Custom Boats Question?

[GalaxyGirl]

Hello all,
I spoke to a yacht broker about a boat that I am VERY interested in a few days ago. The boat is sale pending. He said that "with custom boats there is about a 50% chance that the boat will close after survey".
I have been trying to figure out what he meant by that for days. I asked him if there was something wrong with the boat and he said, no.

Why do custom boats only close 50% of the time after survey?

[hellosailor]

I'd guess that by "custom" he means a one-off or home-built, and in either case the chances are that something was done oddly, unconventionally, or simply isn't going to be known and expected by the buyer. So, more chance of a surprise at the survey. Assuming the 50% closing rate is lower than the general closing rate. For all I know, it could even be higher because buyers of one-off boats are looking for something that's rare to start with.

[rw58ph]

A custom boat takes a particular buyer and the size dollar you are looking many deal fall through because of.finance and insurance. It very hard to establish a value as there are so few like them. It not like buying a name brand and the buyer has to know understand the boat they are buying.

The Eagle is a custom one of a kind, so when we sell it, its may take years as it will take the right buyer, and finance and insurance will be hard to get.

[europaflyer]

Hi, I've been reading a few of your posts and I've just looked at your blog. It paints an interesting picture to say the least... I just thought I would do a quick reality check!

Looking at the type of boats you're considering, and guessing your level of experience, I hope you a) have at LEAST a million or so ready cash, with assets greater than that and b) have, say, at least $100,000 disposable income each year for fuel, maintenance and employing a skipper and crew (your kids won't cut it). True? It just struck me that you come across a bit naive about the whole nautical thing. I mean this post in the nicest possible way, but what with one thread about buying two boats and the odd unexpected gun thread (always great entertainment) you just, to put it very bluntly, come across as a clueless dreamer.

[Teknav]

Hiya Flyer! Some people learn from their mistakes, others do a thorough job by researching everything to the nth degree, yet others ask a lot of questions in the hope that some magic will just come out and benefit their situation. Most of us would like to see her succeed in getting a boat that she can afford and enjoy; it's a monumental task for anyone in her shoes. We should be encouraging her to ask all the questions on her mind, irrespective how trivial they may sometimes be to Old Salts. We all wish her well!

Mauritz
Patience is a Virtue!

[europaflyer]

I mean come on, looking at your blog you seem to be considering boats around the 100t mark. Wow. To put that in context, the heaviest boat I've sailed is 12t, and that was a pretty big boat. I would think that as a novice you need to be employing a skipper and maybe two more crew on a boat that size. You don't seem to mention employing any crew on your blog. Have you ever been to sea? Do you have the slightest idea what you're getting yourself in to? Sitting somewhere in the bilges while the boat rolls after your electrics go pop in the middle of the night? Navigating through a storm while your crew and possibly yourself as well deal with seasickness? (you know how much worse it is than normal 'sickness', right?). Navigating through rocks, with a tide running faster than the boat, with only a tiny winking light in the distance to help you? The sea doesn't reward inexperience. If you plan to 'teach yourself' in a 70' trawler with 5 kids as crew you are bonkers.

[europaflyer]

Mauritz, just so you know, I wrote my last post before I saw yours, it wasn't aimed at you. I'm just trying to provide a bit of a wake-up call to someone who I think is about to blindly jump in to sh-t creek sans paddle.

[europaflyer]

Oh, and nice plane!

[Teknav]

Hiya Flyer! Slow down, a little bit...no need to get personal. Sooner or later she'll determine her limits while still on the ground. She is not close or in a position to signing anything.

Mauritz

[FLLCatsailor]

I hope the 70ft trawler isn't the one listed in fort lauderdale by national liquidators... Looked at it for a client today, and told him to RUN...

[Teknav]

Hiya Flyer! I know that you meant well in discussing her dreams. Old Salts will agree with your explanations. Just soften the reality check, a little bit; she'll get the message. (The Twin Otter float plane is leased with a group of friends when we go on vacation; it's worth around $8 M USD.)

Mauritz

[europaflyer]

Point taken Mauritz. She just seemed to be so in to the idea that maybe a bigger poke than usual was needed... Certainly appreciated the reality checks I've been given, probably saved my life!

[Rhemtide Doug]

Here we go again.

[Sandero]

I think GG is trying to take a huge leap perhaps not doing all the babby steps that 99.99% of sailors make and do so out of necessity. It's conceivable with lots of money to buy the experience of others... but that's functionally equivalent to some rich guy owning a megayacht.

GG is an enigma because she's doing some level of due diligence and asking a lot of questions. But sailors know that intellectual knowledge never substitutes for school of hard knocks knowledge. She impatient and doesn't want to take the time to get to the size she needs. With money for a captain a crew she can sail around... and live her dream... and maybe learn stuff along the way... but that will take years and miles and miles at sea.

good luck GG

[sailorboy1]

Originally Posted by GalaxyGirl

Why do custom boats only close 50% of the time after survey?

Probably because in the end the finance company doesn't approve of the boat/price combo because they had no way to look the boat up in a book for value. So the loan doesn't happen and the deal falls apart.