What Your Yacht Broker Should Be Looking Into Before You Buy

Buying a boat is a dream for many, often the result of years of planning and saving. As a yacht broker, one of the most rewarding parts of my job is helping people through that process, whether they’re seasoned yachtsmen or first-time buyers. That includes going beyond what can be found online, helping clients understand the market, exploring the right boats, and ultimately landing the right vessel for their needs.

The title of this blog was inspired by a transaction I was involved in a few years back.  I had the privilege of working with a first-time buyer. We connected right away and spent several months looking at boats, exploring different brands and models, and narrowing down what would be the best fit for his family. It was fun, exciting, and exactly what makes working in this industry so rewarding.

The Value of Quiet Conversations

Eventually, we identified what looked like a great fit. But before making an offer, I began my usual round of due diligence, calling local service providers, shipyards, and brokers who may have worked on or around the boat.

Most of the time, this is a routine check that doesn’t turn up much. But in this case, the very first call opened up a Pandora’s box. A series of follow-up conversations revealed serious issues that had never been disclosed: a pending lawsuit, a history of mechanical failures, and even a past incident where the vessel nearly sank. None of this was mentioned by the listing broker.

When I confronted him, he produced receipts showing repairs had been made. But at that point, the issue wasn’t just the boat; it was trust. If this much had been kept quiet, what else hadn’t been disclosed?

Avoiding Costly Mistakes

During the boat purchase process, time and money add up quickly. Between negotiations, surveys, haul-outs, and sea trials, and the possibility of traveling to wherever the boat is, you can easily spend thousands before you even own the boat. Learning about these issues before entering into that process saved my client a huge amount of time, money, and heartache.

We ultimately passed on that vessel and found another boat that was a far better fit. The buyer went on to make the purchase and is now a very happy owner, without the baggage or surprise expenses that the first boat would have inevitably brought.

Work With a Broker Who Works for You

Not all brokers are created equal. Yes, licensed brokers are legally required to disclose known issues but that doesn’t mean it always happens. This is why having someone you trust on your side, someone asking questions, making calls, and doing the legwork can make a world of difference in your boat-buying experience.

If you’re in the market for a used yacht, make sure your broker is doing more than just writing up offers. Obviously, I’d love for that broker to be me, but even if it’s not, I want you to have a great experience. A great broker will protect your interests, help you avoid costly mistakes, and make sure your dream boat doesn’t turn out to be someone else’s nightmare.

Mark Gibbons
50 North Yachts
1551 Shelter Island Dr. Suite 102
San Diego, CA 92106
mgibbons@50northyachts.com
619-684-9266