Buying at Auction

[Windwardblonde]

Has anyone bought a boat at auction in the U.S. and can explain the ins and outs?
Some of my many questions are,
Who pays auction house fees? Buyer or seller?
Does Auction house actually own title to the boat when it goes to auction?
Is there a survey done ahead of auction? If no then I assume you
Buy the boat with no survey option?
What happens if reserve isn’t met? How is reserve established?
If a boat broker had been retained are they still involved at auction?
Not sure if I’m asking this in correct forum, but thanks in
Advance for any help.

[psk125]

Sounds like you need to talk to the Auction House and have them answer these questions.
You may have to wait until Monday morning to call them.

[Geoff54]

Originally Posted by Windwardblonde

Has anyone bought a boat at auction in the U.S. and can explain the ins and outs?

Yes I have but different auctions operate slightly differently so the following is only general information – you need to check for specifics.

Originally Posted by Windwardblonde

Who pays auction house fees? Buyer or seller?

Seller pays the auction house but there is often a buyers premium that also has to be paid by the buyer. This should be clearly stated when you register. BTW, you usually have to lodge a cash deposit in order to bid. This is returned if you fail to buy.

Originally Posted by Windwardblonde

Does Auction house actually own title to the boat when it goes to auction?

No! Although I guess it might under rare circumstances. It is up to the seller to provide the information and work with you to transfer the title - unless the boat is being sold without title. You will usually get a bill of sale / receipt from the auction house.

Originally Posted by Windwardblonde

Is there a survey done ahead of auction? If no then I assume you
Buy the boat with no survey option?

Why would you pay for a survey on a boat that you may end up not owning. If you can’t evaluate the boat yourself, you probably shouldn’t bid on it. Auctions are almost always, "as is - where is". You usually have a set number of days to remove the boat.

Originally Posted by Windwardblonde

What happens if reserve isn’t met? How is reserve established?

Seller sets the reserve although the auction can refuse to conduct the auction if the reserve is unreasonable. If the reserve isn’t met, the seller usually has the option to accept the highest bid. This is often referred to as "sold with a phone call” to the seller to see if he will accept the bid.

Originally Posted by Windwardblonde

If a boat broker had been retained are they still involved at auction?

Brokers are not usually involved but if they are, it’s up to the seller to deal with them. Of course, the seller may be a broker.

[Windwardblonde]

Thank you for answering, that does answer some questions. In regards to your survey question… we are pretty capable at looking at a boat but nothing beats a Professional survey. Was only wondering about the survey because outside of an auction you can still decline a sale after the seller has accepted the bid if the professional survey comes back with some really bad news. So I guess my real question was does a boat/yacht seller usually do a professional survey and have it available to peruse at auction? But we can call the auction house and ask them that. Was just trying to get a feel for auctions from the buyers side not the sellers side. Thank you again for taking the time to answer.

[psk125]

Originally Posted by Windwardblonde

So I guess my real question was does a boat/yacht seller usually do a professional survey and have it available to peruse at auction? But we can call the auction house and ask them that. Was just trying to get a feel for auctions from the buyers side not the sellers side. Thank you again for taking the time to answer.

If a seller were to make a survey of the boat available before the auction how could you trust it to be complete and truthful? It's the SELLER'S survey, not yours, and he'd be paying the surveyor to paint a rosy picture, no? Surveys provided by sellers in standard brokered transactions aren't considered worth much for this reason too.

[Geoff54]

Originally Posted by Windwardblonde

Thank you for answering, that does answer some questions. In regards to your survey question… we are pretty capable at looking at a boat but nothing beats a Professional survey. Was only wondering about the survey because outside of an auction you can still decline a sale after the seller has accepted the bid if the professional survey comes back with some really bad news. So I guess my real question was does a boat/yacht seller usually do a professional survey and have it available to peruse at auction? But we can call the auction house and ask them that. Was just trying to get a feel for auctions from the buyers side not the sellers side. Thank you again for taking the time to answer.

There is rarely much information, other than the terms and conditions of the auction, and a very brief description of the lot. Usually you can inspect the boat on the day prior to the auction and that is all the help you get. Often you won't even be able to start the engine. As I said, auctions are almost always "as is - where is" - once that hammer falls the boat is yours, defects and all. There will be a very short period of time to pay the balance and remove the boat, and then you can find out what you really bought. If you back out, you will lose your bidders deposit - 10 years ago it was usually $1000 but it's probably more now. You are getting the boat at a discount (if not, you bid too much) and that is partly because there is risk. It is up to you to mitigate that risk as much as you can and then deal with anything that you didn't know about. If you aren't comfortable with that, auctions probably aren't your best way to buy a boat. I'm not trying to discourage you but you need to go in with your eyes open. If you can, go to a couple of auctions and just observe.

[GordMay]

The terms and conditions, of a boat auction, will depend upon the specific auctioneer/agent, and the laws of the applicable jurisdiction.
So, when you participate in a boat auction, make it a habit to read the auction house’s terms and conditions, before bidding.

Do your research. Look up the specific make and model, of the boat that you’re considering buying. Better yet, visit the auction yard, to check out the boat in person, in the days leading up to the sale, as it’s often/usually open to the public.

For instance:

Disclaimer, Terms & Documentation for National Liquidators [Div of National Yacht Sales]
➥ https://yachtauctions.com/legal/
Submit An Offer [note: Proceedures] ➥ https://yachtauctions.com/submit-an-offer/

The Terms & Conditions for BoatBid.com Auction
➥ https://www.boatshed.com/the-terms--...log-10160.html
➥ https://boat-bids.com/Home/Terms
FAQs ➥ https://boat-bids.com/page/FAQ

Originally Posted by BoatBid

“Buyers are required to pay a 4.0% buyer fee on top of the final purchase price. The buyer fee is charged to the credit card on file upon a winning auction. The purchase price is to be paid directly to the seller of the boat...”