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| Boats & Yachts |
Rising with the Tide
Michael Verdon
01/01/2004
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Navigating the yacht market can be a financial challenge at the best of times, particularly if we are unfamiliar with these often shark-infested waters. Besides the hefty maintenance costs, owning a yacht can involve complex issues, such as foreign flagging, offshore corporations and international regulations for crew staffing. The market for used yachts tends to be highly cyclical and, depending on the economy, prices can rise or fall as much as 30 percent for late-model cruisers.
 Despite the challenges, says attorney Michael Moore of Holland & Knight, a yacht is the ultimate possession for many owners. "Most think this is the greatest thing that ever happened to them," says Miami-based Moore, who has overseen hundreds of yacht sales. "Whatever else they have in their empires, this is it. You definitely can’t sit in a harbor in France, sipping cognac in your luxury jet."
Anyone who has ever bought or sold a yacht knows the value of professional assistance. "A yacht is a highly specialized piece of equipment, and the marketplace isn’t local—it’s global," says James Carney, an avid sailor who has bought five custom yachts in the last six years. "It’s helpful to have somebody who knows their way through that minefield."
That somebody is a yacht broker, who should have extensive knowledge of the matrix of 5,000-plus listings for yachts over 50 feet. As in the real estate market, yacht brokers can represent the buyer or the seller as a central broker. "It’s different in that yacht brokers have access to listings all over the world, rather than a geographically defined territory," says Dirk Johnson, Carney’s broker at Little Harbor Yacht Brokers in Portsmouth, R.I. "That means more potential buyers are competing for a boat, so theoretically it will achieve a better price."
Pilot Fees
Steven V. Rattner experienced that firsthand when he sold his 116-foot custom Valdetaro boat recently. "Buyers from all over the U.S. and Europe showed interest in it," he says. "The boat was very well-marketed. The broker’s fees were not inexpensive, but his market intelligence was well worth it."
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