The Sales Agreement

Selling your boat can be a relaxed, positive experience, but don’t rely upon a handshake and a “gentlemen’s agreement” when it comes to finalizing the deal.

First, write a sales agreement, outlining the terms of the sale and the obligations of the buyer and seller. Refer to “Sales Agreement” at for more details.

Ask for cashiers or certified checks for both the deposit and the final payment. Stick to an agreed-upon closing date.

Be prepared to renegotiate the sales price when it comes to items that need repair or when the boat has a less-than-satisfactory marine survey.

If you agree to make repairs prior to the sale, for your own protection, spell out your obligation in terms of exactly what is to be done and how much you will spend. Written estimates are helpful.

Do you have personal items on the boat — the ship’s clock that’s been in your family for generations, for example — that you don’t plan to include? Attach to the sales agreement a list of all the accessories that convey and have both parties sign it.

Unless you can afford the loss, don’t offer to finance the boat! The risk involved is not worth the often small amount of interest you stand to gain. And, if you have a boat loan outstanding or hypothec, the lender may not permit this arrangement.

A Yacht Broker can help close the sale of your yacht. Between the initial sales agreement and closing, problems may arise. For example, unexpected repairs are required or a query in the title is discovered. The paperwork can be overwhelming for some sellers. A yacht broker is the best person to help you resolve these issues and finally sell your yacht.

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The Seller's Obligations

A serious buyer will want to have your Gulet inspected by a marine surveyor and possibly have the engine looked over by a marine mechanic. This will involve haul-outs and sea trials.

These expenses are normally borne by the buyer and any “destructive testing” — for example, scraping bottom paint to look for osmotic blisters — must be repaired by the buyer.

Ordinarily, there is no obligation on the seller’s part to volunteer information the buyer doesn’t ask for, but this doesn’t give the seller carte blanche to withhold information about a known defect or condition that renders the boat/yacht “Gulet” unsafe.

Remember, there is a fine line between passive failure to disclose information and active concealment. If an accident occurs later, previous repair records or complaints to the builder may come back to haunt  you.
This is also true for liens and other debt encumbrances that might cloud the transfer ownership.

Selling your boat/yacht  in “as is” condition may be protection against nitpicking later on, but it may not protect you if a serious problem arises.

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What Can The Seller Do To Expedite The Sell

As noted above, the most important thing the seller can do is price the boat realistically. Beyond that, it's critical that the boat show well.

You can't underestimate the importance of a sparkling boat! Purchasing a yacht is largely an emotional decision (who actually NEEDS a boat?!) and first impressions are important. Anything you can do to bolster this first impression will result in a faster sale at a better price.

The most common reason boats are put up for sale is that they're not being used, and often it's been quite some time since anyone was even on board. Under these circumstances, the boat probably won't sell quickly or for anywhere near top Euros. What you need is a plan of action:

1. First, get all your stuff off the boat! Most boats collect an amazing assortment of foul weather gear, toys, dirty clothes, supplies and just plain junk over time. While empty homes look stark, boats have smaller spaces and built in furniture; they look best empty and uncluttered. So GET RID OF EVERYTHING! What you can't get rid of, hide! Then...

2. Give her a good cleaning inside and out! Most sellers wouldn't dream of showing their house to prospective buyers without tidying and cleaning, and the same holds true with boats. Second only to setting a realistic asking price, this is the single most important thing you can do to ensure a quick sale for top Euros. Take extra care to...

3. Make sure the head is clean and the toilet works. The holding tank should be empty and the toilet and lines filled with FRESH WATER with a bit of chlorine bleach added. You'd be surprised at how often this seemingly common-sense advice is overlooked and the dire consequences thereof! Also...

4. Clean the bilges. The bilge is too often "out of sight, out of mind" to owners, but rest assured the surveyor and buyer will take notice.

5. Have you deferred maintenance for a couple--three years? More? Sorry, this is when your sins come home to roost! Deferred maintenance must now be addressed with a vengeance:

* Varnish the exterior bright work, oil the interior teak, refinish the teak and holly sole. If you don't have the time or inclination to do this, have your broker coordinate the project for you.

