Why work with a professional yacht broker?
The process to purchase or sell a vessel can be a complex undertaking. It usually involves detailed and sometimes complex contracts, employment of marine surveyors, engine surveyors, air-conditioning and refrigeration technicians, specialty attorneys and documentation agents, and more. This is why it is so important to work with a professional yacht broker to assist you. Here are some commonly asked questions.
How does a yacht appraiser determine a boat's value?
Most boat appraisals are determined by a licensed yacht surveyor. eThe appraiser computes a boat’s value in a few different ways, 1) by analyzing other comparable vessels currently for sale, 2) by analyzing comparable boats that have recently sold, and 3) by integrating these numbers with the “book value”, usually defined by NADA, or BUC. While there is no clear science, the goal is to give the lending entity an understanding of the value of the boat, to ensure that they are not lending money on an asset that is grossly overvalued.
What is involved in the administration of selling a yacht?
Brokers are familiar with all the paperwork requirements including from the initial offer to purchase, and bill of sale, to licensing and registration, to paying tax, certificates of ownership, security agreements, and other documents needed to complete a sale. They also understand maritime and admiralty laws for the type of yachts they represent, as well as agency contracts, listing agreements, closing statements, deposit requirements and escrowed accounts to safeguard funds.
How do brokers deal with enquiries?
A professional broker will listen closely to your requirements and will help you determine if the yacht you are considering is the right yacht, at the best value. Brokers can objectively tell you about the condition of the yacht before you decide whether or not to spend your time inspecting it. They will source and compare similar yachts on (and off) the market, the history of the yacht, how long it has been on the market, and the motivation of the seller. Anyone can look up asking prices on yachts, but it takes a professional broker to have an intimate knowledge of current market conditions, familiarity with similar yachts, and information on recent sale prices and time on the market through industry resources not available to the public.
What is an escrow account?
An escrow account is a legally designated safe and secure bank account that handles all funds related to your vessel purchase. A professional yacht broker will have a legal escrow account you can safely use for deposits, closing funds, sales tax payments, etc. Escrow funds are only released per written agreements, and closing statements, with the principal’s approval.
How does a sea trial and survey work?
A buyer of a pre-owned yacht will usually request a sea trial and the services of a marine surveyor. Buyers pay for the surveys and for hauling the yacht out of the water for inspection. The broker will usually attend the sea trial and marine survey with their buyer to help determine how to properly address any yacht survey issues and put the problems in context. Part of this includes; estimating the time and cost of rectifying and where to obtain accurate quotes for items that are unfamiliar. The insurance company will usually require a copy of the survey prior to binding and insurance coverage on the vessel.
What is an engine survey?
In a separate report called an engine survey, the boat’s engine power is reviewed and a general detailed description is analyzed. This report includes but is not limited to: filters (fuel and oil), oil and fuel lines, exhaust systems, cooling systems, fresh and raw-water systems, emergency stop and alarm systems as well as transmission data. Compression testing is also included in the testing. The goal of an Engine survey is to determine the current condition of the engines and generators.