 Whiteaker Yacht Sales answers
faqs about buying or selling a boat.
Whiteaker Yacht Sales has provided answers to some of the more frequently asked questions that are encountered when you are buying or selling a boat.
Should I document my yacht?
Documentation is a federal form of registering with the U.S. Coast Guard. If you are financing your yacht, most lending institutions prefer that it be documented. The history of a documented vessel is maintained by the Coast Guard and will reflect all recorded ownership transfers, mortgage recordings, claims of lien, and releases. If you plan to travel in foreign waters, we highly recommend that you document your vessel. Be aware that federal documentation does not replace state registration. A state cannot require you to carry state numbers as a documented vessel already has federal numbers. You should check with the laws of your state regarding registration. The documentation service that we most often recommend is Gloria Rector Documentation. For a complete list of documentation services go to www.americanvessel.com.
Should I finance my yacht purchase? Sometimes it makes good financial sense to finance your yacht if you can get a favorable interest rate. Depending on the size of your yacht, you may be able to deduct the interest on your tax return by claiming the yacht as a second home. Keep in mind there may also be advantages to purchasing your yacht in a Limited Liability Corporation or in a Trust. Check with your accountant. When choosing a finance company, do your research and choose a reputable company that specializes in boat financing like Essex Credit, www.essexcredit.com/boat.shtml.
How do I find a reliable delivery captain?
As much as you might like to deliver your new yacht to its home port sometimes you just may not have the time or experience to make the voyage yourself. That's when you need a reliable boat captain. Finding a good captain is best accomplished by recommendations from trusted contacts in the industry. Check with the broker who helped you with your yacht purchase, the dockmaster at your marina, or a local boatyard. Be sure to thoroughly check the captain's credentials. Ask to see his license and for a list of his experience and references. Here are some captains in the Tampa Bay area that we have come to rely on: Blair Cook – 941-812-0021 or 941-359-2770, Tom Crow – 941-575-6033, Ron Collis – 941-962-5036, or Danny Blankenship 941-720-7054.
How do I shop for affordable dockage?
This is becoming an increasingly important question when purchasing a yacht. Don't just accept the published rates at your local marina, negotiate. You may be able to get a better rate at certain times of year or if they currently have a large number of empty slips. Think outside the box...some people think of their yacht as a second home or a vacation home. Consider docking your yacht at a more affordable marina that is not near your home and use it as your get-a-way. Move it around at these more affordable marinas and give yourself a chance to explore different waters and different communities of boaters. Many homeowners have docks that they aren't using and will often rent them out at a much lower rate than marinas charge. Put an ad in the local paper or local sailing magazines seeking these private slips. In our area we recommend Twin Dolphin Marina, www.twindolphinmarina.com. For a comprehensive marina search go to www.marinapal.com.
When should a boat be surveyed and how do I find a good surveyor?
It's easy to put the words "marine surveyor" behind your name and start a boat surveying business. Ask a prospective surveyor to provide you with a professional profile that will be accepted by your financial institution or insurance company. Ask what reports will be a part of the survey report and what standards they use in their survey. Ask for an estimate of the cost and how long the onboard inspection will take. A good survey will usually take most of the day. If you want an engine survey, you will need to request that separately and be prepared to pay an additional charge. It goes without saying that you should survey any vessel you are considering buying. However, you should also consider a survey if you are selling your yacht. This will help you to determine any major issues and address them before you put the yacht on the market, thereby avoiding the possibility of a sale falling through later. You can also promote the fact that you have a recent survey in your listing. Ask about Whiteaker Yacht Sales Pre Sale Survey Program when listing your yacht. In our area we recommend, Ken Hitchins at Snead Island Marine Surveyors – 941-729-8116. For a comprehensive list of marine surveyors go to www.marinesurvey.org.
How do I choose a good marine insurance company?
Choose a company that specializes in marine insurance like Mariner's General, www.marinersinsurance.com or Moore and Moore Insurance in Palmetto, FL. Since this can be a major part of your decision when buying a yacht, take your time and shop around. It has been our experience over the years that there can be a considerable difference between companies in premium cost. However, remember it's not only about affordability but about service once you have a claim. Since you may plan to travel in foreign waters, you will want a company that has experience dealing with claims and underwriting anywhere in the world. If you choose a company that specializes in marine insurance, you are also more likely to speak with an agent who is boat savvy and will be better able to understand your unique needs. Finally, do your insurance research early in the boat buying process so that it will not hold up the closing process. Be aware that many insurance companies will not bind coverage if there is an active named hurricane anywhere in the world.
When listing my boat, how do I determine the asking price?
An experienced broker should be able to do a market evaluation of your boat and help you to determine the price range of similar models currently on the market. He should also be able to provide you with research showing the price that similar models have sold for in the past couple of years. The obvious things should be taken into consideration such as age, condition, cleanliness, and location. The age and condition of added equipment should also be a big factor. However, don’t fall into the trap of thinking that your boat is special so it should sell for more. By far the most important factor to a buyer is the price. If you are comfortable with taking your time then price your boat at what you think she is worth and wait for a buyer willing to pay that price, however, if you are looking for a quick sell you must price her below the average price of other similar models. But remember, the bottom line is "The Current Market" sets the price of your boat.
How can I help my boat sell faster?
Just like a house, curb appeal is very important. There are three things we would recommend you do to help your boat sell…clean, clean, and clean. Polish her, buff her, refinish the teak, and in general do whatever needs to be done to make her shine. Whiteaker Yacht Sales offers a Pre-Sale Survey program to qualified boats. Go ahead and do a survey so you can determine the things that need attention on your boat and fix them in advance. A prospective buyer will be impressed with your care for the boat and may be more likely to offer your asking price. |