How accurate is NADA boat value on a 1970 53' Motor Yacht

[SEVEN]

Douglas, did you make the offer?

 

[drburke]

I second most of what was said.

For the record, it is useful to mention the name and port because several of us live here and may know the boat (I know about half of the boats on Tony's SoldBoats list, for example). Lots more background if you know the PO and harbor.

That boat was home-ported in San Diego (which sometimes may raise a red flag due to charters--it was not) and is apparently being sold because the owner is getting up in years (75) and is an Ob/Gyn in Fresno so it is nearer to home.

SoldBoats is best but not perfect. BUC Value is better than NADA and at least includes the roughly 15% uptick for the West Coast. As was noted, there is great disparity between the coasts driven by market, cost to bring it over, and wild optimism from sellers.

Brendan is a fairly strict surveyor so you can trust his evaluation. But if Richard Boland is paying him, that should be factored in. [BTW, my dealings with Boland have been decent, but YMMV.]

DAN

 

[douglasl]

Hi guys,

Sorry I haven't answered. I was busy with my clients this week. I'm a realtor in Los Angeles Westside.

I did place an offer of $120,000. We will see what the owner says. I want to get it under contract and if anything comes up during the mechanical and/or marine survey, then we'll deal with the issues. That could mean backing out, or asking for a lower purchase price depending on issues.

I know that other Hatteras are more economical in the East Coast. But, transporting, etc., hidden transportation damages, and such scare me more than overpaying $10k or $20k.

I'll keep you guys updated as to agreed contract price, and also any issues when I get it surveyed.

Please, don't hesitate in giving me more info. You guys already know what it is to own a Hatteras. I don't.

Thanks,

Douglas

 

[pizzazsdaddy]

Hi Douglas

We don't mind you overpaying by $20,000. We do mind you overpaying by $200,000! Please be careful. Get a qualified "yard" estimate to repair survey items.

 

[rtrafford]

Critical items that are related to sea worthiness of the vessel should be corrected by the seller prior to closing.

 

[jim rosenthal]

Don't be afraid to walk away if the surveys find significant problems. They made a lot of these boats. This is not the time for rose-colored glasses.

The time to fall in love with a boat is AFTER the surveys, sea trials, insurability etc- after she passes all those. Then give your heart. She might still break it, but not as badly. LOL

 

[pizzazsdaddy]

In most cases, "seaworthiness" items are simply negotiated out with a qualified estimate prior to closing. It is the buyer who must wait until a quality boatyard finishes necessary repairs before sailing off into the sunset. The deal gets done when everyone is in agreement.

If it all works out, Welcome to the dysfunctional Hatteras family.

Jim Rosenthal gave you some wise words regarding rose colored glasses. Who wouldn't want a Hatteras 53? Hatteras built 349 of them!

If the seller walks. You are only out about $4000 for surveys etc. If the buyer and seller aren't realistic in these situations, the seller historically takes way less than this deal a few years from now.

If it doesn't work out, you might want to drop a note to several well known brokers along the California Coast. You never know when someone who is thinking of selling their nice 53, but hasn't put it on the market yet? The best brokers in each area will know what is lurking in their marinas locally.

Maybe a West Coast Hatteras owner on this forum knows somebody who know somebody???

 

[rtrafford]

Seaworthiness issues should be handled by seller prior to close or risk voiding your own insurance policy the moment you bind it.

No matter how closely you look at a new vessel, it remains an unknown until you're well vested in repairs, upgrades, and time aboard.

 

[douglasl]

Update on the offer. The seller came back with a $135,000 counter offer. After some talking with the broker, and getting spoon fed answers; I realized the seller was not willing to go any lower.

I told him I'd be happy to send another $120,000 offer, but not higher than that. Today, the broker answered that "maybe the seller would drop to $130,000, after the buyer surveys". I said thank you, but I'm not willing to spend more than $120,000, before doing any surveys. I did tell him that another option was for me to buy on the East coast. He replied, "it'll cost you $50,000 to transport it to the West coats." I know it's way, way, less than that. Didn't say anything, as I have the hope that something may come up with this boat in the near future.

I didn't want to go in, spend up to $5,000 on surveys, etc., to later know that I'd be paying $130k or more for the boat.

I'll contact some local brokers, like you guys suggested.

Douglas

 

[SEVEN]

That's to bad Douglas. The owner was willing to drop 55k from his original asking price. When I first saw this boat at Pier 39 in SFO it was beautiful. That was almond st 1 1/2 years ago. The owner was using it and maintaining her on a regular basis. It's a shame it didn't work out. Maybe the owner will reconsider since he turned down a 170k offer last year. This boat would sell if the broker maintained it. What a shame.

 

[bigbill]

rusty, i have never heard of a broker maintaining a boat, maybe checking on it and reporting to the owner. i know several brokers that have 20 -30 boats listed maintaining them would be a full time job for 3-4 people.

 

[SEVEN]

Are brokers are much smaller up here. They should at least wash them. When I looked at the Hatteras 6 months ago it was covered in green moss and filthy dirty. Car dealers wash the cars so they show better. Just saying.

 

[douglasl]

Yes, I agree that brokers should have a maintenance service. Not for free, but at a discount to what an owner could get it for. It's more economical to have one person working on several boats, cleaning, washing, mechanical, etc., Tack on the usual 20% broker fee to what the service men charge and give that service to the boat owner.

It would be a win-win situation. You know what Rusty? Maybe you and I should get our marine brokers license and set something up. Top Notch full service!