* Keep the batteries charged so the engine(s) start for the sea trial. It's a good investment to replace starting battery(s) if they're more than a year or so old--dead batteries can kill the sale.

* Service the machinery (engines and generator) by changing the fluids (oil and water) and filters. Aside from the hull, machinery is the most expensive component of a boat; any problem here will seriously jeopardize a sale (so now's the time to replace that old starting battery!).

* Keep the bottom clean and zincs fresh. You should have a diver scrub the bottom and check zincs regularly while your boat is for sale. A significant beard on the bottom says the boat has been ignored, and this isn't the message you want to send.

* Remove all canvas, covers and accessible lines and wash in a commercial front-loading washing machine.

* Have all safety equipment up to date. This includes flares, fire extinguishers and life jackets, as well as bilge pumps and blowers.

While sellers are often reluctant to spend money on a boat they're selling, money spent preparing her for market is well spent; the investment is usually more than recouped in a higher selling price. Also, most of the cosmetic items above can be accomplished with nothing more than a few hours and some elbow grease!

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Advertising & Marketing Ideas

Getting your boat shipshape in terms of cosmetics and repairs is the first step towards getting her sold.

• Getting the word out is the next step. To book ads in brokerage web-sites are an obvious choice, but don’t overlook international boating publications. Word of mouth, brochures and CDs are also effective.
• Prepare a complete list of the accessories that will convey with the boat.
• Be prepared to show prospects your original bill of sale, certificate of documentation as well as maintenance and repair records. Buyers may also be interested in your insurance costs, so they can estimate their own expenses.
• Post “For Sale” signs on your boat but be aware that some brokers will eschew to list your boat if you have contact numbers on the sign.
• Be there for buyers! GSM is handy, but a live person is better when it comes to selling. Return messages and e-mails promptly. Keep noting of who you talk to and follow up on inquiries.

A yacht broker will know when and where to advertise your yacht to the public. Over 75% of yacht transactions are cooperative sales through other yacht brokers. Through worldwide Multiple Listing Services and other marketing networks, a broker has the tools to maximize exposure to your yacht.

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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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When Is The Best Time to Sell Your Gulet

Unlike the small Gulets or sales of larger Gulets remain fairly stable throughout the year; there is very little seasonality in buying of boat/yachts. This makes sense, given that the weather in South West Turkey is fairly stable year-round and that there are usually larger issues driving the buying and selling of these Gulets than the season.

Having said this, winter--specifically between late April and mid- October--is generally slower, in terms of numbers of people looking at boats, than other times of the year. Note that traffic might be lighter, but prices are not affected.

The best advice is to list the boat once you've decided to sell it and have decided whether to do so yourself or utilize the services of a broker. There's no need to "wait until the spring"--the market remains active year around here in the South-West.

For the private seller it is important to research every aspect of the selling process. The best time to sell a boat will be at the start of summer when the demand is high and equally the best time to buy will be off-season.

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Centeral or Open Listing

If you elect to use a broker, the next choice you'll need to make is whether to sign a central or an open listing. A central listing means that the broker has right to advertise, market and show the Gulet and that all other brokers correspond with the central broker in terms of showing or making an offer. If another broker sells the boat, the commission is split with the central agent. This ensures that he will be compensated for advertising and marketing costs, as well as offering incentive for other brokers to sell the boat/yacht.
Note the central listing does not preclude other brokers from selling the boat, only from advertising it. If another broker sells the boat, he will receive half of the commission, with the listing agent receiving the balance. Thus, other brokers have incentive to bring in buyers, and the central listing agent has incentive to aggressively advertise the boat.

The other option is to sign an open listing, which means that other brokers can advertise the boat, and whoever sells the vessel receives full commission. If the owner sells the boat himself, no commission is paid the broker.

