Calculate Your Perspective

As many of you that have read my updates know I have recently went thru the sales process on our home and will be realizing a long time dream to be on the eastern shore and cut the commute from 62 miles to 5 miles. We settle on our new home in early June and look forward to being able to get back 3 hours lost in commuting and be able to enjoy the water.  In doing so we always knew we would be putting our boat up for sale and going to a different style of boating as the need for a big express boat to spend weekends on Kent Island will change being so close.

So here I am now amongst the sellers and time to practice what I preach. In doing this every day I am acutely aware that once I get to the right price point the boats time to sell shorten in direct relation to price versus the comps. Like many of you I realize the reality is that some sort of check will need to be written to cross the finish line. I could leave it at a higher price and have a longer path to a sale or take money off the price which I know will increase the chances of a 1-3 month sale substantially. In doing my thinking about this I decided to calculate something that I found extremely interesting and something I’d encourage all of you to do. That exercise is to calculate your true cost of owning your boat for a full year:

Payments=

Insurance=

Slip Payment=

Winterization=

Detailing=

Preventive Maintenance (oil, bottom paint, hauls, zincs etc)=

Fuel & Misc=

When I did this I found that I was surprised the real cost of owning for a year was more than I thought. While everyone’s numbers are relative to your own boat and situation 2 big questions can apply to all:

1)       If you could lower your price by 1 year’s ownership would you break away from the comps and have a chance to sell in 1-3 months?

2)      If you did not lower your price at all and sold it 12-14 months from now for 5-10% less than your asking right now plus adding the cost of the columns above are you better or worse off?

For my situation this was a really interesting calculation as knowing our boating will change and realizing the price I need to sell for is not going to probably improve over time but still wanting to minimize just how much I ratchet down to get a sale made me realize selling sooner than later would probably warrant dropping $10-$15k off the price and leave me ahead of selling 1 year from now after the cost above are factored in.  Every situation and desire to sell is different and one cost factor we can’t put a # on is the pleasure you derive from your boat while you still own it. Yet in many cases we see boats that are on the market for 1, 2 and sometimes 3 years so if this perspective helps some then it was an experience I am glad I shared.

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