Advice on Process for Selling My Boat. . .

[tpenfield]

I am considering selling my boat at some point and have been weighing various options and approaches in my mind over the past few weeks. I noted that there are not too may threads on selling advice, mostly buying advice, on this forum.

So, I thought that I would seek some advice as my situation might be unique in some regards.

I had considered using a broker, but the normal fee (commission) is 10% or $1,500 minimum. My boat will probably qualify for the $1,500 minimum, so it is a cost to consider. A broker would be worth it on a larger, newer boat, but I don't think it is going to be worth it on my older, somewhat smaller boat (20 years old, 24 feet) Thoughts on using a broker versus selling privately?

I am currently using my boat, so it is on a mooring. If I were to list it and have showings, it would have to be in the water at least until the end of the boating season (October). I was wondering about just showing it at the dock versus going for a ride? I am thinking the cost of gas might add up, but it could be fairly minor if there are not too many folks looking at the boat? Once there was an offer, I would do a full sea trial and pull the boat out on the trailer for a survey, as needed. Thoughts on offering/going for a quick ride during the showing?

I was also thinking of using a marine escrow company to manage the transfer of funds and title documents. I just worry about fraudulent checks etc. and the complexities that can arise from that sort of situation. Thoughts/advice on using an escrow agent for the transaction?

TIA for any advice on these topics or the selling process in general.

FWIW - I sold my sailboat privately about 8 years ago and it went smoothly, but the money involved was a lot less.

 

[tpenfield]

Re: Advice on Process for Selling My Boat. . .

bumping this up to hopefully get some comments, etc.

 

[NHGuy]

Re: Advice on Process for Selling My Boat. . .

Well, I haven't sold a good boat so I could be way off. But I have an observation for you. My brother started looking for a boat this past week. There are very few candidates that meet his needs right now. I believe it is that way because it's "high season" for boat use.
It seems to me that this time of year may bring you a very good opportunity to sell your boat and do it quickly.
I would want a ride in any boat that I'd consider. If I were you I would state right out front that you alone will be at the controls. You should get a feel for how serious any buyer candidate is. I don't know how you qualify them financially, that's a concern. I'd ask during the initial viewing if they are still interested and how they would pay for the boat. Those requiring financing could be a concern since banks can be less than quick on a boat that's 20 years old.
If you agree on a price with a financing buyer you should also agree to a purchase completion date to protect yourself. I'd think a cash buyer would probably be able to move quicker and be allowed a little more price consideration.
Ask you banker what type funding is acceptable. Compare escrow costs to what your banker says too.
If your boat is really in great shape you may find it smart to have it surveyed yourself just to be sure you are being realistic. I bet you can't get back what you have in there, but for me part of the fun is the fixing.
As I said, I'm no expert-hope my thoughts are a help.
I think you can get fair money, Ask for all of it, and accept what's fair. Being July is a good thing.
The hard part will be if you want another boat they will be full price at this time of year.

 

[lncoop]

Re: Advice on Process for Selling My Boat. . .

When I've sold boats in the past it's typically taken a couple of months from offering to transaction, so I'd suggest going ahead and listing it now (whatever that means to you; CL, Boattrader, etc.), that way you're showing it while people still feel they have time to take it out and enjoy it. Your idea to leave it in the water is a good one for all the reasons you've mentioned. Anyone who's serious about the boat will 1)ask for a sea trial, so there's no need to offer that up front (doing so will only bring out the obnoxious tire kickers who will merely waste your time and gas) and 2) have the funds or at least have ready access to them, so I'd insist on cash if I were you. Any other form of payment is potentially subject to fraud. Bank checks and wire transfers can be and often are safe, but good old greenbacks are the only sure bet. Your call of course. I've accepted personal checks for payment several times and never had an issue, but.............. Good luck.

 

[tpenfield]

Re: Advice on Process for Selling My Boat. . .

Thanks for the comments so far, they are helping me cement my thinking.

I could probably list it on Craigslist and Boattrader fairly soon and see if I can catch anyone still in the market to get on the water this season. Formula's tend to sell well in my area, even the older ones.

I think that I will only do a sea trial for an accepted offer . . . so, no joy rides for lookers.

Definitely a time table for any contingencies, like sea trial, survey, financing, etc.

The money part is interesting . . . even with cash . . . I have heard tale of counterfiet cash being tendered in the sale of a vehicle (can't quite remember where I heard the story). So, I might stipulate that the Titles would not be released until all funds were verified. I did that on my last boat sale and it was fine. An escrow would be the best approach as it protects both buyer and seller equally.

When I bought the boat, it was through a broker, and they acted as the gatekeeper for the money, etc. I did stipulate back then to see a copy of the Title before I gave them the money (check) and then I picked up the boat and signed title after my check had cleared.

