There’s an old saying among sailors: “The two happiest days in a boat owner’s life are the day they buy their boat and the day they sell it.” While my husband, Chris, and I can confirm the unbridled joy of buying our beloved 1979 Cheoy Lee 41, Avocet, we’re not quite ready to test the second half of that theory. After years of pouring sweat, love and bottom paint into her, we’ve promised to keep her for the long haul.

That said, we’ve been crew on the emotional roller coaster of friends preparing to sell their boats. Trust me: It’s a ride with plenty of ups, downs and the occasional splash of regret.  

To demystify the process and help sailors prepare for what can feel like the nautical equivalent of sending your child off to college, I turned to two experts: yacht broker and sailor Josh Hannigan, as well as our pal and long-range ­cruiser Peter Metcalfe. They shared their wisdom, and a healthy dose of reality, on how to sell your boat while (mostly) ­keeping your sanity. 

The Right Timing

Let’s rip off the bandage: The right time is now. “If you’re ready to let go, just do it,” Hannigan says. “Boats aren’t like real estate. They’re not investments that appreciate. Every day your boat isn’t on the market is a day the perfect buyer isn’t seeing it.”  

Hannigan is more than a longtime yacht broker. He’s ­also a captain involved with yacht surveying, sailing ­instruction, and providing specialized services for ­watermaker systems and custom sails. He offers insights as an active sailor, instructor and liveaboard boat owner. He’s also an associate surveyor with the Society of Accredited Marine Surveyors and an instructor with NauticEd, making him a trusted adviser on boat ownership, maintenance and sales. 

For Hannigan, boats are less like houses and more like relationships: There’s someone out there who will love your boat just as much as you do. But timing, he says, is everything: “The right buyer might be waiting for a promotion, selling their property or finally retiring. If your boat is out there when they’re looking—and it’s the best option—it’s game on.” 

The trick, as with most relationships, is patience. Boats can take time to sell, and the seasons of the sailing world ­often ­dictate when interest peaks. But Hannigan says a well-prepared boat can sell at any time of year, provided it’s priced competitively and ­presented at its best.  

First Impressions

If you’re picturing buyers strolling onto your boat and falling in love at first sight, you’d better make sure it’s worth swooning over. 

“Think of it like staging a home,” says Metcalfe, who is in the process of selling his boat, the 38-foot Hans Christian Kessel, after completing a singlehanded voyage across the Pacific. “A clean, fresh-­smelling boat with shiny brightwork makes it easy for buyers to imagine themselves living their dream on board.”  

To prepare Kessel, Metcalfe embarked on a top-to-bottom makeover. “I revarnished the cabin sole, repainted the ­interior, refinished the teak, and even spruced up the deck paint. It was a labor of love—and a little heartbreak—but it made all the difference.”  

Hannigan agrees, but with a sharper edge: “Every scratch, chip and stain is a negotiation chip that you don’t want to hand over. Fix it now, or be prepared to lose money later.” 

His advice? Paint the bilge, tighten the hose clamps, and make the engine shine like you’re prepping it for a yacht show. “Every small detail adds up to one big impression: This boat is cared for,” he says. “Buyers can sniff out neglect faster than you can say ‘osmosis blister.’”  

Keep It Functional 

Boats are also like pets: They don’t do well sitting idle. Hannigan says systems left untouched for months will almost certainly revolt when you need them most. “Flush the heads, check the furlers, and make sure your wind instruments actually display wind,” he says. “Buyers will forgive quirks, but they won’t forgive neglect.”  

Metcalfe adds that honesty goes a long way: “If you can’t fix every issue, be upfront about it. Disclosing known problems shows you know your boat and aren’t trying to pull a fast one. Buyers appreciate ­transparency, and it builds trust.”  

I remember when we were buying Avocet. She wasn’t neglected, but she was ­definitely left untouched for months because the seller was in poor health. Luckily, we had a survey to support our concerns and could whittle the price down to a number that reflected the state she was in. 

The Right Price

Hannigan’s pricing philosophy is refreshingly straightforward: Price your boat fairly based on its condition and market comps. 

“Set a no-nonsense price that reflects a boat in good working order,” he says. “If everything works, buyers will pay for their preferences rather than penalizing you for deferred maintenance.”  

The Broker 

Selling privately can save you brokerage fees, but the process is not for everyone. Hannigan recommends asking, “Do I have the time, patience and knowledge to handle this myself?” 

A broker can take care of marketing, showings and paperwork, making the process smoother—especially if you’re emotionally attached to your boat. (And let’s face it, who isn’t?)

When choosing a broker, Metcalfe suggests going with your gut. Ask yourself: Would I buy a boat from this person? “If the answer is no, keep looking,” he says. “A good broker should be approachable, knowledgeable and genuinely interested in finding the right buyer for your boat, not just making a quick sale.” 

Patience Is a Virtue 

Selling a boat takes time. Hannigan likens it to getting out of a gang: “It’s not going to be easy, and it’s not going to be quick.”  

When it came to buying a boat, Chris and I took a whole year and put in two offers on two boats before Avocet fell into our laps. It took time, heartbreak and research to find the right boat. I can only imagine how Avocet’s sellers felt with the boat sitting on their hands for twice that amount of time. 

Budget for the time it takes to sell your boat and for the expenses involved in keeping it in show-ready condition. Whether it’s in a slip or dry storage, a well-maintained boat is far more likely to attract buyers than one that looks like it’s been left to fend for itself.  

