How do you buy a yacht?
Do you want to purchase a yacht? Here is how to do it
Purchasing a yacht is different from purchasing the 9 to 30’ boats on the market. Smaller boats tend only to require the cash to purchase the vessel and a trailer in which to get the boat where you want it to dock. And while this is somewhat like the basics of any marine purchase, the purchase of a yacht can become a bit more complicated. To help demystify the process and what you will need to do to get your ideal dream yacht, please read on.
Determine the correct yacht for you
Yachts can be classified as vessels which exceed the 40’ LOA. The term is a bit subjective, however, as there are boats which are less than such classified as yachts. Furthermore, there are yachts which exceed the 200’ and even the 400’ LOA. Because of this, you cannot just say “I want a yacht” and expect a broker or a dealership to be able to couple you with the perfect vessel.
To determine what type of yacht you should purchase, ask yourself the following questions:
- Will it be a Motor or Sailing Yacht?
- Do you need high speed?
- Where will the boat be used?
- Will you need separate staterooms for guests?
- Do you want a crew (this is where the LOA comes into play the most)?
The answers to these questions will help you to determine critical parts of the yacht purchasing process, such as the size of the motor, the levels needed, the layout, the overall length, and the intended purpose. With these answers in mind you now know what to look for.
Search various brands
One of the biggest mistakes that a potential yacht buyer can make is to determine the yacht they want solely upon the brand. Yacht manufacturers evolve their technology and their designs constantly and so the features that you want may be better equipped on a competitors brand, rather than on the brand you associate with the features. Shop around, compare manufacturers, and ask questions.
When you have the Yachts narrowed down to a few selections, check online reviews to find out from actual boat owners the pros and cons of the yacht. Additionally, you may wish to attend a boat show (Floridians will find that there are several Yachts at several shows throughout the year from Ft. Lauderdale to Tampa). Take your time, do your research, and you are sure to get the best boat for your yachting needs.
Vessel Vendor has several yachts for sale. Additionally, you can find all of the information you need about the brand, the manufacturer, where to sail your yacht, and yacht specifications on our site.
Making an offer and negotiating price
Yacht purchasing is best conducted using a broker. However, if you have found the ideal yacht for sale and wish to make an offer, remember to do so strategically. It is a good practice to know the bluebook value of the yacht that you wish to purchase as well as the price of similar competitor’s yachts. You may also wish to price sale listings from the dealership (past and present) to present competitive price options for the yacht you seek.
When you make an offer, you will need to sign a sales agreement. The sales agreement will set the time frame for sea trials, surveys, and other documentation. It will also lay out the closing costs and the delivery of the vessel. Typically, when you make such an agreement 10% or more of the overall price will be required in escrow.
Please note that it is highly recommended that you use an attorney or a reputable brokerage to handle legal matters pertaining to Yacht sales.
The final steps
After the offer has been accepted, you will have a period to conduct all the surveys and sea trials needed to ensure that the boat runs as the seller has presented. If during this time there are any inconsistencies, you or your broker will need to bring it to the attention of the seller. The seller will then have an allotted time to fix such things before delivery. This is all done before closing.
Closing and delivery
Closing and delivery are generally done at the same time, or within proximity. At closing all costs will be delivered to the seller and the title and all needed documentation for legal transference of the vessel will be given to the buyer. If financing the yacht through a bank or lender, the company may hold the title of the boat until the loan has been paid in full.
Should you wish to find out more about buying a yacht for sale, if you wish to purchase or list a yacht for sale with Vessel Vendor, or if you need additional information about Vessel Vendor, please fill out the appropriate online form.