Douglas

 

[saltshaker]

Are brokers are much smaller up here. They should at least wash them. When I looked at the Hatteras 6 months ago it was covered in green moss and filthy dirty. Car dealers wash the cars so they show better. Just saying.

Car dealers also own the cars they are selling. This would be more like expecting a Realtor to keep you r lawn and home in order. I do agree that the broker should make the seller aware that the lack of basic maintenance will make the boat show poorly. I've seen some nasty looking boats that looked like new after a good detail. There wa s a 58 Viking that came in to the marina I was in as a repo. Boat was covered in filth and green mold all over it. I was amazed how good she looked after a good wash. Once she was waxed, interior cleaned and ER cleaned up, she looked like a well cared for boat.

 

[jim rosenthal]

I agree. If a boat is for sale, it's in everyone's interest to keep her looking good. The owner is responsible for those expenses. If the broker can negotiate a better deal for the maintenance, fine, it helps everyone out, but it's the owners job to maintain the boat.

As to checking on it... maybe. There's a distinction between a boat that is listed for sale with a broker, and a boat that is at the broker's docks, if they have them. I don't think there's an obligation formally, but one would think that a boat that's right out front will get checked on more often than a boat that is for sale through a brokerage but geographically elsewhere. I don't know any broker who has time to make rounds on all the boats they've got for sale. That's not realistic.

 

[SEVEN]

This 53 has been right in front of the brokers office for more than a year. It's at the brokers dock. If I were him/ them. I would add the wash down to the slip fee they get when leaving the boat with them. Like you said it's in all parties best interest. I'm to old to start a new business Doug but that's for asking.

 

[saltshaker]

Many move thier boats to SE FL to sell. Most brokers will connect the seller with a boat detailer or management co. When I had my boat in Fl and NC I had someone who would wash it weekly and check the boat inside and out at least twice a week.

 

[drburke]

My (selling) broker prepared the boat for sale from an account that the seller paid into.

Everyone benefits from a higher sale price. Items requiring repair and cleaning were paid from the account.

DAN

 

[capttonyf]

Many move thier boats to SE FL to sell. Most brokers will connect the seller with a boat detailer or management co. When I had my boat in Fl and NC I had someone who would wash it weekly and check the boat inside and out at least twice a week.

This is the best way to do it. I had a small yacht management business that I ran in Fort Lauderdale back when I started selling boats. Even when I moved to selling fulltime I always kept the business going and it actually grew at that point. It went hand and hand, I would list a boat and if the owner moved his crew to his new boat we would run and care for his old boat until it sold. It was a nice perk to offer a a client selling their boat.

On the flip side I cared for and delivered other boats for Owner Operators that didn't have full time crew and would sometimes then list their boats when they did decide to sell them. I had a small cleaning crew that would do weekly or bi-weekly checks and maintenence. I also had a few captain friends that along with me would do trips or deliveries when the owner was in town or needed the boat moved. This was all done for a fee of course. That being said I can't tell you how many times I paid someone or Washed a boat listing with an AWOL crew last minute myself because I had a showing that afternoon and it was dirty mess.

I had alot of fun with it because I love the boats and the water and I was able to be hands on with running and selling boats. My clients I know enjoyed having a broker that actually had hands on expierience doing both. I've travelled and fished with many clients I sold boats to through the years and built life long friendships. I wasn't just some salesman, I cared for their boats and them. If time allowed I would always try to do a shakedown cruise with the new owner and captain. Not only did it strengthen my relationship with the client I also enjoyed the cruise on the water.

As far as a dirty boat behind the Brokers office,,, one of two things are going on there.
1. Broker just doesn't care about the listing because owner is unrealistic. or
2. The owner is so far gone that he won't even provide the broker $500 a month to at least get the boat washed down and started up occasionally so he can do his job. Either the owner, the broker or both just don't care anymore.

Just watch I don't know anything about the boat but I would bet someone else gets the listig in the next few months

Tony

 

[pizzazsdaddy]

Hey Douglasl

If this particular 53 is as nasty as she appears, you've done well.

Don't be afraid of "shipping" an East Coast boat. It is less hassle than you think it is. During the Great Recession, a ton of American made used boats were bought up and went to South America. There is even a company I know of in Ft. Lauderdale that does nothing but "ship" yachts worldwide. The beauty of it, is that she's landed in one piece as loaded. As long as the boat is turn key ready upon arrival, (and a storm didn't roll her over on the ship's deck)...you get her to the nearest marina for a washdown, and you start enjoying her from day one... And only because you are in a unique situation because of where you are.

Like I said before, find a pristine 53 for a "fair price" no matter where it is. You will save $250,000 in the long run. If a good west coast broker can rustle up a nice 53 in the bushes nearby, pursue it! If not, at least consider option B. Also ask that same "superstar" local broker to scope out Viking 55's, Viking 50's, Chris Craft 501's, and Ocean 48 or 53s...all of which offer superior comparable layouts.

You are a serious buyer who deserves serious attention.

And to Rusty...it is the "owners" responsibility to prepare and maintain their vessel for sale. If the owner can't AFFORD to do so, they face a simple reality. A boat in need of work will sell at whatever the market will bear. A broker can only expose your boat to the pool of available buyers and offer reliable advice. The actual condition of your boat and the available market will determine the final selling price. Correctly Detailing a used car is $250. Detailing a 53 Hatteras for sale can easily hit $10,000-$30,000.

Besides...any owner who doesn't get his baby washed-down and shammy'd at least once a week should be severely PUNISHED regardless! I suppose the broker should give you free dockage too???

You've got me all "riled-up" Rusty!