Obviously, brokers prefer a central listing. Unless the boat is very clean and very popular, brokers will be reluctant to invest as much in marketing a boat if other brokers are representing the same vessel. There are several sources that most prospective buyers look to (Yachts For Sale, Apollo Duck, Yacht World, etc.), and having numerous brokers advertising the same boat in the same location probably won't result in a faster sale.

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Selecting A Right Broker

Once you decide you are ready to sell, your next decision is most important: With whom will you list your Gulet? The wrong decision will likely cost you time and money! Let me offer some important points to consider:

Don't choose a broker who will be learning their trade at your expense. Choose someone with plenty of experience! Unlike many brokers who are not boaters themselves. Buying or selling a boat can have its frustrating moments. Why not have someone representing you who has been through the process over 100 times?

In order to make all this effort on your behalf, a good professional broker will provide you fallowing services; The brokerage fee is the standard ten percent. Broker services will include:

1. Comparable market analysis of current, similar listings, book values, and actual closed "comp" sales, to estimate the fair market value.
2. A personal inspection to determine what detailing or maintenance would be "cost-effective" prior to actively marketing the boat. As they say, "You never get a second chance to make a good first impression".
3. Personally farming out the detailing or maintenance, if required. They use the right people to get the most value for your money.
4. Preparing a detailed specification sheet, subject to your approval, including 10 to 50 photos of the boat.
5. Sending out a broadcast email announcement featuring your Gulet to the most active brokerages.
6. Featuring your Gulet in advertising as previously discussed.
7. When negotiations are underway, communication ability is critical. They should be reachable 24 hours a day via cell/voice mail, home/office, etc.
8. Negotiation of an acceptable sales price and terms.
9. With your permission, a pre-sea trial will be conducted, if practical, to preclude any unpleasant surprises during the actual demonstration to the buyer.
10. Advise you on fair negotiation of survey recommendations, which almost always come up. Many Gulet deals fall out during survey!
11. Handling of survey repairs, title search, bills of sale, loan payoffs, insurance, offshore delivery, and closing paperwork, etc.
12. Assisting you with the acquisition of your next boat, if you so desire.

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Should You Sell It Yoruself

Broker commissions on used Gulets are typically 10%, a good incentive for selling a boat yourself.
Selling it yourself has drawbacks, however. You will be responsible for keeping the boat in selling condition. And, since most boat shopping occurs on weekends, expect to be tied down during your time off. Finally, like many others, you may simply dislike negotiating. Boat/yacht brokers lighten the seller’s burden by handling some of the paperwork, they know how to find buyers and they advertise on a regular basis.
If you decide to use a broker, check references from past customers. In Turkey, not required any form of boat broker licensing. It’s best to keep agreements short-term in case the broker isn’t successful. Ask for frequent progress reports. Remember, like a realtor, a Gulet broker represents the seller’s interest, not the buyer’s.

Brokerage agreements may take any one of the following three forms:
• An open listing, in which the owner can sell the boat himself (commission-free) while listing the boat with a number of brokers.
• An exclusive listing, which is given to a single broker who can earn a commission even if the owner sells the boat.
• A central listing, which splits the commission between the listing broker and a broker who actual manages the sale.

Multiple listing services are another option but these computerized selling outfits don’t give guarantees and they won’t tell you how many buyers have made inquiries.

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Selling Through A Broker

Brokers maintain files of Gulet listings placed by individuals wishing to sell their Gulet. They also have "boat wanted" files for prospective buyers looking for something different.

Sometimes brokers share listings through a worldwide network. This can extend the seller's exposure beyond the local market. A broker may be contacted directly by a buyer looking for a specific boat or from another broker who has a customer waiting.

Yacht brokers are often overlooked by customers who think their needs are too small and brokers only deal with mega yachts. Actually, Gulets less than 50 feet can be quite expensive and are worth considering the use of a broker's services. The average size Gulet handled by brokers is 80 feet, with a range from 40 feet to two hundred feet in length. The smallest Gulet is 8 meters and the biggest Gulet is 55 Meters in Turkey.

