How many percent on done upgdates can a MY seller claim when re-selling?

[theswissguy_ch]

Hello there,

We are considering to buy a motoryacht in the next 1-2 years. In fact, we may enter a kind of negotiation with a potential seller in the next 1-2 months already.
In preparation, I am trying to estimate what would be a "fair" selling price, assuming that the seller wants too much and me as buyer as low as possible.
I know the asking-price back then when he must have bought it (for sure at a lower price than the published asking price). I can roughly estimate the depreciation.

I am aware that the current owner did several upgrades lately (hard cockpit top, extended swimming platform, moved sat-domes to mast, ..), and of course he may claim these investments when we "negitiate" the price.
My question is: how much can such a seller claim as an increase of the selling price? So if the seller invested, say 200kEUR in the last 5 years, can he reasonably include these 200k in a 1:1 way to any other factors (buying price he had in 2015, depreciation over the time, ..). Ar are such investments only to be included in a reduced way, say, 70% of the investments done.

Any help is highly appreciated.

 

[DavidJ]

I think you are over thinking this.
You have a certain amount of money and you will look around to find the best boat you can get. There will be some “selling” by explaining all the upgrades and some “buying” by undervaluing them but that’s all in the haggle and best not to attach too much logic to it.
In my book there is only one way to get a deal and that’s to vie several similar products off against each other.
But most importantly do it in a very pleasant way.

 

[Switch]

in my opinion (FWIW) you'll never get back 1:1 what you've invested in terms of improvements/upgrades. The general rule of thumb is that upgrades/improvements make the boat easier to sell rather than add value (meaning a buyer looking at two similar boats will be more likely to make an offer on the upgraded boat)

 

[BruceK]

All we know is you are looking to buy a 72 foot steel trawler. It very much depends on what exactly that steel trawler is and what the upgrades were for 200k as what is a reasonable if any deduction.

 

[ari]

It's an impossible question to answer because it depends on the upgrades, it depends on whether what he paid was fair, it depends on the market then and now, etc etc. Would I pay more for a boat that's been completely reupholstered? Maybe, if I like the colour scheme, no if I don't (might even devalue the boat). Moving sat domes? Why would I pay more for a boat for that?

I agree (wholeheartedly) with the post above. Forget all this upgrade cost, percentages, etc. It's a bit like the perennial 'what percentage should I offer below asking price?' Well that depends on whether it's £50K over priced or £50K under priced compared to what else is on the market.

A boat is worth what someone will pay for it, and that's a product of supply, demand and comparison with what else is out there. Nothing more or less than that. Look at the market and decide - what the previous owner paid or has since spent is irrelevant.

If he paid £1 or £1,000,000, it changes the value of a £500,000 boat not one iota.

 

[superheat6k]

So the vendor has presumably offered his boat and stated his asking price. He is under no obligation to enter into the form of negotiation you suggest where he has to justify his price. As would be buyer it is up to you to establish the value you are prepared to pay and offer this as your bid for his boat, perhaps with an amount removed to allow for some negotiation. He may accept your offer or he may reject it, but that is the limit of any obligations and indeed the obligation to respond at all is only for politeness. So if you offer a price way below what he will acept he does not have to respond to you at all.

However, if your opening offer is close to what he will accept then he may wish to discuss this further with you.

But during any negotiation the boat is not under any form of sales contract and the vendor remains at liberty to sell to another party. This could be crucial for a well presented and keenly priced boat, especially for one that is a popular marque.

Now, and subject very much to the individual boat, the viable price may be close to the AP or it may be way way below it. In some cases the viable price can be negative, and even on boats asking many £00,000s.

When I have bought boats I start off with a "this is the sort of price I would pay", which is not an offer at all, but may achieve a response as to the vendors interests in your possible offer that might follow. To this end he or his agent might respond with an indication of what he might accept.

Good luck in your search.

 

[Rocksteadee]

Same as for houses. A boat is never ‘worth‘ anything, only what someone is prepared to pay

 

[Portofino]

Agree with the above , there’s no real return , just it’s makes it reach the top of the pile to sell of theses for sale .
Eg OEM Sony TVs - hi fi ....removed by the buyer ( new boat ) and £45 k s worth of B+O gear installed .
A very nice glass screen as OEM on both helms with a large dome scanner radar .Again ripped out and replaced with a two bigger more singing and dancing , even a fish finder etc + a 4 ft open array scanner which doubles the range etc .
Another £40 k tipped in before the boats 2nd anniversary.
A £5 K Boggo Sea doo spark replaced with a £15 K bigger one a couple of months ago .
A S Steel bigger anchor + an extra 50 % of chain etc etc .

Bit like options on a car ....it’s just leaves the forecourt sooner that’s all .
If anything 5 % on the average If the seller is lucky .

Its called depreciation