Buying & Selling a used boat in Hong Kong in 2017

We know that selling of used boats had slowed down for past few years, Partly due to the economic turmoil around the globe and partly due to lack of space in Hong Kong.
2017 has seen a rise in used boat purchases, because the markets had been so stale lately that some owners have lightened up and put good deals out there in the market. The used boat market in 2017 is such that the customers immediately know the market values of used boats. They are looking for boats that are undervalued, reputable brands with hip style.

Selling & Buying used boats is best to be done with the help of a very experienced boat broker. Who has been in the industry for long time. The reason long time in the industry is important is because any agents in the boat business who have been messing around or basically do not know what they are doing, themselves gain such a bad reputation that they can never survive the down turns of the market. So in a way the survival of down markets is kind of a proof that the broker in the industry is doing something right.

Here are some updated procedures of buying and selling used boats.

 1) Price negotiation : A good yacht broker will understand that negotiation is a win-win situation where all parties are transparent, all key questions about the boat have been answered and verified. A broker who is trusted by the buyer and seller can make the deal go far smoother and uncover all facts about the boat.

2)Sign a contract : After the price has been negotiated, it is always subjected to a sea-trail and a survey, that is done by a professional and independent surveyor. So the yacht brokers normally have their standard contract in place where dates for such survey and closing is fixed.

3) Place a deposit : A 10% deposit is placed with the yacht broker. This deposit can be given to the owner or not, depends on the time and the agreement. Some sellers and buyers are very comfortable with the broker holding the deposit and just in any case the boat has any issues, then the deposit can be quickly refunded without any long procedures and everybody can move on.

4) Get a surveyor : An independent surveyor is hired by the yacht broker. Although the surveyor is hired by the broker, the surveyors are paid by the buyer and they are in no mood to risk their reputations and hide any defects. Normally it is also advised that the Buyer joins the surveyor while the boat is undergoing survey and sea-trail. A sea-trail is also done by the surveyor and all RPMs, engine pressures, temperatures etc are recorded and compared to the engine’s manufacturer’s chart to ensure its working in a proper condition. The job of the broker is to make sure everything is accommodated, the shipyards are booked, paid, all the nuts and screws are in their place, the hull is cleaned, all appointments are set and all small things are in place to take away all misunderstandings that may arise. Many things can go wrong in this stage due to mis communication especially Hong Kong being a place where people speak different languages.

5) Follow up with details : When surveys are done, usually there are a big range of things that needs to be address, a good boat broker will normally be a cushion and absorb many minor things and get it fixed before even bothering the owner, if there are some issues that require owner to rectify then owners will be informed. If any serious issues arise, there can be re-negotiations. But a good broker will always tell the buyer what is reasonable and what is not and with years of experience a boat broker should already know what to expect.

6) Closing : Finally closing is done, when things come to final agreement, the broker makes arrangements to pay the seller in exchange of all ownership documents and arrange the transfer of ownership in the government department. All needed paper works are arranged by the broker.

7) After sales : The broker’s job is not finished when the deal is closed. Because a good broker will always follow up until all issues are resolved. Also will always assist the new owner to find the best solutions for maintenance.

Finally, no business in the world can make any sense unless and until we have Happy Customers & in this case Happy boat owners as well.

Happy Boating.