How Do You Value Your Boat?

[Bob Cofer]

A very cool boat and I can see you from my slip on C dock. The woodwork is beautiful.

Hi Ken!

 

[syjos]

I don't consider any of my possessions having a monetary value, unless the item is specifically for an investment. My boat, my home, my car etc don't have a monetary values in my eyes. The value is enjoyment, lifestyle and happiness.

I agree with everything except for the home.

A home (real property) is the single most effective investment for the average person or family. You get to live in it as it appreciates, receive low interest mortgages, receive interest deductions and get a capital gain exclusion when you sell.

 

[Art]

Whenever I sell a boat... I've owned and sold several:

I always accept whatever the purchaser will pay.

As long as what they will pay is at or above my bottom line! LOL

 

[Bacchus]

I agree with everything except for the home.

A home (real property) is the single most effective investment for the average person or family. You get to live in it as it appreciates, receive low interest mortgages, receive interest deductions and get a capital gain exclusion when you sell.

I don't even include my home. The advantages syjos states are certainly there but I figure as long as I'm living I will need a place to live so I won't ever realize a gain from my house.
I may sell one but will need to buy or rent another so the $ is more or less tied up as long as I'm alive.
I guess that makes it sort of an non-liquid asset. I can sell it but will need to exchange it for something else.

 

[smitty477]

Boat and cars I agree with.

However I have to disagree on the home though for the investment reason you mention.

When we were looking to move homes six years ago we had two main aims. To have the boat at our home dock and to diversify a chunk of change out of equities.

Sian wanted to downsize but when they have land on deep water they tend to want to get full value for it by building larger homes, so it was really tough to find a smaller house. So we ended up with a house a little under 6000 SF for just the two of us to rattle around in. We rarely wander upstairs.

So yes, we do include the house in our thoughts on net value. In fact when the children came to visit that first Christmas we told them that it was their job to make sure we were keeping up with the house as we got older since it was part of their inheritance!

"In fact when the children came to visit that first Christmas we told them that it was their job to make sure we were keeping up with the house as we got older since it was part of their inheritance!"
And a very good way to leave an inheritance as well !!!

We include homes, cars, boats and all assetts when figuring values for a number of reasons - and it real easy to track.

 

[mvweebles]

I was a bit more objective in deciding value of my Willard 36. We were balancing the costs of selling her deteriorated condition and buying a replacement of some sort (Willard 40?) vs restoring her. We ended up with restoration which is financially a horrible idea, but still, we ran the numbers.

On many of the boats I see in this thread (the 100-year old Winslow being an exception), there is are examples on YW and I figure most sell for 10%-20% below asking on average. From there, if your boat is in good condition with recent upgrades, you can expect 20%-25% above. Below average condition, 20% below. Poor condition may not be sellable.

Peter

 

[ljk]

Valuing your boat

You guys are still talking about what she is worth money wise.

So I guess I didn't word my post well after all.

I was trying to say that I don't see any actual monetary value in my boat at all, regardless of whether she has any in real life.

I bought her and I don't care if she has any value at the end of the day. Whether that end of the day is tomorrow or thirty years from now.

I don't see her as an asset with monetary worth.

She is what allows me to do what I do. When I am finished doing what I do I will move on. The dollar value I may be left is not important to me.

And when I am finished "doing," I don't care if I get anything for her.

Beacause of my profession, I value things , mAinly companies, for a living.

One of the Gurus in our profession says he can value anything, he just needs to know 3 things:

1). How much money are you going to get?
2). When will you get the money, and
3). What is the risk you won’t get the money when you say you will get it?

So, to answer OPs question, the answer will be different for every owner. For those who have old boats they will keep forever the value calculates to “zero.” If one buys a newer boat with the idea of selling or trading in in five years, you can use the above formula plus a little valuation knowledge to come up with a value in money terms!

 

[MYTraveler]

The only reason I have to value my boat is for insurance purposes. Years ago, when I purchased the boat, I got an agreed value policy with coverage equal to my (heavily negotiated) purchase price, plus sales tax (which I was not obligated to pay). Over the years, the boat has gone down in value, but the cost of buying a new replacement has gone up (and so few of these are made, and all are semi custom, so I can't buy a used replacement). If someone wanted to buy the boat for the insurance coverage amount, I would not sell it (so, I suppose I "value" it more than that), on the other hand, if I were to sell it, I am sure I would not get close to that amount (but I am not selling it, so what someone else would pay is irrelevant to the value to me).

