Selling Your Yacht In A Bad Economy
We Yacht Brokers are very knowledgeable on promoting the bonuses of owning a boat. And those of us Yacht Brokers that actually own a yacht have a definite advantage. But what we do not particularly like are the problems connected with promoting a boat in a bad market; it's challenging to say the least. However it can be accomplished.
A boat, like automobiles and homes, takes a beating in a down market. Values can plunge overnight purely as an outcome of supply and demand. If you find yourself in these circumstances of wanting or needing to sell your yacht, you will appreciate the situation. All of sudden it seems like there are many miserable yacht owners, every one of whom seems to have a boat better than yours, at a lower price than you are set to accept. There also appears to be fewer serious buyers. Those Purchasers that are around are searching for a bargain. It would seem that the only tactic to sell a vessel is for the seller to get hit and sell at a significant deficit. The ironic part is that very often, that deficiency is not necessary. To a considerable extent, those deficits in the vessel marketplace are frequently attributable to the seller's insufficient preparedness. Allow me to elaborate with several points.
Point 1 - Do you truly desire to get rid of your yacht? Your own psychological mind-set is perhaps the best starting factor in the path of profitably selling your boat for its estimated true worth. It's crucial to be certain from the start that you really do yearn to sell your boat. The reality is that numerous boat owners are indecisive about the resolution to sell. Maybe they are still attached to the boat and all the enjoyment that it provided them. Reality is, that unless you're fully committed and 100% certain in your own way of thinking, it just won't occur.
Point 2 - Condition. You are searching for another home. You visit a local home that you saw advertised on the Web. While approaching the front door, it would seem that the house has not been maintained in a long time. As the broker escorts you in the front door, you are hit with the disgusting odor of smelly sewage, not a good impression. Then you find the dining room with the rear wall and ceiling sheetrock caved in, portions lying scattered all on the flooring. Further investigation shows a significant problem with the roof. And when you ask about the heating and air conditioning you are informed that it has not functioned in a long time. However the residence is a bargain you are told; like you see it. Forget about buying that dwelling! Few folks are looking to pay money for a project at any cost.
It works the same when buying and selling yachts. There is a tendency for Sellers to "quit" in essence before we really begin marketing a yacht by dumping a project vessel that needs 'catch up' maintenance, in the hands of a Yacht Broker, in effect giving up on of the project. This is an invitation to failure. Your Yacht Broker will experience a difficult time creating interest at the same time as making excuses for a boat requiring considerable work. In other words if you are "finished with that deck", you won't be receiving any significant figure out of the transaction. It is always better to spend a little money up front to get the vessel in a good condition; this will cause your vessel take center stage.
Point 3 - What is the actual value of your yacht? It is more difficult to sell a yacht for its true worth in a downturn environment, but it is possible. The key elements are:
a. the recognition of Purchaser mind set; Buyers are seeking a bargain since they know it is a Buyer's market,
b. your motivation, do you truly desire to sell her or are you simply playing the field?
c. presentation of the vessel; bear in mind, condition, condition, condition. Properly maintained yachts always result in more money than poorly maintained yachts.
But selling a boat in a bad market demands that you, the Seller, accept the truth that a boat is only worth what you are prepared to receive and a Purchaser is prepared to give you. It's similar for real estate. As your Yacht Broker, I will provide up to date comparable sales of like boats; these deals tell us what the going rates are for sales of the same style and year vessels. We utilize these numbers to determine a reasonable and realistic price; one that we know Purchasers will be agreeable to pay.
Point 4- Are you prepared to agree to what the market will bear? Setting the price of your yacht greatly higher than the market will bear will do little more than make you aggravated. Purchasers regularly keep away from overpriced boats simply because they perceive the Seller as not being practical and therefore probably not agreeable to accept a lower value. That might not be what you, the Seller, would really do, but that could be what Buyers assume. If like year and model boats have been bringing in $150,000.00, you can forget that you in fact want to receive $200,000.00; the marketplace will just not bear it.
Point 5- Presentation. The point here is to understand that as Yacht Brokers, we are not selling a boat... we are advertising a dream. And for that dream to grow to be reality a yacht must "speak" to a prospective Purchaser. The boat must beckon the Purchaser to come closer and take a glimpse. Real estate agents name it curb appeal, I call it dock appeal. I had a vessel viewing last week and when the wife walked onto the sun deck of the boat, she merely said..WOW! The seller had completed his job correctly; the boat was neat and clean. I had no excuses to vocalize on how the yacht presented itself.
In reality, a good number of new boat Buyers know not much about the truth of yacht ownership. Such Purchasers think that yacht ownership is simply dressing in their blue-and-whites, stepping on the ship with their admiring friends waving, starting the engines and powering off into the sunset, with themselves in total control. In actualit, this image is a little delusional! Yet this is the reality that you as a Seller, must face. You and your Broker must make sure that in each step of the selling progression, boat condition, pricing and look, prospective buyers are met with a presentation that offers the dream to them. We must speak to the Buyer psychology.
If we have completed our job correctly the prospective buyers will fall in love with your boat and as everybody knows; lovers always spend cash on their true love. We hope you have been convinced to avoid giving all the responsibility for the sale of your vessel entirely across to your Yacht Broker. We recommend that you remain pro-active and organized and keep your boat to top standards worthy of a fair price. None of the ideas here are extremely expensive. Instead they entail some thinking and ideas to present the marketplace the best vessel at the fairest price that you can hand over. Follow these points we have reviewed and you can anticipate to make many thousands more out of the deal, in the middle of possibly the worst vessel market in decades.