Potential Costs Associated With Selling Your Boat
There are costs that a seller may incur when preparing a boat for sale. It is our goal to be transparent regarding what someone might anticipate. Below we’ve compiled a list of items that could be applicable when listing your boat through our brokerage service. We have also included ways these costs can be avoided when possible.
All consignment boats are required to undergo an inspection survey by our in-house Technician. If you are not a current customer (i.e. you have not serviced your boat with us within the last year) there is a $400 charge for the completion of the inspection. This inspection acts as a protection to the seller. Best practices are to disclose any known issues to interested prospects directly in the listing.
The consignment inspection survey includes the following work:
- Record & check all information of boat, motor, trailer, including serial and vin numbers
- Perform engine survey which includes checking gear oil
- Engine downloads, compression test and overall appearance of motor
- Check all gauge operation, checking all components/switches for proper operation
- Checking all cushions, canvas components for condition
- Checking overall structure of boat and record any defects
- Checking all rigging components, drains, hoses, mounted accessories
- Trailer inspection of tires, bearings, lights and main frame of trailer
- Also includes launching boat and performing sea-trial and record all data
Does your boat require any repairs?
If there are malfunctioning or broken items on the boat, we will bring these to your attention following our in-house inspection. An estimate will be created for repair and our Technician will review our recommendations with you. The total cost will depend on our Technician’s recommendations and together we can determine the next step. With that said, please keep in mind that we need to ensure a consistent level of quality between our brand reputation and the boats we agree to sell. This also acts as a protection to the seller. We’ve found from past experiences that discovering problems once a deal is in place can delay a closing or, worst case scenario, derail a deal.
Does your boat spend ample time in the water (i.e. sits at a dock, on a mooring or has a slip)?
If your boat is water-kept, we may have to haul it out of the water to showcase it on land with our other available consignment boats. Hauling is an added expense, however, if you have the ability to haul it out and bring it to us on your own you can avoid this. Also, when your boat spends a majority of time in the water, chances are that we will need to power wash it when it comes out of the water. This allows us to clean up the exterior of the boat and get rid of any scum lines, which will ensure it looks pristine in listing photos.
Has your boat been used recently / stored outside?
If you use your boat or it sits out in the elements for extended periods of time, chances are it may require a detail. Of course, if it is immaculate when we receive it we can avoid this service. Getting the boat in tip-top shape enhances the value for resale.
It is critical to protect your boat over the winter months. If your boat does not sell before freezing temperatures you will be required to winterize it. Winterizing fresh water systems is necessary to prevent cracks in pumps and hoses. The damage that can occur when a boat is not winterized can be very expensive. So we suggest that you request winterization from our service department at the end of the season before the freezing temperatures.
During the winter months, space is a premium at our locations. We are happy to keep your consignment here in the off-season, but will have to charge for storage. You can opt to store your boat on your own property if you prefer, which will eliminate any added expense.
Ocean House Marina charges a 10% commission fee with a $500 minimum fee for our brokerage services. This commission fee allows us to take photos of the boat, create a listing that gets distributed across multiple digital marine platforms, manage all communication with interested leads, conduct showings, schedule a sea trial upon offer acceptance, organize paperwork, and provide a formal closing.
In the event that you cannot locate your boat title please let us know at your earliest convenience. This document is necessary to transfer ownership. We’ll assist you with processing a duplicate title application in the governing state.
Does your boat have a lien?
When a vessel has a lien, the seller is required to provide a current loan statement for our records. In the event that a lien exceeds the sale price of the boat, the seller will be required to forward the balance of the loan pay-off prior to closing to expedite the lien release.
Any other costs that may arise could be presented by a buyer during negotiation. This would include terms agreed upon by both the seller and the buyer related mostly to items discovered during the initial inspection. These items will be presented to the seller by the Selling Broker for consideration and from there, a deal will be worked out. Of course, we work for you, and will do our best to counsel you in these situations.
Netting the highest return on investment is always forefront. We understand if it is not feasible to utilize our brokerage service – sometimes a boat’s value is too low to make it worthwhile. In these cases, we still would like to be a resource and invite you to check out our guide to listing your boat privately.