It is without a doubt that we all like money, this means that most of us frown at the thought of having a broker take away 10% of their earnings for services rendered. That’s why most people prefer to sell their property themselves; I know it sounds awesome to sell something at full price without having to worry about how the booty will be shared.
But the truth is if you tone down your excitement you will notice that there are drawbacks associated with selling a yacht yourself, for one, you will have to do all the work alone. Note that, to get your boat in top condition you will have to do lots of work some of which will cost you money and lots of time.
One particular job that will keep you busy the longest is keeping the boat in top-notch condition at all times this means that you will have to clean the yacht each time a potential buyer shows interest and decides to come to see the vessel, keep the engine in check, do all the legal work, and negotiate with buyers. This was critical in the sale of a charter boat that was used for a local BC sturgeon charter company.
We recently helped a local whale watching outfit purchase a new open bow boat for their tours. This was done at a fraction of the normal cost. Negotiations will determine how much you make from the deal; this means that if you are not good at it, you will end up selling your yacht at a loss.
Benefits of hiring a broker when selling
Selling is all about exposure, this means that in order to sell a yacht you will have to expose it to as many buyers as you can. What a broker can do for you is, expose your yacht to a wider audience.
Understand that exposure is good only if targeted at the right people; if you target the wrong audience selling the yacht won’t be easy. Simply put you need someone who knows exactly what he or she is doing. See our blog for more tips.
As experienced brokers, we employ an aggressive marketing campaign which is targeted at people who buy yachts if you decide to sell on your own finding this market can be difficult because you don’t have the connections or the network to make it possible.
Brokers also help you find flaws on the vessel that might make potential buyers look away; they will also help you through the legal aspects of sales and negotiations.
Why hire a broker when buying
Buying a yacht cannot be compared to buying bread; this is because it will cost you a lot of money. If you make the wrong decision you will buy something that has no value for money. A broker will help you to choose the right boat, help you negotiate the right price, and help you secure financing for the yacht.
If you don’t know much about how yachts work, it will be very easy for someone to sell you a vessel that is in bad condition at premium rates. Simply put, it’s easy to lose your investment on something that is not worth it, brokers know exactly how yachts work this means that your broker will advise you on when to buy and when to move on.
As humans I think it’s safe to assume that we all have a weakness for pretty things, the problem or the good thing about pretty things is they have a tendency to be expensive. This is good for the seller and bad for the buyer, if you decide to sell a yacht on your own there are a number of things that you should know, one of them is the yacht must be pretty.
The most important thing here is to know how to attract buyers, if you don’t master this skill you will have a very difficult time selling your yacht. The first step to making your yacht attractive to buyers is to clean the vessel.
Clean the yacht
Ask yourself this, would you want to buy a yacht that smells like sheep or worse? I know I wouldn’t. Therefore the first thing to do is to clean the yacht, the simple act of cleaning your yacht can shed a few years off it.
Meaning that it will look attractive to buyers, on the other hand if you don’t clean the yacht it will look dirty, smell bad and even if you somehow manage to sell the yacht you won’t get value for money.
As a consequence of this clean the cabinets, bilge, sole lockers etc. But be very careful here if you use the wrong products the results may be premature cracking, yellowing, scratches and cloudiness. My recommendation is to use bleach for toilets and sinks, lemon oil to clean wooden surfaces or simple green as a general cleaner.
To protect your yacht from the sun you should wax it, generally the idea is to make sure that the yacht looks clean and smells fresh.
Learn how to market your yacht
Placing a For Sale sign on your yacht is not enough here; if you decide to sell the yacht on your own you should place it in a location where it gets maximum exposure. One good recommendation is on the side of a highway.
But a better option is to go online, now it’s not necessary that you build your own website here, all you have to do is to use the power of social media, use pictures to entice buyers and know exactly where to place your ads. If you have a large enough vessel then consider using a local caterer like Just Right and throw a boat party kind of like real estate agents do.
Direct mail is another tool used by most brokers, if you are selling the yacht on your own getting this right maybe tricky. Therefore it’s best to leave it to professionals, alternatively if the yacht is an expensive one you can place it on industry publications such as boat trader, boat international, cruising world and yachting if you can afford it.
Doing this will get you global exposure, what makes this option better than social media is these magazines are targeted to people who actually buy yachts or boats.
You can also place your ads in newspapers.
Generally the idea is to get as much exposure as you can, all this may sound easy on the surface but it’s not especially if it’s your first time selling a yacht. Question is, why bother yourself with all this when you can just call us and we will do all that for you?
You have a yacht and you want to sell it today, ten months down the line the yacht is still sitting there mocking your marketing skills. Then you ask yourself, what could be the problem? Is it witchcraft or maybe its bad luck caused by someone putting hexes on you? Now before you call the priest and the exorcist, have you considered that maybe you are not selling the yacht right.
Some reasons that maybe keeping your yacht from selling are:
You hired the wrong broker
The wrong broker simply refers to someone who lacks experience when it comes to selling yachts, this can be anyone. It maybe your friend, relative or even a ‘professional’, the thing is, if you listen to bad advise you will make the wrong decision. This makes it of utmost importance to ensure that the broker you hire is an experienced professional who knows what he or she is doing.
The easiest way to determine whether or not someone knows how to sell a yacht is to look at their reputation i.e. find out what other buyers and sellers are saying about the broker.
Simply put, you are looking for a person who knows how to market, price and negotiate a yacht sale. He or she must also be conversant with the legal aspects of buying and selling a yacht.
Your marketing is bad
Selling a yacht is dependent on how you market the vessel, if you or your broker is bad at marketing selling the boat will be difficult. The trick is to know who to target and how to do it, a good place to place an ad is on a national yachting publication, social media or on a company website.
Good marketing is expensive; this means that if you decide to sell on your own you will have to use lots of money. On the other hand if you hire a broker, the broker will use the company’s resources to reach customers for you.
The yacht is overpriced
There is one very important thing that you should know about pricing a yacht, the prices here are set by buyers and market conditions. This means that timing and setting the price right is very important, therefore before you sell or buy, check the current market rates. This will give you an idea of how much to sell for.
A good way to make the boat a little more competitive is to slightly lower the price; this will make the buyer think that they are getting a better price. For example, most people will go for a pen that costs $ 2.99 than one that costs $ 3. Remember it’s a competition and most of your competitors are shiny new boats sitting in showrooms.
The yacht is not in good shape
A simple thing like the engine failing to start up can cost you a sale; this makes it very important to ensure that the yacht is always in showroom condition. Therefore get the engine checked, clean the boat and make it presentable.
Where you place your boat is also very important, make sure that the boat is placed in a location that has maximum exposure to potential buyers. If you keep it hidden no one will know that you are selling.… Read the rest...