Dec. 1, 2009
Clients and other brokers have been telling me to do a blog, so I will give some updates and insights.
I had a closing two weeks ago on one of my listings, a 1998 68' Princess. These yachts are built in England, and imported into the U.S. by Viking and are known as Viking Sport Cruisers. However this one was originally sold in Europe and was imported by the seller.
The buyer is from Australia, and the Princess has already been loaded on a ship to head to the land down under.
As I said it was built in England. When the American seller purchased it in Croatia, he registered it in the British Virgin Islands to use in the Med. Then it was shipped to the US and used here for awhile, and now sold by a broker from Miami, originally from Venezuela, to be shipped to Australia. We hear and read about globalization, this was my month to be part of that trend.
Then last week I closed on a 52" Sea Ray sedan that is being shipped to Venezuela!
NOT FOR SALE TO US RESIDENTS WHILE IN US WATERS
People ask me about this statement seen on the ads in boating magazines and on websites. If a yacht is flagged outside of the US and is flagged in a country that has reciprocal priveleges with the US, it can get a CRUISING PERMIT to allow the yacht to travel between US ports without clearing customs at each port. The cruising permit does not allow any commercial use of the yacht including listing it for sale. However the yacht can be shown to residents of other countries when it is here, and many buyers in Florida are non residents. Yachts can also get a BOAT SHOW BOND where the owner pays a bond on the import duty to be able to put the boat in a boat show.
Dec. 7, 09
It has been a tough year for boat sales. I have a listing on a 1991 49' Grand Banks. Back in October, an offer was made on the boat at $215,000, so the seller made a counter offer. Neither buyer nor seller could move enough to put a deal together, it is difficult to get boats sold in the current market, so it was on to the next one. Six weeks later the same buyer made another offer on the boat, this time offering $195,000. Huh? How did the value drop $20,000 in six weeks? Did I miss something? How did the buyer expect the seller to agree this month but not last month? So the seller made the exact same counter offer as before, situation normal.
Dec. 28, 09
Another low offer from a different buyer on the Grand Banks came in and the owner decided take the boat off the market and send it to Texas. He had the boat hauled, fresh bottom paint, new zincs, pulled the shafts, stabilzers were pulled and serviced, air conditioners and refrigeration were all serviced.The buyer decided that since all this work was done, he would come up much higher with his offer and buyer and seller have agreed on a price. We will soon have a survey and sea trial, but the seller developed health problems and is in the hospital. Situation normal as we try to get everything organized to arrange for a survey. The seller is in Teaxas, the buyer is in the Bahamas, and the selling broker is based in Dubai, but is licensed in Florida.
Jan. 2, 10
I had a good New Years Eve day after putting together a purchase agreement on one of my listings, a 2004 61' Marlow with another broker. Meanwhile the Grand Banks deal is still hanging on, but I do not have everything in writing from all of the parties.
One of the other brokers in my office brought an offer on the 1979 58' Hatteras Long Range Cruiser from an Australian citizen, who wants to ship the boat to Malaysia. It is another very low offer from a buyer who has not seen the boat yet, he will not be here for a few weeks. We sometimes write agreements "SUBJECT TO PERSONAL INSPECTION" sometimes they actually close but often they do not, this is one of those offers.
Jan 10, 10
I did a boat trip over Friday and Saturday, drove over to Naples, Fl to get a 2004 50' Sea Ray Sundancer. Friday was a perfect day, the temperature got up to the low 70's which was a big improvement over our recent unusual low temperatures, with light and variable winds less than 10 knots. We cruised accross the Gulf of Mexico at 24 knots to Knight Key Channel, just west of Marathon, and passed under the Seven Mile bridge, and then up Hawk Channel to Islamorada.
That night, the next cold front came through and the wind shifted to the North and Northwest at 20 to 25 knots with clouds, rain and temperatures in the upper 40s. However the plan was to run along in Hawk Channel, which is south of the keys for protection, then through Angelfish Creek into Card Sound and into Biscayne Bay for more protected waters for the trip up to Miami.
The boat had just been purchased with the actual closing on Friday at 10 AM, it was sold by another yacht broker, he hired me to go as captain. The buyer is from Panama, so it it is another international transaction.
How can you give free dockage?
