Sell My Yacht California Sell CA Yachts

Summary of events leading to the purchase of yachts:

TAKE A MOMENT TO READ THIS, IT WILL LET YOU KNOW WHAT TO EXPECT.

The following thoughts are compiled from years of listing and selling yachts. I have put together a list of items that should help when the decision is made to sell your boat, and finding the broker that can best represent you in the process of marketing your yacht.

Choosing the Brokerage and Sales Representative.

· Talk to several brokerages and go over their method of presentation of your yacht. What web sites do they subscribe to, where do they advertise, and how will their presentation give your yacht the best representation.

· How long have they been in the business, along with the experience of the sales representatives that work for the brokerage. Are they members of the California Yacht Brokers association who’s members set the ethical standards for the yacht sales industry.

· Find out if they have a well staffed office that is set up to promptly handle paperwork, inquiries, along with the many steps of negotiating and pulling a deal together in an efficient manner. Ask how the sales staff qualifies the client before showing your yacht.

· Interview the sales representatives of the brokerage’s you have picked and get to know the sales representative of your choice. Let him know your concerns, and share your thoughts of what you expect.. This will give you a good feeling of who you are dealing with, and the future of your relationship with the representative.

· Check our web site at www.marinersyachts.com

· You can call the State Department of boating and waterways licensing division for brokers (916)263-8197 or for salespersons (916)263-8196. Or go on the web at www.dbw.ca.gov. All brokers and sales persons must be State Licensed.

Types of listings you should consider.

There are two types of listings that will be the most likely ones you will use. There are several other variable options that are listed herein.

· The first type of listing is a central/exclusive listing. This means that the brokerage that you choose will be the sole listing agent for your yacht. The brokerage will do what is called a cooperative listing with other brokerages on a shared commission basis. This split is usually a 60/40 split with the selling brokerage getting the larger portion of the 10% commission.

· In the case of the central agreement, the listing representative will be the agent of the seller, and the selling broker will be the agent of the buyer. The central agreement gets more attention of the brokerage since more effort will be made on advertising due to the fact that the listing brokerage is more likely to sell the yacht.

· There is also the factor that the central listing brokerage will have more control of who shows the yacht, and have a signed cooperative agreement with other brokerages. If any problems occur during a showing, then there is a better record of who was the last person to be aboard your yacht.

· The central agreement will have a minimum of 180 days. This gives the brokerage time to work on the sale of your yacht. Since it takes at least 90 days to get into the various publications we work with, it is necessary to have time to show it to various clients.

· The second type of listing is the open listing agreement. This type of listing allows the seller to list with multiple brokers. The open listing can be converted at any time to a central listing, which will negate any and all listings that you have with other brokers. Many times you will see the same boat listed with many different brokerages. In certain cases, this becomes very confusing to buyers who think that all of the yachts are different boats. In such a case, there may be a deal working with one brokerage, and if it is not posted on the internet, then there is no way for other open listing agents to know what the true status of the listing may be. I have seen better offers come in, that are lost due to the confusion.

· There is also the exclusive listing that does not allow any cooperative showings by other brokers. This type of listing does cut your chances of selling, but if you truly want only one brokerage to sell your yacht, and have total control, then this type of listing is viable. If the yacht is close to the brokerage that you have the exclusive listing with, then the sales representatives will post it on the internet so that an agent of the listing brokerage must be aboard the yacht during any cooperative sale. This is a decision that should be made with lots of thought prior to doing so.

· One other thought is the “One Time Showing” agreement. This would be if a broker was aware that your boat was for sale, and the sales agent feels he has an client that is interested in your yacht, or one of a similar type, then an agreement is made for this client only. Usually this happens when you have a for sale sign on your boat, or are advertising it for sale in one of the various yacht sales publications. If you are open to this type arrangement, then let the showing go forward. The client will be registered as one who introduced your boat by the brokerage agreement that must be signed by the seller prior to showing your yacht.

· Beware of the sales agent that calls and states he has a client for your yacht, but you must sign an open listing with his company prior to his showing the client your yacht. In such a case, it is best to go with the one time showing agreement rather that have another open listing with a broker or sales representative that you are not familiar with.

· The last is for sale by owner. I certain cases, this works for the seller. In most cases it does not. As a seller you will soon learn the fact that there are many undecided buyers that may think they want a boat, but remember, the average sale comes after many showings. If you have the time to meet buyers at the time they have available, have knowledge of the process of selling a yacht, and are ready to listen about all the things wrong with your yacht, then this may be the way to go.. Think this one over a great deal before making the choice. You will probably get more calls from brokers than from clients.