Why work with a broker

The two happiest days in the life of a boater are the day he buys a boat and the day he sells a boat.
For some people the buying and selling may be fun, but for others it is frustrating. Those who find it frustrating might want to consider the services of a yacht broker to handle details of the search, marketing and closing of the transaction. Most yacht brokers are independent businesses but some are affiliated with or employed by new Gulet builders.

Both buyers and sellers can benefit from the services of a yacht broker whose job is to arrange transfer of ownership. For their services, brokers charge a commission.

How do you choose the right broker? 

Most sellers rely heavily on references from fellow boaters, and, with a couple of caveats, this is the best method of selecting a knowledgeable, proactive, honest broker. In Turkey brokers are not required to personally be licensed by any Department of Boating, however they ought to be employed by companies that are members of Chamber of Commerce.

It's also critical that your boat be in close physical proximity to the listing broker. Getting prospective buyers aboard the boat is critical in selling it, and this is greatly expedited when she's conveniently located. So, either sign with a broker close to the marina in which your boat lies, or with a broker that has good contacts internationally.

It's now critically important for the listing broker to have a web page of some sort that will allow buyers to virtually "walk through" the boat. This provides a real advantage over brokers not offering this option. Most buyers of boats are well educated and computer literate, and we're finding that most potential buyers have access to the web at their home or office.

Log on and browse the candidate's sites--are they logically laid out and easy to navigate? Do photos accompany all the listings? Do the photos do justice to the boats? Are the photo captions well written? Finally, send the brokerage an e-mail question--do they get back to you in a timely manner?

Once you've identified candidates, drop in unannounced to their offices. The offices should be professional in appearance, with the brokers themselves friendly and helpful. Appearance isn't everything but put yourself in a potential buyer's shoes and ask yourself what you'd think, given your experience at each office.

Having done the homework above, sign with the broker you're most comfortable with. At the signing, let the broker know your expectations--do you want a call every time they show the boat? Brokers don't provide this level of detail without being requested. What about terms at the brokers show dock if applicable? Most brokers split the cost of carrying your boat at their docks, but make sure both parties are in agreement on the split.

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Selling Your Gulet

You love the old girl, but you have to sell her to free up the cash to make the deal fly. How do you make it happen? We canvassed brokers, surveyors, buyers and sellers for their insights on how to make a boat attractive for a quick sale. Their responses will help you make the right moves when opportunity knocks on the saloon door. You can try to sell the boat yourself. But you'll quickly find that any extra money you planned to make by cutting out a broker will come the hard way. The most efficient way to move your boat fast is to place the sale in the hands of a professional. If you want to avoid the bickering and the upset that comes with showing your boat to prospective buyers, let a broker do it for you. Doing it yourself allows prospective buyers to degrade your boat in hopes of having you reduce your asking price.

Let a broker handle the details of the sale. He will do his best to match buyers with sellers. The broker wants to arrange the transfer of ownership in order to earn his commission. Brokers will present your boat to prospective buyers in its best light. By knowing good characteristics of your boat, the broker can emphasize and dwell on positive aspects rather than argue over negatives.

The broker is a professional who has built a reputation on honesty and fairness, so don't expect him to misrepresent your boat. It is this reputation of fairness and honesty that brings customers back again to the broker when they are ready for a change.

Like fishing, there are two approaches to selling a boat. A blind optimism that a “big one” will take the bait in time for supper is risky business. Careful consideration of just what kind of bait and lure will work usually pans out best. Since success depends not only on price, but also on appearance, condition, and seaworthiness, take a long, critical look at your boat and be honest about the things that need to be spruced up or fixed.

Check classified ad listings to see what similar boats are selling for. And, check used Gulet price guides found at boat dealerships and in the reference section of some libraries. A marine mechanic or surveyor can help you put a price tag on repairs. Based on loan pay-off amount, if any and improvements you may have made, establish a minimum price you are willing to accept for your Gulet.

Many sellers set the asking price 10-15% higher than rock bottom so there’s room for negotiation, but be prepared for the “hard-bargain” buyer who offers half what you’re asking. And, keep in mind that when it comes to used Gulets, some boats hold their value better than others.

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