Why get Help with Buying Your Yacht?
If you have come to my website and I don't have just the right boat, I understand. My guiding principle for boat shoppers is "I am not here to sell you any boat; I am here to help find you buy the right boat". If I don't have it, I'll find it for you; it's all but impossible to have everything in inventory. Read on to see how I do that.
Buying a luxury yacht is an emotional experience and usually the culmination of a long dream. This can be an exciting time and a lot of fun as the vision of cruising off into the sunset is very appealing. My Used Boat Buyer's Guide will guide you in the search.
But preparing yourself and planning for the boat search is very important to avoid hastily buying the wrong used boat and spending too much money as a result of your excitement. If you are a first-time yacht buyer, we'll be especially helpful in our service to you.
Buying used boats can be a time consuming and complex exercise with finding the best boat, pre-surveys, offers, counter offers, arranging sea trials, haul outs and surveys let alone lien checks, taxes, documentation, licensing or registering the boat and making sure that everything listed is there when you take possession. Selecting a yacht broker to assist and represent you is critical to a satisfactory outcome, both economically and emotionally.
I take pride in my role as a Buyer’s Broker. What makes me different you ask? I am a professional who truly loves the business of boating and acts accordingly. I am a boater myself. I'm not going to try and sell you a used boat that you really don't like or I don't think really suits you. Typically, there are those brokers who just list and sell a "unit" sometimes without even seeing it. They have never owned a yacht or a used boat so how can they speak from experience? I own one and can walk the talk!
It’s very important that you know the character of the person you are dealing with. Some brokers care more about their commission than you as a customer. They will likely sell you anything that gets your attention, just for the sale. I’m going to treat you as a friend first, then as a customer. If you want a name of a previous customer just ask; they will be glad to tell you of the service they received.
I offer you a full-service yacht brokerage; from assistance in selection of just the right boat to bringing her home.
At Paradise Yachts, I help make your dream come true. Here’s how I help make your purchase a pleasant experience.
No Cost Professional Help
You can search for and buy your yacht or used boat on your own but are you going to have every possible advantage on your side to help you buy the best for the least? The answer is absolutely not! Read on to find out why.
To have a Paradise Yachts Broker on your side costs you nothing. I make my money from a share of the sales commission paid by the seller from the sale of the vessel. The seller has retained his Broker to find a suitable buyer. When the selling Broker does so and “sells” the boat, the seller will pay the Broker for his efforts.
When I make an offer on your behalf, it is with the understanding that the listing Broker will “split” his commission with me.
Licensing and Bonding – You are Protected.
I am licensed by the State of Florida and carry a bond for your protection. The State of Florida and California are the only two states in the US that have professional regulations covering yacht brokers.
I have received a full background check of my past business practices and am bound by a specific code of ethics and regulation.
My Florida license number is 5822 issued by the State of Florida, Department of Business and Professional Regulation.
Hands-on Experience
Would you buy from a Broker who has never owned a yacht or used boat? It's like taking flying lessons from someone who has never flown a plane. At Paradise Yachts, I speak from experience. Mary, my wife and I own a 40 foot trawler, the Patricia Ann. We have lived aboard and cruised her for over 6 years. You can visit my personal trawler here. I do 95% of the preventative maintenance on her so I know what to look for on boats. I'll use my knowledge when we are evaluating boats for you.
Mary and I know a thing or two about the nautical lifestyle. We invite you to come and see us; look around our boat and talk. If you need further confirmation of the nautical lifestyle, we even extend invitations to our future customers to go out with us on the Patricia Ann to experience the feel of independence, freedom and “life on the hook.”
Pre-qualifying for Marine Financing and Insurance
There are a few things I urge you to consider before you begin to search for your used boat. You may want to pre-qualify for a boat loan before you shop. That will give you some extra leverage and breathing room when you're shopping. I have access to some of the best marine finance sources available and will arrange for you to meet with them.
I also have a relationship with a number of independent yacht insurance brokers who can also get you the best coverage for your money. I’ll put you in touch with them so you can get ahead of the game early on.
Locating the Perfect Yacht
When you enlist me in your yacht or used boat search, the first thing we’ll do is prepare an “inventory” of your “perfect” yacht. What are the features you can’t live without and those that are optional? I will listen closely to your wants and needs and help you determine if the used boat you are considering is the right boat for you at the best value. I’ll give you a checklist to take home to help you with what features are available. We’ll use that in our search and selection process. We are also members of the world's largest yacht multiple listing service, Yachtworld.com. Here you can browse thousands of listings. When you find one that interests you or may have potential, just send me the listing number and I'll take it from there.