So, I may stipulate that the sales transaction will be handled through an escrow company.

Additional thoughts and comments are encouraged. . .

Sounds like it is time to polish the boat

 

[Cobra Jet Bob]

Re: Advice on Process for Selling My Boat. . .

Leave the boat in the water.
If you got a tire kicker/dreamer,just fake receiving an emergency call and excuse yourself.
Get a couple hundred bucks as a non-refundable deposit..simple receipt.
Schedule final transaction for a.s.a.p. AT A BANK!! The more days it takes buyer to meet at the bank, the more deposit you charge.

Good luck with your sale friend.

Bob

 

[MH Hawker]

Re: Advice on Process for Selling My Boat. . .

If you list it on CL list it as cash only and local pick up. If you dont the scamers will drive you nutz.

 

[tpenfield]

Re: Advice on Process for Selling My Boat. . .

I was thinking of a 10% deposit, then the balance due once the contingencies are accepted, etc. That is pretty much standard in the brokerage world, so I was going to do similar.

If asked about having 'a ride', I was going to have a tight schedule that day, but would provide a 'sea trial' and 'assist the surveyor as needed' for an accepted offer.

 

[partskenn]

Re: Advice on Process for Selling My Boat. . .

When I've sold boats in the past it's typically taken a couple of months from offering to transaction, so I'd suggest going ahead and listing it now (whatever that means to you; CL, Boattrader, etc.), that way you're showing it while people still feel they have time to take it out and enjoy it. Your idea to leave it in the water is a good one for all the reasons you've mentioned. Anyone who's serious about the boat will 1)ask for a sea trial, so there's no need to offer that up front (doing so will only bring out the obnoxious tire kickers who will merely waste your time and gas) and 2) have the funds or at least have ready access to them, so I'd insist on cash if I were you. Any other form of payment is potentially subject to fraud. Bank checks and wire transfers can be and often are safe, but good old greenbacks are the only sure bet. Your call of course. I've accepted personal checks for payment several times and never had an issue, but.............. Good luck.

I agree, no free boat rides. Sea trial only after you have a deal, and all other requirements are met. Otherwise you will be giving everyone a boat ride, and hearing a lot of " I'll get back to you". I just bought and sold a boat, sea trial was the last item on both lists. A few hundred dollars security deposit will definetly weed out the tire kickers.

 

[emoney]

Re: Advice on Process for Selling My Boat. . .

Definitely no joy rides and you need to stipulate that in your advertisement. Especially this time of year with your type of boat. Tons of people just looking for a free trip out on the water. Also, when it comes to financing, I wouldn't consider it sold unless you have a guarantee of some sort for the lender that the buyer is, in fact, approved to purchase YOUR boat, not just A boat. Tons of people get confused when they're told they're "pre-qualified" for a boat loan and never read far enough to see the "With 20% cash down payment" etc. etc. etc. It's still your boat, your insurance and most importantly, your liability so act accordingly. I've sold a few boats over the years and you just have to learn to be patient and expect the "idiots" to show up at your doorstep, because they will. It just comes with the territory. Don't assume they all are otherwise you might miss the buyer, lol. The main thing is to price your boat for what it's worth right now, not what it could be/should be/might be worth, no offense. I say that because there's still people that have their heads in 2005 and quite frankly, it's not. Also, there's absolutely no problem with completing a sale transaction at your bank. Talk to your branch manager and express your concerns and I'll venture to say that person will facilitate the transaction and help you put your fears at rest. Plus, it should provide for confidence for the buyer as well, because there are just as many fears on their end and there are on yours. And lastly, I'd GO WITH the person to the DMV (or whatever your state calls it). Here's a perfect example of why; last year, middle of the summer, 3:45am Sunday morning I get a call from the Coast Guard telling me my sailboat has broken loose from it's mooring and is in danger of hitting the rocks. I looked out back and my sailboat was at my dock. Took me a few minutes to realize the young man was talking about a boat I had sold 6 months prior to the call. Had never been transferred from my name to his. Luckily, I still had my copy of the "Bill Of Sale" otherwise I would've been responsible for any damage the boat caused to someone else's vessel.

 

[Cobra Jet Bob]

Re: Advice on Process for Selling My Boat. . .

You sound like an educated man...so why make something simple so complex? Too many big words for a 'lil 15k sale,imho.
10% is too much. Shake the guys hand an go meet at the ATM for your 300 bucks.Have you a little receipt prepared stating the non-refund if he don't get it together within 3 or 4 days, he signs, you keep an call it a day.
Test drive after all paperwork completed? I doubt that's gonna happen....not at this price point.
You are bright enough to know who is wasting your time.
Oh, and don't forget "no trades" in your ad.

