How to Price a Boat

[Lance835]

How do I find what a boat is worth? Yacht World and Sailboat listings show 2001 Hunter 41 AC is asking prices from $169,000 to $130,000. NADA and a Broker says the boat is worth $116,000.

How does a person shop for a boat? Are people really listing all the boats $50,000 more than they will actually take for the boat?

[skipmac]

Absolutely you will find boats listed at a price much higher than they will sell. Happens for many reasons: emotional attachment of the owner for the boat (he doesn't really want to sell the boat but... ), optimistic opinion of the value of the boat, seller just spent $$$XXXX on the boat and thinks he should get that investment back, seller thinks his boat is better than other similar models on the market. I could go on but think you get the point.

Bottom line, how much does the owner want or need to sell the boat and how much is a buyer willing to pay. In this market, if you are flexible in when you buy, willing to do some work on the boat, are not locked into one specific model and otherwise willing to look at a number of options, you can find some really good deals.

A seller trying to get max, top dollar for his boat, unless he is really lucky, may have to wait a while for the right buyer or may eventually have to drop the price.

[Vasco]

In the final analysis it's worth what the seller and buyer agree on. There is no easy method to determine "worth". It's not like used cars. Too many variables. What's it worth to you? If the seller agrees you've got a deal!

[anotherT34C]

I general, a good place to start is probably 1/4 to 1/3 less than the average list price for a model. After that, condition is everything.

[David_Old_Jersey]

Originally Posted by Lance835

How do I find what a boat is worth? Yacht World and Sailboat listings show 2001 Hunter 41 AC is asking prices from $169,000 to $130,000. NADA and a Broker says the boat is worth $116,000.

How does a person shop for a boat? Are people really listing all the boats $50,000 more than they will actually take for the boat?

Compare similar boats (spec and condition - remember that photos and brokers do lie!) - not neccessarily the same model. in 10 years someone could easily make one boat worth $50k less than another.......not to say that the cheaper boat is not the right one, just don't want to be paying top whack for her!.......and some people are just deluded on the boats worth (and have as much idea as you (or me) have ).

Oh, and location is a big factor as some areas are easier to sell in (i.e.plenty of people and marinas) whiich keeps prices up (for a model folk want!).......and not cheap for you to relocate her (so that bargain in Peru, won't be by the time arrives in Alaska ........and that also applies pretty much for closer distances).

$50k off? if you assess the market at $80k (I have no idea in this case), then no rules say you have to only offer $50k less All someone can say is a no - you won't be going on their Xmas card list either way .

No easy answers though (boat market very small and everyone lies about money ) - the best "trick" I have is to pretend you have bought her. and then say to self "how much would I feel comfortable in selling her for tomorrow?".

[offline]

Totally depends.

You can use tools like BucValu or soldboats.com to get some comparables.

Most boats have average values but there are some boats that are very much worth paying premiums for... whether it is because of exceptional care and maintenance or rarity or capability.

With an older boat consider what the costs are you are going to face with maintenance and repairs....

Many older boats that are in great condition have been upgraded and will therefor have a higher value.

[zeehag]

value is subjective . there is no "investment" in a boat although some feel there is. these folks want "their money back" in a sale-- might wanna wait until boat has been for sale for a long time then bid what you want--mebbe owner will come around, mebbe he still believes boat is platinum lined/plated. this IS a buyers market, NOT a sellers market and many forget this fact.
there is also the complicated problem of supply and demand.
good luck.

[Lance835]

The seller is willing to sell the boat for $140,000. Is this realistic? The bucvalu is $138,500 - $152,500 Yet NADA is showing $98,350 - $116,000.

I don't understand how two sites which use actual selling prices can be so far apart. Is $140K a realistic price??

[zeehag]

depends on boat and condition--but in this market, no. if you are hot for the particular boat, i would offer NADA book value with splaination to owner. there are usually more than one of each for sale--

[Vasco]

Originally Posted by Lance835

The seller is willing to sell the boat for $140,000. Is this realistic? The bucvalu is $138,500 - $152,500 Yet NADA is showing $98,350 - $116,000.

I don't understand how two sites which use actual selling prices can be so far apart. Is $140K a realistic price??

Just quoting prices means nothing. You need model, year, equipment, condition, condition, condition, location.

[Snore]

I am confused on the impact of location in determining price. Shouldn't use factor in?

For example a Brand X boat in Florida used year round should be worth less than an identical unit on Long Island Sound that got hauled every November and relaunched in April. The NY boat would have 1/2 the wear..... Therefore be worth more. Or am I missing something?

[Vasco]

Location includes use eg. Great lakes, fresh water boat used half the year.

[Dkdoyle]

Originally Posted by Vasco

In the final analysis it's worth what the seller and buyer agree on. There is no easy method to determine "worth". It's not like used cars. Too many variables. What's it worth to you? If the seller agrees you've got a deal!

Vasco has it right.

[David_Old_Jersey]

Originally Posted by Snore

I am confused on the impact of location in determining price.

If the boat is being sold in a market where there are plenty of potential buyers, then will be an easier sell - and that reflected in the selling price (Say, Florida vs Idaho ).

Plus, if the buyer needs to relocate the boat (more than a daysail or 2) then those costs affect the value to the buyer.......but not to the seller (fella selling in Florida don't care if it costs you $20k to truck to Idaho - will be another buyer along who won't have that cost).....but even shorter voyages cost, including doing so yourself.

Shouldn't use factor in?

For example a Brand X boat in Florida used year round should be worth less than an identical unit on Long Island Sound that got hauled every November and relaunched in April. The NY boat would have 1/2 the wear..... Therefore be worth more. Or am I missing something?

Yes, use certainly a factor, but (IMO) that more about the effect on a boat than miles on the clock. and age (IMO) the more important. No fundamental reason why the 2 examples have to be worth different values or be in different condition.......that's all down to the TLC and maintanence given over the years. On a 10 year old (as in OP's example) I think pretty much swings & roundabouts - neither will be factory fresh (nor can be expected to be)......some will be minters, others will have been f#cked up by PO's (from lack of care / money and plenty of ignorance)..........most a bit of both!

[James S]

If you intend on having it insured then don't forget to consider what value the insurance company would put on it.