Bradford Marine Yacht Sales is a subsidiary of the world's largest undercover yacht repair facility. We have extensive dockage located on the New River in Fort Lauderdale and can offer this free dockage when we have a central listing. The normal rate for dockage is $1.25 per foot, per day, this rate is waived, the dockage is free. There is no charge for dockside services, including water, trash pick up, and 24 hour security. There is a charge for electricity, but even that is reduced by 50%. Our 24 hour watchmen are trained to listen for bilge alarms, and to check the waterline of all yachts stored here, besides controlling access to the docks. This is a great deal for a seller who wants to keep a boat for sale in the Yachting Capital of the U.S. At $12.50 per day for electricity, that means it is only around $400 per month to keep a yacht with 50 amp power, undercover on Fort Lauderdale's Marina Mile.
Jan. 16. 10
I have been selected to be listing broker of the yacht HARD ASSETS , a 100' Jones Goodell yachtfisherman. More info soon.
Jan. 22, 10
I had a closing today on the 61' Marlow that I had a listing on, sold by another broker.
Feb. 3, 2010
I spent the weekend at Trawler Fest at Bahia Mar Marina here in Fort Lauderdale. This event is produced by Passagemaker Magazine. I had planned to have on display a 55' Florida Bay Coaster, but a purchase agreeement was reached on the boat just two days before the Fest. Instead I brought the 63' President Legend which is a motor yacht not a trawler, but many people liked it.
Yesterday I put together a purchase agreement for the 49' Grand Banks, DUET, we will have a sea trial later this week.
Feb. 5, 10
The sea trial went well on the 49' Grand Banks with very rough conditions, the stabilizers worked very well. However there were many items not working correctly on the boat, but the boat handled better than expected. Situation normal, some compromises by all involved to make the deal happen.
Feb. 11,10
Yacht and Brokerage Show in Miami this weekend!!! Come see the 92' Jones Goodell at the end of ramp 17.
Feb. 17, 10 Yacht Broker Blog
I have been working on a closing for the 55' Florida Bay Coaster, the buyer's attorney finally has agreed with the seller's attorney to get the paperwork complete. We were going to close on Feb 16th but the attorneys are doing what they are supposed to do, and protect both parties.
Feb. 26, 10 Yacht Broker Blog
Both the 49' Grand Banks and the 55' Florida Bay Coaster have closed, both with the normal glitches and set backs with delays. Pending now are the 395 Island Pilot, awaiting word from the sellers bank as it is a short sale, and the offer on the 58' Hatteras Long Range Cruiser. The buyer wants to get some financing and it may be hard to obtain on a 31 year old boat.
March 10, 10
I have an agreement on the Island Pilot 395. Next step is the survey on March 17, 10. We will meet early in the morning with the buyer, his surveyor and a hired captain to run the boat for the day. We will head over to the lift to get hauled out first to have the bottom pressure washed then the surveyor can check the hull and outdrives. Then back into the water and down the river to the ocean for full speed runs along with runs at different RPM from 1200 up. Test the electronics and autopilot then back up the river.
March 31,10 Yacht Broker Blog
Typical sea trial with the Island Pilot. We found some vibration at mid range RPM and had the boat hauled again. The props were removed and the prop shafts were measured for straightness. One shaft was off and one prop blade needed work. It has taken awhile to get everything done and we are now waiting for a cable that is used with the autopilot ,as a rudder indicator. The cable has broken an a new one is being shipped from the Volvo plant in Sweden.
Then when that is done we do another sea trial.
April 2, 2010 Yacht Broker Blog
I have an agreement on the 84' Westbay Sonship. The yacht was hauled today to start the survey on Monday. In the meantime the buyer who had made the offer on the 58 Hatteras LRC has not gotten his financing. He was too good of a father and co-signed for his daughters mortgage. She makes the payments but the bank thinks he is over extended so he needs to get a new mortgage for his daughter.
April 21, 10 Yacht Broker Blog
Typical situation with boats under agreement.
We did the survey and sea trial on the 84 Westbay and found some problems from lack of use. The buyer and seller agreed on a price reduction to take care of the problems. Both the buyer and seller thought the reduction was fair. Now we are waiting for an insurance binder for the new owner and the yacht will close.
