OnBoard Magazine - Issue XII - 2020 Season

W hether you are preparing to sell your boat, or you are just curious how boat values are calculated, this guide will help you learn some of the major factors. Bluewater receives hundreds of valuation requests each year, and our salespeople must consider many different factors before arriving at a final, accurate number. Not only does our sales team boast experienced mariners and brokers, but many of our salespeople have participated in countless yacht surveys, which has honed their instincts on what to look for. While there are thousands of specifications to consider, the following are the top five components generally used to determine a boat’s value: AGE AND MODEL YEAR Fill out any Boat Evaluation Form, and you will likely see age or model year listed near the top. This is because age is one of the most common attributes used to calculate value. Generally, newer boats will be worth more than older boats, with the assumption that older boats will require more maintenance and that they will have dated technology. It can also be more difficult to market an older boat because age can scare potential buyers, and it can be harder to secure financing. Of course, age is not always important though, since older boats can be restored, repowered, or upgraded to make them even better than their newer counterparts. There are also situations where the model year can significantly raise or lower the value of a vessel, even if the boat is relatively new. For example, a certain manufacturer may have had warranty issues for a specific model year, or maybe their boats were installed with engines known to have issues. If this were the case, the value of the boat in question could swing quite drastically. An experienced broker should be able to give you more insight into which model years are more or less popular. CONDITION Even more important than age, condition is oftentimes the largest determinant of a vessel’s value. A boat that has been meticulously maintained and is in pristine condition will almost always be worth more than a newer model in worse shape. We all know that boats can deteriorate quickly if not taken care of, so as an owner, you will be rewarded by the market if you invest the time and money to keep it up. It is not unusual to see listings advertising boats as “lift-kept”, “captain maintained”, or “stored in covered slip” – this is because buyers want to know that they are buying a boat in the best condition possible. However, you should be careful to not misrepresent the condition of your boat for sale, as it will be immediately noticeable to anyone taking a closer look. MAKE AND MODEL Despite age, there are certain boat makes and models that hold their values better than others. Each boat builder has its own reputation, and this goes a long way when it comes time to sell your boat. Bluewater aims to represent only the highest quality boat lines, and this is because we have seen these boats have fewer quality issues, and maintain their values much better over the long run. While the majority of vessels are depreciating assets, the rate at which they change in value can vary greatly. The rate at which a boat’s value changes is partly determined by the brand. In general terms, the higher the quality of the brand’s reputation and the lower the production TOP FIVE FACTORS FOR DETERMINING YOUR BOAT’S VALUE KNOWING WHAT YOU’VE GOT by Blake Tice 46 BLUEWATER