Selling price, asking price or trading price of your boat

A common question is how an asking price or offer price is established. My answer is always short and to the point. This is done together with the client. I as a professional yacht broker know exactly what the market value of a powerboat is. While boat owners often have a certain idea or expectation themselves. Together, an asking price is then set that is mentioned in the advertisements and presentation.

This is not an immediate final price, more of an indication that provides an opportunity to bid. Such an offer may well be quite a bit lower than the asking price, if well argued we will call such an offer to a client. In consultation with the boat owner, I always come up with feedback. This may be a counter-proposal, or a negative response, but at least always a response.

The agreed price is also known as the sale price. A previously mentioned bid can be made under various caveats. Often boats are inspected by a certified surveyor, or an agreement is reached subject to financing. In the first case, a boat is inspected overall, a good surveyor finds substantial defects. This gives the buyer a chance to really get to know the boat well, creating a zero line, so to speak. As a buyer, you know exactly what you are buying.

Some other types of reservations are

• Berth
• Sales/disbursement
• current boat
• Appraisal

Often when people trade in, they talk about trade price. This is the price that companies or traders pay to purchase the boat. These prices tend to be a lot lower than sale prices. This is because boats are a big draw on credit facilities and maturity or turnover rates are low. For your imaging on average a boat takes 6 – 11 months to sell. A trade price can also be thought of as foreclosure value. The value of a boat if it should have been auctioned. The foreclosure value along with the current value (selling price/proceeds) is mentioned in the appraisal report.

By the way, in a trade-in deal, the difference in sales value and trade value can also be eliminated by negotiating a discount on the boat to be purchased. This allows the correct sales value to be obtained on paper.

Prices
Did you know that there are actually 3 prizes? The buyer’s price, seller’s price and and real price. Don’t overprice the boat. As an owner you are emotionally involved, let the broker price the boat. And if an offer is made that looks like it, take it! Not infrequently have I experienced that the 1st bid was refused, and not acted upon until the 3rd bid. Unfortunately, that 3rd bid was a lot lower than the first one. Sin!