Buying a used boat is compromise and some will suit your intended usage much better than others. A sedan trawler with full 18" walk around may not look as sleek as a motoryacht but you will be able to reach the dock without being an acrobat. The trunk cabin trawler looks salty but a sundeck model will keep your guests dry when it rains.
The varieties of equipment and layout are endless but the benefits and downfalls of each will quickly become apparent after spending some time evaluating each vessel.
I’ll be quick to point out the pitfalls of certain boats. I’m going to advise against yachts that I do not think will fit the bill.
Once we have a good idea of the “perfect” boat, I’ll look at your choices and begin to provide you with examples of models that best fit your needs.
I will determine if there are similar repossessed or used boats on (and off) the market, the history of the yachts, how long they have been on the market, and the motivation of the seller. Once we determine which styles will work best, I’ll then do some background investigating, making calls to the listing brokers, about the condition of each one. I’ll give you feedback to save you frustration and disappointment.
Once we determine which boat(s) is potentially, just the right used boat, I’ll use a Purchase Prequalification Disclosure to obtain details about her. I'll then personally visit each boat, speak with the listing broker, and see for myself if the used boat will meet your needs. I am going to look at things you will probably not consider and ask questions about things that never occurred to you. I am there to help find the best boat at the best price for you.
When I locate a few used boats that might just fit the bill, we’ll schedule a trip to go look at them. You will want to have me at your side when you look at them. You are going to be excited and would not want your emotions to get the best of you causing you to act in haste. I will be your devil’s advocate, helping you make the best decision and help decide if the boat is just right for you. I'll tell you if I think a boat is worth considering.
Preparation of a Fair, Realistic and Conditional Offer
We’ve now found what we think is your perfect used boat. You want to make an offer on her. Anyone can look up asking prices on boats on Yachtworld, but I have an intimate knowledge of current market conditions, the values of used boats, a familiarity with similar boats, and information on recent sale prices and time on the market through industry resources not available to the public. I'll also have an idea of the sellers motivation to make the sale.
The Price - If you call any used car dealer or bank in North America and name any production automobile, they will quote a value of within a few dollars of each other. This is due to the multi-billion dollar, organized wholesale car auction system. With over 15,848 boat manufacturers (USCG Listings) represented in North America there is no such market for used boats and there is no official Yacht Blue Book that gives retail and wholesale prices. In essence, finding the right Broker who can correctly appraise the yacht is the only way to acurately find the "blue book" value of used boats.
Simply speaking, a used boat is only worth what you are willing to pay and a seller is willing to take. I research what the boat you are considering has been selling for in your part of the US. That then becomes our basis for your offer.
The Offer – Once we determine what the boat has been selling for we will arrive at an "Offer to Purchase" price. The price will reflect:
- what your budget will allow
- what is realistic to buy the yacht based upon her age and condition, and
- protection for you as conditional.
The offer will be made conditional on a satisfactory marine survey and sea trial. Other conditional items may be added as well.
I’ll ask you to make a good-faith 10% deposit on the boat. I am required by law and do use an escrow account for your offer deposit and ensure that at closing, any existing loan or other encumbrances are paid off. This safeguard is of critical importance to the buyer and seller, and can be a potentially serious hazard in a private transaction not involving a broker.
Survey and Sea Trial
Part of our offer will be to have a marine survey completed with the findings to your satisfaction. I know many certified surveyors and I’ll recommend several that are “top shelf” and ask that you interview and select the one you prefer; here are some pointers on how to choose a surveyor at this post. You may wish to use an engine surveyor as well as a hull surveyor. They work for you! Of course, you are responsible for the survey cost. The going rate in Florida is from $16-18 per foot. It is customary to pay the surveyor on the day of his work.
On the day of the sea trial, we’ll bring on board the selected surveyor(s) to inspect the vessel in detail. His job is to operate, test, and evaluate everything onboard to make sure it works and is in serviceable condition. He will use up the bulk of a full day going through the entire vessel. I’ll be there with you.
