I’ve been busy showing boats and writing contracts over the past 10 days – a refreshing change that has unfortunately slowed down my blogging a bit. Since I’ve been helping some clients set-up surveys, I thought I would share some thoughts on that topic.
Once a buyer and seller have agreed on an asking price and signed a contract, the pre-purchase marine survey is the next hurdle to clear. Similar to a home inspection, the survey is done by an expert working exclusively for the buyer, so that he can provide an objective and technical evaluation of the boat’s condition. Even if the boat you’re buying is less than a year old, your insurance company is going to want to see a survey.
When it comes to choosing the right surveyor, I always advise my clients to seek-out referrals, rather than just choosing blindly from a directory. If you’re working with a broker that you really trust, he can provide you with a list of surveyors that are well-respected in the field. When I do this for my own clients, I include the caveat that they cross-reference the names I give them instead of just “taking my word for it.” Yacht yards, owners, and online owner’s groups are all great places to ask about a particular surveyor’s reputation.
The three criteria to consider when choosing a surveyor:
- has experience with the make of boat that you are purchasing
- accredited by SAMS or NAMS
- is able to communicate clearly, answer your questions, and explain what you should expect from the survey
The best surveyors have first-hand knowledge of the enitre build history for that model or manufacturer, and a technical or engineering background. Expect the survey to report major structural/operational problems with the boat, engine, and related gear. Here are the headings you are likely to see in a surveyor's report:
- inventory of equipment found onboard
- hull composition and structure
- propulsion and machinery
- tankage and plumbing
- rigging
- electrical systems
- electronics/navigation equipment
- head
- deck equipment
- safety equipment
- summary of findings/recommendations
After the Survey
Ideally, the survey report will come back with no major issues, and both parties will proceed to the closing. But sometimes there is a more significant issue that prompts the buyer to ask for a concession – a reduction in purchase price, or repair/replacement of the problem. At this point, the seller can walk away from the deal, or make the concession (a broker can be very useful in helping both parties resolve the issue).
Cost
Here in the Northeast, the top surveyors might charge as much as $20/foot, which includes the out-of-the-water portion of the survey and the sea trial. The process usually takes most of the day, but for complex boats over 45’ it can be a two-day affair. The buyer will be responsible for any yard charges, include a "short-haul" and power wash to facilitate inspection of the bottom.
I have two surveys taking place over the next 6 days - it will be a busy week!
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