Valuation

Valuing a boat is a tricky process, much open to misunderstanding.

An insurance valuation is an indication of the likely payout in the event of total loss on a like-for-like basis. There will be a range of values for any given type of boat that reflects the general condition and equipment. Bear in mind that an unreasonably high valuation will attract higher premiums without necessarily giving a high payout. Pricing a boat for sale has to be realistic to ensure that prospective buyers are not scared off by too high a figure. Perversely, a low figure can also deter buyers who suspect that there must be something wrong with a boat that has been priced cheaply to sell quickly. In my years as a broker, when I put what I considered a reasonable price on a boat, the seller would often protest that he had seen boats of the same class at a much higher price in adverts on the web or in a magazine. My answer was always to ask how long had they been for sale and what was the actual price paid when a sale was completed. Nobody was ever able to give me an answer to this.
Experience has taught me that if a boat has been for sale for a long period and has attracted neither viewing nor offers, then the problem is the price.

Even horrible boats can sell if the price is right! On more than one occasion I have seen boats sold for half or even less of the price that was initially asked. Most buyers will expect to make an offer that is less than the asking price, but they will baulk at offering substantially less, feeling that the seller will be insulted.

Preparing for sale

I was constantly amazed, when I was a broker, at the appalling condition that some boats were in when put up for sale. First impressions count for a lot, so make sure that the boat is clean and tidy and that all personal gear has been removed. Not only does this make the interior look better but it also removes the possibly contentious issue of what equipment goes with the boat. Service the engine so that the oil is clean and topped-up, touch up the varnish and put on a coat of fresh antifouling if the craft is out of the water. Clean and dry the bilges and make sure the boat is well ventilated so that a buyer is not greeted with a musty smell when opening the hatch.

As a surveyor, I am always impressed with a boat that is well presented. It leads to the assumption that she has been cared for and that maintenance has been properly carried out. Conversely, lying in a soup of diesel, bilge water and prawn bree concentrates the mind wonderfully and brings out the worst in a surveyor, leading him to look long and hard for the faults he knows are just waiting to be found.

Advice

Most surveyors are happy to give advice, especially to people who are just taking up boating. At the beginning, the learning curve is steep, so don’t be afraid to benefit from other’s experience. However, every yacht club has its’ share of worthies who profess to be experienced but have rarely left harbour, so beware!

Enjoy your sailing!