Expectations-By the Numbers

In May we discussed setting your expectations correctly when looking at an older boat. Again, for this discussion, “older” is a boat built in 2005 or before. (sounds so new! Jeez I am getting old!). A reader quickly came back with a question-what does that look like in actual numbers?  Which prompts the question, which numbers? There are two sets of numbers, the buyer’s and seller’s

First, take a look at my favorite graph. You start with a new boat that gets its maximum price with an expectation of a minimum of repair costs. As time passes, our selling price goes down and as the potential for repair costs goes up. The key factor is the “potential”.  This  is an unknown and creates a concern that drives buyer’s numbers. Seller’s tend to not see the potential as much of a risk so they either discount it or ignore it completely. Ultimately, it is not that the numbers are complicated, but rather, the complication lies in who’s numbers you are looking at.  For example, a survey notes that a cooling system needs to be serviced. A seller may think, “You just pop the ends off the heat exchanger and run a stick around in there and get the salt out, 2-3 hours tops”. The buyer is thinking, “Holy smokes, what if I find out the heat exchanger and gear cooler needs to be replaced, and maybe all the hoses!”. That is a much higher number, and this calculation is repeated for each item on a deficiency list. Buyers are planning on writing two checks, one for the purchase and one for the repairs. As the repair check gets larger, they want the purchase check to get smaller. Sellers are very eager to help buyers understand their numbers are wrong, but that has little impact. Sellers need to be aware that their numbers do not matter, only the buyer’s numbers do, regardless of which is more accurate. 

Finally! We are down to one set of numbers-the buyers. So how do we understand them? That depends on the buyer’s tolerance for risk. When it comes to numbers, we all will try to quantify risk with a “worst case” number. For a simple item this might mean a buyer looks at a $100 item and adds half again to “be safe” and calls it $150.00. For a large, complicated repair a buyer could multiply 2, 3, times or higher just to “be safe” depending on how much risk they can tolerate. A large number of items on a deficiency list can rapidly drive a sales price down or cause a buyer to head for greener pastures.

As with so many things, even cold factual numbers turn out to be a jumble of buyer’s feelings about risk and a seller’s frustration with repair numbers they don’t agree with.

There is a solution-sellers need to make sure they bring their boat to market with the least amount of deferred maintenance possible. If you are going to “let the next owner handle that” (which I hear a lot!) then do not be surprised when your buyer starts adding up those ‘worst case” numbers and asking you to take it off your sales price. And buyers need to understand that if they assume the worst case for everything, their search for that 50’ trawler for cheap may result in them staying ashore.

Set Your Expectations

Let’s switch back over to one of my favorite topics-older boats. Not the first time I have discussed the great opportunities that you can find here, however, you do need to set your expectations correctly. One of the main attractions of an older boat is price-they have depreciated and will cost less to purchase. But while they were depreciating, well, they got older. Sometimes they are a lot older, and you must set your expectations as to what that means. It means that at the end of your survey you are going to have a list of things that will need to be resolved. Systems and components will be nearing end-of-life. And any older boat will have some of the cosmetic issues that come with use and time. Buyers are usually pretty good about doing their research. They will create lists of features and write down pros and cons of various hull types or designs, but they struggle to grasp the impact time has on a vessel. Time sitting in the weather, time on the systems, time on the finishes, time slamming through the water- it all takes a toll. Once buyers are actively shopping they are shocked when boats do not look new. Or worse yet, they are standing there with their surveyor with a list of items that need to be dealt with and they are surprised that there even is a list. When you are shopping in this portion of the market you need to be prepared for the impacts of time and age. And don’t expect the first boat you look at will be the one. It can happen, but it is likely you will have to sort through several to find the right wear/tear/repair combination for you. But with proper expectations and patience, you will find your new vessel and soon be on the water.

Quit Moving the Goal Posts

Back in January we discussed a variety of barriers that can slow down your boating adventures. Now let’s look at how we derail our boating before we even get started. We all know it as “Moving the Goal Posts”. A technique we employ from time to time to avoid making decisions. Owning a boat is a dream for many folks and no one wants to give up on a dream. Instead, we just move the goal posts. I will buy that boat when the kids are older! And when that milestone is reached it is, When I have a bit more money! And when you achieve that we switch to, When I have more time! And you keep moving the boat buying goal posts further out. I completely understand the process of looking at boat ownership, doing your investigation and then deciding it is not for you-that makes complete sense. But year after year of promising yourself you will take that step and never doing it takes up too much of your bandwidth. Bandwidth you could be using on something you actually can or will do. I am as guilty as the next goal-post-mover and had to recently pull the plug on a decades long goal. It was tough, but ultimately a relief. So stop moving the goal posts and decide. You might discover it a bit easier to focus on what you really want to be doing… or you might find that this is the year you start boating.

