IYB Yachts... Who We Are, What We Do
A yacht is a reward for a job well done. It’s the culmination of all the hard work that you did to be able to kick your feet up, smell the sea brine while sipping a glass of wine and forgetting that once upon a time you woke up at the crack of dawn to chase the American dream. Now, you want to live the dream! However, finding the right yacht requires planning and work before you can dream.
The single most important criterium is to know what you want. On this site we offer a method to do that called “16 Questions Before You Buy.” If you don’t narrow down your search, you will waste your time visiting yachts not appropriate for your needs. Secondly, let us, visit and inspect the yachts of interest to make sure they are as represented in the ads. This will save you travel time and survey expenses. The objective is to be able to narrow down inspections to a half dozen boats.
Finally, once you have made your decision and final selection, let us negotiate the best possible acquisition price. We will provide you a market analysis using as many comps as possible and utilizing the same database as NAMS and SAMS certified surveyors. Why is this important? You need to know ahead of time that your offer is based on actual market value and that the surveyors will not determine a completely different value that would kill the deal. Furthermore, if you decide to finance the yacht, banks require NAMS or SAMS surveys and these must sync with your final purchase amount otherwise, if you pay more than market value for a yacht, you will need to pay more than 20% deposit to obtain financing.
Note: We are yacht consultants (euphemism for buyers’ brokers). We have a few listings on YachtWorld that we consider “good deals” and we price them aggressively. We prefer open listings because it allows us the freedom to price the yacht at a value, we believe is market value (most prices on yacht sites are ridiculously over-priced). We avoid central listings, unless the client is realistic about the price. In fact, here’s the email we send yacht sellers who want to list with us exclusively (central listings):
Dear Yacht Owner:
The primary objective when selling a yacht is to sell it as quickly as possible for a fair market price. A realistic price level will determine how fast you will be able to move on to your next hobby or your next boat. The business concept of “sunk costs” is important to understand in order to make the right pricing decision. Webster defines “Sunk Costs” as “Costs that have been incurred in a project or investment that cannot be recovered if the project is stopped or altered.” For example, if you recently repainted your boat, you cannot add the cost of the paint job to your ask price, mostly because all yachts are sold with paint (or gelcoat), so if you painted it, that reflects a need. Had you not painted it, you might have had a hard time selling it at the market price. This concept also applies to discretionary add-ons such as electronics, engine overhauls, new soft goods, etc.
Recently an article appeared in Psychology Today about the psychology of sellers. It stated that sellers have a tendency of setting greater value to what they sell, when in fact they should do the opposite. A seller’s attitude should be more like divorce or breaking up, something that needs to happen quickly and as painlessly as possible so we can move on with our lives. Contrary to logic, we begin to add value to what we don’t want anymore! Maybe it’s our pride that pushes us to “save face” by adding our discretionary yacht expenditures back on the sale price.
Saving face, is a hubristic behavior that will cost you time and/or money. The Japanese hastened their demise in WWII with their concept of saving face in battle. At the battle of Guadalcanal, they attacked the US Marine defensive perimeters screaming “BANZAI” (long live the emperor) and were mowed down by machine gun fire only to regroup and do another banzai charge, repeating this behavior until they were all dead. Our boys, just as brave, but not as fanatic about Roosevelt, also charged strong defensive perimeters, but if too many marines were killed, they regrouped and went to Plan B because they understood sunk costs. The Japanese did not obviously understand the concept of “sunk costs.” After losing 20% of their soldiers in a BANZAI charge, a people investment impossible to recuperate, they expended the remaining 80% for the honor of the emperor. Saving face is stupidity, not bravery.
When you establish a selling price for your yacht, forget about all the discretionary or maintenance costs you expended as an owner. Owning a boat is a hobby, not an investment. If your boat does not sell because it’s priced too high, the holding costs and continued depreciation will quickly eat up the premium you thought you should earn on the sale. Boats are like real estate; your profit, if any, is made when you buy, not when you sell. Your selling strategy should be to price your yacht at the market price, because a yacht that is correctly priced will sell quickly, and you can move on with your life.
Please read the articles that we have uploaded on our site. They will help you understand who we are and our strategy to help you find the ideal yacht for your enjoyment (or sell your current yacht quickly).