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Is viewing boats possible at anytime?

The majority of the Greek Flagged boats are being used for charter.

Between early May until late October, the charter boats have charter obligations.

During this period, viewing is not possible because the boats get charters from several locations in Greece.

Even for the ones that remain in the same location, the inspection is not possible, since the owners have very limited time to prepare the boat for the next charter. Most of the times, the next clients are already “on the spot”, pressing for early embarkation.

It is highly recommended to potential buyers do not to make arrangements for viewing boats during this period.

The owners of the private boats, use their boats between early June until late September. Viewing those boats is also quite difficult, since sometimes the location is not easily reachable.

After the end of October, it is definitely the best time for all potential buyers to inspect the boats of their interest, not only because the boats are free from obligations (charter e.t.c) but, most importantly, they will have the time necessary for a more thorough inspection.

What a Yacht Broker does?

We understand that a potential buyer would want to be absolutely certain regarding the validity of the information that is listed, especially in such a big and sometimes confusing market.

Prior to listing a boat for sale, we always check the ownership, to make sure that the seller has the marketable title and the right to sell the boat.

The broker must provide the potential buyer information related to the aesthetical part of the boat and, if the broker is quite experienced, information about any defects may have been detected by the broker during his visit to the boat.

Most sellers describe their boats (usually) as “excellent”, “immaculate” or use similar words.

So, it is very important for the broker to make a preliminary inspection to the boat, prior to listing for sale.

It is an absolutely loss of time and money for the potential buyer (and also for the broker) to have a neglected or/and unseaworthy boat listed for sale.

Furthermore, after evaluating the present state of the boat, we can safely advise the sellers for a reasonable asking price.

We have inspected, physically, the vast majority of the boats that are listed for sale with us.

For the ones that are not inspected by us, we ask from the seller a full report of the present condition of the boat or/and photos from “critical points”, validating the sea worthiness. In any case we always inform the potential buyers that we have not inspected these boats ourselves.

The information we provide the potential buyers is true and correct, and the photos shown in our lists are from the actual boats (with the name of the boat), not from sister ships or brochures, unless it is specifically mentioned otherwise.

On this point, we must make clear that a yacht broker IS NOT the person who will give any kind of guarantee to potential buyers, that the boat is free from structural defects (or hidden defects), or if the equipment is in working condition.

The SELLERS must be aware of a basic rule: what is listed in the inventory provided to the Broker MUST be in working condition. There is no meaning of listing an Autopilot, not working, or a plotter with “dead” Screen!!!!!!

It is always for the potential buyer to hire a qualified surveyor to conduct a condition survey in the boat (s) that he is interested in. We highly recommend all potential buyers to do so.

Like this, they will have the best possible knowledge of the real condition of the boat and will proceed safely to a realistic offer.

What kind of boats do you have for sale and where are they located?

The majority of yachts offered through our website are owned either by individuals or family operated charter companies (owners of 2-10 boats) and they are located in Greece.

This is mainly due to the fact that:

  1. Because of  high competition, the charter boats of this category are usually far better kept and maintained, comparing to the boats owned by the big charter firms.
  2. We know these yachts very well (in many cases, as from “Day One”), and we can send reliable information pertaining to the vessels, prior to the condition survey.

We are also in contact with yacht owners in other destination at East Mediterranean (Turkey, Croatia and Italy), in order to be able to offer more alternatives to potential buyers.

For the boats located out of Greece, we claim to see full condition survey reports and/or reliable information about the present condition (photos mainly up today).

New or pre-owned boat?

Most people want to buy a brand-new boat and rationalize it by saying, “Well, I don’t want to fool around with all the breakdowns and problems involved with a used boat. I want a new one that’s free of all that hassle.” You know the argument; we’ve all used it. Boaters who’ve had the experience of fitting out a new yacht know that they’re hardly trouble free.

And the cost? Financing a new boat purchase over ten, twelve or fifteen years is hardly good economics when the average period of ownership is probably less than six to eight years. What could give you more of a sinking feeling than to have to write a check to the bank when the time comes to sell because you owe more than its worth? That can really take the pleasure out of boating.

The point is that more and more yachtsmen are discovering that there are really great values to be had in used boats, particularly older ones that have reached the point where the shine is gone, the style is no longer the latest, the engine is blowing smoke and the interior is a bit more than just worn. The one great advantage of considering purchasing and refurbishing an older yacht is the tremendous differential in the cost of new.

