The #1 Most Common, Costly And Preventive Mistake Yacht Buyers Make
Most first time yacht buyers and many yacht buyers in general, are unaware of the fact that yacht sales are tracked in a database or an MLS for yacht brokers and yacht sales companies. Considering the fact that yachts are depreciating assets, the price that a yacht of the same make, length and year you’re considering purchasing will have a sales record attached to it, which SHOULD set your price ceiling in your negotiation. Since most buyers are unaware of this valuable piece of information, they base their entire negotiation and search off of the listed price of yachts on the market.
The reality of why the list prices of yachts is so unreliable and inefficient (often times 10 – 30% above the recent sales record) is normally due to 3 reasons.
- Seller’s Bias – Please when you become a yacht owner, avoid falling into this trap and be as realistic as possible, but often times an owner will feel that the money they’ve spent maintaining their vessel should be viewed as ‘upgrades’ at the time of sale, which leads to them asking an exorbitant amount for their yacht. Often times a yacht broker hungry for a listing will not challenge or set an expectation upfront, but rather agree to secure the listing and hope to eventually drop the yacht’s price or to pull out a miracle.
- Perceived Value – The listing broker will always know this number and they will always use this number as their floor; they will then increase the list price by anywhere from 10 – 30% because they know that if you buy a yacht for 15% under value, you’ve negotiated yourself a great deal when in reality, you’ve paid 15%+ too much.
- Artificial Market Manipulation – When there’s none of a particular yacht on the market, there’s a sense of supply and demand; one yacht available, if you want it you’re going to pay a premium. But what happens, is the second and the third yacht come onto the market, and those listing brokers and sellers say hey, if they’re asking that much for theirs, I want this much for mine. Who does that hurt? You the buyer, because when you buy high and the market stabilizes during the course of your ownership, you’ll end up taking an unwelcomed and unneccessary haircut when you turn around to sell yours.
So, moral of this story…ALWAYS FIND OUT THE RECENT SALE PRICE for any given yacht. The salesman doesn’t want you to know this information though so, please use me as your risk free resource. Click the button below to obtain it now and be sure to check out the YouTube video below for some other relevant information. (Click Yes, Let’s Go)
Anyway I can be of value to you in your search or acquisition, it would be a real priviledge. Happy Yachting My Friend!