Is it worth dumping money into a vessel you are selling? Or should you just save yourself the hassle and sell as is? Are the additional works going to lead to a greater profit? These questions often run through the heads of boat owners looking to sell their vessel. We dig deeper into these questions to help you make the right call.
One thing that’s for sure is that making upgrades to your boat will benefit you, period. There are three main ways in which you may reap these benefits:
SALE PRICE: people are always going to be willing to pay more for a vessel that’s in good condition and ready to go. This is, however, where you need to consider how much work you want to do to your boat. If the hull is weathered and looking sad, a detail or repaint can make a huge difference. If the engine isn’t running well then getting this repaired will make the boat much more appealing. Going overboard will likely not benefit you in terms of repair cost versus increased sale price. The boat should be running and appear well maintained for its age to boost sale numbers however a 20-yearold boat does not need to look like a 2-year-old boat, at the end of the day the age on paper is going to matter more to most potential buyers and that will still be what guides them in determining the price they want to pay.
SALE SPEED: If your boat looks neat and is ready to commence the next months/years of cruising that day, you’re much more likely to sell it fast (assuming it has been listed at a fair price). Most potential buyers aren’t looking for a project, they want something that they can use straight away. Therefore, if you’re wanting to sell your boat quickly but at a good price, undertake the necessary repairs to have it sound for cruising.
PERSONAL USE: If you aren’t looking to sell for a little bit, getting the repairs done now can provide you with some additional enjoyment of the boat before you do decide to let her go. You might as well reap some of the benefits of your investment before the new owner takes over. The money spent will then also assist in securing a faster sale at a higher price.
Despite the points raised above, you don’t need to improve your boat to secure a sale! If the imperfections are all cosmetic then there’s even less of a need to repair the boat to get a buyer. In general, if you are not in a rush to sell your boat and are ok with potential buyers trying to bargain on the price due to defects they may find, then sell as is.
This saves you the money and hassle of organizing contractors and getting things operating as you’d like. There is always someone in the boating community looking to snap up something below market value and put the required work in themselves. To ensure that the bargaining down for flaws is limited, it’s best to be upfront about any defects with potential buyers. This transparency will gain the trust of the buyer and also make it apparent that you have considered the defects when setting an asking price.
One potential issue that can arise from conducting repairs before selling is that you may put X amount of money into your boat and it makes no significant difference to the price you can secure. This is where it becomes important to consider the repair value.
Some things to consider are:
OVERALL CONDITION: A small flaw probably won’t impact the boat’s value much whereas bigger ones will and will likely be worth fixing or they will become a big focal point or better yet deterrent for prospective buyers. On the other hand, if the boat is an absolute mess then even repairing just a portion will be expensive and will still leave much of the boat in abysmal condition. Here it can be best to sell the boat ‘as is, where is’. One thing that is, however, always beneficial for a sale is to ensure that engines are running so that a prospective buyer can move the boat. It is a big deterrent to possible buyers if they must undertake repairs just to allow for the boat to be moved to their home.
THE NECESSITY TO SELL: If you need to sell quickly, you may consider selling ‘as is’ at a lower cost. On the other hand, if you have a few months to spare, there is a lot of work you can undertake yourself which will allow you to reach a higher sale price and also save on funds that would usually end up in the pockets of contractors. You can then also shop around for quotes for the repairs you need a professional to undertake.
PERSONAL VALUE: Will you personally benefit from the repairs? Maybe you want to spend a final week or two on the boat cruising up the coast before selling? Here you will get personal value out of the repairs you conduct, even if in the end you just break even on repair costs versus increased sale price. However be warned, it may lead to you not wanting to sell in the end!
MARKET VALUE: Scan the web for similar boats as yours and identify their flaws and the asking price and then compare it with your vessel and the sale price you’re chasing. How does it compare and are you being realistic? Use these comparisons to help you identify if you should put some extra funds into getting your boat up to scratch.
Overall, our opinion here at Pantaenius is that fixing any major items on the boat and giving it a good wash and polish is going to benefit you as a seller. That being said, we can see both sides of the argument. We’ll leave this info with you and let you decide your best course of action.
www.pantaenius.com
Published in print April-June 2024
