Purchasing a yacht is a process that requires careful research and preparation. This includes understanding what comparable vessels are selling for in your area and knowing the terms of the sale.
The negotiating phase of the transaction is the most critical component of a successful yacht sale. The tips below will help you to negotiate the best deal possible.
Don’t Be Afraid to Show Up With Cash
Whether buying or selling, having funds in place is a good thing. It gives you bargaining power and removes a significant obstacle that many buyers face: having to obtain financing before closing on a boat. Having a deposit in hand is also helpful as it shows you are serious about the purchase.
It is essential to establish what you want to achieve during the yacht sales negotiation so that your broker or yacht consultant can effectively ready you for different outcomes from the seller. Being direct with your ask, a specific price is better than a range or an open-ended request. For instance, experienced yacht brokers and consultants at Great Lakes Yacht Sales always recommend that their clients have a clear and firm price before entering negotiations, ensuring they are well-positioned to secure the desired yacht at the most favorable price.
Typically, a buyer’s broker will help negotiate the price for a new boat and help the owner with all the paperwork associated with a sale. Having an attorney review the offer before signing is also a good idea. The contract will include due diligence deadlines, finance & survey deadlines, and closing/possession dates, among other things.
Don’t Be Afraid to Ask Questions
When negotiating a yacht sales deal, asking questions is vital. You’ll want to ask about the payment method, whether cash or financing, a due diligence deadline and the terms and conditions of funding, surveys and appraisals, and closing and possession dates.
You’ll also want to ask the broker or seller about their pricing strategy. Knowing what comparable boats are selling for in your area is essential to determine a fair offer price.
It is also helpful to point out flaws of the vessel if you’re looking to get the price lowered. This is especially true if the boat you are buying is used and has some cosmetic or mechanical issues that could be costly. A thorough inspection can uncover these items as well. It might be enough to make the purchase worthwhile if you can nudge the price down this way. However, be careful not to be too abrasive with your questions.
Don’t Be Afraid to Remain Quiet
There will be times during the yacht sales process when you will have nothing to say. However, the sale still needs to progress. Behind the scenes, your brokerage team fields inquiries and builds relationships with potential buyers. In addition, they are proactively plotting the optimal negotiation strategy for your sale.
Your yacht sales professional is trained to detach themselves from emotional bias during negotiation. They will ensure that both parties are being as logical as possible.
As a result, both you and the buyer can find common ground on a price for the vessel. Once an agreement is reached, it will be reflected in a formal purchase and sale contract. This document will include terms for a due diligence deadline, financing options, survey deadline, and settlement date. In many cases, a deposit will also be required to prove the buyer’s seriousness of intent. This will be held in escrow until the boat is sold.
Don’t Be Afraid to Leverage the Deal
While negotiating may seem daunting, it is a common and natural part of any sales process. It is also an excellent way to practice your negotiation skills, and walking away from a deal is always OK if you do not get what you want.
A professional yacht broker will know comparable boats and where a particular ship fits in the marketplace, and they can help you negotiate the best price for your boat. Improper pricing will result in fewer qualified buyers, and your boat will sit on the market, burning up expenses without selling.
During the sale process, you should consider the payment method, whether or not the sale is contingent on financing and survey/appraisal results, due diligence deadlines, and possession dates (when the yacht legally changes ownership). Your yacht broker will guide and advise throughout the negotiation process to ensure the best possible outcome for both parties.