After the listing agreement decision is made, and you have made the choice of the brokerage you want to list with, Then there are a some considerations that can greatly effect the sale of your yacht. We are all very aware that every seller is proud of his yacht, but there are certain factors that will greatly enhance the sell time, and the amount of money you will get for the yacht. I will try to list the items that we see daily that have a great effect on the sale of your yacht.

·The most single item that I can stress on a seller is CONDITION OF THE YACHT.

Those of us who show and sell yachts for a living are constantly in tune with the buyers wishes. When we show a yacht that has been poorly kept, has deferred maintenance, is not clean, has excessive bottom growth, rusted machinery, bad odors, and generally shows a lack of good yacht husbandry, the yacht will attract either low offers, or total rejection. The question comes to the buyer’s that the yacht has had poor care over the years, and that they will have to spend a great deal of time and money to bring it up to cosmetic and safe standards. Ask your sales representative who lists your yacht to point out what needs to be done to get the boat sold.

Your representative should meet you at the boat, and go over the listing agreement, the condition of the yacht and answer any questions that you may have. Mariner's Yacht & Ship Brokerage, Inc, has collected massive amounts of research data over the years, and along with this and your input on the yacht, information for the specification sheet can be gathered. Any knowledge that you have available is helpful, and if you have any original brochures or literature describing the yacht, then it will be helpful for us to make copies or digitally scan this information and then return it to you.

· We will need the following information from the seller to complete the listing.

· A copy of the federal document or the state registration.

· A copy of the personal property tax bill – The assessed tax year, also know as the lien date, is from January 1 to December 31^st of the year the yacht is sold. Although brokerages are not required to prorate taxes, it is common practice that the Seller pays for amount of time that the yacht was in his possession, and thus the buyer pays for his share of the time.

· Information on the slip you are currently in. If it is transferable, or can it be sub-leased for a period of time while the buyer finds a slip. Certainly, a transferable slip can be a great help in selling your yacht, or even a sub lease.

· Boarding information and a way to enter your yacht. Any special information on alarms, or special locks. We have to be able to get on the boat to sell it. Normally we like to have a key in the office, or the combination to a lock. Some owners prefer to hide a key on the yacht, but that creates a problem of clients seeing where the key is, and we have seen times where clients go back to your yacht on their own for a second look. It is best that we have control over the showing information. Also let us know about any items that should be left on, and what should not be on.

· Your contact information is important. We need email addresses, cell phone numbers, home and business contact numbers etc. When a client wants to make an offer, we need to be able to act quickly, and efficiently

· If you are moving the boat, or using it, please let us know so we can arrange showing around your use time.

· If your yacht is financed, it is helpful to have information on the lender so when we go to pay off the loan, we will have a contact point. In most cases, we cannot get this information without an authorization to pay off and the contact information of the lender. Please have this available.

· All items in the specification sheet go with the sale, and it is assumed that such items are in functioning condition. If you have any equipment, or machinery that is not functional, then be sure that your sales agent is aware of what needs repair on the yacht. We can pre-warn the buyer that certain items are not functional, so this does not come in the form a surprise at the demo or survey.

Brokerage sales activity reports.

Be sure you have all information such as cell phones and contact numbers for your listing agent. We try to give reports to the seller of showings that are positive, but do not hesitate to call your agent when every you wish for an update of activity. Email contacts are also helpful.

When we get an offer, what to expect. There is no way to predict the amount of time that a yacht will sell in. The better the condition, usually the faster the sale, especially with yachts that have a good reputation in the industry, and is priced in a manner that will attract offers.

· Once an offer is made, the standard ,7 page, CYBA offer to purchase and sales agreement form will be used. This form is a standard of the industry with most brokers, and has been done in cooperation with Maritime attorneys and the California Yacht Brokers board of directors. It has taken years to bring this purchase agreement together in a form that protects all parties concerned. Please take the time to go over it and ask your agent any questions that you may have regarding the form and its contents. The agreement will show the deposit amount.

· If you accept the offer, then sign it on page 7 under the buyers offer to purchase section. If you wish to counter the offer, then your agent will send you a counter form to sign which will become an addendum to the offer to purchase. This process can go back and forth until both buyer and seller come to agreement.. We normally use fax copies. In certain cases, an email or fax statement will suffice in the event a seller or buyer is out of the area.

· On page 2 of the agreement, there will be a series of dates that put time limits on the sale. The buyer usually sets these limits, and we need to coordinate them with the sellers ability to perform. So please review these times to be sure you are able to work with them.