 

[Art]

Reality - To sell an older boat:

1. - Shine it up and make sure it's running well. If not - Sell it cheap!

2. - Make a hand-out folder that highlights all the boat's good points and mentions its less than good points. Buyers appreciate honesty.

3. - Ask a price that is comparable to similar boats

4. - Set a bottom line price in your mind of which you will accept no less

5. - If selling through a broker... Follow directions, but keep your eye on the bouncing ball.

6. - If selling yourself - be ready to put in lots of effort and to be a "Horse Trader".

Happy "Boat Sale" Daze! - Art

 

[backinblue]

Purchased our sailboat and trawler without financing because being on the water is a life style that rewards us not in a monetary way. A explanation might be why after 18 years we wept after delivering our Cape Dory 28 to the new owners. Physically our sailing days came to a end as all boating will do one day and we had already decided on trawlers. Boats have meaning to us without much concern with value.

Good point. The happiest days of boat ownership don't always include the day you sell it as some would have you believe.. When I sold an O'Day sailboat that I had purchased new and cruised for years, I was somewhat sad when the buyer offered my asking price and had to take a minute to think whether I really wanted to sell it.

 

[Bryant]

boat value

A thought and a question. (And I will probably rewrite this a dozen times before I think I have got it across right!).

As you think about your boat, how do you value it in monetary terms?

I am not talking about the intangible value of the enjoyment, experiences and health values etc. you get from it (which I agree with). But hard cold cash value. And not from a stance as if you were listing her for sale.

When you consider your net worth do you add in what you think your boat is worth? While you love you boat, do you still see it has a dollar/pound/Euro value? You see it as part of your estate?

I kept the last three cars I had until they were only worthy of donating to the Salvation Army - including an aging Jaguar XJ8!
For some reason I don't view Sonas as an asset. My brain knows it has value, but my sense is if I use it for as long as I can and if it has no or minimum value at the end I won't care.

That's not to say I am not maintaining her "with an open check book," and my brain tells me that she is worth quite a lot, but for some reason I don't look at her as having current monetary value, or feel I ever will.

Anyone else?

Or a strange thought?

A good question, particularly for those of us who aren't spring chickens anymore.
I think an honest and valid approach to the position of your boat's value in your current portfolio, savings, investments etc is take the value listed on your most recent survey (if it's recent), and halve that. That's a pretty close figure to what your boat would bring in a quick sale for whatever reason. It does have value and is an asset; probably better than you think.

 

[Chrisjs]

Some brokers are willing to share actual selling prices for boats sold from Yachtworld listings. The "prices" shown on YW are really just suggestions, and generally those prices do not hold up well in the real world. You just need to read the many postings on this forum about getting the best price when buying a boat to know that it is generally a buyer's market and buyers always want a bargain. The problem is that what goes round, comes around. When you go to sell, the next buyer alo expects to drive a hard bargain.Getting actual selling prices (not listing prices) at least enables a seller to price to market. I would guess that comparable boats listed on YW generally sell for no more than 80% of original asking price. The you need to figure in the 10% brokers fee. So, if you plan to figure your boat into your net worth, best to think of a figure that averages YW prices for similar vessels, then reduce it by at least 30%. But of course if your boat is in an estate sale, you will not care that your executor is going to dump the boat at whatever price they can get quickly!!

 

[Salish Nomad]

A fair question. Rather than fair market value, how about how many trips to Alaska it will provide.....for you, maybe trips to the Bahamas. If you'd care to monetize that (I don't), what would bare boat charters cost you, denominated in months, to have these adventures? My goal is to use the boat so much that I've extracted most of its utility by the time I'm too old to use it. At that point, it doesn't owe me much. That's real value, to me.

Same here.

 

[Arc]

My true dollar value is about 150k but that’s not how I value it. It is really 365k because that is what the boat would cost me if I was ever to upgrade.

 

[Simi 60]

A fair question. Rather than fair market value, how about how many trips to Alaska it will provide.....for you, maybe trips to the Bahamas. If you'd care to monetize that (I don't), what would bare boat charters cost you, denominated in months, to have these adventures? My goal is to use the boat so much that I've extracted most of its utility by the time I'm too old to use it. At that point, it doesn't owe me much. That's real value, to me.

