BUY YOUR YACHT WITH MARINE PROJECT
Tips and advice from your broker
You’ve seen some yachts before, but you still have not come across Marine Project. Our task is to show you what else there is and what different models have to offer.
Depending on what features you want, we will advise you on optional propulsion systems and advantages of larger and smaller yachts. We also tend to inform you about annual maintenance, protection fees, insurance, and winter storage. You will help us by telling us what kind of boater you are. Are you sitting at the dock with a cocktail in your hand? Or you like to sail through the bays at full speed and have fun with your friends?
There are many qualities that we can offer. The most valuable is our 20-year-long experience in trading and chartering yachts. The resulting relationships are priceless. We search the Internet, specialist publications and national and international advertisements for ships that meet your criteria. We summarize everything that might be of interest to you. You then check the material and let us know what you want to view. The more specific you are, the better. Yacht style, interior design, overall condition, rig design preferences, colour– just anything that you can provide us with too narrow down the search parameters and simplify the process. We would also like to know how far you would like to go to your dream yacht. Sometimes a sightseeing trip is an experience in itself!
Once we have compiled our notes, we have a plan and arrange appointments to see some yachts. This is the fun part. Fortunately, yachts are not the same as a car or house. You need the first two but you don’t really need a yacht. But you definitely want one! This fact alone should make the process fun and productive.
After you have been on some yachts, you develop a much better idea of what you want. If we narrow the field down to a particular make and model, we will find the best on the market regionally, nationally and internationally. There are many ways to bring your new yacht back home. We can help you bring it across the country, or even better, we can sail it. So when the best yacht on the list shows up in Mykonos, we hop to Greece, buy it and sail back.
Financing, loan prequalification, and cash payment
Much has changed in the banking world in recent years. Even though the banks are a bit stricter these days, there is still some money for you! Interest rates on ocean loans are often only one or two points higher than mortgage rates, so the money is really cheap right now. If you are considering paying cash for your yacht, you should definitely consider financing options as a possible alternative.
It is possible to finance up to 85% of your purchase at very reasonable prices for 10 to 25 years. We have several ship lenders who not only offer their own money for the purchase of a boat but also get other banks on board to find the best price and conditions. Tailored to your financial possibilities.
While we are on a shopping spree it is a good idea to get rid of the credit pre-qualification. At the time of the offer, we should act as strongly as possible as buyers. We have found that our negotiating position is improved when the seller believes that we can complete the deal. The more likely this seems, the better the price we can get for our boat.
Once we have the right yacht, we can make an offer. If you borrow money, you are already pre-qualified. You sign an agreement in which you declare that you will purchase this vessel under the following two conditions:
– that you will receive a satisfactory appraisal from a qualified appraiser who is acceptable to you.
– that you will participate in a sea test that is acceptable to you.
The beauty of this agreement is that it tends the scales strongly in your favor. If one of these conditions is not met, you can opt-out and get all your money back. During the negotiation phase, your 10% deposit will be deposited into an escrow account. It goes neither to the seller nor to his company.
We negotiate with the seller or his broker to reach an agreed sale price.
Expert opinion and insurance
In the meantime, your financing is probably in order. It is time to order expert opinion. A ship surveyor is a licensed professional who examines the ship in the water and on land to see if anything is wrong. Nearly all financial institutions and insurance companies need an expert opinion before they give you money or ensure your ship but even if it is not a requirement, you want a ship report.
It is very important to understand our goal here. We hope for a good report with as minor problems as possible. We receive three categories of findings: substantial repairs, necessary repairs, and desired repairs. We want (and deserve) a ship that is structurally and functionally sound. If the requirements are not met, this is our opportunity to request repairs or compensation. There will also be insights that we would expect when buying a used yacht. We will help you navigate the survey to find out what questions we should address with the seller.
Our appraisal may lead to some negotiation of the deal. We can request repairs, we can claim damages or we can waive. A waiver is rarely necessary, but you should always be prepared for it, if necessary. Remember, we are looking for a great boat, and we should wait for a boat if we have to. During this process, there are often compromises. Ideally, we will get a deal that is reasonable for both buyers and sellers. Once the problem is solved, we can move on to documentation and closing the deal.
You need to take out adequate insurance before you take out a policy. The insurance company would like to see a copy of the report. You will want to know what experience you have had with sailing and what type of boat trip you are going to make. Including the location and number of months, the vessel will be used. You must get the insurance prior to policy.
Both we and the financing company will take care of documentation issues. We will conduct a title search on the yacht to determine whether the title is covered by bank guarantees or liens. We prepare the transfer documentation and determine the registration documents that will be handed over upon completion.
The closing is a fairly quick and easy final of the purchase process of the yacht, which usually takes place in the buyer’s or lender’s office. After all previous issues have been discussed and resolved, we set a date that works. The owner may participate but rarely does. In the case of a sale outside the city, this is closed. Documents are exchanged by express mail and include a limited power of attorney exchange so that we can transfer the property smoothly. The selling price is paid by the seller and commissions may be split between the brokerage houses.
After completing a typical purchase you will receive the keys for your new yacht and everyone will simply walk away. You are on your own. We do not believe that this is the right way to close the deal. Here at Marine Project, we take a different approach to closing the deal. If you wish, we can help you take your yacht to its new home.
Come with us when you can, and we’ll make the delivery an explosion of a boat trip and a comprehensive introduction to your new boat. We’ll help you get used to it, including “parking day” (sailing around the marina), mooring, various sailing points (for sailboats), storm tactics and learning the boat syss.