Auction Boats

I acquire calls regularly from individuals that are in their last stages to yacht possession; finding and buying their new used yacht.  They want my counsel. 

And occasionally, most shoppers do not have a true knowledge of boat values and the prices they command.

Most people are shocked to find yachts cost as much as houses do. They are flabbergasted when I try to rationalize the reason a boat is priced so low.

 I want to provide you a good image of why used boats cost as much as they do so let’s start from the top.

 On pages on my website, you will read about the lack of a Cruisers Blue Book.  Yes, that’s right, there is no such thing. There is one for cars  but not for boats.

 If you call any car wholesaler or bank in North America and name any automobile, they will name a value of within a few dollars of each. This is due to the multi-billion dollar, automobile wholesale system.

 And there is also the Powerboat Guide, NADA and others that like to sell you their variation of a pleasure boat Blue Book.

 With over 15,000 boat builders (USCG Listings) represented in North America there is no such market for vessels and the older a boat gets the bigger the price discrepancies

 I’ve been inside my share of   factories including Hatteras, Bertram and Carver.  Vessels are built like houses, one piece at a time.  Very labor intensive, yachts are built, cars are assembled.  So you can easily see why new vessels cost thousands of dollars to produce.

 Powerboats cost more to make than sailboats as they are more complex.

 Generally, vessels do not appreciate in value.  But they do arrive at a point in their life where they do not loose any more value.  Much like traditional cars, the rarer a pleasure boat is, the more it will be in demand. 

 An old Huckins will bring more money today than when it was first commissioned.  But yachts generally devalue about 10% a year.

 So you are looking for that 1984 40′ Heritage trawler, with a single Lehman and 2 cabins.  What is it worth?  What is a fair cost?  Simply speaking, that Heritage is worth what you are willing to give and the seller is inclined to take.  So where do you begin?

 I do the same with my owners.

 In what condition is the yacht?  Good boats always command higher prices, always!  A newer vessel in poor condition will bring less than an older   in good condition always!.  By condition I am speaking of both cosmetic and structural issues involving tanks, rudder posts, blisters etc.  The more upgrades and maintenance that has been completed, the more you should expect to pay as the owner knows this. He also knows that you will have already looked at the very old boats and have rejected them too.

 How old is the pleasure boat?  See above.  This factored in but is not the last factor.

 How driven is the seller?  Most owners want to sale their yacht as soon as feasible and anything close by to an asking price likely be acceptable  .  It doesn’t happen often occasionally but it does sometimes.

 And I find that most customers will not travel far to buy a boat , so vessels in California will not be in competition with Florida vessels.

 And lastly, and perhaps the most principle thing in determining that asking price will be former sales history of related makes and models. 

 The former sales history is available only to Brokers from our MLS, YachtWorld.  It will give me the past demand for this 40′ pleasure boat and at what selling prices have been in similar parts of the USA.  It tells me what people are asking and what people are paying!

 So when you are searching for this Heritage and you have found at what seems to be a good price for $50,000.00 and all of the others are in the $85 – $100,000.00 range, there is a reason for this.

 Recollect, condition, condition, condition!  Be cautious as bad fuel tanks will cost you about $30,000.00 to exchange, and rudder posts about $8000.00. But if you can survive with the problems with her, then buy it. 

 I am just wanting you to know not to expect a problem – free boat for the low, low cost; you’ll pay for what you get.

 So now you are thinking, are all prices flexible?  Certainly they are.  Everything has its selling point and neither the listing Broker nor the owner may know what that will be. 

 Only a sincere buyer with money on the plate will learn that from negotiations.