Join Date: Sep 2011
Thanked 16 Times in 16 Posts
Rep Power: 4
Re: What Is A Boat Really Worth?
I think the inconsistencies in price are due in large part to the number of brokers who list a boat at whatever the seller asks so they can get the listing. Then those numbers get posted on YW or SL and act as a barometer for future sellers to use to price their boat. It's self perpetuating.
Some brokers guide the seller and help them reach a realistic price, one based more on recent sold prices than recent listing prices. And a seller taking that advice will probably sell the boat faster than average.
In real estate, I've seen realtors run from homeowners who have unrealistic expectations about the value of their home. Those who take the listing anyway will put on a show then suggest a price drop if there's no nibbles. And they keep doing that until the home sells.
All selling agents, regardless of the commodity, want to sell because that's how they get paid. Buyer, seller, it doesn't matter, their real loyalty is to themselves and that means getting things sold so they can make a living. So it benefits them to get the seller to lower the price if too high and try to guide a buyer into the deal. But they won't put a lot of time into a boat they feel is overpriced, not when they can sell another boat to that buyer.
$10K may be a lot to the seller but is only $500 to the selling agent, unless he is also the broker, then he keeps the whole $1,000. But if you can make $2K now or $2.5K who-knows-when, you'll take the $2K now and move on to the next prospect.
That's why I'm surprised you don't see more price drops in boat listings. A boat that's sitting for 6 months that has had no price drops means either the broker forgot about it or the seller won't budge. This process isn't just about serious buyers, it's also about serious sellers. And, of course, supply and demand.