Whether you are looking to purchase or sell a yacht, evaluating its financial value is absolutely crucial to a successful transaction. Without this type of evaluation, you risk making a bad deal that could negatively impact your finances moving forward.
But just how do you evaluate your future of existing boat? When looking at yachts for sale, the evaluation can be more general as you decide whether the selling price is worth your investment. When selling your own, of course, that evaluation is more complex and should be done with the help of professional brokers. In either case, here are 6 variables that will help you estimate just how much the yacht is worth.
1) The Size of the Yacht
Obviously, size matters. Larger yachts tend to cost more money, as they tend to have more space available for anyone aboard. It’s important to consider size in terms of both overall length and interior square footage. Both will directly impact how much the boat is worth.
2) The Age of the Yacht
Just as obviously, age also matters. Older yachts tend to be less expensive, as they already have sometimes significant wear on their bodies. The average lifespan of a yacht depends on its state of repairs (more on that below), but a boat near the end of its life will become less valuable to both the seller and buyer.
3) The Location of the Yacht
You might be surprised just how much the location matters when you buy or sell your yacht. Warmer climates tend to result in more expensive ships, while colder climates and less popular ports can depress values. At the same time, yachting also tends to be a supply and demand economy; the more ships are for sale in the area of the yacht you’re looking at, the lower the price and value will be.
4) Current State of Repairs
As much as the age of the ship in question matters, its current state of repairs may be just as important. Naturally, the degree to which an older ship is renovated can play into its value. External repairs also matter; a well-maintained yacht has a significant advantage over one that can barely stay above water.
5) Time on Market
The longer a yacht remains available for sale, the more its value will depress. Again, the reason is a simple demand equation: when demand proves negligible at the current price, that price has to be lowered to continue attracting interest. On average, it takes about a year to sell a yacht. If the ship in question has been on the market for longer, its value might be affected.
6) Additional Features Above Standard
Finally, pay special attention to the features the boat you are considering offers that other, comparable ships do not. These features, of course, can range widely depending on the size of the ship and especially for luxury yachts.
We offer ships with helicopter pads, drydocks, space for jetskis, exterior pools, and much more. On the interior, crew’s quarters, master retreats, dedicated dining spaces, and media rooms are just some of the many possibilities. The more features, the more valuable the yacht will become.
These six steps are a great starting point to evaluate the yacht. Of course, other factors also matter; for instance, the health of the engine is a vital variable in determining its worth. It also makes sense to browse the web and yachting magazines for comparables in order to get a better idea of its value.
Finally, consider working with professional brokers for a more accurate estimate of your yacht’s value. The increased accuracy you get will be well worth this additional step to make sure you get a good deal. Contact us directly, or fill out our yacht evaluation form to get started on that process.
