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| Presentation done the right way! |
Boaters rightly develop an emotional
attachment to their boats. You’ve
invested a ton of time, money, and energy into the purchase and you’ve acquired
many good memories… but once you’ve made the decision to sell, it’s helpful if
you ‘let go’ and start to think of it as someone else’s dream, that will put
you in the right state-of-mind to make unemotional selling decisions.
Once the decision is made, there are
really two goals; sell it as fast as possible, and sell it for as much as
possible. Gracefully would be nice, that
way everyone builds positive relationships and fond memories – that’s what we
strive for (although it’s not always easy)!
Should you use a broker or
dealer? I think that if your boat is
worth more than $50,000 the answer is definitely yes. But if it’s worth less than that, then you
may be okay selling it yourself if you have experience doing so. Regardless, follow the guidelines that follow
as much as possible.
I boil the boat selling process into
two categories – it’s all about Price and
Presentation. Get them both right,
and you will maximize your return in short order! Get either
one wrong, and you will pay the price in time, money, and aggravation. Keep Price and Presentation in mind as these principles
can be applied to selling almost anything:
PRICE,
PRICE, PRICE!
– Why certainly, yours is definitely the
nicest boat on the market! "Sit right back, and you'll hear a tale..."
It sure would be nice to recover
everything invested, but unfortunately most boats are not appreciating assets.
And you know the saying in real
estate about remodel work? You should
only expect to get about 50% back out of a remodeling project. And that some projects, like kitchens, have
more return than other projects? Same is
true with boats, so don’t expect to get more than market value for your boat
with all the money spent, almost all boats have money added and that’s what
creates the market value. Neglect a boat’s
maintenance, however, and you will pay the price with below market resale.
So it’s usually best to price your
boat based on valid market data, and not on emotions. This brings in the use of a Broker, as most
boats priced above $50,000 won’t have accurate pricing information in NADA or
other publically available locations.
Brokers and dealers have access to Sold Boats Data that’s available from
Yachtworld, this is the boat MLS and is very much like the real estate
MLS.
Make sure your broker shows you the
data, they should find comparable sales that justify a realistic ask
price. Analyze the data – what is the
average asking price? What is the
average selling price? What is the
typical spread between sales price and asking price for that model?
That type of data is invaluable in
making sure you set a realistic price, one that’s neither too low nor too high.
Yes, you want room to negotiate, base
that amount on the average ask/sell spread. If you price out of that range, expect to
receive less overall for the sale.
The most common error sellers make
is setting the asking price too high – this is also a broker mistake if they
allow it, the asking price should be an unemotional decision based on valid
market data. Beware – some brokers may tell you a high listing price in order to
get the boat listed with them, knowing that eventually sellers capitulate to
the market reality. This is a surefire way
to create a painful and enduring sales experience.
In the past year I’ve seen a couple
bad examples of this – either another broker started them out way too high, or
the seller insisted on being way above market in hopes of ‘taking a stab at an
above market price.’ This very seldom
works. Instead, the actual buyers who
are watching the market will get turned off to a boat brought onto the market
at too high a price – even once the price is lowered (in frustration) they will
not come back as they deem the seller unreasonable. This is especially true the higher the price
of the boat – get above a half-million dollars in value and the pool of
eligible buyers becomes very few and very sophisticated.
Sometimes I may think from the data
that a price is right, but the market may have changed or there may be
something about the presentation of a particular boat that makes it languish. I recognize this if I don’t become engaged in
a serious sales conversation for more than a month, or if there are no written
offers received within two to three months.
If this is the case, then it’s best to re-evaluate sooner than later –
something isn’t right, price or presentation, and it needs to be corrected.
PRESENTATION!
There are many aspects that go into
a good presentation, let’s hit the most important:
- The boat must be clean! If it’s not, expect buyers to treat it like a project and expect it to sell at a commensurate price! This is the reason Nordic Yachts Northwest has its own fully staffed professional detail department. ALL aspects of the boat need to be evaluated and brought as close to new boat look (and smell) as possible.
o
Start
by removing clutter inside and out.
