Thursday, February 28, 2013

Pricing & Asking Price

Pegging the right asking price is probably the single most important factor in selling the Gulet: price the boat too high and she won't sell, too low and you leave money on the table. Getting the price right based on age, condition and desirability is more an art than a science, and the broker you choose should add valuable insight here.

He or she will usually begin by consulting Used Boat/Yacht Price Guide. Used Boat/Yacht “Gulet” Guide is an internet-based portal brokerage sites where broker-listed yachts are displayed, usually including full specifications and numerous color photos. As the vast majority of brokers have their listings posted on this site, it provides a quick, accurate overview on asking prices (actual "sold for" prices are also available but only to brokers, another benefit of working with a broker.

While portal brokerage sites are good places to start, brokers also offer insight based on their experience as to what your particular Gulet will command based on condition, model, recent selling price of sister ships, etc. This is especially critical with classics, custom one-offs there won't always be comparable vessels on “portal brokerage sites”.

It's very important to be realistic about the price you can expect for your Gulet. Sellers often "just want to get my money out of the boat/yacht". This may or may not be realistic; usually it's not. Most Gulets, more than about 10 years old don't depreciate if they are well-maintained; however, it is almost always unrealistic to expect them to INCREASE in value, especially in the current market. This generally holds true regardless of how much you spent on upgrades and is especially true if you weren't meticulous in maintenance!

Most investments in such items as stabilizers, bow thrusters, electronics, redecorating, new isinglass enclosures, etc, will only return at best about 15-20% of the original investment, and to get even that, the investment needs to have been made no longer than three to five years ago. An additional rule of thumb: the more you add to your boat, the less you'll get back for each new piece or system added.

While Gulets in South-West Turkey condition do command a premium, more than 20% above the average asking price for a similar Gulet is rare. What will happen is that a clean, well-equipped Gulet correctly priced will sell more quickly than the average comparable Gulet, but not usually at a huge price premium.

A corollary to this is that a boat priced above market will languish unsold, sometimes indefinitely, until the price is brought in line--it's our very clear experience that a Gulet priced unrealistically high will remain unsold literally for years. So, while it makes sense to initially list a desirable Gulet in South-West condition at a premium, if she's still on the market one year later, it's time for a price adjustment!

During the selling process, a Yacht Broker can advise you on what is happening in the marketplace including price, financing and terms. These are key factors in getting your yacht sold at the best price, quickly and with minimum hassle.


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