Moving On

For Metcalfe, selling Kessel is bittersweet. “This boat carried me through some of my toughest times, but life has seasons. It’s time for me to move on.”

He expects tears when he hands over the keys, but also joy, knowing that the boat he loved is ready for its next adventure. We can’t wait to buddy-­boat with him again someday. We are confident he will be on the buyer’s side of thingssoon.

What he’s going through right now, though, is what so many sailors endure. It’s more than a transaction. It’s a rite of passage. Whether your boat has been a faithful partner, a dream realized or a character-­building challenge, preparing it for sale is your chance to honor its story while helping a new owner begin theirs.  

So, give it your best. Varnish the teak, clean the bilge, and light a candle in the galley for good measure. And when the right buyer comes along, hand over the keys with a smile, a handshake and maybe a little tear. 

After all, it’s not just a boat—it’s a piece of your life, setting sail for a new horizon.

The post How to Sell Your Sailboat: Pricing, Staging and Letting Go appeared first on Cruising World.

Here’s a hopeful cruiser sentiment: “I don’t want a project boat; I want one that’s ready to go.” 

It’s a fair wish. Who wouldn’t want to skip the difficult refit and head off over the horizon? But a truly turnkey used cruising boat is more myth than reality. 

We’ve seen dreamers who buy budget-­friendly project boats get overwhelmed with the unexpected effort or cost and ­never leave the dock. Similarly doomed are the Pollyannas who buy that “ready to go” boat, only to borrow from their cruising kitty to correct myriad problems.

These are not cautionary tales. They’re more typical than not. Buying a cruising boat can be one of the biggest purchases in a lifetime, but unlike buying a house or a car, the search can be slower, messier and more emotional. Getting it wrong can cost thousands of dollars and multiple cruising seasons. 

Let’s talk about how to get this purchase right.

The Right Boat

Spoiler: There is no “best” boat for cruising. There isn’t even a “correct” set of features. It’s easy to get trapped by dogma, and much conventional wisdom is dated when it comes to what makes a bluewater boat. Just ask an AI bot, which feeds on outdated content and parrots a misleading response. Eventually, it will learn that a full or modified keel and heavy displacement hulls are not essential features for an offshore cruising vessel. 

Retaining old-school biases limits the inventory of candidate boats. Modern build techniques and design innovations give better sailing performance, more living and cockpit space, and an easier path to insurance. Helping people release biases around legacy bluewater design is a theme that we visit repeatedly in our coaching service.

What’s real is the boat that’s right for a particular buyer. To find that sweet spot of features, real feel and budget, start by envisioning cruising goals. Is the plan coastal or regional, such as the Caribbean, the Mediterranean or Mexico? Or are you thinking about crossing oceans and doing some multiregional cruising? Safety offshore has more to do with the sailor’s choices while cruising than with the make of boat.

Bob and Kim Stephens, currently cruising in the South Pacific aboard their Stevens 47, Meraviglia, say there are often mismatches between boats and sailors. They underscore that not all buyers are created equal: A buyer who knows boats, has owned boats, and has experience with boats is a significantly different buyer than one who is new to boating. Knowing yourself, including your skillset and risk tolerance, is as important as knowing your boat in determining the outcome.

The All-In Budget

To work out whether a boat fits in your budget, start with a purchase figure, then add a general rule to estimate the additional refit budget. 

Oh, wait—there is no general rule for refit cost. Every boat is different, and oversimplification will gloss over the likely budget necessary to make a cruising boat safe, reliable and comfortable. 

Instead, consider the total cost to purchase and equip a boat for your intentions. We call this the all-in budget: the total investment needed to purchase andprepare the boat for use. It includes purchasing costs beyond the negotiated price, such as survey and haulout, along with transaction fees, taxes, maybe delivery to another location, and the first year’s insurance. 

The refit is fixing known and surprise faults, adding missing gear, and replacing unsuitable or aged-out gear. Costs can add up, and new cruisers can hemorrhage money to reach departure day. Before committing to any boat, thoroughly assess its condition and gear to estimate refit costs. We use a spreadsheet template with fields for available budget, all purchase costs, and refit cost estimates broken down in categories, such as anchor gear, energy systems and rigging.

There is no “best” boat for cruising. It’s easy to get trapped by dogma, and much conventional wisdom is dated when it comes to what makes a bluewater boat.

If the all-in costs exceed the budget ceiling, then it’s time to negotiate a lower price, recalibrate to a different boat, or plant a money tree. 

Going through this process to vet a boat can be liberating or frustrating. Make sure the heartstrings tugging over the quality workmanship don’t overshadow the voice mumbling about the rigging age, lack of safety, and energy systems meant for being tied to a dock rather than off the grid.

Finding a Boat

Buyers often ask us where they should look. Online listings are a typical choice, and there are dozens of sites to browse. We track around 30 in our lists. A few sites list only brokered boats; others focus on private sales or specific regions, such as North America, Australia or Europe. 

A boat search doesn’t have to be limited to where you want to start cruising. Identical boats are likely to be priced differently depending on whether they’re in Florida, Maryland or Connecticut. It might make sense to cast a wider net and factor in the cost of relocation after purchase, especially if you’re not finding candidate boats in your local search area. 