You have to be realistic about a marine survey. Surveys are limited by how well he can access the boat's systems. No surveyor can find everything that’s wrong with a boat. Some parts of the used boat are not accessible unless you cut through a bulkhead and we're not going to do that. Oh yes, during the survey it’S ok to ask your surveyor questions of how he’s doing, just don’t hover over him. You’ll get in his way.
In virtually every survey, there are issues with the used yacht that arise. Some may be minor but some may be very important. If the significant issues are such that we have an "bad" vessel and you no longer want the vessel, you still have language in your Offer to Purchase that will allow you to back out of the deal. If the issues are correctable, we again negotiate with the seller and determine if the seller will correct the items before we take delivery or reduce the price accordingly and you correct those things after you take possession. Those issues are resolved by us in our Final Acceptance document.
On the day of the survey, we will also conduct a sea trial. During the sea trial you will get to operate all of the onboard equipment, run the vessel at operating speeds, observe how she behaves and basically operate the vessel and everything aboard to make sure she is what you expected. I’ll be there at your side to help you along the way.
Language in the Offer to Purchase we have prepared states that if you don’t like the way she handles you can walk away from deal and have your deposit refunded.
Final Acceptance
Once we have completed the survey and sea trial, our Offer to Purchase requires you to sign a formal acceptance document and either accept or reject the used boat. We generally include any issues you want corrected as a result of the survey as well. This acceptance document is submitted to the seller for his signature too.
Once signed by both parties, this document serves to initiate the final legal closing for the yacht.
Closing Costs, Documentation, Bills of Sale, Title Abstracts and State Sales Taxes
Yes, there is legal paperwork that documents the purchase. We will facilitate all the paperwork requirements needed to complete the sale, from the initial Offer to Purchase to the Bill of Sale. We take care of documentation, taxes and other fees, as well as certificates of ownership, and title abstracts you will need.We will see to it that all the necessities are completed in a timely manner.
We use a third party company to handle documentation, title abstracts, USCG recording of Bills of Sale, offshore registrations, etc. We pass our costs directly to you with no markup; the total closing cost to you for a standard yacht or used boat purchase in the US is about $600.00. Paradise Yachts will never charge you an administrative fee.
Taxes, yes the government always wants their share. But there are certain circumstances when you do not have to pay state sales taxes. I will review your options when the time comes.
Assistance After the Purchase
You Have Your Boat – Now What? It’s taken us a few months to locate that beautiful boat and now she’s yours. What’s left for me to do?
At Paradise Yachts, this is what separates me from the rest of the yacht Brokers and boat traders. I will be there after the purchase; you will not be alone.
I have customers that tell me a story of their first yacht purchase. After they bought the boat, the broker handed them the keys and vanished. I work differently.
As my customer, you can expect me to offer:
- Help with improving your boat handing skills while bringing her home,
- Hands on navigational instruction while underway,
- Instructions for safety on the water,
- Guidance on your new boat's systems,
- Purchase of new boat equipment at wholesale prices from West Marine - Port Supply
- Coordinating and scheduling of yard work if there is any to be done,
- Providing a resource for any questions about your boat that you might have later on; I'm just an email away.
For the Ladies - "Making Waves"
It's a known fact that 85% of used boats and yachts are purchased by couples. Boating has long been considered a manly activity but in the past 5-10 years, more women are getting involved. You ladies no longer want to be confined strictly to the galley; you now want to be part of the total lifestyle. To become a fully functioning cruising team, you want to do your part.
Generally, men assume the Captain's role of the yacht's operation and the women assume the role of the First Mate or as Mary says, the Admiral.. At Paradise Yachts, we are going to help you learn both of those roles so you can better enjoy the lifestyle. We'll do most of this hands-on while we are underway. Read what Mary says about her role as First Mate.
As our customer, you ladies can expect to receive guidance from me on a number of topics necessary for you to feel confident on the water. And of course, there will be no yelling and screaming.
- Detailed instructions on chart reading,
- Knot tieing , handling lines and fender deployment,
- Boating safety - man overboard drills, propane cooking systems,
- Using the windlass and anchoring your boat
- Driving the yacht; you may want to do it for fun or to be prepared for an emergency with the Captain
- Boat care and cleaning tips,
- Any other topic you may think of.
As we discuss these various topics, I'll make sure you understand what the Captain is doing as you complete your roles so you will both be coordinated. I'll also let him know what you are doing as well.
