Last fall, as the 2008 season was coming to a close, I felt great. My second "season" as a yacht broker was a successful one, and I was happy with what I had been able to do for my clients. The economic slowdown that had been looming over the summer didn't seem to be effecting my clientele yet, and I had some great listings to keep me busy over the winter.
Then, perfectly timed with the Newport Boat Show, Lehman Brothers collapsed, taking the rest of the economy with it, finally catching up with just about everyone. Of all the challenges I was expecting with this job, I never thought I would be dealing with the greatest economic crisis since the Depression.
I am fully prepared to ride this out, and while the frustration does catch up with me occasionally, I mostly just want to adapt and move forward. The frustration comes from the current state of the boat market, which is near-paralysis. Sellers aren't willing to drop their asking prices any further, and buyers think that everything is overvalued and the market is going to reset. In my view, there is some middle ground and it requires buyers to realize that a good deal is not always 50% of the asking price (see earlier post).
I am 'buoyed' (sorry) by a few clients that are realistic and ready to take advantage of the buyer's market, and I'm also lucky to have had some deals come together over the last few months. But I will be very happy when the market - and the water - warms up.
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