Consider starting where the better-fit boat is, even if it’s not your originally planned location. Many buyers feel more comfortable purchasing a boat they can drive to. One common use case is the North American ­buyer who dreams of cruising the Caribbean. Purchasing to start on the East Coast feels easier and safer than buying a boat in Grenada. But to reach Grenada, the Florida sailor will go more than 1,000 nautical miles against prevailing conditions on the ­so-called Thorny Path. 

One Seattle-area couple we supported as coaches, Matt and Colette Rabdau, began their search focused on Leopard 44 catamarans. Colette made several trips to Florida, where, despite having watched video walk-throughs, she found gaps that drove up refit costs. They scaled back to smaller models with lower price points to allow more buffer in their funds. Ultimately, they acquired a Leopard 38.  

“We were glad that we ­shifted from a 44-foot boat to a 38-foot boat, as the money we did not spend was available to make other repairs, including replacing both fuel tanks, the front windows, all four cabin windows and portlights,” they told us via email. They also did some upgrades, adding Starlink, a higher-output alternator, a LiFePo4 bank and a watermaker.

Now two years into cruising the United States and Bahamas aboard Chinook, they say it was the right call to recalibrate. “If we had purchased the 44 [dream boat],” they write, “we would not have had the necessary funds for the upgrades and repairs that would likely have come up for other boats as well.”

Digging Into ­Listings

It’s tempting to treat a boat’s equipment list in binary fashion: Gear is either there or it isn’t. To avoid surprise expenses after a transaction, buyers should get a deeper understanding of each item’s condition. 

Many listings have checkbox lists instead of details. “Depth sounder” seems great, but what kind is it? How old? Similarly, an “autopilot” might be a bungee cord and a centered wheel. Maybe the listing says: “new batteries, 2019.” Well, are they lead acid or lithium? If they’re lead acid, they’re likely near their end of life—not exactly new or a selling point. 

Look carefully at photographs. Do the pictures show a pristinely painted engine? Overspray on parts not meant to be painted, such as formed hoses, suggests new paint on a not-new engine. Is this paint covering rust and corrosion from poor maintenance? And is the mainsail fully covered in those dockside images, or is the leech exposed and baking in the sun? How rusty is the anchor chain? 

Everything on a boat has a lifespan. As the buyer, you want to know where each item is on that timeline. This depends on the original quality of the item, how well it was installed, and how well it was maintained. 

Lifespan applies to nearly everything, not just the electronics. Our boat, the Stevens 47 Totem, is 43 years old. It’s been under our ownership since 2007, and we’re on the third standing rigging, the second engine, the third life raft, the third watermaker—not to mention bulkhead repairs, tank replacements and more.

Many listings have checkbox lists instead of details. “Depth sounder” seems great, but what kind is it? How old? Similarly, an “autopilot” might be a bungee cord and a centered wheel.

Buyers need detailed knowledge, or solid guidance, to assess each component’s stage of life. When a listing is thin, seek information from the seller or their representative. Sometimes, lifespan will be called out for them, such as when an insurance underwriter refuses to bind a policy until an aging rig is replaced. 

Digging into listings also means researching online history. One of our coaching clients went through social media posts by the seller of a boat they were considering. It turned out that the boat had been through a hurricane and sustained meaningful damage—so much so that the insurance company had totaled the boat. This information was not disclosed in the listing. They asked pointed questions of the broker. Screenshots supported their case after the seller deleted the content online. The state in which the boat was listed may not have required disclosure, but the code of ethics for professional yacht-­broker associations does—as does a basic moral compass.

Again, the goal is to understand the boat’s all-in cost. This cannot be done by applying a general figure or a percentage calculation. It is unique to every boat.

Working With a Broker

A good broker is a valuable asset during the purchase process. The broker provides market insight and access to the back-end data for some online listings to help inform your offer. 

The broker also acts as a buffer in negotiations with the seller and their broker. Owners are often emotionally attached to their boats. Explaining why your lower offer for their lovely vessel is fair can be difficult to do directly. After the survey and sea trial, brokers can again save you thousands by negotiating for adjustments to the accepted offer. 

Why doesn’t every buyer have a broker? It requires a reasonable budget to make the commission. This is often around the $150,000 mark. Not all brokers want to be a buyer’s representative. It’s not as lucrative. Their commission is paid by the seller. 

It’s also important to know what brokers don’tdo. Don’t expect them to scour listings to find that dream boat for you. That responsibility lies with the buyer, although a good broker will assist the process. And, of course, they will know what their own brokerage has available. 

Working with a buyer’s broker isn’t always a slam dunk. The Chinook crew’s Seattle-based broker did not advise them effectively about Florida taxation, an omission that cost them a considerable sum.

Resale Value

Avoid problems later by keeping resale in mind before you purchase. Consider demand: Is the make or model a name that people will type into search engines? Does the boat have an owners group? Resale value has geographic implications too. Designs revered in one region are undesirable in others.

An unusual boat—your “unicorn”—might be harder to sell later. The cost to carry a boat for sale, from dock fees to insurance, can get expensive. Boats often sit on the market for months. 

Also important: Refit expenditure does not add dollar-­for-dollar to resale value. A given make and model tends to have a market value. It will have some regional variation. It will sell faster or slower based on how well it is equipped or maintained. But $150,000 put into a $100,000 boat does not make it worth $250,000. 

Newer cruisers aboard their Beneteau, Paradise II, Chris and Shiela say that physically getting onto as many boats as they could was an invaluable part of the process. “Any boat,” Chris says. “Boats I could afford with change from the couch, and boats I couldn’t afford even if I sold both kidneys. Shiela suspected that she would not have been happy with a linear galley, and I knew I wouldn’t be happy with anything in the way from the forward cabin to the companionway stairs.” 