The Island Pilot 395 has not closed yet. We needed a part from Volvo, and it was ordered through their special delivery "within 72 hours or the part is free" program. It took 11 days to get the part. Now it should be installed tomorrow and I go for another sea trial.
The buyer of the 58 Hatteras LRC still has not gotten approval from his bank, so we took another offer and did a survey and sea trial on Wednesday April 21. The buyer has until tomorrow at 5 PM to accept or reject but he told me it may take too much time to get everything ready to cruise. The boat needs new headliners, new carpeting and the heads and galley need modernizing. But at the current price all that can be done and the boat will still be a good deal.
May 14, 10 Yacht Broker Blog
I certainly have been poor at updating this, but I have been busy with sales. We had an agreement on the 58 Hatteras LRC from last February, but the buyer was too good to his daughter and co-signed her mortgage.(Smart Dad who takes care of his kids). Finally after a few months he got financing approval after removing himself from the mortgage. We had the sea trial on Wednesday and the boat ran well. We should close on that boat next week.
The 84' Westbay Sonship closed and the new owner has taken the boat to Fort Pirece, Florida for some updating and redecorating.
This morning a purchase agreement was signed for the 63' President Legend, with a survey and sea trial for May 28.
Last week I got an offer through another broker for the 2002 60 Sea Ray Super Sunsport, another of my listings. The asking price is $499,000 which was recently reduced, but was still too high. The offer was only $300,000 way too low. So I have an over priced boat with a much too low offer. After a lot of back and forth the buyer came up to $400,000 the seller down to $445,000. I think the buyer is just a little too low and the seller is a little too high, I will have to see if they can find a common ground.
May 25, 2010
The buyer and seller for the 60 Sea Ray could not come to an agreement.
Last week I closed on the Island Pilot 395 plus on the 58' Hatteras Long Range Cruiser. Both boats originally had the purchase agreements written in mid February, each one took three months to close. The new owner of the Hatteras is here now getting the boat ready to head to the Chesapeake Bay.
JUNE, 1, 2010
Florida sales tax cap
The Florida Maritime Full Employment Act has now been signed into law and will become effective July 1, 2010. This law caps sales tax on a yacht purchased in Florida at $18,000. At the 6% rate there is now no additional tax on boats sold over $300,000.
Since many of the larger yachts sold here were flagged in foreign countries and no tax was paid in the US, it is expected that many buyers will register their boats in Florida to avoid the foreign flag issues such as cruising permits, and Florida will actually get more tax revenue than before. Another advantage for a buyer is that they will no longer have to leave Florida after 90 days or 180 days, which was a requirement previously for non resident purchasers. This should keep more boats in Florida, and that will mean more boats and yachts getting work done at Florida boat yards, and more American crew.
I am not a maritime attorney or tax accountant but please feel free to contact me for more information.
June 8, 10
More on sales tax for buyers. Florida has a program for NON-RESIDENT buyers to purchase a tax exempt decal for $20 to allow the new owner to use the boat in Florida for 90 days with no sales tax due and for $435 the buyer can stay in Florida for 180 days.
June 18, 10
I am out of the office until June 28. I am vacationing in the settlement of Hope Town in the Abacos, Bahamas. This is a very small island about 180 miles east of Fort Lauderdale settled in 1785 by former colonists from New England and New York who were loyal to King George. The many small houses and cottages look like they might be on Cape Cod or near Plymouth MA, but are painted in Bahamamian pastels and are surrounded by tropical flowers. Water temperature is in the low 80's and the water is incredibly clear.
June 29, 10
Back in the office, after a great week in the Bahamas. I had been to these islands many times before, but usually when working as a captain or involved in a yacht delivery or sale. It was great to be there and to enjoy it.
I have a new listing now a 2003 65' Mckinna at $875,000. More information is on the MORE YACHTS FOR SALE page here on the site. Years ago when I worked at Rex Yachts this boat was for sale listed with my office. Then when I came to Bradford it was listed here sold shortly after, and now I have the listing on the same boat.
July 4, 10
Independence Day here in the US, I planned to do some scuba diving using a 34' Buddy Davis center console. The boat is a dealer demo and I thought it would be a good opportunity to see how the boat runs and get some diving in. Unfortunately I left the dock a little after 12 noon and as I got about a mile down the river from Bradford, I could see rain in the distance and heard thunder. Rains is OK but it is not a good idea to be out in a thunderstorm, so I turned around and headed back to the dock. Just as I was getting tied up at one of our undercover docks the rain started with really a downpour. I got back just in time. I saw later on TV that we had 2.5 inches of rain in just a few hours.
