Its Been A Long Time Since Youve Used It
When you first buy a boat, it becomes a top priority to spend as much time as you can out on the water, sharing your new toy with friends and family. However, after owning a boat for awhile, life can grow busy and crowd out the time that youd like to be out on the water. If you know its been a good long while since youve used your boat, starting to look at how to sell it might be the best way to move forward.
Boat Valuations: How To Price A Boat For Sale
Make a correct call on your boat valuation and you will save time selling your boat.
Choosing an appropriate starting price can make or break the sale of your boat, yet this is one of the most difficult aspects to get right when selling a boat. Almost all the other processes including presenting it in a clean, tidy condition and creating informative, attractive adverts are straightforward matters, even if they may be time-consuming.
Specialist craft may stay on the market for longer than others, until finding a buyer who recognises the value of the equipment and the knowledge and time invested in setting the boat up.
Boat Values And Prices Shouldnt Be A Mystery Heres How They Work
Understanding boat prices should be like understanding car prices, right? Just look up the NADA or Kelley blue book value and youre on your way.
Unfortunately its not that easy! Why? Because many personal watercraft and boat models arent listed in boat value guides.
Fortunately there are a few different way to go about determining what a boat is worth. Well walk you through each of these options.
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Factors That Go Into A Business Valuation
The factors most brokers will take into account when assessing your business include:
- Net profit
- Website traffic
- Age of business
- Online and offline sales network
- Business model
- Competitors
- Company assets
Getting a ballpark value by using the business valuation calculator above will be useful to buyers, sellers, brokers, and other parties who need a quick estimate. However, you may want a more detailed analysis of what your business is worth, instead of just a thumb in the air estimate. In order to get that youll have to find a professional, which often can cost tens of thousands of dollars.
Many business brokers offer a free business valuation to business owners that are ready to sell their business, especially those businesses with net cash flow above $100,000. These valuations will take significantly more information into account than most business valuation calculators, increasing their accuracy.
Which Boat Is Right For You
There is much to consider in determining the right boat for you and your family. What kind of boating are you interested in? Do you want to use it for day-tripping or long-term cruising? How many people does it need to accommodate? How much do you want to invest?
Our partners at Discover Boating Canada have an in-depth boat selector toolthat can help you make the right choice.
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Should I Work With A Dealer
If you do not want to go with a broker but are also not sure that you can find a buyer on your own, you can go work with a local boat dealer.
This means that you would store your boat on a boat dealerships property instead of trying to display it in your own front yard.
This might come with a cost depending on the dealership. This is because you are using their floor space that they could be used for their own inventory.
However, dealerships are willing to do this to help deepen their relationship with you in hopes that your next boat purchase will be through them.
Selling your boat can be a daunting task, but just know that there are options out there, and one is sure to fit your needs!
Ask For Seller Financing
Seller financing is when the seller gives you a loan for part of the purchase price. This can lower the financing amount you need to close the transaction, and youll typically get it at a cheaper cost than you would if you received a business acquisition loan for the whole purchase price. Seller financing is common for small business transactions, but you should determine early on in the process whether or not its available from the seller.
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How Can You Get An Accurate Boat Value
While online sources can give you a general estimate, boat values vary widely because of differences in care, climate and condition. Has the boat been in storage or dry dock in the winter or was it used year-round? Has the boat seen most of its miles in saltwater or freshwater? Plus, equipment and customization can vary a lot from one boat to another. Advanced electronics & navigation, as well as the choice of materials, will affect the price or value.
So what should you do? Many people pay the professionals and hire a boat surveyor to appraise it in person. A boat surveyor will consider your boats unique construction, condition & equipment, then inspect your boat stem to stern. To come up with a value, a professional surveyor will analyze the hull and either the rig or the engine .Two great places to find a surveyor are the Society of Accredited Marine Surveyors and National Association of Marine Surveyors . They maintain lists of boat surveyors in your area.
One more thing to consider: If you do stick with online sources, their boat values are usually based only on brokers or boat dealers. These sources dont take into account the significant number of boat sales between private parties. This isnt surprising, since data is hard to come by, hard to verify and hard to normalize.
