Frequently Asked Questions
Yacht Purchasing, Selling, Management and Charter
We regularly get many similar questions from our clients about the venture they are about to embark on and thereafter how to maximize their enjoyment while onboard their vessels. We also receive many questions on the sales and charter process, so we thought we’d share these with you in case you were wondering the same. If you have a question that is not answered here, please feel free to reach out.
Purchasing A Boat
A very good question. The style of boat or yacht that is right for you is determined by the activities you enjoy out on the water, how many people you usually are, how far you want to go, if you’re planning on sleeping on board, if you plan on going offshore, if you like water sports, if you have a draft or height restriction at home port, etc. Determining this early on is crucial to the enjoyment of the vessel – one of the many reasons to call our qualified brokers and discuss these items.
The size of the boat does matter for many reasons. The main reason for a larger boat is to go further and have more room for accommodation on board. For example, in the motor yacht segment, a 50-foot motor yacht will not be able to accommodate eight people comfortably, but a 65-foot motor yacht will be just fine. This is determined by how many berths and heads the boat has. Another example, a 24-meter (78ft) expedition yacht will be limited by fuel storage, their capabilities in heavy seas and ability to store tenders and toys but a 50- or 70-meter expedition yacht will be able to suit your every need. Size depends on your needs, and many times on your wants as well, after all, we all want a larger boat!
The million dollar question! Budget is very important when looking to purchase a boat. There are many things to consider apart from the sale price. You will need to consider many expenses that you will incur upon ownership such as: Dockage, insurance, fuel, maintenance, cleanings, repairs and crew wages. The rule of thumb that has been wide-spread is to take into account 10% of your boats value every year towards the expenses. Now of course, this number is a ballpark figure, the actual costs of each boat differs by its location, size, equipment and time spent underway. (Many factors). Once we narrow down the boat, we will be able to give you a fairly close estimate of your expenses.
Trip planning is part of MMG’s commitment to our clients. First, we look at your boat’s capabilities, your schedule and your desired agenda. Your home port will be important if the vessel is not large enough to navigate long stretches without refueling. On vessels smaller than 24 meters, your trips out of South Florida will most likely take you to the beautiful Bahamas archipelago. Whether you seek help in planning routes, booking marinas, booking fuel stops and re-provisioning, we can most definitely help and work alongside your crew for the best results.
Simple answer – yes. Unless you as a buyer have the same amount of knowledge about boats, machinery, materials, laws, contracts, flags, surveyors and repair facilities for specific items, you will be better off with a yacht broker. As a buyer you will not be charged a fee for the transaction, but you will still benefit from professional representation during the deal. It’s often a question that gets asked about smaller boats but even then, it is highly recommended that you seek advice from a yacht broker.
It is always a good idea to take safety precautions when it comes to boating. Every state offers safety courses that one may take to greatly reduce the chances of an accident and/or to help you act quickly in case of an emergency. Even if you are not the one behind the helm, someone aside from the captain should have some basic knowledge of the laws on the water, the nearest inlet, where your home port is (visual recognition), where the safety equipment is on board, etc. If you want to operate your own vessel, some countries will require a captain’s license, and some will not if the boat is under a certain size.
This depends on your location. In the USA, the law allows owners to operate their vessels without a captain’s license (up to a size or tonnage limit, it varies by state). That being said however, most insurance companies will not insure an owner-operator without prior experience and will deny coverage to those boats over 55 feet if there is no captain on the policy. Yacht insurance is the reason many people opt to get their licenses. If you are running a charter business or charging people to get on your boat, you do need a captain’s license by law. (MMG Yachts is not a law firm nor is this legal advice, please seek legal advice from your attorney or local law enforcement to ensure you are following the law).
This depends on many factors such as: size of vessel, use of vessel, your personal qualifications, how much you’d like to work during your leisure time, etc. We suggest that any boat over 60 feet have at least one mate to help the captain or owner operator. A 100-foot yacht should have a crew of at least 3-4 in order to run the operation safely and comfortably. The larger the yacht, the more crew you will need, regardless of the use. A 100-meter yacht will usually employ about 25-35 crew members including deckhands, bosuns, engineers, stewardesses, captain, first officer etc. Without them, the owner’s experience would not be as pleasant and the yacht would deteriorate as there aren’t enough people maintaining it.