Meanwhile, on July 1st I sent traffic reports from Yacht World to all of the owners of my listings and suggested to a few of them a price reduction, based on lots of internet traffic but not many buyers or brokers calling or coming to see the yachts. One owner dropped the price by $790,000 from $3,750,000 to $2,960,000. This was needed as the price was much too high. Another owner dropped a price from $1,995,000 to $1,750,000 so that yacht should get some more activity. A third owner said not one penney reduction and that any discussion of price reductions must come from him, "end of discussion" were his words. The asking price for his yacht is too high we will have to see what developes.
July 14, 10
After a lot of research I believe the asking price of this one yacht is way beyond the current market. The owner has enjoyed free undercover dockage for over three years and he has been informed that we can no longer offer free dockage. He sent back a very nasty email threatening law suits and more. Although the yacht has been here for over three years I have only been listing broker for a few months, I inherited the listing when another broker left BMYS. I will post more soon.....
Here is the response from the owner. Please remember that I have sold boats for 15 years now.
I take your email as a personal threat and I will respond accordingly by taking all the necessary legal steps available to me in order to protect my rights as well as the safety of my vessel. You have advised me that my vessel is docked there at your discretion and that you have the right to dictate what is a fair and reasonable market price. I STRONGLY suggest that you review the listing agreement signed by me at the time of my original listing, no where does it state that to not lower an asking price gives you discretion to unilaterally cancel the dockage agreement. In fact, no where in my agreement does it reference changes in asking price or conditions. Furthermore you state that the vessel according you is over priced. Demand is hereby made of you for a complete and total resume as to your experience and a detailed list of all vessels sold by you in the past year. Said demand includes the name and address of each person who listed said vessel with you and the purchaser of same. Lastly, the lack of boat traffic on my vessel is probably due to your lack of knowledge and marketing ability of my one of a kind vessel. In fact I even have emails from you requesting that I take time out of my schedule to acquaint you with the vessel. Query, how you can make such bold statements regarding market price when you send me emails requesting that I bring you up to speed with the vessel. Also, are you even aware of the fact that I have had offers in excess of what you have represented should be my adjusted asking price. In closing, I have no intention of agreeing to your threats regarding a demand to lower my asking price. What I do intend upon doing in the event you follow through with your threats is to move the vessel to comparable dockage and immediately file a lawsuit as against Bradford and you for your lack of personal competence in marketing my vessel as well as all dockage fees incurred by me in the future or until such time when my vessel is sold. To further prove my point that the vessel is comparable priced I suggest you review your offer to continue to market my vessel at its current asking price. If the price was so inflated then why such an offer, or is it that you are attempting to punitively punish me for not lowering my price by attempting to cancel the dockage agreement. In any event you can GUARANTEE that your email will be evidentiary proof in my lawsuit if I am forced to proceed on same.
In respone to this we sent to the owner a cancellation of our listing agrteement with him. If we got a reasonable offer he might not have accepted it, so why bother with this abuse?
Aug 23. 10
I went to North Carolina last Thursday and Friday for a sea trial and survey on a 34' Mainship. The buyer had contacted me last year and we looked at boats here in Florida last winter. He finally got his former boat sold and we got serious about finding him a good deal. He sent to me a deposit check that I held on my desk, so that when I called the listing brokers they would know he was a seroius buyer. He had sold his boat and gotten pre-approved for financing, this was important for the listing broker to know. He flew to New York to look at one of the many 34 Mainships on the market and he made a written offer.The seller made a counter offer and we went back and forth, but my client did not feel the amount was right for him. So then we made offer number two, and I explained to the listing broker how the first offer went, and how my client passed on the boat. This seller made a counter offer higher than what we could have bought the first boat for, even though it was one model year newer. My client raised his offer but the seller was not realistic. So then offer number three. I explained the realities to the listing broker, my client would buy if it was the best deal, or we would go on to another boat. This seller was realistic and motivated, we put together an agreement. The survey went pretty well, but as always some items need attention. I should get the survey back tomorrow.