Selling Your Boat Privately

Selling boats privately is something we've had to do from time to time, so for what it's worth I've included this sagely advice we gave a mate recently....

Step 1. Advertise (with lots of info and a history). We put out a basic advertisement but backed it up with links to a web site (a free one) filled with lots of photos & technical detail, including manufacturer's specifics & media articles. Clean up your boat before you take those photos too.  Nothing like a messy boat to turn off potential buyers. Be honest about why you are selling and the condition of the boat.

What do you think of my new boat?  Well, perhaps not this year!

Step 2. Prepare a thorough inventory to give out to interested parties - be very clear on what does or doesn't go with the boat when you sell.  Stick to it!

Step 3. Work out what your bottom line is in terms of the price you expect to get.  If you are selling personally, you can expect people to understand that your price will be "cheaper" without the inclusion of an agent's fee.

Step 4. Research local country rules re selling your yacht.  Also find out what rules are applicable in Australia (ie resident country of owner). For example, if ownership changes hands, then it may not be allowable as an Aussie registered vessel until another application is made.  Be quite clear on this because our BVI broker had to do quite a bit of work to clear the previous registration/ownership (& outstanding bills) and Jenny had to fill in and fax forms and pay fees to Australia for our registration.   

Step 5. Agree on a price/ take an acceptable offer from the interested party.  This person then has first deal on the boat.  Remember that they will also make a further & lower offer after the survey so take that into account.

A beer budget will probably not cover all the fancy inclusions you'd hope for...

Step 6.  Decide the limits of where you are prepared to take the boat for inspection/survey etc.  It should feel comfortable to you (the seller) & is perhaps somewhere where you can trust the marina staff/maintenance team.

Step 7. Take a substantial deposit (eg $1000 or more so they won't walk away from it) and agree on how long to lock this in. Certainly no more than a month.  You should still be advertising and showing the boat during this time - just not accepting further offers from other buyers.  This step usually sorts out the really interested from the "wanna-be's".  The survey report is theirs to keep but they may agree to onsell it to other potential buyers.  There will be a time limit on the survey findings.

Step 8.  During that month the buyer should arrange a survey (at their expense); arrange finances and organise a sea trial.  You should be present at the sea trial (just to test engine, rigging, sails etc) and the survey (take lots of notes).  The survey report will be used to bargain down their offer further.  Everyone expects a perfect boat, but you shouldn't accept too low an offer if the issues are minor items eg not enough sails; old electronics.  Concentrate on major issues such as engine, rigging, hull condition etc and decide how low you are prepared to go.  I would suggest that maybe 10% is reasonable for minor stuff.  Some expect up to 30% if the issues are very major.  Again, you should have some idea now that you've been to the survey and worked out what your bottom line is. 

Step 9. Agree on where and when the handover should take place.  Money is best deposited into your account (& cleared) or some other secure means of transaction before the handover.  Make the handover place convenient for yourself.  You don't want to be pre-positioning your boat half the world away.

Step 10.  Exhausted?  You should be after all this work!  Report back to us with your results but in the meantime good luck with it all.....