Those preferences knocked out lots of designs, but they helped to identify which boats they could afford and which of those retained market value. 

When To Pull the Trigger

Analysis paralysis is real. How do you break that cycle and commit to a boat? 

Internalize the idea that there is no ready-to-go boat, and then move ahead with due diligence and support. A mentor can help you ask the right questions, and can sometimes answer them too. 

Most important, make sure you buy with your head as much as your heart. A particular boat might pull your heartstrings, but do the math on the probable cost to make it ready for your dreams, and learn as much as possible about what you’re getting into. 

Then, the day you step aboard your magic carpet really will be one of the best days of your life.

The post Buyers Beware: Navigating the Boat Purchase Process appeared first on Cruising World.

One summer, while living on our sailboat in Wickford, Rhode Island, I was invited for sundowners aboard Carol K, a Beneteau Cyclades 43, whose owners, Carol and Peter King, had stopped for the night during a summer getaway from their home waters of Noank, Connecticut, on Long Island Sound.

The Kings are avid sailors, and at the time organized CW’s Adventure Charters, a series of flotillas to exotic sailing locations around the world. They always have great stories to tell, and I looked forward to seeing their boat, which had recently finished service with the Moorings fleet in Tortola, in the British Virgin Islands.

Motoring over, Carol K was immediately identifiable because, well, even without company graphics, she looked like a charter boat—sort of. There was a colored UV strip on the headsail furled on the bow, a blue sail pouch on the boom and a square floating Bimini over the cockpit, which at the time was quite popular with the charter fleet. But climbing aboard, it became quickly apparent this was no bareboat rental. From stem to stern, and especially down below, the Kings had added touches that made it abundantly clear that Carol K was their home on the water.

The Kings had owned two boats with the Moorings, each in service as a charter boat for five years. When their first contract expired, Peter says they decided to buy a second boat to put into the fleet. From the get-go, they planned to augment the monthly payments they received from the company to pay down the mortgage more quickly, and to keep the boat when its charter life came to an end. He notes that charter-boat owners are well-advised to have a plan in place for what to do with their vessel at the end of its charter contract. You don’t want to “get snookered,” he says, and end up with no economically sensible option.

During its charter years, Peter says he and his wife made a pact that if they saw the boat, they wouldn’t obsess about scrapes and scratches— they were out of the couple’s control and could be fixed during phase-out, the period when the charter company goes through the boat before either turning it over to the owner or selling it for them on the brokerage market.

Peter says that on average, their boat was in service about 18 weeks a year. And while he admits he had concerns about the number of engine hours racked up by vacationers, a properly maintained diesel has longevity. And in the end, they were happy with both the monthly payments and the maintenance plans the Moorings follows.

When it came time to take possession of the boat, the company replaced the table and refinished the sole. And then, Peter hired a surveyor to go through the boat and do a complete inspection. When the report came back, a few problems were identified, including worn turnbuckles, which were replaced. When all the work was complete, he had a second survey done, and then, on Boxing Day 2009, he and Carol left Tortola and spent the next four months sailing home to Noank.

Before leaving, the Kings installed a radar, a better plotter and a Flexofold propeller. And over time, Peter says they replaced two of the three manual heads with electric ones and removed a third to create a larger shower. Outside of that work and regular maintenance, they had no problems with the boat.

“I think it’s a pretty good deal,” Peter says when asked about buying and owning a used charter boat. Boats are often listed for thousands of dollars less than a similar model in private ownership, and a buyer can bargain hard because the charter companies need to routinely refresh their fleets. “You can get a good boat for a good price if you’re cautious and don’t get carried away,” he says.

Franck Bauguil, vice president, yacht ownership, for the Moorings and Sunsail, says his brokerage operation sells between 120 and 150 used monohulls and catamarans a year. And while these boats are not for everyone—layouts are optimized for chartering, and often the vessel will need to be picked up at the base or else there could be significant delivery costs for hiring a captain and crew—the boats have been professionally maintained and are kept in good working order.

Typically boats in the Caribbean see five peak seasons before they are phased out; in Europe, where the sailing season is shorter, and in exotic locations, where demand is less, they are typically replaced after six years. Both brands have created detailed maintenance manuals that prescribe regular service intervals.

Between trips, vessels get a general inspection, and any problems are fixed for the next guests. Quarterly, they see a more comprehensive examination. Semiannually, systems and engines are gone over, and once a year, the boats are hauled, new anti-fouling is applied, and any needed overhaul or replacement takes place.

Because boats need to be ready for quick turnarounds, Travelopia, parent company to the two brands, carries $1 million to $2 million in parts inventory so repairs won’t be delayed. “Our intent,” he says, “is to keep the boats in the best possible condition.”

Bauguil estimates that most monohulls will see their builder-supplied sails replaced at least once during their five working years. Catamarans are handled a little differently because their sails are spec’d out by Travelopia and are built for heavy-duty service.

The key, Bauguil says, is to have a thorough survey of the boat and systems.

Bottom line: While the boats see a lot of use, inspections are scheduled and any repairs are done by professional mechanics, composite specialists, electricians, etc. The same can’t always be said for private-owner boats, where the skipper might or might not know what he’s doing, Bauguil says.

