Why You Should Use a Boat Broker
Get the Boat You Want and Avoid Problems and Disappointments
Last summer there was tremendous interest in buying a boat to have fun in the restricted world of COVID19. People hauled boats to the end of their driveways with “For Sale” signs. Sailboats and cabin cruisers appeared on Craigslist and it sounds like most were sold to new boaters. But are they happy owners now?
While people can buy and sell on their own, there’s much time and risk involved. In the summer of 2020, the market was hot, sellers often had to do multiple showings that can become time consuming. Working with a broker will save time and headaches. If you’re working with a broker who’s on site at the marina you’re dealing with, or where the boat is located, they will often have a mechanic, a list of surveyors, or resources to estimate repair costs.
For more expensive purchases, the broker can often help with financing. Private sellers generally cannot.
Trade-Ins, Insurance and Confidence
What if you have a trade-in? Private sellers rarely want to take a trade-in, but brokers can facilitate that.
Another thing that brokers can offer is a lien search. It’s essential that the buyer knows the boat is free and clear of liens or title issues. A broker told us of a client who did not complete a lien search during his purchase only to find out that the boat was stolen and a bank had a registered lien on it.
A knowledgeable broker can provide confidence in a deal involving a significant amount of money. For example, you don’t want to use your house as collateral for bridge financing.
Expect that a good broker will be familiar with all the ship’s systems and can review them with the potential buyer. A broker can set up a professional captain to help the buyer feel comfortable and confident at the helm, or in some cases move the boat to its new home in Canada or the U.S.
Contracts
The contracts and paperwork are very important too. In Canada and the U.S. there is the Certified Professional Yacht Broker (CPYB) program.
In addition to specific education and training, CPYB brokers use proper, legally correct forms and paperwork to secure the deal. If you plan to finance the purchase, expect this to be required by the lender.
Depending on the boat’s, age, value and your credit, it is possible to buy a boat with 0% down or deposits can range from 10% to 25%. A broker can have relationships with marinas that provide ancillary benefits. For example, a marina may hold events such as rendezvous trips where boaters follow the leader and gain the experience of anchoring, rafting out and meeting other people who may also be new boaters. It’s a great way to get more comfortable and confident with your own boat.
A Big Investment
A boat is a lifestyle investment. It like taking a one-time vacation. Boating becomes a lifestyle and the other boat owners in the marina often become friends.
Life changes over time and if you have a good relationship with a professional broker, he or she can help you change boats to best meet your family’s changing needs. One broker told us that typically, things change every three to five years for some of his clients and every seven to 10 years for others. Right now, it may be just you and your spouse, but later you may have young children or teens. You may want to change your boat and that may mean going smaller as much as going larger.
Some people only want to buy a new boat and that is understandable. But in today’s market, more people are looking for a brokerage boat. First, a buyer can often afford a larger brokerage boat on the same budget. The sweet spot last summer seemed to be boats averaging about 13 years of age. Something to consider is that you could upgrade or modify a used boat by adding thrusters, the latest navigation equipment, faux-teak decks, custom paint jobs and other personal touches.
A high-quality boat can be expected to last longer and perhaps one of the best reasons for using an experienced broker is that he or she knows the makes and models that have proven to be durable and to hold their value.
Also, you don’t need a new boat to get many of the latest features. We were on board a 2011 Sea Ray 390 that has new technology including the MerCruiser Axius joystick docking system, good electronics and other desirable features.
Use a Surveyor
We should circle back to the issue of the surveyor. A broker told us of a one owner used boat that had always been kept clean and looked great, but the insurance company required a survey before it would provide coverage. It turned out that the boat had significant structural issues in the transom and engine stringers and had a wet deck. The great looking 25-year-old boat for sale for $60,000, but needed $30,000 in repairs.
Professional brokers will usually provide you with a list of surveyors from which you can choose. They generally don’t recommend a particular one but do know the right ones to use and others to avoid.
Boats are great, but they’re large and complex. Not every owner marina provides quality service work. Plan to survey your own boat occasionally to keep a close watch on its condition. Armed with good information, you can decide to maintain, repair, upgrade or trade.
COVID-19 made last summer a booming market for people buying boats as a replacement for waterfront property, which is simply too expensive. A boat can be a valuable asset to your family and provide fun, stress relief and memories that will last a lifetime.
A final reason for working with a professional yacht broker; often quality boats are never advertised because the brokers are already aware of them and they quickly change hands without anyone knowing.
If you find a boat you love, buy it when you find it. We expect that last year’s hot market is going to continue.