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Buying a boat? Here's how to navigate process
Richmond’s Mike Storey loves his
new boat.
“When you get out on the water,
being a Prairie guy, that moment those sails go up and you shut off the motor,
it’s wonderful,” says the former Calgarian.
When he made the decision to buy
a boat, his first hunt was for a good broker.
After interviewing many, Storey
settled on broker Richard Hargreaves of Yacht Sales West, a B.C. Yacht Brokers
Association member.
“He helped me discover what I
wanted to buy,” Storey says.
For instance, Hargreaves asked
Storey if he wanted a rugged boat to traverse the open ocean or one that sailed
better in the lighter winds found in the Salish Sea. It turned out the best
boat for Storey’s needs wasn’t actually one of Hargreaves’ listings.
Cameron Williams, an ethics
committee member for the brokers association, advises anyone buying or selling
a boat to turn to Google.
“Do a Google search for the
broker before signing. See their reputation. Look for a company that’s been
around for a while,” Williams says.
Williams says prospective buyers
should ask other boaters for the names of trustworthy brokers.
“A good start is having a bricks
and mortar office. We don’t offer membership to anyone without a real office,”
he says. “Also, bells should go off if a broker asks you for extra fees, especially
non-refundable fees, when listing or making an offer on a boat.”
He says all deposits are
refundable, in full, if the deal doesn’t go through.
He also warns against brokers who
say their insurance doesn’t cover certain kinds of inspections. The broker
doesn’t own the boat the seller does, and they must maintain liability and boat
insurance until it’s sold.
While there is no true multiple
listing process for boats, there is yachtworld.com
“If it’s a fly-by-night broker
who can’t afford to advertise on there, that would be a red flag as well,” says
Williams.
Buyers can opt to have their own
broker to help them shop, he says.
“That way you can have a broker
in your corner,” says Williams. For instance, they can ask questions to spot
ancient glamour shots rather than ones showing the current condition.
The seller pays the 10-per-cent
commission. If there are both buyer’s and seller’s agents, Williams says, the
agents usually split it 50:50.
Williams says a good broker can “explain
the systems on the vessel, demonstrate the vessel in a simple manner to help
you understand it, and, if acting as your buying broker, be able to ethically
help through the initial paperwork and negotiating process and ensure all
paperwork is done properly, which is a big one.”
The association members must all
use the same thorough paperwork for all contracts.
“If you see a purchase document
that looks kind of questionable, that could be a red flag. Our association’s
purchase document is five pages long,” Williams says.
Storey says his broker brought
him to see all kinds of boats.
“It was a really a good process.
I learned a lot so made good decisions.”
For his commission on Storey’s
new boat from Germany, Hargreaves helped at every stage of the way, from
shipping to customs paperwork.
Association president Rom Van
Stolk of Cedar Grove Marina says: “In BCYBA we handle any boat, not just yachts—typically
anything bigger than a dingy.”
Both boat brokers advise buyers
get a good boat survey, one to spot the structural and the mechanical issues
with any boat you want to buy. Don’t rely on an older insurance survey.
Also, be sure to do a sea trial
where the boat goes out for a run to see how it handles. Make sure to have
someone who knows marine systems aboard.
The prospective buyer pays for
any surveys, whether they end up buying the boat or not.
While it’s advisable to show it
to the seller’s agent, do not give them a copy, because, Van Stolk says: “Some
unethical brokers have taken the survey and Photoshopped out negative
information.”
“There are some bad apples. We
kicked one out last year. It was very, very clear his description of the boat
he listed did not match the condition of the boat in any way,” Van Stolk says.
Williams says BCYBA is a good
community.
One of the ways the community
works together is the BC Boat Show, May 2 to 5 at Port Sidney Marina. This
association fundraiser sees many people from Richmond and the Lower Mainland
trek to see the hundreds boats of all sizes in the water as well as many
marine-related businesses.