Remember the following:

There will be no demonstration or Marine Survey until the financing contingency is removed. There also must be ample funds in trust for the deposit prior to any Demonstration.

· The demonstration should be done with the seller, sales agent, and buyer. It is the responsibility of the seller to be aboard the yacht at the demonstration. We do not know all the characteristics of your yacht, and things need to be pointed out by the seller. Should it not be possible for the seller to attend a demonstration, then he needs to appoint a representative that is capable, and has knowledge of the operation of the yacht. We are happy to recommend licensed Captains who are available at the sellers cost to complete the demonstration of your yacht

· The demonstration should be limited to the goals of the buyer. The majority of buyers wish to see all equipment operate. This is true of sail or power. It is always a good idea to check your yacht prior to the demonstration and all the listed equipment should be operational at this time. There is not faster way to scare off a buyer than have your boat break down during a demonstration. Be sure the bottom is clean, and that the furnishings are well stowed to prevent any breakage at the time of the demo.

· It is also the sellers duty to move the yacht to the area of yard that will haul the yacht for survey. It is really to the best interest of the seller to be there to see what the surveyor finds, and to fully understand the ramifications of what may become a further point of negotiation. Many times the buyer will want to ride with the seller to gather more information on the operation of the yacht. This is a matter between the buyer and seller, and if you have any questions, contact the sales agent for advice.

· The buyer is responsible for payment of the Survey and yard haul, and unless the seller has approved such work in written form, any other work, it will be the responsibility of the buyer should such work be ordered without the sellers consent.

· Surveyors will want to ask the buyer or his agent the following questions.

HAS THE YACHT EVER BEEN FULLY OR PARTIALLY SUNK ?

HAS THE YACHT EVER BEEN INVOLVED IN A MAJOR COLLISION OR HAD THE HULL DAMAGED BY FIRE ?

IS THERE ANYTHING YOU (THE SELLER) KNOW ABOUT THE YACHT THAT WOULD RENDER THE YACHT UNSEAWORTHY, OR UNSAFE TO OPERATE ?

CLOSING THE SALE:

Once the evaluation process is completed, then the brokerage and your sales agent will go forward with the final closing of the sale. Here is an overview of the closing process.

· The buyer signs the final acceptance of the yacht. This removes all contingencies other than the ones agreed on such as repairs, slip rent prorating, personal property tax prorating, and any other items that are agreed upon between parties to the sale.

· The buyer increases funding to the amount agreed upon at the time of final acceptance. In the case of a cash sale, the buyer will provide the brokerage with a cashier check or wire transfer for the total amount due. This amount will be calculated by the brokerage staff, and a buyers and sellers closing statement will be issued. The statements must be signed by both buyer and seller prior to close of sale. The buyer is responsible for all costs of title transfer, taxes, and any cost related to the change of title.

· A title search will be done by the brokerage. The abstract of title by the USCG is the most reliable form of title search available to us. This is only for Federal Documentation. The cost of this is about $ 35.00 if done by our office. The DMV search is more difficult, but can be done through certain sources and the cost is about $ 75.00. All costs are the responsibility of the buyer.

· It will be necessary for the seller to sign the appropriate papers to transfer title. In the case of a State Registration, the DMV pink slip must be signed, or in a documentation process, then the Seller will sign USCG bills of sale. There needs to be two that are signed by the seller before a notary public. Mariner's Yachts offer free notary service at our office to sellers if our notary is available. Transfer documents are signed by the seller prior to closing and held in trust until all money due the seller is paid. The exception to this is if there is an agreed upon hold out of funds for repairs that the amount is uncertain.

· Prior to the final close of the sale, the seller needs to remove any personal items that are not included in the sale. Such items should be noted in the specification sheet. Usually, these are items of a personal nature. It must be understood that every item on the yacht cannot be listed on the Specification Sheet, so to avoid any last minute problems, there should be a solid understanding of what items are going to be removed.

· A complete closing package will be provided with all document related to the sale of the yacht by the brokerage at the final close of the sale.

There is always more that can be written down. I thank you for taking the time to look over this presentation. Please let me know if I can answer any further questions, or help with the selling of your yacht. My ability to make a living is dependent on doing a job that gives my clients the desire to recommend me to friends of the seller and buyer. I hope this presentation is helpful in making your decision in listing your yacht, and that you will contact me for more information.

Sincerely,

Craig Beckwith

Yacht Sales Consultant

(949) 230-8573