Boat Buying Part 5
More on my thoughts on boat buying. In our sample scenario we have already performed a personal inspection on that potential next boat. We have decided that it meets our needs and we are ready to move forward.
The next step in the process will be to discuss price and make a formal offer to purchase. If a broker is involved they will lead you through these next steps but if this is private sale you are pretty much on your own. In that vein there are a number of items that should be considered. I`ll list a few here.
1-Make the offer conditional on survey. You are going to have the vessel surveyed, right? I’ve talked about this before and each year I get involved in a number of deals where a boat was purchased without survey and after the sale the first thing that occurs is that the insurance company requests that the boat be surveyed. During the survey if a major issue is uncovered it is in most cases the buyer that is on the hook for an expensive repair.
2- Make the offer conditional on financing. If this is going to be a factor get it in black and white as part of the offer.
3-Make sure that storage, launch and transport fees are spelled out as to who pays for what.
4-The boat may need to be hauled and the bottom washed for the survey so make sure that is covered as well.
Now we get to the point where to offer has been accepted and now it time for the survey and the next step is to find and hire a competent surveyor. This may prove to be more difficult that you might think. Here’s why.
In most countries marine surveying is an unregulated profession and as a result marine surveyors come in all shapes, sizes and in varying degrees of knowledge and expertise. So how do you find a good one? Here are a few tips.
1-Look for surveyor with recognised credentials or accreditations. There are many supposed certifications out there but in my opinion (and the opinion of many insurance companies) there are only two. The Society of Accredited marine Surveyors ® (SAMS®) and The National Association of Marine Surveyors (NAMS Global). Also look for a surveyor that is a member of, or better yet standards certified by the American Boat and Yacht Council (ABYC). This important because the ABYC have re-searched and written almost all of the marine construction and safety standards currently in use today. Boat manufacturers, Transport Canada and the United States Coast Guard listen to these people and any surveyor worth his or her salt needs to be current on all of this. ABYC affiliation is the only way.
2-Ask to see a sample of their work. Examine it and decide if it will provide all of the information that you will require.
3-Compare pricing. Surveyors of quality and integrity will show similar pricing. Any significantly lower or higher should be held in question. Cheaper is not always better.
4-Last but not least consult your insurance company about the surveyor that you plan to hire. If they won’t accept the surveyor’s work there’s not much point now is there?
I can’t stress enough how important this aspect of the process is. I come across survey reports every year that are an absolute joke. Chances are that by now this endeavour is getting expensive and this is not the time to cheap out on a surveyor with inferior skills and expertise.
Here’s a point to keep in mind if this all takes place during the winter months.
When ambient temperatures are below freezing any moisture contained in fiberglass structures, such as boat hulls and decks freezes as well. During the freezing process crystallization of the substance will occur. This adds small air pockets which make electronic moisture detection virtually impossible. Also because the substance is frozen it becomes very hard rendering percussive sounding tests useless as well. It is for these reasons that I do not recommend the surveying of fiberglass boats when the ambient temperatures are below freezing.
Next time we’ll take a look at the survey report and what it should include.