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  #11  
Old 07-17-2013
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Re: What Is A Boat Really Worth?

Quote:
Originally Posted by denverd0n View Post
Beyond that, every broker I've ever chatted with has stories about owners who simply refuse to believe what the real value of their boat is, and demand that it be listed at an unrealistic price.
Yep. And there is always a another broker that is willing to list at whatever unrealistic price the seller expects. Then it becomes a waiting game for the broker. Eventually the sellers expectation will align with reality (could take a year or two) and a sale occurs. Kashing for the broker. As long as the broker does not have a cash flow problem, this is not a big deal (well, a few more showings...).

A listing is money in the bank... sooner or later.
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Last edited by jorgenl; 07-17-2013 at 12:16 PM.
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Old 07-17-2013
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Re: What Is A Boat Really Worth?

A boat is worth to you what you can borrow on it. Fair enough.

If you are the only buyer in the pool then you have also established the boats market value.

If there are other buyers or a seller wants to wait for other buyers then the market price to them will be different.

Suggesting that sellers are unrealistic because you are taking out a loan is, well, unrealistic.

A boat is not a house. You will lose money on it. It is the cost of the recreation.

Eventually you will either find a boat you want to afford or another activity that you can write about.

Last edited by sailpower; 07-17-2013 at 12:23 PM.
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Old 07-17-2013
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Re: What Is A Boat Really Worth?

The problem with buying a used boat right now is that not many people want to accept the beating they have taken in the last five years or so due to the economy.

There are a lot of boats for sale at unrealistic prices. I bought my last boat in 2009 and I paid the owner about 60 per cent of what he had paid for it the year before.

I also had another 8 or 9 boats on my short list, several of which that are still for sale, with owners who just didn't believe a crashed economy meant their boat was worth less.

If you can afford to keep it, fine. I know I couldn't get what I paid for my boat if I sold it right now. I don't plan on selling it, so I don't care. But, those people wanting to sell boats right now, need to get real. Because, boats that belong to owners who are realistic as to what they are worth, are selling.
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  #14  
Old 07-17-2013
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Re: What Is A Boat Really Worth?

Julie, I think banks go with NADA because it is free and easy to access. BoatUS requires you to submit a form. Soldboats requires you to be a member. If Yachtworld has sales information, that's only available to members as well. NADA is open. That does NOT mean NADA is inherently more accurate than BoatUS or others. That being said, when I was looking, NADA was a great first pass at what the boat would be worth when sold. If the seller was way out of line, I wouldn't usually bother trying to see the boat. If the asking price was within a range that was comfortable for me to make an offer based on NADA, then I'd go look at the boat. If that turned out OK, then I'd hit up BoatUS and base my offer on that, taking into account the features/gadgets/upgrades that had any value to me, and any that I might have to remove.

I believe your surveyor had it right - BoatUS's data is more accurate. I also found tha BoatUS's prices were typically lower than NADA.

I can't tell you how many sellers I talked to who said "I paid $X for the boat 6 years ago, and put $Y into her [which, in some cases, appeared to include the cost of winter storage!] so she's worth $(X+Y)." They don't seem to understand the market conditions. If it's a common boat (e.g., Catalina 25), it is only worth as much as the other, competing sellers are willing to take (not their asking price) for their boat. If you've got some shiny bell or whistle (or radar, chart plotter, etc.) that the other guy has, I might be willing to pay a little more if it's a "must have", but otherwise your boat is fungible. I know it stinks when you're the seller to have to deal in these terms, but its true. As a buyer, it's really tough to get sellers to understand this.
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Old 07-17-2013
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Arrow Re: What Is A Boat Really Worth?

Quote:
Originally Posted by Group9 View Post
The problem with buying a used boat right now is that not many people want to accept the beating they have taken in the last five years or so due to the economy.

There are a lot of boats for sale at unrealistic prices. I bought my last boat in 2009 and I paid the owner about 60 per cent of what he had paid for it the year before.

I also had another 8 or 9 boats on my short list, several of which that are still for sale, with owners who just didn't believe a crashed economy meant their boat was worth less.