A buyer looking at a used charter boat should compare the price differential for a similar privately owned model, and then factor into the budget cosmetics and other upgrades. Even big jobs, such as installing a new engine, might not be a deal- breaker when you look at the difference in price.

Andrew Thompson at Horizon Yacht Charters, another company with multiple Caribbean bases, including Nanny Cay in Tortola, and a large fleet of monohulls and catamarans, also emphasizes maintenance as part of the value proposition offered with used charter boats. A diver checks the bottom of every boat when it returns to the base to see if the boat was grounded or otherwise damaged. And customers are debriefed and asked about anything not working. Customers’ sailing resumes are carefully checked, and taking a captain is encouraged in some cases.

Thompson cites a comprehensive preventative- maintenance program that was created for owners with boats in the fleet and also those under private management, another side of Horizon’s business. It includes routine inspection of mechanical systems, rigging and the like, and annual deeper evaluations during the slow season. The result is relatively few insurance claims and clean survey reports when yachts reach the end of their working life.

For those hunting for a catamaran to make their escape, Horizon’s used inventory of smaller models—say under 42 feet or so—might be of interest because they include boats with both three- and four-cabin layouts. The former are preferred by most private owners, but many charter companies prefer to offer four- berth boats that can bring in more revenue. And larger yachts are nearly all configured with four cabins.

Thompson notes that when looking at used boats at online sites such as yachtworld.com, buyers might be faced with wild variations in price, depending on how an owner or company may have spec’d out a boat and how it’s been maintained and cleaned up during phase-out. Some European companies, for instance, offer boats with only minimal equipment, while in the Caribbean, a similar boat might be loaded with electronics and upgrades.

Patrick O’Loughlin, the owner of St. Kitts Nevis Surveying & Consultancy who also works for Jocelyn Maritime Training and Consultants in Tortola, has inspected charter vessels throughout the islands. He notes that most charter companies don’t actually own the boats they rent out, so maintenance and repairs are done to meet the expectation of the actual owners.

“What you do expect is more wear and tear, but what you can say, if you buy a charter boat, is it’s been well-tested. Given that most of these boats are fiberglass, they can be repaired,” he says.

When he’s representing an owner during a phase-out inspection, besides the integrity of the hull and major systems, he notes little things such as torn curtains and scratched woodwork. Owners should expect these to be corrected by the charter company before the boat is released.

He too stresses the importance of a thorough survey. “As the surveyor, I can’t really tell you in the final analysis whether to buy or not to buy—that’s not my job. But I point out all the little things I see that are not in keeping, not in sync.” And it’s those little things that are reflected in the value he puts on the boat. A potential buyer, he says, does well to heed that figure because it reflects how a particular boat measures up compared with others on the market. With a survey in hand, buyers can then make an offer based on their willingness to make repairs or live with dings and dents. When looking at charter boats, his checklist includes any cracks around the keel, evidence of a dismasting, water damage to the sole or furniture that would indicate a leak or sinking, and the engine and other systems. If he spots a problem, he then starts asking around the waterfront to see if there are any stories among the local captains that might explain the damage.

So is a used charter boat worth the look? We’ll give the Kings the final say on that one. Asked about their years owning Carol K, Peter says, “It was fun owning it.” And Carol shouts over him on the phone: “We miss it. We miss it a lot.”

Mark Pillsbury is a CW editor-at-large.

The post Buying a Charter Sailboat appeared first on Cruising World.

Bias to action: a quality in people who get things done. Right now, working on what’s possible to do – instead of what isn’t – is helping future cruisers make progress on realizing their dream. They’re even buying boats – despite being unable to travel to kick the fenders or sea trial.

How does that work in the pandemic era?

To be clear: in normal circumstances, it’s a terrible idea to buy a boat sight unseen. But reduced options for travel, destination or home-country quarantine, and in some cases outright prohibitions on travel have forced adaptations to a new reality. For those who want to move forward, is it still reasonable to buy a boat when you can’t travel to see it?

Hazards of remote purchase

First, a cautionary tale. When we were in Australia, an American family bought a boat not too far from us; our welcoming marina manager in Cammeray was sure these two seppo families should meet. Upon meeting these new friends, we learned they had recently arrived to clap eyes for the first time on the new-to-them boat, a British built 58-foot steel vessel.

The captain was somewhat disheartened. While cleaning their new floating home he found a small rust spot in the bilge, and as you do, he scraped it…and the screwdriver in his hand punched clean through the hull. You can imagine what ran through his head, but it was probably something like – “what have I done, moving my family halfway around the word onto a sinking boat?” Perhaps there were a few more colorful adjectives.

Their surveyor had an excellent reputation, but missed things. Was it a bad day, a lazy one, or an innocent error? It’s unknowable, but there wasn’t any recourse; they could only move forward. The boat was hauled and found to have many corrosion issues stemming from moisture trapped in hard to see places, like between the hull and refrigerator insulation. With the application of time and money in quantity, the family eventually had (and still has!) a sound boat to carry them toward the blue horizon. But not every cruising dream, or kitty, can survive the trials it took them to finally cast off.

What can people do today? Here’s what we’re finding in helping coaching clients navigate forward towards purchasing boats during the pandemic, with lessons that stretch back to the American family’s purchase in Sydney.

Get a real-feel

Hours of midnight oil burned on YachtWorld later, most buyers find that a few particular boat models surface as the right mix of features and budget. But—are they? It’s really hard to know the feel of a boat without stepping on board. If you’re in Yukon and the boat is in Grenada (a current, very real client example)—what can you do?

