The first time yacht buyer needs to avoid buying on emotion and take a hard look at what they intend on doing with the boat. Making the wrong choice will be a major disappointment in the long run and perhaps cost you thousands.
To start, are you a sailor or a motor cruiser? Some like the romance of a sailboat with the image of tropical islands in the picture; some don't want the hassle of the sails, rigging etc. But a sailboat is very inexpensive to operate if your plans include traveling to far-away places. Still, power boating is not expensive if you choose the right boat. Powerboats generally come well designed with all of the creature comforts you could every need; generally more so than all but the largest of sailboats. And you don't need to learn all of the sailing techniques either.
Once you have assessed your yachting preference you can then decide on what you intend on doing with it. Are you going to sail, cruise or fish from it? Of course, you could fish from anything if you wish, but yachts made for fishing are much different than those built for cruising. How often will you use your new yacht?
I always say that there are boaters and boat owners. Boaters use their boats; boat owners just like to say they own a yacht as their boats rarely leave the dock. Some boaters may be full-time liveaboards using their boats as their home every day. Others may just use their boats on nice weekends when time permits.
Next is the cost of yacht ownership. You must take this into consideration. The purchase price is almost like a down payment. Boating has its costs that you need to be aware of. If you are mechanically inclined, you will find that the costs are not substantial. Most boat owners do the majority of work themselves. I have posting at my Cruising Center website about the specifics of boating costs that breaks it down into each expense. Feel free to take a look.
So thus far we have determined what type of boater we are, so we know what style of yacht generally appeals to us, we know how much we expect to use it and about what to expect in the upkeep of her. So far so good! Now comes the hard part; how to choose just the right one? I have developed a purchase checklist that I use with my customers to let them specify the critical features of a boat. This allows them to choose features that they can live without and those that are features that are must-haves. That checklist then becomes the basis for the perfect boat search. When I am working with customers, I then look for used yachts that best meet the customer's wants recognizing that boat purchases usually involve some compromise. Rarely do I find a boat with all of the desired features.
In the looking phase, I always say that you'll know it when the right boat comes along; it will ?talk? to you. Any potential boat will have the lines, the feel and the character that appeals to you. Don't settle for anything less than that pleases you.
But what about the cost of that used yacht? How do you know you are getting a fair deal? Borrowing from another posting at the Cruising Center about the True Value of Boats, good boats always command higher prices, always! A newer boat in poor condition will bring less than an older boat in good condition always! Never buy a yacht based upon the price alone or you'll be selling it within 6 months.
And should you complete a survey, yes it's always recommended. Choose a knowledgeable surveyor that has experience with your desired boat. Ask him for references too. If you are working with a reputable Yacht Broker, he will recommend several top-shelf surveyors but will insist you choose the one you want.
And lastly, locate a Buyer's Broker to represent you in your search, selection and purchase. It will save you lots of time, money and a lot of disappointment.
The author, Mike Dickens is a veteran liveaboard boat owner, Yacht Broker and owner/operator of Paradise Yachts.
However, this does leave first time buyers in a strong position, especially since first time buyer grants and aid packages from various institutions are largely unaffected.
There is an old proverb that says 'every cloud has a silver lining'. This can be applied to the market as it is right now. There are many houses out there for sale, if you are a first time buyer you may be able to find 'the silver lining' and pick up a bargain.
To get a bargain, you have to follow certain rules of realty investment. There is point number one: you must think of it as an investment and not think of it as buying your own home, even though this is the case.
However forget the dream house with the white picket fence and two point five children fantasy. You must set aside that type of thinking and just be prepared to get your foot on the bottom rung of the property ladder; especially now because it is what is called a buyer's market.
In a buyer's market, the buyer has the power, but this does not apply if the seller has the home on the market to 'test the waters'. You need to look for the type of seller that is definitely going to sell their home, whatever happens.
So there is point number two, you are not looking for a property; you are looking for a seller. In fact, a particular type of seller. Your realtor must know that this is the reason for your house buying: you want to buy from a seller that has to sell. There will be a reason why certain sellers will need to sell at this time and not wait.
Perhaps it is an estate sale that is holding up probate, or it may be that the seller has already bought another home and is on a bridging loan or perhaps there was a job transfer and they have to move before the year end. Who knows?
The bottom line here is that you only want to deal with sellers that are serious about selling. It is a shrewd move to take advantage of this realty climate, and the sellers will be relieved that they have a buyer interested in their house.
The tough part will be negotiating their desired price to your desired price. The property market has dropped by at least 3% nationwide this year, so bear that in mind. Your realtor will be the expert when it comes to price negotiations.
If you get your financing in place and come in with an offer that starts at 10% below their asking price, it will open the door for negotiating.
Stick with your plan and don't be tempted to go over your budget. You do not want to join the thousands who are foreclosing. When you negotiate, the price haggle can go back and forth many times. If the seller turns you down flat, they may re-think a few days later. Don't be afraid to say 'no' and look again, no is a powerful price message.
You have the advantage here, because as you chose the home from an investment angle, you are not emotionally involved with it. You can walk away if the price is not right. And you will probably have to do just that at least once.
While you are looking, keep an open mind if the original seller decides to re-negotiate. Let's face it - you may not be offering the price that they are asking, but how many buyers are offering this month?
It will be tough for you to stand your ground on the price haggling, but you have the weight on your end of the scales, so don't weaken!
Both Marinetrader & Re Writer are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.