidding wars. I've seen auction prices jump 300% in the last five minutes!

rfuerst911sc · 03-07-2006, 02:05 PM

In my opinion a man honors a handshake or a verbal deal. You are talking $500.00 for good karma................my 2 cents.

JavaBrewer · JavaBrewer's Garage

You agreed to $18300 and need to stick to it. However if the guy waffles then move on. Deal is not done till the cash is in hand.

Drago · Drago's Garage

Leland,

Don't be that seller. Honor the 18.3K and if it doesn't work out in the end the other guy will no doubt low-ball you.

ubiquity0 · 03-07-2006, 02:11 PM

Ethically the right thing to do is definitely to sell to the local guy who's offer you already accepted.

The best decision may have been to let the auction run however. Most action happens in the last hour.

In the end you're only talking $500. Jay is right- you never know if the guy who hasn't seen it is going to come back to you when he gets it with "hey, you didn't mention this scratch in the ad. I want $1000 back". The local guy made an offer, you accepted it- why go back on it. Unless he pulls a "hey, my tractor is worth $8,000- you'll take it in part trade right?" the boat should be his

island911 · 03-07-2006, 02:44 PM

have the details of timing (w/ the 1st guy) been agreed on?

If not, I would immediately get closure on that. --give the 1st an opportunity (even if brief) to actually pay.

....pretty much what dmoolenaar sez.

gr8fl4porsche · gr8fl4porsche's Garage

A deal is a deal - definitely not cool to back out. But like everyone said - talk is cheap and cash is king. Tell the local guy you have a better offer but you will stand by your word as long as he can come up with the cash by a specified time - otherwise start talking to the ebayer.

As far as verbal contracts go - they are not worth the paper they are printed on.

Noah930 · Noah930's Garage

Quote:

A deal is a deal - definitely not cool to back out. But like everyone said - talk is cheap and cash is king. Tell the local guy you have a better offer but you will stand by your word as long as he can come up with the cash by a specified time - otherwise start talking to the ebayer.

+1

Also let the (potential) ebay buyer know that you had already made a verbal agreement to sell the boat for less than what ebay guy offered. If the deal with the local guy falls through, then you'll contact ebay guy for first dibs.

stomachmonkey · 03-07-2006, 03:46 PM

Quote:

Originally posted by gr8fl4porsche
A deal is a deal - definitely not cool to back out. But like everyone said - talk is cheap and cash is king. Tell the local guy you have a better offer but you will stand by your word as long as he can come up with the cash by a specified time - otherwise start talking to the ebayer.

Exactly.

But you already knew that or you would not have asked.

Scott

pwd72s · 03-07-2006, 03:57 PM

Yup...a deal is a deal. Lee, I've seen pics of the boat. It's a nice one. But if you bought it new, to be only $700 behind when selling? That's good on a power boat. They depreciate like crazy, as you've found out. From now on, try to remember that if it flys or floats, rent it, don't buy it....

Leland Pate · 03-07-2006, 04:00 PM

Don't you just hate it when people tell you what you don't want to hear? Even when you know what's right?

Damnit, I have to honor the deal... It sucks but it's right. $500 may not seem like much to some of you, but I'm talking about losing $1,400 on this boat. With one income, college tuition for the wife, the uncertainty of selling our house, and an expensive move to Germany coming up make $1,400 a very big deal.

Scooter · 03-07-2006, 04:02 PM

Forget about the legal garbage, YOU KNOW what is right. $500 is not worth the guilt you will feel. Besides, an additional loss of $500 for a local sale is well worth the hassle of selling to someone on Flee-bay.

nostatic · nostatic's Garage

you can always make more money. your conscience is with you always...

Nathans_Dad · Nathans_Dad's Garage

Quote:

Originally posted by nostatic
you can always make more money. your conscience is with you always...

Hrm...Yoda you sound like...yes....

krichard · krichard's Garage

Suck it up, follow through with the deal you made and know that you did the right thing. It's that simple. If you dick the guy you made the deal with it will definately come back to haunt you. Some huge German Frau will sit on you when you're not looking and make you do things that you will never forget. Not good things.........

M.D. Holloway · 03-07-2006, 07:18 PM

Torch the tub and run with the insurance money...

(What would your Dad do?)

Tervuren · Tervuren's Garage

Quote:

Originally posted by ubiquity0
Ethically the right thing to do is definitely to sell to the local guy who's offer you already accepted.

The best decision may have been to let the auction run however. Most action happens in the last hour.

In the end you're only talking $500. Jay is right- you never know if the guy who hasn't seen it is going to come back to you when he gets it with "hey, you didn't mention this scratch in the ad. I want $1000 back". The local guy made an offer, you accepted it- why go back on it. Unless he pulls a "hey, my tractor is worth $8,000- you'll take it in part trade right?" the boat should be his

The '86 I bought was at about 2/3rds its final ending price a few hours before sell date.

Leland Pate · 03-07-2006, 07:26 PM

Well here is a strange twist in events. I call the guy to tell him I typed up the bill of sale only to find out he and his wife decided to buy an '03 Four Winds for $17,600.

WHEW! Thank god I didn't end the auction. The boat is currently up to $18,850 with 19 hrs to go. That is about $2,500 higher than I expected. I listed it last summer and it only got up to $16,500 and didn't meet the reserve.

It's my lucky day.

pwd72s · 03-07-2006, 07:34 PM

Lee, you lead a charmed life. Take the ebay money & run. Just be sure you have the money before you run, okay? Lot of scamming happening on ebay these days...