Re: Buying used Outboard - NOT in the water
Spark and Compression Test is First and Foremost thing to do.
Compression should be over 100 but more importantly all cylinders should be very close. If you have access to a leak down tester all the better.
It usually pays to take to a reliable shop for an evaluation. $100 or so could save you several hundred in repairs from unknown issues. A visual inspection by an experienced mechanic can spot potential disaster and give you a good overall feel for what condition it is really in. Yes they may try to sell you some repair, but be specific you just want a report at this time.
Drive oil should be free from water. Any black smelly oil sez I've been full of water for some time. Milky oil (check after running) sez I have water in me and need drain plug seals or a complete reseal. Pressure/Vacuum test will determine.
Ask when the water pump impeller was last changed. Should be every 2 years. Usually around $130 + parts.
Also, on OMC especially, do NOT use after market fancy spark plugs like splitfire or the like. a lot of OMC outboards do not have the ignition system to handle the extra needed spark to properly fire them. Always use OE recommended Spark Plugs.
Important to use GOOD TC-3W oil. Mercury, Yamaha, OMC, etc. ($15-$25/gal.) DO NOT use the cheap stuff like the Pennzoil 2 cycle oil in the qt. jug. ALWAYS mix exact amount. Over mix with oil will actually cause the engine to run lean (not enough gas in a certain amount of mixture. Also excess carbon build up will damage the piston and rods.
I could go on and on, but good luck. I hope I havent scared you. I just want your experience to be good overall.