Boat Values in the current market - SailNet Community
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post #1 of 22 Old 07-11-2010 Thread Starter
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Boat Values in the current market

I have been watching certain makes of boats the past 3-4 years. The values do not seem to have fluctuated as much as other things in the market place over the past 3 years.

Brokers are like Realtors and profit from keeping the values up. I also realize that the market is truly what one person agrees to pay and another agrees to accept. Often times sellers may owe more than the boat is currently worth and no means to make the deal go, because they are upside down.

I see some of the boats I am watching on the market for a year. The recent boat show in Oakland there were several brokers in a seminar that I attended saying the 100k to 200K market was the most active.

I am looking at boats from about 1989 up to 1999 in a price range of upper 80's to the low 120's. Some have been setting there for awhile. I am thinking of making an offer in the neighborhood of 40% less than the asking.

Do you think I will buy anything?

DW
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post #2 of 22 Old 07-11-2010
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If you were trying (really trying) to sell a boat, wouldn't you list it at a price close to what you expected to get. Overpriced listings aren't likely to get any offers. You can try offering 40% off, but you'll come closer to getting it if you try 10% under listing price. If the seller suddenly takes 40% less than what he had the boat listed for, I'd be very suspicious that something really bad has just been discovered by him.

Last edited by NCC320; 07-11-2010 at 03:36 PM.
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post #3 of 22 Old 07-11-2010
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,,,. Some have been setting there for awhile. I am thinking of making an offer in the neighborhood of 40% less than the asking.

Do you think I will buy anything?

DW
Yes, I think you are very likely to buy someonelse's problems for a lot more money than that someone really ever expected a buyer would pay.

Offering a certain percent off asking is a strategy that doesn't even attempt to determine the value of th eboat in question, a sure way to lose out.

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post #4 of 22 Old 07-11-2010
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Duck

the boat is only worth what someone (you) will pay for it..and for most of us who buy sailboats, there are a number of very intangible things involved.

As for price...I know several guys, who were told by their SO to sell the boat/car/MC/tools...and so they priced it to not sell. Then you have the seller who paid top dollar with no money down, at the top of the "market" three years ago, and quickly replaced all the electronics and most of the interior gear and is trying to sell now - and wants to recover his costs, and gets PO'd when you tell him that 3 year old electronics are obsolete and are not "new" anymore, whether never used in those 3 years or not. They are three years old...

Certainly there is some intrinsic value...XX number of dollars per foot, xx number of dollars per pound, electronics, sails overall accessories. Then there is the perceived value that we americans seem to thrive on...I am sure you have seen the ads for "Buy 4 new tires and get a $75 visa card" - why not just discount the tires....and many more. Had a guy on our pier walk on a mid 80's Bob Perry boat, because it did not have a dinghy "at that price" when he thought it should have. The price asked was a bargain even without a dink and the new buyer was ecstatic and headed North with plans to pick up a dink when he could.

I don't think you will be happy with what you buy. Especially looking at it this way.
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post #5 of 22 Old 07-11-2010
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It is very interesting. Prices have not gone down as I expected. What has changed is that boats simply do not sell. They sit on the market for a year or more and several brokerages have gone out of business. The action that I have seen is mostly in the <$50K range.

Never believe a used boat salesperson.

My guess is that the people who could have afforded the $100K plus boats a few years ago can afford to wait longer to see if the market rebounds. They are accustomed to losing money on the boat. However, house foreclosures are now hitting the more expensive homes ($1M plus) and I expect that boats in the $100K range might finally begin to decline.
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post #6 of 22 Old 07-11-2010
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Do you think I will buy anything?
DW
Note if you offer 60% of a boat that is priced reasonably.

Personally, I would be surprised if you could get BUY a REASONABLY priced boat for less than 80% of the price. By reasonable, I mean a boat that is comparably priced to other boats. For example, if you are looking for something like a Catalina 36, and most are priced from 90 - 10K, a reasonable price would be something in that area. A 1995 boat for $130K asking is not reasonable.

Good luck,
Barry

Barry Lenoble
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Mt. Sinai, NY

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post #7 of 22 Old 07-11-2010
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Yup go do it .
I just bought a boat for 50 k that was just under 100k last year .
If you have the backing or cash and dont reall need to have a different boat time is on your side .

Its bussiness find some thing you like and cut it . most that will happen is someone refuses the offer and you either counter it or go on to another .
a fish will get on your hook .
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post #8 of 22 Old 07-12-2010
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Hey, there's no harm in making an offer. the worst that could happen is the seller says no.

Duckwheat, I will correct one of your erroneous assumptions. Brokers (and realtors, for that matter,) do NOT profit from keeping values up. They profit from selling boats. There is no benefit to keeping prices artificially high, if you aren't selling boats at those prices. the more boats you sell, the more money you make. It is just simple math: A 5% commission on a $200,000 boat is $10 K, but ONLY if it SELLS. If it doesn't sell, the broker gets 100% of 0.

Before you blame brokers for the state of the market, remember, it is never a broker who rejects an offer, but an owner.
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post #9 of 22 Old 07-12-2010
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blones writes:

"Before you blame brokers for the state of the market, remember, it is never a broker who rejects an offer, but an owner."

But as in real estate, if the broker does not respond to queries, answer email or the phone, fails to market or fails to let the seller know what he HAS to do to sell....then the seller does not even know there is a buyer out there, let alone an offer to reject.

By failing to show the seller what similar boats have recently sold for (and I am not talking three years ago) and encouraging him to correctly price the boat now for sale, the broker has still done nothing to help the sale along or get an offer...

And that is what a broker does...gets a buyer and a seller to negotiate a price and get them both to a closing. Most brokers do nothing to get them to that settlement. They want to talk and talk, and collect a check. They want someone else to do the work.
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post #10 of 22 Old 07-12-2010
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I taking a sit back and wait approach. Being very close to the Gulf of Mexico, I figure boat prices will drop dramatically by this fall especially if the markets and unemployment doesn't turn around. Betting on those individuals who are not financially hurting, but uncomfortable with their ROI in the stock market. Their toys i.e. sailboats will be first to go.

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