Is the Boating Industry Shifting?

How to adapt, what to do to sell how to get a good deal as a buyer.

Over the past 60 days there have been many price reductions. Florida is the largest boating market in the US and the sales season is currently in swing where many other states have slowed for winter. Currently (11/21/22) in Florida there are 6,495 active used listings. Of those listings there have been 2,243 listings with price changes in the last 60 days. That means 34.5% of all active listings have had price changes in the last 60 days.

While price change could include some increases or listings being manipulated to pop up in saved searches it is safe to assume most of the changes are reductions. As a buyer, this is a great opportunity to get back in the market. Many buyers were discouraged in the “hot market” driven by COVID with people looking to escape their homes and enjoy the water. The surge in buyer interest created bidding wars, prices climbing and inventory that would normally sit on the market due to not being pristine to sell in under 60 days. 

With the market shifting buyers are getting more and more selective. They are looking for clean boats, priced well with clean surveys. As a seller you can make your listing more attractive by investing in a detail, updating canvas or upholstery. Also, having the boat looked over by mechanics or a surveyor and providing recent service records before getting to the survey process and having aggressive pricing.

Price drives buyers’ interest. However, it is also important to have quality photos in the listing, videos are helpful and options for virtual tours have become increasingly common. If using a broker to sell your boat, ensure they offer these services. Buyers looking at yachts over $100k will often travel to find the right boat. With the surge of poor inventory hitting the market more buyers are requesting virtual tours before booking plane tickets. There is much, much more that can be done to get interest, offers and contracts.

As a buyer it is important to monitor the market. There are some brokers that specialize in buyer representation, while all brokers can act as a buyers agent few do it well. It is important to qualify them, ask for case studies, the percent of deals they do as sole buyer representation, their willingness to do virtual tours and get videos for you and how many boats they sell annually and total volume numbers. 

Contact info@yachtguy.com or call (443) 797-3698 for a free listing review, and additional tips and tricks.

If you or anyone you know, has been affected by a Hurricane, contact us learn more about how to get involved and our relief efforts.

Hurricane Ian Relief Efforts

As more photos and video footage emerges, the world is able to see the devastation and power that was behind Hurricane Ian. Hurricane Ian ravaged Southwest Florida. Devastating many areas along the coast such as Ft. Myers Beach, Ft. Myers downtown and Cape Coral. These areas have some of the highest boat density in all of Florida. The southern part of Ft. Myers beach has been closed until this past week(Mid October), and lines in at the North entrance have had hours of traffic making final loss counts still unknown.

Insurance companies have been increasingly difficult to bind new policies over the past several years. Major companies have closed policies on long term customers. As new boat prices have increased, new boat owners have had extreme difficulty binding policies and coverages.

Traditional valuation methods NADA and BUC Value reports have lagged behind the change and yacht owners can expect low value offers on total losses. Yacht Brokerages have sold boat statistics which show the most to date accurate values in the current market. When considering an insurance payout it is imperative to have up to date accurate information in order to get the maximum payout value to be able to transition into a suitable replacement option.

For example the NADA guide price for a 2005 Sea Ray Sundancer, one of the most common models on the market, is $87,850 low retail and $99,550 average retail price there are currently 22 2005 Sea Ray 340s listed and 21/22 currently listed are listed over the average retail price prices ranging from $99,000-$275,000 and the average price is $129,522. In 2022 there were 25 2005 Sea Ray 340s reportedly sold. Prices ranging from $82,500-$139,300 with the average sale price of $111,582.

As you can see there is a massive gap in the NADA value and true market value of vessels.

Be sure to consult a yacht broker for a sold boat report. Hiring your own independent surveyor can provide additional value as well but will be an extra cost.

As a result of this event, our team at Calm Seas Yachting will be helping those who have been effected by the catastrophic event.

Give us a call at 443-797-3698 or click the link below to be redirected to our hurricane relief page where a member of our team will be able to reach out directly to you.