Good luck!

 

[tpenfield]

Re: Advice on Process for Selling My Boat. . .

Thanks again for the additional comments . . .

I like the idea of doing things at my bank (well, it is not actually 'my' bank, it is just where I keep some money). They may act as an 'escrow agent' for a nominal or no fee. Regular Marine Escrow companies may get a little pricey and be overly complicated.

I did the BUCValue on my boat, so I have a good idea of the price range. Boats like mine are listing in the $12K - $19K range depending on their condition, etc. The NADA pricing comes up fairly low, so I'm sure that some potential buyers will be working off of those numbers. However, I believe that the BUC numbers are based on sales data as well as depreciation data, whereas the NADA is merely based on depreciation data and no market input.

 

[KFS]

Re: Advice on Process for Selling My Boat. . .

Great question!

We have only recently begin looking in earnest and as a motivated buyer my sources are currently:

Craigslist
Boattrader.com
This site
Word of mouth (this includes Facebook. I will let friends know we are looking and if you are selling - you should too).

I also called a marina that was featured prominently in a BoatTrader ad and asked to be added to any list they might have so if a good "fit" for us comes in they can contact me.

If I were selling I would put all the same sources into play.

Good luck!

 

[tpenfield]

Re: Advice on Process for Selling My Boat. . .

With all the discussion going on about buying used boats recently, I happened to stumble across my old thread regarding 'selling process' for my boat . . .

In retrospect, it looks like I violated all of my principle thoughts and ideas during my recent sale & purchase of boats (last Summer/Fall). Not so much on the selling process, but more so on the buying process.

I sold my 'old' boat as a non-working fixer-upper, so no 'joy rides' were available . . . I took $100 cash deposit, and a check for the balance the next day. . . Mailed the title for the boat & trailer to the buyer after the check cleared.

On the buying side . . . I got a 'joy ride' for over an hour. Actually, 2 potential sellers gave me rides in their boats during my search. I did not give the seller a deposit (he said he didn't need one . . . I must look way too honest or something :noidea: ). After the survey/inspections and agreed work was done, I gave him a bank check and we did bill-of-sale and title transfer on the spot - no escrow or holding period.

So, it seems that as much as you plan and try to anticipate how a transaction will play out, you never know for sure until it happens.

 

[Augoose]

Re: Advice on Process for Selling My Boat. . .

I've dealt a lot of items on craigslist, inlcluding buying and selling two boats - its a easy process if you make it one. What kind of dollar amount are we talking about? You say that you'll probably meet the $1,500 minimum, so it sounds like a small amount, relatively speaking. My last boat sold for just less than $3,000 and my last purchase was for a $10,000 boat - easy transactions.

Ensure your listing title encompasses the item clearly and the key words you use won't allow someone to miss your item on a search.
In the body of the listing, talk about all the highlights- what it has, what it does, how much room, what it will allow you to do - focus on how this boat will do what someone wants it to do. Also mention what is needed before it is able to do all of those things, such as maintenance. Talk about maintenance history of the boat - winterized every year, changed this, changed that according to schedule.

Allow a test drive with you there of course for buyers who have "passed the test" by asking the right questions, showing an interest, talking about what they want to do with it, etc AFTER they have already seen the boat in person. When I sold mine last boat I sold it to the first guy who came and saw it. I don't think you'll have your time wasted by people who just want a ride.

Forget the surveyor - that's the responsibility of the person buying your boat. Have a bill of sale done up with all the info filled in so that the name and signature of the buyer is all you need to fill out. Cash, cashier's check, or money order and the deal's done!

 

[Alwhite00]

Re: Advice on Process for Selling My Boat. . .

When I bought both of my boats I did a sea trial BEFORE making an offer - Both sellers were fine with that. I don't think I would make an offer if we couldn't do a sea trial.
When I sold my first boat I offered sea trials, (You can tell a fairly serious buyer) - And for me, It's one more day out on the water. Granted, These are not huge boats and I went through maybe $30.00 in gas, Not a deal breaker and I sold my boat to the first guy who looked at it.

LK

 

[Merc4ever]

Re: Advice on Process for Selling My Boat. . .

I have sold and bought all my boats from web based free classified ads and there has been a lot of boats that come and go. I finally found one that's a keeper. The main thing was to be honest and fix everything so there's no shock to the new owner. Honesty is the best policy for a smooth sell so don't try to hide anything and most important sell at a fair price.

 

[tpenfield]

Re: Advice on Process for Selling My Boat. . .

Yea, as much as people have issues with Craigslist listings, etc. I both, sold my last boat and bought my current boat, through Craigslist.

I think dealing 1-on-1 with the seller, you tend to get the 'sea trial' as part of their showing you the boat, before any commitment is made, etc.