The Buyer Journey: Buying a second-hand yacht
The brokerage market is rife with nuance and, therefore, due diligence and expert advice are essential…
The second-hand superyacht market can be a minefield without the tools, knowledge and professional support to navigate it. Buying on the brokerage market can yield a host of benefits when compared to commissioning a new build project, chief amongst these benefits is the opportunity to be more cost-effective and the instant availability of the vessel. However, without the right considerations and advice, it can also be an option that is fraught with pitfalls.
“Before researching the market, you first need to define your criteria. What does your yacht need in terms of space, features, guest service and technical capabilities? What style of yacht do you like? Where are you hoping to keep your yacht? Do you plan to use it privately only or also charter it out? What are the budget parameters both for the purchase and annual operation of the yacht? How long do you envisage keeping this yacht? These criteria are more easily defined from personal experience, so if you haven’t spent much time on a yacht it can be useful to charter a few first,” explains Jim Evans, managing director of SuperyachtsMonaco.
Like all other superyacht sectors, and perhaps more than most, the brokerage market is stacked with nuance. For one, the market is reactive and sensitive to external pressures, shifting the advantage from buyer to seller depending on a host of geopolitical and economic factors. Additionally, the market adheres to strict confidentiality, which can make navigating a purchase extremely difficult without the right advice.
“Ensuring you get the best deal, in terms of value for money, means ensuring you are not paying more than market value and that when you resell the yacht the delta between your purchase price and selling price is correct,” continues Evans. “A broker can advise you on the current and projected market value of your yacht, taking into account the status of the shipyard, age, usage and style of the yacht. A broker also has a handle on recent selling prices and industry-insider information on yachts and yards.”
Purchasing a superyacht can be the best of decisions or the worst of decisions depending on the level of due diligence applied and the quality of the expert advice sought. While the brokerage community has at times been questioned on its value proposition and commission levels, any happy owner or respected market commentator will tell you that a good broker is worth more than their weight in gold. It is often overlooked that a fulfilled and joyous superyacht experience starts at the pre-purchase stage.
The recently-published The Superyacht Buyer Report provides a comprehensive reference tool for any client and their advisory team throughout the buyer’s journey. The report features 16 sequential chapters that outline this journey, with respected experts from every sector advising on best practice at each stage of the ownership process. The chapter ‘Buying a second-hand yacht’ provides a detailed explanation of the nuances of the brokerage sector.
To read a complimentary version of the ‘Buying a second-hand yacht’ chapter in full, please click here
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