The Weather #$%&!

Unfortunately, most of us do not have 100% flexibility with our time, we make commitments, or our place of work expects us to show up. When I see a day or two that looks like it might be “free” I start to think about heading out on the boat. First, “free” means I can clear the day with a few emails/phone calls. Then I check with my wife on her schedule and see if she can clear some space. If both those things happen, then I check the weather. Not that I need perfect weather, but if we are just headed out for a short time it might as well be decent weather. If the weather is not great, we might decide to keep our noses to the grindstone so that we will be able to clear some time in the future. For the purist that says boating in the rain is just as good as boating in the sun, I salute you. I have spent enough of my life in rain gear or shuffling work crews around rainy weather to have a less enthusiastic response. The problem with the weather is that it is so dang fickle, especially in the spring. Case in point, last mid-April, early in the week, the weather on Saturday was looking sunny and calm so we did the schedule clearing thing. For the following four days the forecast flipped back and forth from sun to rain to wind to some combination of the three. Saturday morning came and the forecast for the day did not look good and we finally decided not to go out. Instead we went down to the boat and finished up some spring chores. By mid-morning it was windless, sunny and warm, and we pretended to not be irritated at our incorrect decision to stay at the dock. By early afternoon the clouds came in, the wind started howling, the rain began, and we smiled self-satisfied smiles having made the right choice after all! What did we learn from this? Not a dang thing other than the Weather likes yanking our chain!

Barriers in Boating

I was at a boating event (yes even in January!) and got into a discussion on the different barriers that boaters on the Inside Passage typically talk about. If you are starting in the Puget Sound the first big step is getting to the San Juan Islands, then it is crossing the border into Canadian waters. If you continue to venture north, you will have to cross the Strait of Georgia and then work your way up to Chatterbox Falls or Desolation Sound. This list goes on and on until you cross Dixon Entrance to finally arrive in Ketchikan AK. Along the way you will have to anchor, account for the rise and fall of tides, read a current table to hit slack water at a number of tidal rapids, learn to judge how the wind will impact the water you will be traveling on in a given day and the list goes on. All barriers, all legitimate and clearly, all surmountable. With some planning and research, you will find that these barriers are soon behind you. This discussion of barriers also applies to the beginning-how to get started in boating. Which boat to buy, how much will it cost, how to deal with insurance and moorage. All legitimate barriers and again, all can be overcome.   It is January and that is the time for a fresh start and new goals. Decide where you want to be in your boating journey by the end of 2025, do the research, ask for help (remember boaters are friendly!) and most importantly, take that first step. I find that the mountain I just climbed over, when I look back, was really more of a speed bump.

Boating Decisions!

Boat ownership is full of decisions. Non-boaters have no idea the magnitude of what we are dealing with here. First, should we boat alone or with friends?  Logistics-should we anchor in a quiet harbor or tie up in a fun marina?  Once we have made that decision, we move to provisioning- the afternoon snack, should we go with coffee aboard or on shore? If we are going ashore, what about ice-cream? The stress is mounting! We could go for a row, or perhaps a paddle, what about going ashore for a walk or a hike? How about none of those and stay aboard and take a nap? Is napping even an option, no one said napping was an option, was that in the brochure? Now we must to think about Happy Hour-when is that really? Is it at 5PM, similar to land time or is time warped by the effect of the water  and should  be at 4PM? Or did the nap go long and it will be starting at 6PM. Finally, what about dinner!? I can’t deal, I need to call my aqua-therapist.

Boat ownership-requires so many decisions… I can’t wait for next season so I can make some more. Happy 2025!

The old boat opportunity.

When does a boat become “old” and once designated “old”, are those boats no longer any good? Apparently, they were acceptable at one point, but now they are not? Perhaps it is our never-ending fascination with the new, which clearly must be better, more efficient, easier to take care of, less likely to break down, and has more gadgets that causes us to cast aside those older boats.