Getting on a sistership to the vessel can confirm or eliminate boats from consideration. For both the families we’re supporting in Yukon, these can potentially be found among the fleet of cruising boats sprinkled in British Columbia. That involves travel, but not the 14-day quarantine on return from BC that a (difficult and costly) trip to…well, just about anywhere, would involve.

How do you get on these boats? The simplest is to look for boat listings, and see if you can visit one as a potential buyer (you never know!). But that can be harder to find; networking among the boating community may work better. For an Australian family also shopping in the Caribbean, asking on social media groups (like Women Who Sail Australia) may open the possibility that a road trip to Mooloolaba helps them know if that boat for sale in Panama could work for their family. Do the berths fit the bodies? Are there head-knockers for 6′5″ dad that would be too annoying to live with? Is the cockpit a workable space? These can be learned pretty closely from afar.

Do extra due diligence

If the model fits, the next risk is – how is that remote boat different? How well kept is it? Are faults minimized in the listing that would make it untenable?

We try to match buyers up with a cruiser nearby who can provide a walkthrough for a modest fee. Before committing resources to a survey, make sure it actually matches the listing and doesn’t hold surprises. A pair of boat-savvy eyes willing to check it can save heartache and money.

In Grenada, a great match to check out a boat for one of our Canadian families was Aaron Downey, who has recently opened a marine services business – Clarity Marine Systems. He and his family are cruisers with some years of experience, now working in Grenada while they top up the kitty. An excellent set of remote eyes!

If a boat passes this sniff test, then a quality surveyor is the next task. Good surveyors are hard to find, so vet well. Attending the survey makes for a more thorough survey, but may be impossible with COVID. Here’s where independent, third-party local assistance can again be useful. The surveyor’s report will document findings; the buyers’ representative can query them in process and provide insight to a remote buyer.

Find a trusted minder

If the boat passes and a transaction moves ahead, the buyers may still have a wait until they’re able to reach the boat. A broker’s promise to keep an eye on the boat until the new owner arrives may not be adequate, especially in risk-prone periods such as hurricane season.

Boat minders shouldn’t be too hard to find, but require proceeding with caution. Some are very good. Some are flat out scammers. We’ve met minders with pride in the boats under their care, and seen plenty of neglected boats suddenly getting a lot of attention and cleanup because the owners are about to arrive. Here again, an independent set of eyes to make sure the boat is in good hands.

Is it worth it?

We think so! But one person’s bold move is another’s foolish leap; there’s a lot to individual capacity for risk tolerance, and no two situations are alike. Bottom line: remote purchasing comes with some risks, but most risks can be managed through this process. Hopefully cruisers who feel stymied by the uncertainty find these ideas helpful for moving forward. With caution, insight, and knowledge the chances of a satisfactory purchase remotely – and future cruise – go way up.

TOTEM TALKS

Coming up next Saturday: ASK US ANYTHING! Jamie and I are answering questions about, well, anything you want to send our way. Details to register (or replay prior vents, like hello, hurricane season or guest visit from Matt Rutherford) on our Events page.

The post Sailing Totem: Buying a Boat Remotely appeared first on Cruising World.

1. Is a boat show price the best price?

Brad Baker, Swiftsure Yachts: “It really depends on the circumstances. With the new boat lines we sell [Allures, Garcia, Outbound, Hallberg-Rassy, Outremer] the answer is not necessarily. The boats we sell are are made to order. Any boat we have at a show is there because an owner has agreed to, is kind enough to allow us to show it, and is there for demonstration purposes only. We use boat shows primarily to introduce prospects to a boat they may not otherwise have considered. The margins on these boats are relatively small, so we don’t have a whole lot of room to offer something like a boat show discount. There may be an offer for a specific option to be thrown in or something like that, but it’s likely that option would be thrown in regardless of the boat show. A more likely scenario for a discount is if a buyer is willing to make their boat available for a boat show in the future.”

Dave McKenney, Brewer Yacht Sales: “I believe that terms and price are always negotiable even at a boat show price. There are always some items to add to a new boat, like canvas and electronics.”

Stanton Murray, Murray Yacht Sales: “You’re not likely to get a bad deal at a boat show. Those representing products at shows are prepared to put their best foot forward, including purchase incentives. That said, it is common for the same incentives to be offered at events such as a dealer open house immediately prior to a show.”

Jon Rotenberg, Eastern Yacht Sales: “A boat show price is normally the best price. In many cases the manufacturer is contributing a substantial part of the show discount. When the show ends, the availability of those contributions also ends.”

Thom Wagner, Wagner Stevens Yachts: “Usually it is, because everybody puts their best foot forward and is trying to corral the highest amount of clients. It doesn’t mean you can’t negotiate a little bit. The world today is acclimated to people asking for a better price on anything, whether it’s a boat, a car or a house. The boat show price is a good price, and you get the best price. But it doesn’t mean buyers don’t ask for something in addition to a boat show price.”

