MARINE
SURVEY FOR SELLERS
A marine survey performed at the time a vessel is listed for
sale allows the broker and seller the opportunity to address
deficiencies in advance of the sale’s process, facilitating
a smooth sales process. It also provides a realistic appraisal
and it enhances the listing.
A
seller’s survey, though non-traditional, has been used
as an effective sales tool by many experienced sellers and
brokers for some time. Identifying deficiencies in a vessel,
which will inevitably lead to further negotiations, increases
the closing percentage. Every deficiency which requires negotiation
is another opportunity for the buyer or seller to alter the
course of the sale. Negotiating repairs or contingency fees
delays the sale process. Addressing deficiencies prior to
the sales contract provides for a more fluid and hassle free
sales process.
A
recent survey commissioned by the seller found a loose steering
stop. The problem was potentially serious, as a slight progression
could have resulted in steering failure. Fortunately, the
problem was easily addressed. This allowed the seller to choose
the repairer and repair method with no pressure, effect the
repair and eliminate this problem prior to the sales process.
This is the type of problem, even when skillfully explained,
that can create questions in the buyer’s mind. This
boat is being sold and there will be no issue with the steering
system during the buyer’s survey.
A
seller’s survey does not necessarily preclude a buyer’s
survey. A unique option we are promoting is a “split
survey”. If the buyer and seller agree to share their
surveys, a positive result is obtained from the purchase process,
whether or not that sale is consummated. If the buyer does
not proceed with the purchase, they have saved money on the
survey process and the seller/owner has a full and complete
survey, also at a significant savings. If the sale is consummated,
the buyer has saved money on the survey cost and the seller
has obtained their ultimate goal.
We
offer a seller’s survey at a discount from our standard
buyer’s survey price. The seller’s survey is performed
in the slip, the machine systems are not tested during a sea
trial, the vessel is not hauled but most deficiencies can
still be reported and addressed prior to a sales contract
being signed. The seller’s survey can be coupled with
a sea trial and bottom inspection, funded by the buyer, and
these surveys together should meet all the requirements for
finance and insurance and provide the buyer and seller with
a thorough condition and valuation report, inclusive of a
bottom inspection and sea trial.
Some lenders and insurance carriers are requesting the surveyor
comment on the function of the engines, the sea trial takes
care of this issue.
In
the unsteady economic times we have noticed a sharp decline
in boat values. An independent appraisal of the value is advantageous
to the seller and the broker. The seller can rest assured
that the surveyor has no financial interest in the evaluation
and the independent appraisal can assist the broker in their
dealings with the seller and with potential buyers.
The
existence of a recent marine survey, particularly if done
by a marine surveying company known for professionalism, integrity
and thoroughness, enhances a listing. It provides more information
for potential buyers to consider, thus capturing their attention
and increasing the chances of their making an offer. It provides
additional information for brokers browsing listings and is
an invaluable tool in the listing process. The existence of
a recent survey provides an advantage to the seller in a tough
market where any advantage is important. In the example of
the steering system repair, the survey finding was addressed
and the combination of the survey, recommendation compliance
comment and physical repair, gives the potential buyer an
indication of “pride of ownership”.
Any
vessel listed for sale or potentially for sale should have
the bottom inspected during each haul out. This provides a
future potential buyer with documentation of the condition
of the vessel and may save the expense of a second haul for
survey. It provides the seller with the documentation of the
condition of the bottom, which is often useful when seeking
insurance or financing, which are occasionally unexpected
needs.
Christian
& Company Marine Surveyors is ideally suited to perform
seller’s surveys. We excel in customer service and welcome
enquiries from potential buyers. We communicate effectively
to reduce fear and confusion while accurately portraying the
condition of the vessel. Our friendly office staff facilitates
the transmission of surveys, communication between clients
and our three surveyors and maintains customer service at
the highest level in our industry.