A car that is older than 25 years is considered a classic and will typically be brought out only for Sunday drives or the occasional car show. There are many 25 year old boats being used regularly as “daily drivers”. We are not calling them classics yet and personally, I would call them a great opportunity.

Let’s pick an arbitrary date, say the year 2000. Anything prior to that will fall into our old-boat category. If you wander the docks, you will see many boats built prior to 2000 and depending on their original build quality and maintenance program, their condition varies widely. However, with diligence and patience you can find solid boats that have had solid maintenance and will be able to take you where you want to go. A caveat: do not be taken in by the lower initial purchase price. Boats are complicated and many of the systems on an older boat can be near their end of life. A good surveyor can give you an idea how things stand and making sure you have some financial reserves set aside for your boat is always a good idea.

I suggest that we move away from the automotive mindset of buy new, wear it out and trade it in and move towards the house mindset. We find a house that works for us and we understand that at times it will need some significant repairs. We know that our house will need a new roof, fresh paint, wiring upgrades or some plumbing fixes.  Don’t be surprised when your 25-plus-year-old boat needs the same.

I know that an older boat is not the right fit for a lot of folks and it is best to know your limits, but for many, it is a way to start living out their boating dreams sooner rather than later.

So Many Memories

In the last blog we discussed the reason we buy a boat is to help create some amazing memories. I decided I would share a few of my favorite memories with you and I started thinking back to all the good times in my life that have been around boating.

I have been working on this blog for about a month. It was supposed to be simple, pick a few key memories and relay them to you. But every time I try to decide, I just end up staring into space reminiscing. It is a challenging task, I have discovered,  to pick from a lifetime of boating memories. I tried to categorize- growing up, my first boat, immediate family, extended family, friends, time boating alone, fun (and less fun) DIY boat projects, saltwater fresh water, fishing, sailing, cruising, beach camping, new and favorite destinations…impossible. There are too many great memories to try and pick a few.

 I have been boating as long as I can remember, it was what we did as a family and I wanted to share that with my kids, so we raised them the same way. I have never asked but I hope they have many great memories as well. And finally, I realized that I do not need to pick some memories to share with you, only to urge you to go out and create your own memories. Then you to, can stare into space…remembering.

How Much Can I Sell That Vacation For?

Boats are not typically money-making investments. They are not an appreciating asset and that was not the reason you bought it in the first place. Boats help create experiences and experiences can cost money. I have never heard anyone bemoaning the fact that they went on an amazing vacation but could not sell it later and recoup all that was spent on it. Yet I do hear that repeatedly about boats. You may, depending on the age and brand of boat, get your initial purchase price back, but probably not. Sorry to be repetitive but that is not why you bought it. You bought it to take you places with friends and family and to create amazing memories. I hope that has worked out and you now have a truckload of memories to enjoy. And I hope that you have found the cost of those memories worthwhile so that when you do go to sell, you won’t spend a lot of time agonizing about how much money you will get back. After all you have already achieved an amazing return on your investment.

Take a Mini-Vacation

I will start on the well-worn path of “the end is nigh” or the more positive “seize the day”. We have all been told we need to cast off (pun intended) and follow our dreams because we never know when…well, you know. There is some truth to this. I regularly get calls to help sell a boat because life has suddenly taken a hard turn and rarely in a direction anyone wants to go. However, for most of us, we cannot simply “cast off”, we have family, jobs and interests that keep us in one place. Thus enters the boating “mini-vacation”. I may just be me, but even spending a few hours on the boat soothes jangled nerve ends and helps to disconnect from the day-to-day stressors. When our kids were little, there was an undeveloped county beach park within a 20-minute run from our marina. At that time, we had a small runabout which was perfect for pulling up on the beach. All summer long, once or twice a week, after work, we would grab the kids boat bag, a cooler with some food, drive to the marina and race to the beach. Since it was boat access only, frequently we were the only people there. The kids and dog could run around like maniacs, and the concerns of the day would slip away. I am on a mini-vacation now while I write this. Just a couple of days and one night on the hook and we didn’t get far, but we are disconnected from the daily pattern that regulates so much of what we do. Boats can take you as far as you wish to go, but they can also, in a few hours, take you as far as you need to go.