This question is very common. Again, it depends on many factors. What is the age of the boat? Is it a displacement hull, a planing hull? Are the motors diesel or gasoline? Are the motors maintained well? Are the motors rated for recreational use or commercial use? Our brokers will help you come up with these answers and tell you if the hours are considered high for the specific vessel.
So, this question has become more popular in the larger boat segment. Buyers are looking for ways to have a yacht tailor made for a fraction of the cost and time. The solution sometimes is to refit an older hull with new interiors, new finishes, new paint, sometimes even new machinery. Refits are also sometimes deemed necessary when the interiors are aging, the machinery needs major work, the paint is fading etc. Refits help greatly when selling a yacht of a certain size.
Selling Your Boat
Our Yacht Brokers will answer this question after research and evaluation has been done. It is fairly simple to get an estimate on a production yacht such as a Sea Ray, an Azimut, or a Ferretti because there are market comparables which we can get a baseline from. On the full custom builds, it is a different process. One must consider all factors such as shipyard, designer, equipment, age, survey results, charter history, code and overall condition.
Yes, a seller may use his or her vessel up until there is an acceptance of vessel in place by a buyer. From that day forward, there may not be any use of the vessel by the current owner (depends on the purchase contract, please refer to yours). What we prefer is that clients don’t use their boats any time after the buyer has conducted a survey. This way, the survey representations do not change at all from that day until closing day. If your boat is actively on the market, just make sure the management keeps the boat looking show ready for potential clients coming with their broker. We have seen many good boats get turned down from just being dirty at the time of showing.
This is a complex question to answer. It depends on what type of boat it is, the location of the boat, the condition, use and asking price. For example, you can expect a center console boat to sell within two to three months if properly maintained and you are asking a reasonable price. Meanwhile a 100ft motor yacht may take over six months if priced well. If your boat is in a location far away from the hot market areas, it will affect the time of sale due to buyers not willing to fly out to see your boat. The larger the boat, the smaller number of potential clients exist, therefore the longer it may take to sell. We have seen very large boats sell extraordinarily quickly as we have seen small boats take extremely long, so there is no sure answer, but we can give you an estimated amount of time.
As a seller under a central listing agreement, you are responsible for having the boat in working condition, mostly which is done by the crew. Having the boat available for your broker to show when you are not cruising, and overall keeping it as show ready as can be if you’re still using the boat. You are also required to openly tell your broker if there has been any material damage to your vessel that a potential buyer would want to know. At the time of the contract, you are responsible for supplying a captain, mates and fuel for the sea trials. We could provide one for you if your boat is owner-operated. At closing, you are responsible for executing all necessary closing documents we provide in order to finalize the transaction.
This question usually is asked by owners of smaller craft such as a 25-foot single engine bay boat or similar. In which case, it may be viable for them to list on boat trader and sell on their own if they have time to show it etc. Brokers won’t usually take on such listings because the work vs. revenue will likely end up in a loss. Now, clients with a more complex situation certainly should hire a broker to market and sell their vessel for many reasons. For one, your time is valuable and likely not well spent showing potential clients a boat whenever they want. Two, the amount of paperwork that goes into a yacht closing is on par to a home, most people do not know what documents are required, what you need to file with the state, how to go about sales tax, Coast Guard registration etc. Three, you will have representation on your end of the deal, a buffer between buyer and seller which is very much needed in a large transaction. Not to mention the handling of funds via escrow accounts, numerous contracts and the negotiation skills of your broker. Lastly, a yacht brokerage such as MMG Yachts are a group of professionals that market, show and sell yachts for a living, resulting in a much quicker and painless turnaround on your vessel.
We provide our clients with our listing tips sheet that helps ensure everyone knows what affects buyer’s decisions to move forward on your boat. To name a few: cleanliness, maintenance, aggressive asking price and being willing to negotiate. Aside from all the work your broker will be doing to get the boat sold, it helps greatly when the boat shows very well. People’s first impressions are very important for their decision making. Boat buyers are not a massive group of individuals; each showing should be done only if the boat is ready. If your broker’s company is managing your boat, most of these will be taken care of on your behalf.
