Many overpriced boats on the market

[Panamajames]

I have been researching boat prices for the last 2 months. It is very interesting seeing all the overpriced boats on the market. Many will not sell at the prices they are listed for.

I believe the demand for over $150k boat is virtually nil. Some of the people I have talked with have no idea their boat will not sell at the price they are expecting. There is virtually no demand in our terrible economy.

Many people are in denial and the brokers are not helping by listing at such high unrealistic prices.

Just my opinion. Any thoughts on this topic are welcome. Have a nice day.

Panamajames

[DeepFrz]

I just found out that having your boat for sale, listed by a broker, can be a tax dodge. People list for a price that they hope will not be attractive and then don't have to pay taxes on the boat. If someone does come along and buy the boat, well they have sold it for more than market value and can buy a new one.

[sandy daugherty]

James, I'm afraid you have your finger on the pulse of just one buyer. Since most boats over 100K stay on the market for more than one boating season, shorter term fluctuations in the global economy are cushioned. People with the resources to own a large boat are by and large fiscally conservative and secure, they will maintain their customary standard of living. They don't HAVE to sell their boats. Have you checked out the repo sites? Lots of power boats and hardly any cruising sailboats. Sailboats appeal to a more conservative and secure crowd than do powerboats, until prices reach into 8 figures. That segment of the market is soaring.

So for sailboats between 100K and 300K, the market is sluggish, and prices are slighly softer, but you are not going to find something 20% below market value unless their are considerable pressures to sell, and that is no more likely today than any other time.

[starfish62]

All boats are for sale at all times, it's simply a matter of price! When we bought our last boat two years ago our initial offer was about 40% of the list price. We bought it for about 50% of list. Asking price is just a point of beginning. As to brokers, most that I have met are arrogant slime.

[thinwater]

Originally Posted by sandy daugherty

James, I'm afraid you have your finger on the pulse of just one buyer. Since most boats over 100K stay on the market for more than one boating season, shorter term fluctuations in the global economy are cushioned. People with the resources to own a large boat are by and large fiscally conservative and secure, they will maintain their customary standard of living. They don't HAVE to sell their boats. Have you checked out the repo sites? Lots of power boats and hardly any cruising sailboats. Sailboats appeal to a more conservative and secure crowd than do powerboats, until prices reach into 8 figures. That segment of the market is soaring.

So for sailboats between 100K and 300K, the market is sluggish, and prices are slightly softer, but you are not going to find something 20% below market value unless their are considerable pressures to sell, and that is no more likely today than any other time.

With a house much of the value is location and scarcity in that location. That does not apply to boats. For example, I looked at boats from Houston to Philly.

I bought a new catamaran in December - new to me - and since then I have noticed that the average asking price has gone up perhaps 15%. Go figure. I gather serious buyers of cats know what they want, and there are not so many to chose from.

I have another boat for sale, and expect it to take some time. It's paid for. I won't be giving it away in a fire sale.

Sailors also tend to keep boats, I think. I had my first one for 8 years, my second for 15 years, and I will try to top that with this one. I hope it to be my last... and I hope to live a long time!

[CarlF]

As with anything it's supply and demand. The brokers I chat with say that they are selling a lot of boats at the high end (over $500K) and the low end (under $100k). A lot of supply in the middle. Power much worse than sail. One broker told me that he advises powerboat sellers in the 40' range to simply put it aside to use as a casket when they die.

Discount from asking is a little bigger than normal but actual selling prices are pretty firm - with a few fire sale opportunities where the owners have bigger problems that a boat. I wonder what Bernie Madoff's boats will go for?

There are always some overpriced boats on the market but that's a pretty rational seller strategy since so many buyers take pleasure in getting a large discount off asking. As mentioned, a good number of sellers simply don't feel any need or pressure to sell quickly.

There are always too many Beneteaus on the market mostly because of their popularity in the charter fleets. Some of these folks may have believed the charter company's spreadsheet about what they could get after five years of charter. You're right - some of them might be in denial.

The new boat market is in tough down cycle but I know of one cruising sailboat builder who is at full capacity, hiring, with a backlog, and new orders coming in. Go figure!

Carl

[Cheechako]

I sold a well found Hans Christian 38 before the economic collapse. It had Treadmaster deck and ful deck paint job. Fully outfitted for cruising including built in A/C. Every broker suggested, and other ads had them listed, at $135k. after 1.5 years on the market I took 90 K for it. That is about how overpriced I feel most boats are on the market typically. Not my only experinece like this both buying and selling.

[Curmudgeon]

Just make an offer for what you think the boat is worth-- or less. List price means nothing.

Sellers and brokers aren't very smart sometimes. By overpricing their boats, they scare away buyers who might be willing to pay what the boat is actually worth.

In 3-4 more months, the Sellers who need to sell their boats will become desperate. That's when to pounce. Folks who could afford to buy a boat in the first place have not yet beeen bled dry. That will change soon.

And it may be changing already. I have seen quite a few newer production boats in the 32-38 ft range going for low prices, especially in Europe.

[MarkJ]

Originally Posted by Panamajames

I have been researching boat prices for the last 2 months. It is very interesting seeing all the overpriced boats on the market.

You must remember the people selling their pride and joy do not think its overpriced!!!!!!!!

Go easy on them and use techniques that wont hurt their feelings.
If you just say "Mate. I'll give you 25% of you asking priice" you may not get the boat.

I'm glad we are not trying to buy now. It would be tough. Sure we hear about bargains... but where is the next one?


Good luck!


Mark