International Customers
If you are an international customer, you can expect the same service as those in the US. I will find your chosen used boat, facilitate your purchase and get her to port to have her shipped to you. You can read about a recent purchase by a customer from Singapore and France at my Cruising Center
At Paradise Yachts I go beyond the final sale, I make boating friends for life.
Questions and Answers - (Actual Questions Presented to Me by Customers)
Why should I use you as my Buyer's Broker? I can look up and find used boats on the Internet by myself?
Sure you can, and I encourage you to do just that. But when you find that used boat, you will have to take the selling Broker's word that it's a good boat and I am sure you have been that route before. You can't simply look up the blue book value of used boats and yachts, and it can be difficult to estimate a repossessed boat's or used boat's value without a broker. I will investigate the boat before you travel to see it, saving you time and frustration. I'll also uncover the seller's motivation; discovering what you can really buy the boat for and what should you pay for the boat in your area. I'll also be there to take a look at her with you, likely looking for things you would overlook. I'm also going to help you with getting her home; helping you brush up on your boat handling and navigation.
Is it acceptable to use 2 Buyer's Brokers at the same time?
No, that's going to cause problems. Brokers generally use the same Multiple Listing Service, YachtWorld, to research boats. Using more than one Broker would have them possibly presenting the same boat to you. And I will spend enormous amounts of time researching boats for you. I am committed to you, my customer, with the understanding that I will receive compensation for my efforts.
If I decide to use you as my Buyer's Broker, is it ok to call the listing broker when I find a used boat on the Internet?
No, let me make the call on your behalf. Why? If you make the initial call on your own, the listing Broker is likely to claim that you are now his customer and refuse to allow me to be involved. I would be unable to help you at all. This actually occurred last year on a $500,000.00 boat my customer was interested in. We had to walk away from that boat.
How much out of pocket money does it cost to survey, sea trial?
The surveyor costs between $14 -16.00 per foot of the boat he's surveying. The haul out to inspect the botom and running gear costs about $300.00. These costs are for NE Florida but may run a bit more in South Florida. The buyer is responsible for these costs. The seller will bear the fuel costs to operate the boat.
I've heard that surveyors and Brokers team up just to sell a boat?
I've heard of that hapening but I do nothing of the sort. I know surveyors from a professional standpoint. If you ask, I will recommend some that I know that do a thorough job with surveys and treat their customers appropriately. But I ask that you evaluate and choose your surveyor yourself.
I am a first-time big yacht buyer; the thought of handling a big boat while docking scares me. Will you help me?
Sure I will. As part of my service, I help my customers learn their boats. I'll spend some time demonstrating how to properly do it then I'll let you take the helm. Of course, I'll be there to offer words of encouragement, not letting you get into trouble. You really learn by doing it; after all we all had to learn somehow.
If we find our new trawler in SW Florida, will you help me get her through the Keys or Lake Okeechobee?
How do you use your Purchase Prequalification Disclosure I read about on the website?
This document came about as a result of my searching for boats for buyers and finding that a used boat I was led to believe was good, was in fact not good at all. I am the only Broker I know of that goes to this level of detail on evaluating boats for customers.
I provide this 5 page questionnaire to owners of vessels and ask them to answer the specific questions about the condition of the boat's systems. I ask that they return to me with a signed certification that the information is true to the best of their ability. I've found that an owner with a good used boat will gladly provide this to me. On the other hand, I've been refused by some owners. That represents a red flag indicating that the owner must have something he wishes to hide. I will not visit a used boat for a personal inspection nor recommend the boat to a customer without a completed Disclosure.
Do people really make offers on used boats without seeing them first?
Yes, it does occur and it is very safe. Generally, I write the Offer to Purchase such that it is partly based upon your personal inspection. This way, if you cannot travel to look at the boat immediately; you rely upon my advice that I have found you a good boat. If you don't like it when you do see it, you can back out and have your money refunded. I bought a 48 foot Hatteras for a couple not long ago this way.
I found a boat last March for a buyer in Singapore. He visited me in the US in April and we looked at a number of used boats but did not find the "perfect" one. He left the US and gave me instructions to find him one based upon the specifications that he gave me. Three weeks later, I found his boat and made an offer on it on his behalf. I then personally surveyed and sea trialed it and bought the boat. Thirty days later, I sailed her to Ft. Lauderdale and placed her on a ship. Just 10 days ago, June 17th, the boat arrived and he saw it for the first time; he was very pleased.