Step : Value By The Numbers What Will It Cost To Get The Boat To Fair Condition
When we go to inspect a boat, we write down any projects and repairs that will need to be done . Our goal is to list all the boat systems that need work and any parts that should be repaired or replaced. Next we assign a material and labor cost to each project.
In general, we dont add normal maintenance costs because that would skew the value and be unfair to the seller. The exception is if the seller hasnt been maintaining the boat and we would be playing catch up.
We add all of the repair costs to the list price for a total . Often we often multiply the repair costs by 1.25 as weve found we are usually optimistic about price and time.
Example:
Upon inspecting the Dufour 35 I discover there is some work to be done! The GPS doesnt work , the main sail is wrecked beyond repair and the furler needs to be replaced . Ill have to spend at least $6,000 fixing up the boat, which I multiply by a factor of 1.25 . So, I estimate it will be $7,500 to get the boat into fair condition.
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Get All Your Documentation Ready
If you haven’t already, place all the boat’s documentation in a folder – ownership, registration, previous survey, insurance papers, receipts for servicing, maintenance, painting etc
One client of mine had made a copy of his boat’s original survey inspection report and had used that as a list of faults to be rectified, which he kept with receipts and other related documents. When he asked me ‘Can you sell my boat?’, it was easy to show that the vessel was in good condition.
Storing A Boat On A Trailer:
Keeping a boat on a trailer at your home is the most economical way to store your boat, but there are some things to consider:
- You need a yard or driveway large enough to store your boat and a vehicle large enough to tow it.
- Is the area where youll store your boat secure?
- Who will shrink wrap the boat for you?
- Going for a spur-of-the-moment trip will be more difficult as youll need to hook up your trailer and commute to the closest boat launch, but you have the flexibility to drive to a variety of locations.
Tips for purchasing a trailer:
Ensure your trailer is the correct size and weight capacity for your boat and that it conforms to Transport Canadas marker and light requirements and you meet MTOs licensing and brake requirements. Your trailer must be insured the fee is generally less than $200 per year.
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How Much Does A Boat Broker Charge
Typically a Boat or Yacht broker is going to charge a commission fee of between 5% and 10%. Thats typically and the factor that is usually going to affect what you will pay is the size of the boat. A broker selling an 80ft Yacht can and should charge more for their services than someone who is simply listing your 20ft center console for you.
Pricing Your Boat Accurately
The next thing you need to do is come up with a reasonable price based on the boats value. The average value of a vessel may not necessarily dictate your asking priceespecially if you want to sell the boat fast. If youve made extensive modifications that may greatly increase the value of the boat, be sure to include those points within your listing description. But also remember that most accessories will not increase the price of your boat.
There is always a tendency among boat ownersor enthusiasts of any kindto harbor an overinflated sense of what their boat is worth. Its normal. It happens because boats are emotional purchases, which have often produced a lot of happy memories for an owner. This contributes to the exaggerated sense of value in many cases.
The goal is to get the highest price for your boat so you can have more money to spend on your next one. However, you want to be as realistic as possible about the price of the boat youre selling.
Boat Traders Emma Coady recommends to, Set your rock-bottom sales price in your head before listing your boat for sale. This will ensure you will not walk away from the deal disappointed. Knowing your rock-bottom price will give you a baseline for negotiating with potential buyers!
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Determine Your Boats Value: How Much Is My Boat Worth
There are a number of factors that determine the value of a pre-owned boat. The most obvious ones include size, age and model. After that, there are more subtle elements like condition, location and equipment can be factored in. The best way to find the value of your boat quickly is by using Boat Traders boat price checker tool. With this tool, you can determine the value of your boat based upon similar boats that are currently on the market. For an even deeper dive, you can head to Boat Traders search results, where you will find up to the minute pricing on boats like yours.
Websites such as NADAGuides can also help you pinpoint a real-world value on the boat youre selling. The company pulls in data from dealers nationwide and crunches resale numbers to establish the values it lists. NADAGuides compiles the data and publishes the values every two months. While the prices may not be as up-to-date as the live pricing on Boat Trader, NADAGuides is surely a reputable source that can help inform your pricing decision!
Ensure all high traffic areas on the boat are cleaned well when welcoming potential buyers aboard.
