The error most yacht sellers make when they do not have the benefit of working hand-in-hand with a skilled and experienced yacht broker, is setting an unrealistic selling price.
Do-it-yourselfers tend to set a price that is too high, and not reflective of the boat’s true value, or the current market. Then they scratch their head and wonder why their boat isn’t selling!
One of the greatest advantages of using a yacht broker comes in when setting your selling price. A good yacht broker will research in detail the current market for boats of your size and style. He or she will provide you with accurate reports based on that research. The broker will then work with you to set a realistic selling price that is reflective of your yacht’s true value.
Setting the right price to improve the marketability of your boat needs to take many things into consideration, beyond the obvious things such as her model year and condition.
Determining your motor yacht’s true value and marketability in setting the asking price, is one of the most important skills your broker should possess. It is also the part of the selling process that requires the most extensive research and analysis.
Your broker will need to consider things such as where your yacht is located and the time of year you are putting her up for sale. The broker will also need to gain first-hand details of your motor yacht, her condition and any recent upgrades. The broker will have to consider the costs of any recommended repairs or detailing he or she recommends prior to the sale, and get a complete understanding of the full-operating costs of your vessel. You broker needs to consider all of this and more, before setting a price designed to sell your boat quickest, and for maximum return.
The first best place to start assessing an accurate selling price for your boat, is to look at similar boats that sold recently, and at what price. Note the emphasis on the word “recently.” Markets change, and there is no sense in you arguing with your broker about the price your boat may have sold for a year or more ago.
We have said this before, but it cannot be said often enough, most luxury motor yacht owners have an overinflated idea of the true value of their boats. This is usually due to emotional attachment, and overestimating the value of upgrades. Always keep in mind that upgrades are great, and useful for keeping your boat at its best for your use while it is yours, but upgrades rarely recoup their cost in the resale price.
Even when you do everything right, working with a broker, setting a good price, it can still take a year or more to sell a luxury yacht. The best way to accelerate that process is with a steady stream of serious potential buyers. The best way to attract them and keep them making steady offers, is with a realistic selling price!
When it comes to implementing your selling strategy, correctly pricing your boat is the cornerstone to getting her sold. And, an experienced broker will really earn his or her keep by knowing how to price your boat accordingly. Brokers have the familiarity and resources to know what similar boats have sold for in your area and they know how to price your boat to sell based on buyers historical expectations. No layperson can do all that!
A Final Word About Pricing
What you always need to keep in mind about pricing is, the more overpriced your yacht is, the longer it is going to sit on the market unsold. The longer it sits on the market unsold, the lower its perceived value will be, which creates a vicious cycle of little or no offers. Eventually you will have to sell for far below what could have been a more realistic original listing. I have seen this happen quite often!
And, let’s not forget all the extra money on dockage, upkeep and maintenance you will keep spending the longer your boat goes unsold.
Even when you are working with a good broker, you must be willing to follow his or her advice on pricing, as you do on all things involving the process. It may sound strange, but I have run into sellers who resist realistic pricing and insist on pricing their vessel too high, not because they really expect to get that price, but because they are too emotionally attached to their boat, and subconsciously, really do NOT want it to sell. Don’t be that guy!
When you engage the services of a broker, make sure you are ready to sell, and then do everything you can to work with him or her to implement your mutually agreed upon selling strategy and achieve your sales goals!
NEXT WEEK: We’ll start to take a closer look at what to do when you get an offer!
It’s not always easy to stay on top of what’s new in motor yachts. If you would like to benefit from our expertise in these areas, or if you have any questions or comments about this blog post, do not hesitate to contact our Sales Specialists, or call us at (855) 318-6328.