A new boat 44 feet that sells for 400000 euro, might have a resale value of 200000 Euro eight or ten years later (especially if this boat has been used for charter). That’s a whopping difference of 200000 Euro, so it doesn’t take much imagination to see what could be done in the way of refurbishment with even half that amount.

Do I really save money by refurbishing a pre-owned yacht?

When evaluating a budget for a used boat, think of the price in terms of what a new boat costs, for this puts the matter of cost in its proper perspective. Since the choice is between new and used, the difference in cost must be a factor in assessing what it will cost to own a used boat. There is a reason why a 10 years old boat is devaluated 50% or even more: its called wear and tear. It has a serious worth of lost value, which the most part of this amount would be required to bring it back to tiptop shape.

The next important consideration is how much can be spent for refurbishment.

The biggest mistake that most used boat buyers make, is to grossly underestimate the cost of putting things in order, even if they don’t plan to do all that much. A common example is someone who buys a ten-year-old 44 feet sailing cruiser for 200000 Euro and then thinks it only needs another 10000 euro to get it in shape. This, for a boat with a replacement cost of 200000 Euro (considering a price of 400000 when it was new). Obviously, 10000 is not realistic at all, and if that’s all he can afford, he can’t really afford the boat anyway.

From experience, we know that even late model boats require a certain percentage of purchase price to repair defects, engine overhaul, rigging, canvas, upholstery, carpet, upgrade electronics and all the other things that new owners usually attend to. This depends on size and value, but for a 8 to 10 year-old well-kept yacht could typically be about 10% of the price. For a 15 years old boat, that amount rises steadily, mainly because of increasing deferred maintenance, meaning wear and tear that stays worn and torn. By the time the vessel is over 15 years old, deferred maintenance reaches the point where the entire boat may need refurbishing, and we’re no longer talking about 10% but 20% of the sale price, even more.

A very good rule of thumb for estimating refurbishing costs is to allow at least 10-20% of the purchase price for a boat in average condition and up to 50%, or more, for one in poor condition. These numbers assume that most the expenses go to engine, machinery, various systems and interiors. However, more extensive refits require even more (such as repainting and major interior renovations or new equipment additions) and are not beyond the bounds of being a reasonable investment. Ultimately, it all depends on the replacement cost, purchase price and how far you want to go toward making the yacht look and function like new.

That’s the reason why buying an older vessel and only allotting a 10% repair budget is not always quite realistic. In that case, you own a boat that is still on the downward slide and your deferred maintenance and costs only continue to escalate as things break down and deteriorate at an ever-increasing rate. And if you can not afford it, this is not an enviable position to be in. It can really take the pleasure out of boating. If you’re looking at a larger boat than you would ordinarily consider, just because it is older and the price is lower, you need to re- consider of something smaller.

Many refits got off-track because the owner became distracted with luxurious interiors and fancy items while neglecting a pair of worn out engines or other important systems. When an engine goes “bang” the owner comes up short because he spent all his money elsewhere. For this reason it is imperative to schedule all work by priority. For example, restoring major systems to reliability must always come first, before considering cosmetics and amenities.

A TIP: A short use of the boat (after purchasing) will help you to put things in priority, easier.

A last word about budgeting: if your budget it tight, allow a part of your total budget for the unexpected. No matter how well you plan, there will always be an unexpected problem. If no problems arise, you can buy the electric winch will make your life easier on board or even Valentino signed plates for the galley.

Get good advice, hire the right people, plan carefully and the end result will be a project customized to your own satisfaction and, definitely, one which you can be proud of.

We, at YD YACHTS, always take into consideration these issues above when advising the sellers for what is the reasonable asking price for their boats.

A fair purchase price makes always the difference!!!!

How about the resale value after refurbishment?

Don’t make the mistake of thinking of cost in terms of what resale value will be years later. You don’t recover your costs with a new boat, and you won’t recover them with a refurbished used one either. While you’ll probably get more than you paid, you won’t take a lot. What you spend is not an investment, but for your own pleasure.

As a broker I see numerous refurbishing projects, the majority of which lavish money on aesthetics but ignoring fundamentals. But surveyors are not impressed with fancy leather, Travertine marble and designer furnishings. They consider in structures and basic systems. Know that when it comes time to sell, your project will be largely judged by fundamentals, not aesthetics. If you shortcut the quality of basic systems, it will adversely affect the resale value.

