North Point Yacht Sales

What is Included in the purchase price of a used boat?

What is Included in the purchase price of a used boat?
We are commonly asked, "what is typically included in the purchase price of a brokerage boat?" Brokerage or used boat purchases tend to be a bit more straight forward than a new boat purchase. New boats typically come with options and extra features that can drive the price up or keep the price down.
 
Most used boats are listed on an MLS like Yacht World, BoatTrader, or Boats.com. Lets assume you see a boat from Yacht World that you are interested in. The listing built for that boat should give a good list of what equipment comes with that boat to give you an idea to start. That listing is often referenced in a purchase agreement stating you are agreeing to purchase the boat as detailed in the listing.
 
When you visit the boat there may be personal gear from the current owners, spare parts, and other items not detailed in the listing. In any case, I recommend you request a list of the items that will convey with the boat. Sometimes it is simpler to ask that the boat only have items onboard that will convey for the survey, that way you can visually inspect everything you are buying.
 
Now that you have an idea of what equipment and gear comes with the boat, you are probably starting to tally the cost of the other purchase expenses. The Purchase Agreement used by most brokerage firms is written by Yacht Brokers Association of America (YBAA) and helps explain who pays for what and who does what during the purchase. The buyer is responsible to pay for the survey of the vessel, and any expenses incurred in doing so like launching the boat if it is on the hard.
 
Buyers are also required put the vessel back as it was prior to the survey. Aside from survey expenses, you will pay taxes on the vessel in the state of use, and will likely have a small processing and registration fee from the brokerage firm handling the paperwork for the closing of the transaction.
 
There are likely one or two brokers involved guiding the sale and purchase of this boat. Who pays them? The seller likely has a listing agreement in place that states he is paying the selling broker 10% (on average) of the purchase price of the vessel.
 
If you as a buyer have your own broker, there is no out of pocket expense to you. Your broker then splits the brokerage fee with the selling broker.
 
It is a common misconception that having a buying broker either costs more out of pocket or increases the sale price of the vessel because two mouths are being fed. It is our experience that is simply not the case and having a buying and selling broker involved leads to more successful transactions.
 
Article by Grady Byus
 
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