Working on your Behalf
When it comes to making the perfect yacht purchase for adventures on the waves, JFA walks their clients through the entire ownership process. Hiring a broker means you have an industry insider working on behalf of your best interests and JFA does just that.
Step 1: The Search
The first step is a deep dive. JFA Yacht & Ship learns each client’s unique vision of being on the water. Then, understanding each client’s preferences (number of state rooms, style, capable speeds etc.) and budget. Once JFA has a clear picture they begin the boat search. With their years of expertise, JFA takes the buyer’s dream and determines which types of vessels will accomplish that vision.
With an extensive network of brokers, systems, and tools, JFA’s clients begin to receive boat listings that meet their criteria. And, with JFA as a guide, promising vessels are then discussed.
Step 2: Showing and Offers
Saving client’s time is important to JFA, which is why they coordinate showings of vessels and can set up boat show appointments, so the client doesn’t need to. Once a client has their sights set on a particular vessel, JFA plays an important role of connector and advisor. Oftentimes in the boating industry, “who you know” plays an important role to make sure an offer gets full attention.
JFA stands as support to keep purchase negotiations running smoothly on their client’s behalf. After a price agreement is reached, within 3 days, a 10% deposit of the contract value is put down. This money is 100% refundable and goes into JFA’s escrow account until the client accepts the vessel. The offer is usually subject to personal inspection, haul out, survey and sea trial.
Step 3: The Survey-Sea Trial
Buyers get further clarity on their potential purchase during inspection. Much like in real estate where a buyer hires a home inspector, JFA recommends client’s hire a 3rd party surveyor. Mark Outlaw with JFA remarks, “we want the surveyor to be someone chosen by you so that you’ve got absolute confidence in who you’ve selected; and that you know that they’re working for you, not for us, the broker, or the seller.”
JFA attends the survey and sea trial representing their client’s interests. The surveyor builds a comprehensive knowledge of the condition of the boat which is the best time for the buyer to get familiar with the yacht. Every system is examined, and all findings go into one of three categories: 1) Needs attention (it effects the seaworthiness of the boat) 2) Won’t hazard the boat’s performance at sea, and 3) Cosmetic.
Sea trials allow the buyer(s) to determine the yacht’s current condition and value. Depending on the yacht, surveys can last from 4 hours to several days.
As the broker, JFA councils their clients on non-negotiables, discusses concerns, and can procure repair estimates. Oftentimes at this stage in the purchase, there is a second negotiation with the seller where JFA will leverage the cost of repairs or imperfections, to adjust the price of the vessel.
Step 4: Acceptance
Following the inspection, buyers will present either of the following three (3) responses. Rejection-Of-Vessel( ROV), meaning the buyer cancels the purchase and deposits are returned. Acceptance-Of-Vessel (AOV), meaning the sale will proceed to the closing phase without further negotiation, or Conditional Acceptance of Vessel (CAOV), meaning the buyer is willing to move to the closing phase under stated conditions.
Once, the vessel is accepted or the conditions are agreed to and completed the deposit is released and both parties move to the closing phase.
Step 5: The Closing
JFA provides clients with title agent options or clients procure one of their own, and all necessary paperwork begins.
While the buyer finalizes necessary details with the titling agent, JFA provides clients with a Buyer’s Closing Statement. This is the balance due depending on what the tax liability is for the sale. Depending on the closing date of the contract, clients are given a certain number of days to get the balance of funds paid. The entire process can take 5-10 business days or on rare occasions longer. JFA Buyer closing costs are separate and apart from the above and are capped at $500.
Step 6: Financing
When it comes to securing financing, JFA provides clients options to mitigate the cost of yacht ownership and preserve their client’s assets. One finance option is a collateralized loan, and the other is a direct marine loan that acts like a mortgage. Some clients choose to set their yacht up as a business and put it out for charter. This is a great way to recoup some of the cost of ownership when the buyer isn’t using the vessel.
Step 7: After the Purchase
JFA helps their clients throughout the entire ownership process. From delivering a boat to the client’s home port and provide training on how to operate the vessel, to assisting in researching how to find a captain, and serve as an incredible resource for vetted boat vendors. JFA also is happy to field technical boat issues and sometimes can help clients avoid needing to hire mechanics, saving them money.
The journey to boat ownership isn’t always smooth sailing but with JFA, clients aren’t alone at the helm. JFA provides peace of mind navigating the waters of purchasing a dream boat for round the world adventure.