Remove all personal items and anything you’re not willing to sell with
the boat. Very much like real estate,
you want potential buyers to take ‘ownership.’ They don’t want to own your swim suit hanging
on the shower rail! Personal items say it’s
the seller’s boat – you want them to take possession.
o
Exterior
– Oxidation needs to be removed, the gel coat should be shiny, rails
shiny. Lines and fenders should be new
or like new, same with the power cord.
These items date a boat, whereas starting with fresh items say it looks
like new and has been well taken care of.
o
Interior
– Wood needs to be clean and shine like new.
Carpet and upholstery should be cleaned if in good condition, but
replaced if dated or worn. Windows
should shine inside and out. All drawers
and lockers should be clean and empty.
Bilges should be spotless, dry, and odor free.
o
Mechanical
– All systems should be checked for functionality and repaired if
necessary. It is smart to change all
fluids prior to showing and prior to survey.
- The boat needs to be highly visible!
o
This
means placing it where it can be easily seen by the public and easily sea
trialed. Choose a brokerage house that
believes in letting people sea trial the boat BEFORE they give deposits and
sign contracts! Taking prospective
qualified buyers out on the boat shows that there’s nothing to hide and is the
very best sales environment there is.
Old school brokers who ‘don’t do boat rides,’ deserve the sales they don’t
get. Also make sure your broker or
dealer is active in displaying boats in local boat shows. This is the most successful place for sales
as most potential buyers attend the shows.
They are worth the money and effort – our dealership has tremendous
success at the shows, try to get your boat in the shows!
o
Visible
not only in the physical world, but also in the digital world! Listing on the MLS is most important, but so
is a dealership that is active online with a good website and online
advertising. Online, by the way, is
where it’s at and where it’s going.
Printed magazine ads are still used, but are expensive and progressively
less effective – they typically help a brokerage establish their brand, but are
not as successful in finding buyers as online ads and boat show presence.
o
Visibility
also means relationships and contacts.
Experienced brokers know the market and have spent time at shows and
boating getting to know who and where potential buyers are.
- The more pictures, and the higher the quality of the pictures, the faster and for more money the boat will sell! I take good pictures, yet I still hire a professional photographer for all sales as it’s worth it. I have sold many boats to buyers sight unseen, just based on the pictures! And I know that good quality photos bring more lookers and result in higher sales prices. The setting, the light, everything must be considered, including the possibility of video. Look for a brokerage that uses professionals and who detail and then stage the boat in advance, it makes a huge difference.
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| Actual Broker Picture (Bad) |
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| Professional Photographer Picture (Good!) |
Note that once we got involved with this boat, we removed the clutter, detailed it correctly, then presented it in a photogenic setting. Which boat would you be interested in?
- If possible, pre-survey the boat. A marine and/or a mechanical survey is typically done by the buyer, and is their responsibility to pay for. However, many issues can come up during the survey process and it can take a long time to schedule it initially and then to address any items found. My experience tells me that a pre-survey is worth the expense. It identifies potential problem areas so that they are resolved before the sale is made. This is proactive and can save many headaches, well worth the expense and many buyers will accept the survey thus making for a quick and painless closing. Also, having all systems and potential problems worked out in advance make the boat look well cared for – this is the right way to sell a boat – fresh fluids, up to date maintenance, clean bottom paint, new zincs, and a fresh survey to prove it. A good broker knows the good surveyors and will accompany or check in on them during the survey to answer questions or even fix small items prior to them making it into the survey – another reason working with a full service dealership with maintenance personal is a positive.
There are many, many aspects to
creating a good presentation, I have touched on only a few of the important
ones. Take the time to consciously address
presentation with your sales broker, and make sure it’s a high priority for
them. Look at the other boats they
represent, are they presented well? Are
they CLEAN? Are they displayed
professionally where the public can view them.
Are they professionally photographed?
Do they take them to local boat shows?
Do they inspect items and work proactively to prevent problems that may
come up during a sale?
Best of luck with your sale, I hope
it’s a great experience for you. Keep a
positive but unemotional outlook and you will have fun and be proud knowing
that your former boat is out making healthy dreams come true for another
family!
See you at the shows!
Nate Martin
