Yachtworld Asking Prices VS Actual Sale Price - or What is the Markup ?

[Therapy]

Originally Posted by terminalcitygrl

I've read and will probably use the following advice if I'm seriously interested in a boat at a distance:

1- hire a local surveyor to go and take a cursory look at the boat, take some photos, etc... and give you feedback.

2- make an offer based on surveyors prelim report & photos

3- negotiate as necessary to get a final price subject to survey

4- fly in and attend comprehensive survey with your surveyor, including a test sail

5- if big issues come up, renegotiate or walk away and if not, close and arrange to get your new boat home.

I think this approach makes sense and is likely the most cost effective for a distance buyer. Just make sure the surveyor is a goodie and you are clear about what specifically you need to know about the boat before making the offer.

Cheers, TCG

What she said.

[tartansail]

Originally Posted by terminalcitygrl

I've read and will probably use the following advice if I'm seriously interested in a boat at a distance:

1- hire a local surveyor to go and take a cursory look at the boat, take some photos, etc... and give you feedback.

2- make an offer based on surveyors prelim report & photos

3- negotiate as necessary to get a final price subject to survey

4- fly in and attend comprehensive survey with your surveyor, including a test sail

5- if big issues come up, renegotiate or walk away and if not, close and arrange to get your new boat home.

I think this approach makes sense and is likely the most cost effective for a distance buyer. Just make sure the surveyor is a goodie and you are clear about what specifically you need to know about the boat before making the offer.

Cheers, TCG

+1.

Since you say all the appropriate boats are hundreds of miles away, be sure you plan (and budget) for getting the boat home. You say you're new to boat buying, but don't say how experienced a sailor you are or whether you're looking for a turnkey boat or one requiring work. If you find the boat you want in New England or Florida, will you sail it home yourself? Get a skipper to deliver? Truck? If the boat isn't ready for a voyage -- and most boats in the age range you're looking will need some work -- what is your plan? Get the work done at a local yard (which can be a bear to supervise), spend your weekends and vacations getting it ready to travel?

This is a long-winded way of asking if you're sure that you can't find what you want on the Chessie among all the thousands of boats there? The after sale logistics would be much easier.

[Zonker]

Ok guys ... I have a few questions :

1. You are talking about a local surveyor - how can I be sure that the broker, seller and/or surveyor don't trick me ? I assume the yacht brokerage business is a small world unless you fly in someone.

2. What if I don't have any reference for the price. If the boat is a unique build (worst case home built) - how can I estimate its "fair" value (what the boat would be worth if in good condition).

3. Can a professional surveyor estimate the "true" value ("fair" value - "wear" value) assuming there is no fair value reference ?

Thanks in advance.

[Doodles]

Originally Posted by Zonker

Ok guys ... I have a few questions :

1. You are talking about a local surveyor - how can I be sure that the broker, seller and/or surveyor don't trick me ? I assume the yacht brokerage business is a small world unless you fly in someone.As with choosing any professional service, looked for good references, ask around, etc. If you can't find someone local you are comfortable with then fly in your own guy. You need to do your own due diligence.

2. What if I don't have any reference for the price. If the boat is a unique build (worst case home built) - how can I estimate its "fair" value (what the boat would be worth if in good condition).Compare the boat with similar production boats with good comparable. Look for boats with same age, hull configuration, rigs, etc. Just like buying a house ... how do you compare one to another there?

3. Can a professional surveyor estimate the "true" value ("fair" value - "wear" value) assuming there is no fair value reference ?Yes, why do you assume there is "no fair value reference"? Just because you can look it up in some book doesn't mean there is no generally recognized value.

Thanks in advance.

See above.

[Stephen2258]

TE=talus;207249]I have cruising Yachtworld nonstop for about 3 months - - hey, it's my monkey - some people facebook some people yachworld. Anyway, I'm trying to get a sense of what the average markup on a vessel might be when is placed for sale.

I have searched out many listings and seen prices reduced from past ads by 40-50% in some cases.
'"I'm a retired yachtbroker. I think your idea of how Yacthworld worlks is a little off track. I hope I can help. When a client comes in to sell a boat andlists with a broker, the broker's first response to the seller is, "Let's check the recent prices you boat model has been selling for." Brokes pay a fee to belong to Yachtworld and to be able to access the passt data on boat sales and the prices they are closing at. Let's sayyou have a 1989 Catalina 30 and you find that recents sales have closed at $27,900. The next thing is to check the boats condition and sometimes I would call the selling broker, (who I probably know) and get the particulars of the sale. This would help immensely in pricing the boat his client is selling.I also would look at the comparable listings to see where the asking prices are on comparable boats. There is some strategy to pricing. I never wanted to have the least expensive boat listed or the most expensive boat listed. And, if the owner was insistent on asking for a sales price just above a certain benchmark like say $30,100.I would explain to him that he would get ,more action if he listed at $29,999. This way he wouldn't lose all the lookers who put "less than $30,000. as their serch price. Remember, when boat shopping the Yachtworld program asks for the buyer to list what price he wants to be under. If a listingof a boat for sale ispriced at $30,001. the seller will miss out on the person searching for boats listed below $30K. So, that's how I woud tell a client how they might benefit by asking below $30K
I hope this wasn't too convoluted to make sense. But it's my best explanation of how a "USED" boat is priced on Yachtworld. Lastly, new boat dealers do have a "mark-up" they are looking to sell for. Who knows what a dealer is thinking of making.blue book" pricing with NADA and BUC. In many cases these book prices are 30-50% less than the current Yachtworld asking price.

I realize that some sellers are just posers, some are true sellers and some are under duress to sell (the most flexible of all).

So the questions are:

1. How much of a percentage do you discount the Yachtworld price by when you shop?
2. Do you feel the "blue book" prices represent a good starting offer or better yet a target final price?

Please feel free to weigh in with anecdotal info/stories.

[Pete7]

Stephen, welcome to CF

Was there a reason for replying to a 7 year old dormant thread?

I have edited out your links to NADA as it's mainly USA based and this is an international forum with members across the globe. Also NADA have refused to allow access to anyone who lives in Europe because they (NADA) can't be bothered to comply with the latest GDPR Regulations which is a shame and rather short sighted.


Regards

Peter

[Tetepare]

If you have to use NADA you haven’t done enough homework.

If you need to know what a specific model sells for then find a friendly broker that can pull the data off the broker section of YW. Sure some sales prices are fudged by unscrupulous brokers, but in all the data is a pretty good reference.