As a full time cruiser living aboard full time for 4 years, ours owed us nothing in year 3 if taking into account cost of renting the dirt house equivalent.

Add in the trips and if we had to charter her equal probably paid for in month two.

 

[LongStoryGB36]

I’m going to answer from another point if view...

1977 Grand Banks 36 Classic
$ 83,500. (For sale)

Upgrades, fuel, maintenance, dockage, dinners, drinks, small gifts to friends made along the way as we travel the start of the loop.

$ 14, 400.00 (2+ years so far)

Total Value:

Priceless... the investment is small for the things we have done, the places we have seen so far, (with more to come) and the people we have met and become friends with. We could have taken 8-12 all inclusive vacations, and not had the memories we have to date. Plus we still have our boat, the investment that is our home. She can easily offer someone all these same experience.

That’s how we value the life style.

 

[BevinB]

When I talk myself into buying anything for my boat, including the boat, I use the term ‘dropped’ because in my mind once the money is spent it aint coming back. In the last 9 months I’ve probably dropped close to 50k on upgrades and additions. My boat is a part of the family.

 

[ksanders]

Like my home I do not consider the worth of my boat in terms of dollars.

It is something that has no value unless it gets sold, which is not happening.

Yes it is part of our net worth but we do not think about it (or our home) in that way.

 

[Cartouche]

A thought and a question. (And I will probably rewrite this a dozen times before I think I have got it across right!).

As you think about your boat, how do you value it in monetary terms?

I am not talking about the intangible value of the enjoyment, experiences and health values etc. you get from it (which I agree with). But hard cold cash value. And not from a stance as if you were listing her for sale.

When you consider your net worth do you add in what you think your boat is worth? While you love you boat, do you still see it has a dollar/pound/Euro value? You see it as part of your estate?

I kept the last three cars I had until they were only worthy of donating to the Salvation Army - including an aging Jaguar XJ8!
For some reason I don't view Sonas as an asset. My brain knows it has value, but my sense is if I use it for as long as I can and if it has no or minimum value at the end I won't care.

That's not to say I am not maintaining her "with an open check book," and my brain tells me that she is worth quite a lot, but for some reason I don't look at her as having current monetary value, or feel I ever will.

Anyone else?

Or a strange thought?

I have her on my Spreadsheet at Fair Market Value and a depreciation % yearly but she is definitely on the asset side of the net worth sheet

 

[Art]

Shine our Tolly up and with new bottom job = just about what we paid for her in 2008, maybe even a couple thou more. That is: Same basic # of dollars... of course minus depreciation in per dollar value.

We did get a smokin deal on her - 12 yrs. ago. Not that it matters... not selling her now anyway!

 

[Leo Reise]

Interesting concept. My logic - cars and boats are toys. Toys have value zero. They do not fall into our asset list. Now before anyone jumps on me, my boat, 31 year old trawler, and cars, 10 year old Lincoln, and 2 year old Escape are nothing special. They do have a value, but they are disposable and life would continue.

 

[Seevee]

For most of us, our boats have monetary value. If it sank, we'd want to replace it, so we insure it for xx value. We want the value out of it when we get out next boat. And some of us want the value out of it when we sell it to go back to a dirt home (God forbid!)



Boat's are not priceless, but they sure can bring priceless events and enjoyment, and yes, we get attached to them. Take care of them, feed them when they are hungry, heal them when they're sick, give them presents and improvements. And some of us even give them a hug.


Now, boats, cars houses and planes are NOT investments. They are expenses, unless they produce and income. I guess you could call the home you live in an investment, because it will most likely produce an income or make money over time... but we have to live somewhere, so we'll spend it (hopefully on a boat).



As for keeping a boat on the balance sheet, yes, I do that. Just for my own perspective and for my kid when I croak. No one elses business.


Now, when selling and we have to determine a value, I could make an argument to price it similar to others that are like yours and fix it up so it's better... or just price it a bit below and SELL it. When it's time to sell, SELL, do whatever it takes to make the sale fast. Time is money and the cost of ownership is money, and you don't want to have those hanging over your head when you want to get on with your next boat.