Boat Appraisals: Part II of II

Here's what a good appraisal provides

·         The condition of the boat and its equipment: A marine appraisal determines the condition of the boat's visible components and accessible structures at the time of the inspection. An appraisal provides a list of deficiencies as well as needed repairs and focuses on safety. Deficiencies in an appraisal can be used to renegotiate the sales price or scrap the deal altogether if needed repairs are too expensive or complicated.

·         The value of the boat: Appraisers use pricing guides along with their experience in valuing boats. A seller or broker may think a boat has a specific worth, but until an appraisal is performed, those figures are only guesses. Banks and insurance companies use the appraisal value to determine loan and insurance hull value amounts. This is also a great tool for price negotiations and can easily pay for the cost of the appraisal.

·         A budget for repairs and maintenance: Nearly any boat will have some defects and deficiencies; knowing what they are beforehand makes it easier to know how much to budget for the future. Appraisals typically provide a list of recommended, prioritized repairs. The most important ones are critical to safety and usually your insurance company will require them to be completed. The rest are things that can be done as you find time and money.

Attend the Appraisal Inspection

A good appraiser welcomes prospective buyers to be present at the appraisal. There's no better way to learn about your new boat than watching a professional methodically dig through it. The appraiser's notes will be more meaningful if he's able to discuss with you what he's examining. He'll also answer questions that might not be significant enough to be included in the written report, and can tell you about problems they've seen on similar boat that you can watch out for.

Contact the U.S. Coast Guard at 1-800-368-5647, or www.uscgboating.org for information about manufacturers' recalls or to report a possible defect.