Some random thoughts on the value of boats issue, from one who at one
time was offering an older M17 for sail.
Years ago I was told by a surveyor that the value of older boats tends
to stabilize at around 30% of the cost new of a similar boat. So if new
boats are $14,000, 30% of that is $4,200. From that, work up and down,
depending on condition and equipment offered. One problem with boats, or
any item that is not commonly sold, with a mechanism for price
discovery, is knowing what anything is worth. If you want to know what a
share of IBM is worth, it's easy to find out. Less easy to know what a 5
year old Ford pickup truck is worth....(it depends), but even less so
with boats.
I am a RE appraiser by trade, and it is a common perception that the
hardest property to appraise, bar none, is your own home. We know too
much about them. Same would apply to a boat. There is a difference
between work to maintain value and actual improvements. I don't have the
list, but there are generally things that do add to value....things like
new sails, perhaps a new engine, etc. Other things, like me replacing
the side cabin core under the chain plates was a lot of work, but
maintenance that didn't add value. Same for my rehab of the CB. Same for
lights, improvements to the wiring, battery charger, etc. All nice, but
not much added value. And Audasea is not pristine by any stretch. She
looks OK from a distance and is sound, but a lot more could be done to
her. Like a full paint job. I have no interest in that.
When I priced mine, I knew what I paid and what work and improvements I
had made, and I knew the price of two sister ships.....near total
derelicts as I recall....one in Chicago, the other in Minnesota....and
having fixed up mine, I knew what was in store for those if they were to
sail again. I'm sure somebody took them on and worked their ass off and
spent a ton on them. Some folks are very good at scavenging parts and
make or make do with others. The price I chose was above those two
derelicts, but not nearly enough to replace what I had in her, not the
least of which was over $2,000 in new sails.
So I suspect that most buyers are lured by the cheap fixer uppers, with
limited knowledge of what it will take to get them to A-1 condition. Or
they might prefer cheap and they enjoy the work. I'm surprised at the
number of folks who like to dick with their boats.....in the driveway or
at a yard......and NOT sail them. For them, derelicts are the way to go.
For sellers. I'd only say to know the price of new, be realistic in what
you have, price it accordingly and see what happens. And it depends on
do you need the money today or don't need it at all.
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