8 Tips for Boat Auctions

Boat auctions are often the best way to go when buying a hurricane damaged boat. If you are willing to take some risk, then you can purchase the boat of your choice at a lower cost than the normal price. But whether this is the most cost-effective way to go will also depend on several factors such as luck, personal skill, and experience. Boat auctions are very interesting, and in this post, we'll give you 8 tips for boat auctions.

Assessing the value of your boat

When putting your ship up for auction or preparing it for sale, you need to know the value of clearing the ship. You can find out how many boats of the same class are selling on the market and take a close look at the actual condition of the boat, as well as assessing the maintenance costs that the boat may incur subsequently. Factors such as the size, age as well as the model of the boat will affect the value of the boat.

Setting a reasonable purchase budget

When setting a budget for the purchase of a boat, it is important to consider not only the original price of the boat, but also a range of subsequent costs, including maintenance, boat removal, insurance, mooring or storage fees, and so on. It is also advisable to bring along a reliable partner, male or female, when participating in an auction, who can remind you to keep your wits about you and not pay for a boat you can't afford at a critical time.

Attend a preview or hire a boat surveyor

General. 20 to 30 days before a boat auction, a list of boats being auctioned is released to the public. After the list is released, if there is a boat you are interested in, it is best to book it in advance if you have the chance and hire a boat surveyor to check the boat for you. With their specialized skills and experience, surveyors can detect problems that are difficult for the average buyer to detect. Usually, the auctioneer will post a specific time for the boat preview on the official website, and you need to pay close attention to this time to avoid missing a good opportunity to know about the boat.

Setting up a temporary sell order

If you are planning to sell your boat at a boat auction, you need to set a minimum price in order to avoid leaving disappointed. At boat auctions, the auctioneer will often refer to the minimum price for a boat as a “provisional” bid or “reserve”. Setting this price will give you a good idea of what to expect during the auction.

Follow Live Bidding Etiquette

When bidding at a boat auction, hold your hand up high to ensure that the auctioneer can see you clearly, and hold up your bid number so that the auctioneer can see it. Throughout the bidding process, try not to talk to others as this may disrupt normal order or cause misunderstandings. When participating in an auction it is important to remember that bids in an auction are legally binding and once you place a bid, it means you are entering into a legally binding contract, so take every bid seriously.

Keep in mind unforeseen payments and expenses

When participating in a boat auction, payments and fees will be determined by the auction. If you are successful in bidding for a boat, there may be an additional buyer's fee premium of up to 12.5% depending on your local auction rules. Therefore, before attending an auction, you need to be aware of the fees charged by your local auction to make it easier for you to plan your budget. Sometimes there may be transportation and storage costs involved, and you will also need to keep in mind the local or state taxes paid when purchasing a boat.

Make sure you are ready to specify the payment method

Different boat auctions require different payment methods. Some auctions only accept debit cards while others only accept wire transfers or cash. Therefore, before participating in an auction, you need to know in advance the payment methods required by the auctioneer and prepare them ahead of time to avoid any repercussions due to the payment method at the crucial moment of the auction's end. Typically, full payment of the invoice is required anywhere from an hour to a day after the auction ends.

Be prepared to pick up your boat

After you've successfully won your favorite yacht at auction, you'll need to ship the boat away in one to two weeks’ time. However, not all auctions require this; some allow only a few days, and you will be charged a storage fee if you fail to remove your boat for more than a few days. Therefore, it is best for you to be prepared to pick up your boat before you attend the boat auction.