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Old 09-05-2012, 07:25 AM   #41
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"Doing you own homework is the only way to have an idea of market value"

As I understand the boat/yacht market, the most valuable information on sales price history and current comps is not available to the general public (i.e. The only absolute way to determine market value is to put your boat up for sale, sell it, then count the money in your pocket. Survey value, insurance value, replacement value, assessment value, etc., etc., are proxies that are used primarily for something other than the exchange of equity, and, therefore, should have little or no bearing on "market value" or the advertised asking price.

It seems back asswards to me for the industry to make it difficult to find out a selling price. If the transaction was transparent, then people would have a level of knowledge and confidence of what a particular boat type could sell for and, I would think, the number and ease of transactions would increase, even if prices were lower. This would establish realistic expectations in all parties and be in the best interest of the seller (who is only going to get "market value" in the long run anyway), the buyer (who could tender a realistic offer) and the broker (who could increase his sales volume, making up for a slightly reduced commission).

In business consultancy language, this translates into "make it easy to do the right thing." If the right thing for a broker is to secure a transaction for his client, it seems to me that this approach would move things in that direction.

(NOT a business consultant!)
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Old 09-05-2012, 07:31 AM   #42
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Weather you agree with Kelly or NADA if that is what banks and credit unions are willing to loan on then that is the value of the boat. Just like houses it doesn't matter what you think it is worth it is what the value you can finance. Yes if you have a cash buyer they can pay more but I am afraid it is just the market adjusting to reality.
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Old 09-05-2012, 11:22 AM   #43
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In many geographic locations in the U.S. (and other nations): Irrespective of any rule of thumb, or apparent comps, or value-assignment hoop-la... such as NADA, banks, surveyors, used product dealer sales persons, etc - - > Regarding the sale of a Less Than New (i.e. used) boat, car, house or anything else of similar general consumer “use-potential” or "show-off BS” or, maybe even “hopes for value appreciation” even in today’s soft market...

In the sale of any used item a current owner (definitively the seller) is a considerably passive participant who can only meekly offer said item at said owner’s particular “asking-price” to everyone/anyone (potential purchasers) who might become interested in being the used item’s new owner. Purchasers are considerably dominant participants who can offer whatever financial amount or product trade they like to the seller and refuse to pay more than they feel any item is worth to them. Therefore, in today’s soft market, seeing as throughout many geographic region and used-product types (boats, cars, RE... etc) there are many fine (and some not so fine) examples for sale by the hundreds/thousands it is strictly up to the purchaser to actually affix the product’s true-value at every sale in regard to the purchaser’s needs, like, desires, and financial capabilities. This truly has been a fact for years and it looks like will continue for some time to be a “Buyer’s Market”. Now of course the seller can refuse to accept any purchaser’s offer in hopes of another purchaser coming along with a better offer... and that may happen... but that means said seller is playing a waiting game and still holding “the bag” in today’s soft market, whose product value levels may descend further!

In research, I’ve noticed hundreds of products’ sellers who have been playing the waiting game for years now... those who hold the price high more often than not keep right on holding “the bag”... sellers who lower the price and get flexible can often locate a purchaser who will close the deal with them. One great problem for too many sellers of any type product is the situation of being “upside down” in loaned-finance on a product they have for sale. The only recommendation I can offer to sellers in that position - - > Be careful as to what will economically happen during the next few years - - > Either bite the bullet while you feel you can, or wait for a sales-value uptick that may or may not come, or stay high in price untill it is simply too late and go down in flames... like millions of unfortunates have done and millions of others are still doing!

For ten (10) years now, by my keeping a close eye on CL, Yachtworld, and other sales avenues, it is clear that for the last few years four (4) prime agenda help owners accomplish their product sale:

1. Low Starting Price
2. Willingness to be Flexible
3. Very, Very Good Condition Product
4. Great Attitude that helps the Buyer Feel Comfortable with the Deal!

Also, as may occur at times, in favor of the seller is dumb luck that a purchaser comes along who simply falls in love with the product and just has to have it! In today’s soft market, due to buyers feeling their purchasing power, a seller’s dumb luck such as this comes along few and far between... regarding most used items.

I wish good luck to sellers and purchasers alike. As I alluded to in the context of this post... read the globally interactive markets carefully, there has been occurring and clearly appears to be further unexpected economic global change in the wind. Second half of 20th Century’s presumed economic stability regarding “Business As Usual” has now become unattainable; that phrase has turned passé. “Business As Occurs” is the new global mantra. This decades long “Business Cycle” will surely encounter peaks and valleys... ride the peaks, hunker down in the valleys. It appears the valley we’ve been experiencing since 2007 may get deeper... but hopefully an upturn can occur. We shall see!
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Old 09-05-2012, 11:38 AM   #44
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Originally Posted by Art View Post
it is clear that for the last few years four (4) prime agenda help owners accomplish their product sale:

1. Low Starting Price
2. Willingness to be Flexible
3. Very, Very Good Condition Product
4. Great Attitude that helps the Buyer Feel Comfortable with the Deal!

I agree with one minor exception. Number one should read "A Reasonable Starting Price". With the other three in place the Reasonable Number is attainable. Now there are times when Reasonable and low are the same number but that is a market effect.

Things like what one owes, or what I paid and such come into play all too often and they should not. The one that breaks me up is the "I paid $xxx k for it just two years ago". That affects me how? If you got it from your dad for free then you would be willing to give it to me? Not happening. Well if the latter has no bearing then neither does the former.
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financing, nada, price, prices, pricing, yachtworld

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