If you can afford to keep it, fine. I know I couldn't get what I paid for my boat if I sold it right now. I don't plan on selling it, so I don't care. But, those people wanting to sell boats right now, need to get real. Because, boats that belong to owners who are realistic as to what they are worth, are selling.
Boating costs money.

On the averge for a 35 foot boat we spend 4500 a year for slip fees. If you haul in the winter add at least another 600 for that and storage. If you only spend 1500 a year on improvements , wax, fuel, parts you are up to 6600 dollars. We own Haleakula outright, but lets say you finance 50000 for 5% for 10 years your payments are 530/month or $6300 a year. So the cost per year is $12,000.

What will that boat be worth in 10 years. Well you've paid 63,000 and you'd be lucky to get 30,000 back. Remember this without spending money on improvements.

How many days a year do you use it? We use ours 30 weekends plus a 3 plus week vacation plus maybe another 10 days equalling 90 days. This is a lot compared to most. Pretty expensive for a hobby.

We all want 39 foot boats. We all want lots of room. What wil you sacrifice for that. Set you amount you can comfortably spend and look in tht range. It's a hole in the water money wise. Everyone says that....because its true.

You expectation of being able to sail this year is slowly closing. You live in Chicago not the Chesapeake. If this s a priority make it happen. If its a sidelight to a vacation or getting a road trip in is not the same as acutely pursuing it.

There are plenty of boats out there at reasonable prices. Time to get decisive and act.

Dave
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Old 07-17-2013
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Re: What Is A Boat Really Worth?

A boat is worth exactly what someone will pay for it. Not a penny more, or less.

Simple answer to a complex question.

Our Gemini we financed, surprisingly enough the bank covered 95% - including our upgrades which of course are worthless long before the loan has matured.

Our last boat we bought cash. It's worth what I paid, because that's what I paid.
Funny thing, the surveyor asked what I paid - and that's exactly what he said market value was on his report.
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Old 07-17-2013
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Re: What Is A Boat Really Worth?

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Originally Posted by jorgenl View Post
A boat is an unnecessary luxury item, if you cannot afford to pay cash for it, chances are that you cannot afford to own it, IMHO.

I am not saying that you should pay cash, just that you should be able to. It may make more financial sense to finance part of the purchase.
Booooo

I have not one regret in financing our boat! However, any and all upgrades are paid in cash, for example a re-power. There lies my disagreement with your opinion/comment
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Re: What Is A Boat Really Worth?

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Originally Posted by T37Chef View Post
Booooo

I have not one regret in financing our boat! However, any and all upgrades are paid in cash, for example a re-power. There lies my disagreement with your opinion/comment
Shawn,

I was not implying that financing is bad/wrong. If interest rates are low, tax deductions are available and you can get a better return by investing it may make financial sense.

What I was trying to say, is that if you cannot afford to pay cash, there's a chance that you may not be able to afford having a boat, it all depends on a number of factors such as boat size (slip fees) age of boat (maintenance/upgrade cost), price etc etc.

Me, I like to pay cash for toys and did so with all my boats.
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Re: What Is A Boat Really Worth?

IMO, all the sales databases are inaccurate. There simply isn't enough turnover to set an accurate market. That, and are all sales reported?

If a common boat, a 1985 Catalina 30, sells for $30,000 does that set the market? What about condition, location, options like tall rig etc? And when will the nxt 1985 Catalina 30 sell? A week from now, month from now? Getting into the less common boats this is even more of a problem.

With regard to database pricing setting the market, cars sell by the thousands every week. The most accurate databases are Manheim and statistical firms like Galves. They are relying on thousands of units sold, so the pricing is very good. For example every week there could 500 2011 Honda Accord LXs going over the block. Even it's only 100 there is a meaningful sampling. That sampling is the range that sets the market, from best to worst condition. However, with boats, we are down to, at best, single digits of that exact model selling. Why would i pay a database price when there is no accurate centralized pricing system?

Last edited by TJC45; 07-17-2013 at 02:08 PM.
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Old 07-17-2013
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Re: What Is A Boat Really Worth?

Roger that, I am just not following your line of thinking.
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