Interacting With Potential Buyers And Navigating Sea Trials
Now that your boat has been listed for sale online, it is time to show it off to potential buyers!
Follow our seven tips to make sure that you start on the right page, and finish the chapter to enable you to move onto a new one. Here are seven things to consider when interacting with potential boat buyers.
- Play Fair be honest and up-front before you meet with the seller
- Preparation is Key Be sure you know your boat inside and out before chatting with potential buyers
- Communicate Quickly with Buyers Be responsive, polite, and friendly
- Be a Good Salesperson Engage the buyer in conversation about what they want in a boat
- Negotiation Tactics Be ready to go back and forth a few times with potential buyers
- Set Your Rock-Bottom Sale Price Have your absolute bottom sales price calculated before interacting with buyers
How well you communicate with buyers, and your professionalism will go a long way in ensuring a quick sale. Also, ensuring that your vessel is clean and tidy, especially amidst a pandemic, will be important in building trust with potential buyers.
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Setting The Value Correctly
Your boat is worth something. This is a fact. When selling your boat, you will want to make sure you sell it for what it is worth.
Often a broker is better at doing this than an individual might be.
Individuals often sell their boat for less than its worth, either because they dont know what it is worth, or because they dont think that they can get an offer for what it is worth.
A broker will be able to tell you exactly what to start asking for and can negotiate deals for you from there. They even have access to non-public information that will give out an estimated value for your boat.
They are also less likely to ask for too much. When it comes to trying to sell a piece of your property, you are likely to have an unrealistic idea of what it is worth.
Much in the way that homeowners overvalue their home, individuals are likely to overvalue their yacht.
A broker will prevent this and help you to be more realistic with your asking price. This also goes back to the issue of time. An overvalued boat will not sell in a timely manner because often people will not want to overpay for your vessel.
How To Decide On Your Offer
I consider these eight factors in coming up with an offer, regardless of the size of the boat:
- How anxious the seller is to sell already has another boat, cant afford the payments, being sold by someone with no interest in the boat , moving to a different area . . . or is just kinda thinking about selling and if I could l get this much, yeah, Id sell . . . ?
- Is it already priced for a quick sale?
- What condition is it in compared to the price? Is it a project boat ?
- What equipment, spares and other gear does it have that similar boats dont? Only count gear that you care about having and would install if the boat didnt have!
- How helpful is the seller? Will they teach you the boats systems and idiosyncrasies? Will they make themselves available after the sale for questions?
- What oddities does the boat have that might make it less attractive to someone else? Are they already reflected in the price?
- What contingencies are you putting in the offer? Subject to financing vs. cash sale? Asking the seller to move it to a different location? Need a delayed closing? Subject to selling your old boat or house?
- How perfect is this boat for you? Are there really and truly no others like it? Would your heart be broken if you didnt get it?
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What If A Boats Price Is Over That Stated In Guides
Although valuation isnt an exact science and values in guides are broad brushstroke averages, if a boat is priced well over these guidelines, youll want to ask the broker for the reason. Sometimes, sellers are emotional and unrealistic or they dont really want to sell the boat and are fishing for an offer they cant refuse.
Q: What Should I Do If I Am Buying Or Selling A Boat
A: In order to execute a boat transaction, the following items are necessary:
- Bill of sale
- 12-character serial number pencil tracing
- Proof of payment of Massachusetts’ sales tax
- A completed application
- Appropriate fees
- Title from seller if applicable
Massachusetts sales tax is now payable online. For more information visit the Department of Revenue website or call 392-6089.
In addition to the previous requirements, if the boat is 14 feet or greater in length and uses a motor either temporarily or permanently, or if it is designed for use with a motor, the certificate of title must be signed over from the seller to the buyer. The buyer then presents this information and documentation to the Massachusetts Environmental Police Registration Bureau to obtain a new registration card and certificate of title.
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How To Price My Boat For Sale
Your starting price can make or break the sale of your boat.
Your starting price can make or break the sale of your boat. Ask too much and no one will want more information ask too little and shoppers will wonder whats wrong. When deciding how to price a boat many things come into play, including its mechanical condition, how it looks, and how well it’s equipped.