2. Can you negotiate directly?

Brad Baker, Swiftsure Yachts: “For a production boat sold by dealers the answer is typically no. The builders won’t sell directly and the buyer will need to negotiate with the dealer. Most dealerships have exclusive territories so it may be that there’s only one dealer you can actually purchase the boat from. It doesn’t hurt to check prices outside of your territory. For boats that are built to order, whether or not you can negotiate directly with the builder is all over the map. For some boat lines buyers can and do have the option to purchase directly from the builder. These builders generally don’t negotiate on price. If you want to negotiate, the builder will direct you, the buyer, back to the dealer. Regardless, it’s often best to buy through a dealer, as buyers are better serviced, and there’s usually no price benefit from buying direct. A local dealer is better equipped and on hand to help with any after-sale service or warranty. In the scenario where you are negotiating on a used boat sold through a brokerage, then generally it’s best to conduct negotiations through the brokerage. Often sellers have listed with a brokerage to give separation between themselves and buyers during the negotiation process.”

Dave McKenney, Brewer Yacht Sales: “Yes.”

Stanton Murray, Murray Yacht Sales: “Of course you can negotiate directly and so can your boat dealer. A good boat dealer should be viewed as any other professional in your world. Don’t be afraid to share your dream including schedule, expected service, budget & goals. You’re likely to find that your dealer has insight concerning additional factors that will influence your decisions. One often misunderstood negotiating point is a trade. If you have a boat to trade, ask your dealer to share the realistic trade value with you. Believe it or not, the market may not like the custom curtains & cabin sole that you added to your trade-in 1982 ‘I’veseenbetterdays-32-footer’ as much as you do. our dealer may also remind you that 1982 was 33 years ago. What car were you driving in 1982 and how much is it worth as a trade-in today? On the other hand, a clean, well-maintained trade will be recognized as such by a professional dealer.”

Jon Rotenberg, Eastern Yacht Sales: “If you’re dealing with a new boat, and a dealer, you negotiate with him. With a used boat, if it’s a brokerage boat, negotiating is done through a broker and the broker has to bring the offer to a seller, who decides what he wants to do with an offer.”

Thom Wagner, Wagner Stevens Yachts: “If a potential buyer comes to the boat show, and meets with a salesperson of a new boat, that’s the person to negotiate with. As the marketing arm for Passport Yachts, we’re a little different: We’re the manufacturer. We don’t have distributors. Often at shows, manufacturer’s representatives are there in addition to salespeople. Usually if a client is going to negotiate, he talks to salesperson and the salesperson talks to the manufacturer’s rep,who is there to support the salespeople. It’s highly unlikely the client will speak directly to manufacturer’s rep. The salesperson is there to make the deal happen. With used boats, the broker is there to represent either the seller or the buyer or in some cases both. If a broker is doing his or her job correctly, they aren’t supposed to put the buyer and seller together. The broker should keep entities separate. If they don’t, they should make it known to both entities. At Wagner Stevens, we try to separate that. If I’m a listing broker on a boat and a client comes in, I will tell the buyer and seller I represent both. More commonly, I give the negotiation process with either buyer or seller to another broker in the office so I can represent one party 100 percent. Realize that this doesn’t always happen. Sometimes both clients are comfortable with one broker representing. At that point the broker becomes more of an arbiter. He’s trying to get two people to come to an agreement.”

3. What’s a realistic offer?

Brad Baker, Swiftsure Yachts: “For the used market it used to be that an offer that is within 10 percent of asking would be considered a realistic and reasonable starting point. Over the last five years or so, offers have often come in much lower. It has definitely been a buyer’s market. We are seeing a change as the good inventory of used boats is getting snatched up. I wouldn’t be surprised if prices stabilize or even possibly start to go up over the next few years. What is a realistic offer for new boats? I can’t really speak for other dealers, but for us, margins are small and there really isn’t room for negotiating on our new lines.”

Dave McKenney, Brewer Yacht Sales: “On brokerage boats, I consider a realistic offer one within 20 percent of the asking price. With new boats I consider the circumstances of what additions will be put on the boat. Dealers usually have a dealer prep fee, shipping charges and safety items like pfds, flares, horn, first aid kit, dock lines, fenders, anchor and rode, etc., that will be needed to take the boat away. In addition to canvas, electronics, extras, etc., those are where there can be good negotiations.”

Stanton Murray, Murray Yacht Sales: “Most books on negotiation advise of one scheme or another that starts with the asking price and works at winning the negotiation by purchasing the product at X percentage below the asking price. My advice is to first determine the market value of the boat that you wish to own, regardless of the asking price. A professional dealer or broker is more than happy to supply his/her clients with market data including recent selling prices of sister ships and a market appraisal. A successful offer is often one that is presented with supportive market data. To this end, I strongly recommend that all buyers and sellers engage the services of a Certified Professional Yacht Broker (CPYB). CPYBs are generally members of professional associations such as the national Yacht Brokers Association of America or one of the many regional associations that support the CPYB standard.”

Jon Rotenberg, Eastern Yacht Sales: “If you’re buying a new boat, basically, your offer should be what the manufacturer is able to give at a boat show price. Sailboat dealers work with a smaller margin than powerboat dealers. Powerboat dealers can take more off because they have more mechanical items that depreciate. If it’s a used boat, it’s up to the seller and his sense of urgency. In this day and age, it’s easy to know what all comparable boats for a particular model and year have sold for. So, today, prices are firmer than they once were. This of course doesn’t include cases where a sale is required due to a divorce, a death, etc. It’s worth noting that sailboats hold their value higher and longer than powerboats do. Sailboats have fewer mechanical components to depreciate. So, in the end, a sailboat is a better investment than a powerboat.”

