Archive for December, 2011

We Are Ready For 2012!

December 31, 2011

Our sales team is prepared and extremely excited to kick off the New Year.

Many of our customers have expressed an interest in listing their boat in the New Year. By preparing to go on the market early in January, you will be best positioned to capture the initial buyer interest that the New Year will bring.

We anticipate good times ahead and have a lot of optimism for a strong 2012. All our offices are open Monday, January 2nd, and we will be ready to answer any questions or show any of your boats.

We wish each of our friends, family, and colleague’s success, prosperity, and good health in the New Year. The best is yet to come!



A Slower November Across The Board

December 10, 2011

As Reported From The Trade Journal Soundings:

Brokerage sales for November were lower this year, compared with November 2010 and seasonally, according to U.S. members of reporting in the proprietary database

The number of boats sold declined 7 percent, from 1,936 boats a year earlier to 1,805 in November. The total value of boats sold fell much further, by 49 percent, from $387 million to $199 million.

Those who read news about this market every month will recognize that the valuation of sales in November 2010 was extraordinary and that this November’s results were similar to those of September ($196 million) and October ($259 million). However, sales were down for every size range.

Sales of boats 26 to 45 feet were down 4 to 5 percent, and sales of boats under 26 feet were off 9 percent. Bigger-boat categories declined the most, with boats 46 to 55 feet off 11 percent, at 117 boats, and boats over 55 feet off 16 percent, with 65 boats sold.

All size ranges recorded lower values, especially boats over 55 feet, where the total value of boats sold declined to $59 million from $231 million a year earlier. A significant part of that decrease was the result of a 50 percent drop in superyacht sales (boats over 80 feet); eight boats were sold in that size range, down from 16, for a total value of $21 million, compared with $79 million a year earlier.

Through November, 27,091 boats have been reported sold, a decrease of 3 percent, or 831 boats, from 2010. Despite the lower value of sales in November, valuation for the year was up 5 percent, at $3.11 billion in sales.

A more detailed report summarizing recent U.S. brokerage sales will appear in the January issue ofSoundings Trade Only.

— John Burnham

One Day You Will Be A Seller

December 10, 2011

Time to state the obvious. Almost every buyer for a house, boat, plane or large capital purchase has had and will have the upper hand for some time to come. Deals are incredible and abundant in all asset classes. In our world we push to drive sellers to the lowest prices so buyers can see the opportunity right in front of them increasing our chances of capturing the one or two buyers that may be shopping. Bottom line is 2012 will likely continue to be a better market for buyers then sellers.

That said buyers who are purchasing brokerage boats at times should look at the transaction from the perspective of the seller as one day you will be on the opposite side of the transaction. In a few cases this year we’ve sold the boat to a buyer only to have the boat back in 6 or 9 months as the buyer decided to move on to something else.

After contracting the boat at probably a price 20 to 30% below market and in some cases even more, a survey is done and report is issued. Please as a buyer keep the perspective that you are not buying a brand new boat. The 2006, 2007, or 2008 boat you are buying for $105,000 is selling new for $334,000 at the boat show which is why you decided to stick to pre-owned. The items of essential repair at a survey are typically not ones that a seller will have issue with and a repair or credit for the repairs can most times be worked thru. It’s the demand for latches, zipper fixes, coffee pots, and non-essential items that can lead to a deal going bad.

While I can already hear the buyers words “hey that’s what I want or I’ll go onto another boat” just keep a slight bit of perspective that 1,2 or 3 years down the road you may be on the selling side. It’s not a new boat but a boat you paid a great price for and deserve good karma to go along with it.