Thinking of selling your luxury vessel in an auction? If you are unfamiliar with yacht auctions, you likely have a host of questions about the process. Below, we’re breaking down everything you need to know about selling a luxury yacht at auction, so you can make educated decisions as you work towards the sale of your vessel. Let’s take a look!
Why Are Luxury Yachts Difficult to Sell?
Every year, hundreds of luxury boats are listed for sale. Because the market is so competitive – and every seller is up against brand-new listings–it can be tough to find the right buyer. Therefore, many yachts sit on the market for months before selling. This is partially because owners tend to want to list prices a bit higher than the market can handle. Additionally, some brokers fail to employ the cutting-edge marketing tactics needed to reach qualified buyers. Unfortunately, the longer a yacht sits on the market, the less desirable it can appear to some buyers who notice how long it’s been listed and automatically assume that something is “wrong” with the vessel.
Do Auctions Result in a Quicker Yacht Sale?
Because a luxury yacht auction places your vessel in front of the most qualified, motivated buyers on the market, you won’t have to wait for inquiries to trickle in slowly. Instead, your auction company will use the latest, state-of-the-art strategies to market and show your yacht. And when an auction date is set (with your input), you’ll have a date of sale that’s all but completely guaranteed.
Who Pays the Auction Fees?
When buyers register to attend a luxury yacht auction, they also receive information on the auction company’s fees that they’ll pay as part of the transaction. This number is always paid in addition to the final auction bid that completes the sale of the yacht. For sellers who choose to use a broker in addition to an auction company, they’ll pay their own broker’s fee. Elite Auctions does not charge or deduct any fees from the seller’s proceeds at closing.
How Does Elite Auctions Market Yachts?
The marketing and showing process before a sale can make or break the results on auction day. That’s why Elite Auctions employs a full marketing team consisting of professional videographers, photographers, copywriters, and web developers to promote your vessel and place it in front of the most qualified buyers.
What Makes the Elite Process Different?
Auction companies differ substantially in the way they market yachts prior to auction, as well as how they conduct the auctions themselves. Elite Auctions hosts open houses onboard all vessels each weekend leading up to the event. Additionally, we organize a pre-sale demonstration ride, which allows interested buyers to see and experience the yacht first-hand before deciding to bid. On auction day, Elite Auctions conducts a live, in-person auction with a professional auctioneer who is an expert in extracting the maximum potential bid from those in attendance. We also facilitate remote bidding via telephone for bidders that are unable to attend in person.
In contrast, other auction companies rely solely on an online auction format with no live interaction onboard the vessel. Online-only auctions fail to leverage the power of the in-person experience and bypass the powerful impact that a professional auctioneer can have on maximizing the final purchase price of the vessel. Some auction companies do not even hold open houses onboard the yacht or conduct a demonstration ride; by failing to perform these critical tasks, such companies fail to market vessels to their fullest potential.
How Does the Auction Process Differ from a Traditional Yacht Sale?
The conventional yacht sale process is a long and tedious one, where sellers must list, market, wait for bites, consider offers, make counteroffers, and wait some more. Each step of the way can be fraught with questions, inconveniences, and expensive carrying costs to maintain the vessel in the dock when you’re not even enjoying it. Luckily, auctions eliminate much of the uncertainty. Because Elite Auctions employs effective, strategic marketing tactics and the nature of an auction ensures an end date for the sale, you’ll be able to relax and enjoy the entire experience.
Whether you’re sold on auctioning your luxury yacht or just want to learn more about the process, we’d love to talk to you. Feel free to fill out our contact form, and we’ll get back to you as soon as possible!