When you are selling a documented vessel, you want to get as much for it as you can. There are some ways you can increase the value of your boat so that you get top dollar from your buyer. Understanding the boat sale process and how to be sure you get a fair price for your vessel can help you along the way. Wondering where to start? You’re in the right place. Here are some ways to make more profit on your documented vessel.
Have All of Your Paperwork
A documented vessel, as the name implies, has a variety of paperwork that goes along with ownership. When you sell the boat, these documents will need to be transferred to the new owner. Having them in order and ready to go can speed the process. It also makes the boat sale smoother and easier for the buyer, which means you may be able to get more for your boat because you are taking some of the hassle out of the sale.
Take Care of Any Liens
Having a lien on your vessel can make it less attractive to potential buyers. That’s because it could become their responsibility down the road. A lien is generally placed on a boat when money hasn’t been paid for the mortgage or upgrades and repairs to the vessel. If you want to get the most profit from selling your boat, it’s best to clear up any liens before moving ahead with the sale.
Consider MARAD Waivers and Coastwide Endorsements
The Jones Act was established in 1920 and was an effort to stimulate business on the ocean, including passenger transport and commercial fishing. Under the Jones Act are several waivers and endorsements that may apply to your boat. By taking advantage of them, you can increase the overall value of your vessel, which means you could get more money for it when you sell. There are three steps to this process and they are as follows:
- Apply for the MARAD waiver – this proves that you aren’t going to be negatively impacting commerce in the United States by operating your boat there. This generally applies to vessels built outside the country.
- Apply for a coastwide trade endorsement – this is done with the United States Coast Guard and allows you to use your boat for commercial purposes.
- Submit to the Unexpected Passenger Vessel (UPV) Examination – this is optional but ensures that your boat meets all US Coast Guard regulations for commercial operation.
While each of these steps takes effort and costs fees, the end result is a higher value for your boat. That’s because potential buyers won’t have to go through the process since you’ve already done it. The waivers and endorsements apply to the boat so you can transfer them to the new owner.
Applying for USCG waivers and endorsements can be done online and are an easy way to increase the profit earned from selling a documented vessel. The US Vessel Registrar is here to help. Contact us today for assistance facilitating the process or to ask any questions you may have about selling your boat.