If you're getting ready to sell a boat, you might be interested in making some repairs or upgrades. Replacing a small component, like an alternator belt, could restore functionality and help the boat run smoother, making the boat more attractive to prospective buyers. Improving the boat’s appearance, like repairing blemishes and adding a fresh coat of paint, can also boost the appeal.
But is it worth dumping money into a vessel that you're about to get rid of?
The Value of Making Repairs
Indisputably, making necessary repairs on your boat will benefit you in several ways. The question is whether these benefits outweigh the costs.
These are some of the most important ways that repairs on your vessel can benefit you:
- Sale price. People are willing to pay more for a vessel that's in good condition. In fact, the money you can get out of your boat will likely be directly proportional to its current state. If your boat is dilapidated and barely able to run, you're not going to be able to get much money out of it. If your boat is in pristine, like new condition, you might be able to fetch a much higher sale price. The big problem with this is that it's common to spend more money on repairs than you eventually make with the increased sale price.
- Sale speed. Another advantage of making repairs on your vessel before selling it is increasing the sale speed. Most boat buyers are looking for a boat they don't have to repair or mess with; they want to purchase the vessel and immediately go onto the water. The more attractive your boat looks, and the more functional it is, the more people will be interested in buying it. Assuming you've listed it for a fair price, that also means you're going to sell it faster.
- Personal value. Your future buyer isn't the only person who gets value out of your repairs. If you plan on holding this boat and using it for the next few months, or even several years before selling it, you might benefit from your repairs as much as the next person who buys this vessel. For example, if you upgrade the engine after years of disappointing performance, you can enjoy a few years of peak performance before eventually handing off the vessel to someone else.
Why Repairs Aren’t Necessary
Savvy used boat purchasers will conduct a thorough inspection of your vessel before committing to purchase it. If they find any major flaws or defects, they may offer you a lower price or pass on the deal altogether.
However, it's important to know that repairs aren't always necessary, because there are always available buyers interested in buying vessels as is. They may be interested in buying a vessel in poor condition and fixing it up so they can flip it for a profit. They may enjoy the process of repairing and maintaining boats as a passion project. Or they may simply be interested in stripping your vessel for parts so they can make back whatever they spent on it.
The bottom line is that you can sell a boat no matter what condition it's in, even if it's currently completely unusable. The caveat is that it's going to take longer to sell, and you'll probably make less money on the deal if your boat is in poor condition.
It is also important to be honest and up-front about any issues your boat has when you sell it. Not only is this the right thing to do, but purchasers may conduct a professional survey before the sale, so any issues known will likely be revealed at that point. Being upfront about any known flaws saves time, builds trust with the purchaser, and indicates that you’ve already considered any faults in determining the price, rather than them becoming bargaining tools.
Factors to Consider When Estimating Repair Value
So, is it worth making a specific repair on your vessel before selling it?
Consider these factors:
- Sale timing and personal ownership. When are you planning on selling the boat and how long are you going to own it? If you're going to own this vessel for at least a few more months, or even a few more years, making repairs may benefit you as much as it benefits the next owner. If you're in a hurry to sell this vessel and you're not going to get any personal value out of the repairs and upgrades you make, you should be less inclined to make these modifications.
- Overall boat condition. Unsurprisingly, a boat’s overall condition will play a major role in determining its value. A single flaw or defect probably isn't going to impact the boat’s value much, but if the entire boat needs to be rebuilt from the ground up, you're probably not going to find many interested buyers. At the same time, if your boat is a total wreck, undergoing all the little individual repairs will be tedious and expensive; at that point, it may be more valuable to sell your vessel as is.
- Personal goals and priorities. Of course, much depends on your personal goals and priorities. If you're just trying to get rid of the vessel with as little hassle as possible, and you don't care about the resale value, you can easily sell the vessel as is and not make any modifications to it. Conversely, if you want to get as much value as possible out of this vessel, you'll need to seriously consider making any major repairs that need to be done.
- Flaw severity. How bad is this flaw? Does it turn this vessel into an eyesore? Does it prevent the engine from running correctly? Chances are, if it's not immediately noticeable, it's probably not a deal breaker for everybody.
- Repair and maintenance costs. How expensive will it be to undergo this specific repair? And how much value will this add to your vessel? This can be hard to calculate, especially if you don’t have much experience buying and selling boats. Look at similar vessels online in various states of repair to get a sense for how much value you could add by fixing or improving something.
- Selling strategy. Where and how are you selling this vessel? If you're trying to appeal to a small group of private buyers, you'll need to invest in higher quality. If you're selling to a dealer or someone who will scrap this for parts, you may have much more flexibility on what they're willing to accommodate.
It may or may not be worth your time and money to repair your boat before selling it. But one thing’s for sure: selling your boat is much easier when you use the right platform. If you have a boat for sale, regardless of its current condition, consider selling it with TheYachtMarket – you can sign up and start selling in a matter of minutes!