Thom Wagner, Wagner Stevens Yachts: “If there’s a boat show special on a new boat, that’s a realistic offer. Most times a seller has reduced a price at a boat show or included an extra package of gear. It’s usually the best you can get. Brokerage or used boats are different: What we see are initial offers ranging between 10 and 25 percent less than the asking price. Somewhere in the middle is what’s going to happen. Sellers know that, buyers know that. Years ago, retailers discounted prices heavily. The world is used to discounted prices. This is very true with brokerage boats. What we find is that coming in with an initial offer 25 percent below asking price usually settles out between 10 and 12 percent off of asking price. But having said that, it’s largely driven by the initial asking price of the boat. If you’re talking about a boat that’s $150,000 to $300,000, 10 to 12 percent is a common number.”

4. Should you get a new boat surveyed?

Brad Baker, Swiftsure Yachts: “It goes without saying that a pre-owned boat should have a purchase survey done. In the case of a new boat, it’s in everyone’s best interest to have the boat be delivered without deficiencies. This avoids problems and warranty claims down the road. We all would like to think that new boats come out of the yard in perfect condition. The reality is there are always bugs to work out. A surveyor will not catch all of these issues, but typically will be helpful in catching some, if not most.”

Dave McKenney, Brewer Yacht Sales: “I would always have a new boat surveyed and if ordered, I would have the surveyor inspect the various points of completion during production. This would make any warranty claim process less burdensome and less intrusive on the first year of ownership.”

Stanton Murray, Murray Yacht Sales: “When purchasing a new custom or semi-custom vessel it’s not unusual for a buyer to hire a surveyor or representative to audit the process concerning schedule and build specifications. Vessels built by reputable manufacturers and commissioned by professional dealers are covered by warranties and are usually not surveyed.”

Jon Rotenberg, Eastern Yacht Sales: “No. New boats carry warranties and if there’s a problem you go back to the manufacturer. Of course, if it’s a million dollar boat, that’s up to the buyer. For a used boat, you have to have it surveyed. We make clients who want to buy a used boat without having it surveyed sign paperwork indicating that.”

Thom Wagner, Wagner Stevens Yachts: “There’s really no reason to, because a new boat comes with a warranty. In the 35 years we’ve been selling new boats I think only one or two have been surveyed prior to delivery.”

5. Are some boats too old to finance?

Brad Baker, Swiftsure Yachts: “The majority of traditional boat lenders prefer to make loans on boats that are 20 years old or newer. There is a minority who will make loans on boats up to 30 years old or newer. Beyond that, there are a select few who are willing to look at boats on a case by case basis and if they feel it makes sense will go ahead and write a loan on older boats. It’s safe to say it definitely gets harder to procure a loan the older the boat.”

Dave McKenney, Brewer Yacht Sales: “The major financial lenders do try to keep the boats that they mortgage to under 20 years old. There are some programs available through specialty or niche marketing for particular classic fiberglass and wood boats.”

Stanton Murray, Murray Yacht Sales: “Yes and no. Availability and cost of financing is driven by the perceived risk involved. Less than a handful of banks provide the majority of national financing on boats in the U.S. They mostly follow the same basic guidelines. Loan amounts over $100,000 are restricted to vessels less than 20 years old with terms of 15-20 years and a 20 percent down payment. Loan amounts less than $100,000 are restricted to vessels less than 15 years old with terms 10-15 years and down payments as low as 10 percent on used boats. Some of the national lenders restrict themselves to vessels less than 8 years old. Notwithstanding the above, local banks and credit unions generally are more flexible and provide boat loans weighted more on the relationship with the individual than vessel age.”

Jon Rotenberg, Eastern Yacht Sales: “Yes. When boats are older, the financing changes. If you want to be smart, buy a new boat because you’ll save money in the long term. When a boat is 10 years of age or older, there are issues. There are fewer new boats on the market, and it’s a self-fulfilling prophecy. We should buy new boats. You wouldn’t buy a 25-year old car to go to work every day.”

Thom Wagner, Wagner Stevens Yachts: “Yes. Again, it depends on the boat. We at Passport enjoy a good relationship with banks because our boats hold their value well. Rule of thumb is that a bank won’t finance a boat that’s older than 20 years old. Or at least they’d charge an extra percentage rate for that. Loans are typically 15- or 20-year terms and the boat will be 40 years old by the time the note is paid. If it’s a high-quality boat like a Passport or an Oyster or Hallberg-Rassy, the banks are more agreeable to finance an older boat. The value will remain longer.”

6. Do newer boats get a better finance rate?

Brad Baker, Swiftsure Yachts: “In my experience most don’t give better rates for new or newer boats. I’m sure there are exceptions.”

Dave McKenney, Brewer Yacht Sales: “Yes, they do.”

Stanton Murray, Murray Yacht Sales: Yes. Depending on the bank, the rate goes up and the term is shortened for boats approaching maximum age in the age categories I’ve mentioned.

Jon Rotenberg, Eastern Yacht Sales: “Yes, generally speaking. An old boat also needs a survey for insurance, whereas a new boat doesn’t.”

Thom Wagner, Wagner Stevens Yachts: “Finance rates depend on the strength of the client. Banks like to lend money to people who don’t need it. If you have a high credit score, etc., a good consumer history, banks will give you a good rate. If you don’t have a good credit score or it’s just reasonable, you’ll pay more. The same applies for both new and used boats.”

The post The Price is Right. Or Is It? appeared first on Cruising World.