Surveyors and knowledgeable buyers will be more impressed with good quality and attention to detail on basic systems such as machinery, plumbing and wiring than designer carpet and sculptured glass. It tells the observer that the seller knew what he was doing and put his money where it counted most, on systems that are sound and reliable.

Approached with knowledge and understanding projects can be fun and rewarding. Projects that are fully estimated, adequately funded, and with sufficient time allotted, usually move ahead smoothly and without major hassles. You’ll end up with a nearly new boat for far less than the cost of a new one, and one which will be a “hot item” on the resale market.

Keep always in mind that a clean and presentable boat can sell better from a “smelly” and neglected one!!!!!!!!!

What is the recommended procedure to purchase a yacht?

It is highly recommended to visit the boat, physically, prior to committing yourself in any agreement (in writing).

It is very important being yourself in the boat!!!!!

Since you will spend much time in the boat (and under difficult conditions sometimes), it is very important to be sure about practical issues like headroom, size of the berths or even the space in the heads!!

After you are “convinced” that this is “the boat”, we highly advise the next steps:

1.Signing a Memorandum of Agreement (MoA) with the Seller(s) of the yacht with terms and conditions of the purchase (particulars of the specific yacht, price, place of delivery, equipment, running fees etc), to assure the time needed for conducting the necessary inspection (Condition Survey).

2.Once the MoA is signed by all parties (Seller, Buyer and Broker), a deposit will be transferred to the Broker’s (YD Yachts) bank account (usually 10% of the purchase price). The Broker will be acting as the Trustee for both parties (Seller and Buyer) till the conclusion of the sale. YD Yachts will pay it to the Seller on Closing date.

For the Greek Flagged boats, we highly recommend the Buyers to use the services of a Solicitor. See more in:  Do I need a Solicitor? – Yachts for sale, Preowned yachts, Yachts offers, Used yachts (ydyachts.com)

3.Afterwards, you should have the yacht inspected by the Surveyor of your choice.  All related expenses for the survey are paid by the Buyer, prior to the realization of the survey. On the acceptance of the boat (Letter of Acceptance) we proceed to the next step to finalize the transfer of the ownership. In case of vessel’s rejection by the Buyer,  the MoA will be rendered null and void and the deposit will be returned to the Buyer.

4.The payment of the balance purchase money will be paid by the Buyer to the Seller, provided that the Trustee (in association with the Solicitor who is acting in the Buyers’ interest) has received, by the Seller (and the Buyer),  in original, all the documentation required for the transfer of the boat to the Buyer, free of debts and encumbrances of any nature whatsoever, and allow the Buyer to proceed safely to the new registration (under Buyer’s name).

The above steps are the result of long time experience in yacht brokerage. The specific steps ensure a smooth and legal purchase of your yacht.

 

How long will take to delete the boat from the Greek Flag?

The process for the cancellation of a Greek Flagged boat, from the Greek Registry, takes about 40 working days, after the acceptance of the boat by the Buyer and the sign of the Bill of sale by both, the Seller and the Buyer.

If the Sellers is a Nautical Company this process takes about 10-15 working days more.

YD YACHTS After Sale Service

Yacht sales often involve the need of providing after-sale services.

After the completion of the sale, the most important issue (and critical most of the times) for a buyer is the after-sale support.  Legal issues related to the local Authorities, and local technicians’ contact details are the most common.

Nearly all pre-owned boat buyers are planning renovation and/or upgrades on the boats.

Most of our clients are coming from long distance, without any knowledge of the local market.

After many years of experience in the local market, we are well aware of qualified technicians and well named dealers and yacht equipment providers.

We put this knowledge at the buyers’ disposal, by providing contact details of trustable technicians and providers so, they can get a quote directly from them. After the agreement for the services and the equipment they wish to buy, we follow up the process (delivery, installation, paperwork) to ensure that our clients will get what they have paid for.

Furthermore, we always claim from the technicians, records (in writing and/or photos) from all stages of the works.

Do I need a Solicitor?

For the purchase of a yacht under Greek Flag with professional license (charter yacht), it is recommended to have a solicitor for checking the status of the boat in the books of the Greek Ships’ Registry, (before and on the date of the application for the Deletion), for monitoring all the purchase procedure, including the payment of the corresponding V.A.T (if due). Also,  to verify the documentation of the Seller before the date and on the date of the application for the Deletion from the Greek Registry and to obtain the translation of all the Official Certificates and documents from the Greek Authorities regarding the purchase, transfer and taxation of the Vessel.
YD Yachts, will assure you of the lowest fees possible!

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