This interesting article on the superyacht resale market clearly addresses the important issue of a pre-purchase survey, but needs a bit more clarification when it comes to the valuation. In view of the depressed financial climate that prevails and fluctuates there has been a severe drop in commercial ship & superyacht values. Unqualified valuations, both high & low presents a serious moral hazard. Qualified and professional opinions of value have become paramount not only for sellers, but for buyers, lenders, and insurers.
There's no question that a comprehensive pre-purchase survey should only be conducted by an experienced and fully qualified marine surveyor with technical qualifications warranted by the professional organisations of which he or she holds memberships.
On the other hand the current, fair market or liquidated value of the same superyacht could only be considered a true and valid representation of value if it was prepared by an individual who was qualified and accredited in maritime valuation by a professional appraisal organisation; organisations such as the American Society of Appraisers or The Royal Institution of Chartered Surveyors. A qualified and certified yacht & ship appraiser must warrant and ensure that the valuation appraisal was prepared in accordance with, and met the requirements mandated by the International Valuation Standards (IVS) and the Uniform Standards of Professional Appraisal Practice (USPAP).
"Any individual without the specialised training and credentials in the Valuation Sciences who is providing appraisals and values of yachts and ships is akin to a person who offers brain surgery, but isn't a physician who has had the benefit of medical training."
With best regards, Ed
Capt. E. S. Geary, P.Eng (UK),MRINA
Chartered Surveyor (Admiralty & Maritime) - The Royal Institution of Chartered Surveyors
Registered Marine Surveyor - Federation of European Maritime Associations of Surveyors and Consultants
UK-Maritime & Coastguard Agency Code of Compliance Inspector (SCV)
MCA/US Coast Guard/US Maritime Administration Certified ISPS Code Port/Facility, Company & Vessel Security Officer
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