How Boathouse Auctions Helps Yacht Owners, Brokers, and Buyers
By Kevin Lohman
Auctions are common in every imaginable asset class in the world. Yacht auctions provide market liquidity to sellers and an efficient and fair process for buyers set in a format with a time limit. Compressing the timeline of sales cycles holds wide appeal with yacht owners facing depreciation and high carrying costs.
According to YachtWorld, the world’s leading yacht listing firm, it is not uncommon for the sale of a yacht to exceed a year. In fact, YachtWorld data shows that the average number of days on the market, as seen below, has a direct correlation with the size of a yacht.
Source: YachtWorld Q3 2016 Market Index
Whether it’s a yacht owner facing a life change or their eye is on a new vessel, there are times when owners of certain vessels prefer liquidity. Boathouse Auctions was built to help yacht brokers sell yachts considerably faster. We work exclusively through brokers to help them with clients who place a value on time and liquidity versus the alternative process that can not only take a long time but also come at a significant cost to carry.
Traditionally, yacht sale urgency has tended to be low because multiple prospective buyers rarely arrive at the same time affording the often lone contender a considerable amount of bargaining power. Yachts sales are similar to luxury home sales in the sense that if your vessel does not sell quickly in the first 90-120 days at or near the asking price, it could languish and sell far out of the money.
At Boathouse Auctions, the owner (or his broker) sets the reserve, or minimum price, and if bidding surpasses that amount then the vessel has a new owner. The auction process allows you to sell your vessel in a timely manner, typically six to eight weeks, and buyers feel good as they know that they paid just one bid above the next-place finisher. Additionally, considerably more information is available as opposed to a market sale because sellers are required to conduct and provide a pre-sale survey. This is done to provide an appraisal and accurate, current condition of the vessel. Prospective buyers benefit equally from this information and are encouraged to perform all necessary due diligence during the auction preview period. At the conclusion of each auction, all sales are final and unconditional.
Our premise is simple: We aggregate high-quality yachts from owners motivated by time. Rather than sellers negotiating down over an uncertain and potentially long period of time chasing a market in hopes of finding a single prospective buyer in a process that could have little urgency, our approach is for prospective buyers to compete by bidding up the price over a finite and certain timeframe.
There are no fees to list or sell a yacht on our platform, both selling and buying brokers receive full commissions, and all participants are anonymous. From the buyer’s perspective, they have the opportunity to own a high-quality yacht at an attractive price in a process that forces a level of urgency and diligence.
We’ve built a different way for boaters to buy and sell yachts. We believe our approach provides value to yacht owners, brokers, and buyers and we hope to see you soon on either side of the trade.
Our auction platform provides buyers good value and yacht owners liquidity in a time-sensitive environment. Brokers receive commission protection in a private and efficient sales experience. To learn more and see current listings please visit.