Ownership
To set an example with no crew, we will use a 45-foot sport cruiser. These services are mostly quoted by foot per month. If your boat is used regularly, we recommend a wash every week, systems check once a month, and a diver once a month. You can estimate about $1,000 per month for those three items, seeing how the cleaning does not include the interiors for safety reasons. This will vary by location; some cities are more costly. If your boat has crew, the deckhands or mates should wash topsides, the diver is usually still a third party.
What we suggest in South Florida is once a month for bottom maintenance. This is due to the warm waters that are perfect for growth to happen at an accelerated rate. If your boat is in brackish water, say upriver, the bottom should be fine for two months at a time. Again, this depends on how much use, location and season. Consult with your yacht manager for a more precise answer.
Regular pleasure yachts made from GRP will usually come out for maintenance once a year. Again, this is for salt water-based boats that live in warm climates. During your haul out, you will re-paint with anti-foul, sand and re-coat your running gear with prop-speed, change out zincs if needed, check all intakes, service thrusters if needed, service shaft seals, bearings or pods, and the like.
It is recommended by most engine manufacturers to do some basic service yearly regardless of the hours you have used them for. Some boats will have multiple in a single year due to the amount of hours they are in use. Most modern gas engines require basic service every 100 hours or once a year and most modern diesel engines require it at 250 hours or once a year. Please refer to your owner’s manual for exact information about your particular motor. We are not certified techs and are just answering from what we have experienced.
Yes of course, if you are a local South Florida client, we will be glad to manage your boat for you. There are a few options that apply to different boats, please call us to discuss further.
This is a very common question in all boat sizes. If you are in a warm water area with poor current flow, you will run into A/C issues at some point. This is due to the debris the water intake picks up from under the boat and runs through the system when your strainer cannot handle anymore debris. The A/C strainers should be cleaned once per week in warm waters, especially if the size is relatively small. Not doing so will result in a high-pressure shutdown. Growth will also begin in the chillers and throughout, which is cleaned out by an air pressure flush and an acid flush if needed. The best way to keep your boat’s A/C happy is to constantly clean the strainer and do yearly air pressure flushes. Please consult a marine A/C technician for assistance.
The zinc bars that you’ll find usually bolted on to the transom are what protects the rest of your boat and metals from electrolysis damage. Those bars, amongst many other zincs found on underwater metal parts such as prop shafts, prop cones, bow thrusters and tabs are “sacrificial anodes” which attract the electrolysis in the water to them in order to protect your running gear. If not changed out when needed, you will start to see corrosion on your other metals, resulting in very hefty repairs.
Your diver or yacht manager should absolutely keep an eye on the zincs of the boat. You may also request photos of them from the diver if you need a closer look. For yachts with crew, the crew should carry spare zincs to be replaced at a moment’s notice.
Many clients panic when a named windstorm is heading home. When filling out the insurance application, you must tell them what your hurricane plan is. That should be your plan in order for your boat to be safe, and if not safe, covered by your insurance as they approved the plan prior to binding the policy. Other plans may include moving the boat away from danger, far away from home. This is usually the route that large yachts take, as they have crew that can take care of it. Other recommendations are to find a wind protected harbor or marina, double tie your boat, unplug shore power just prior to the storm, make sure your batteries are fully charged for bilge pumps to have power, remove all loose objects such as cushions, covers, flags, toys etc.
We are not insurance providers, please consult with your agent for policy questions and concerns.
The best way to fuel your boat where available is by truck. There are many mobile fuel trucks that will drive up to your home/marina and run a hose to your boat. This is the least expensive and most convenient way to refuel your boat. If you need help finding someone to do this for you, please give us a call.
Yacht Charter FAQ
The size of your charter yacht depends on a few things. Your budget, the size of your party, the amenities you desire onboard and the location. Please inquire about yacht charters for a detailed list of options. Most yacht charters are limited to 12 guests so what will mainly drive your decision on size and what the budget will be and what you’d like to do while on charter.
Most yacht charters are capped at 12 guests if the yacht can sleep that many people. Even if it’s a 65-meter yacht it is capped by rules and regulations. Only a select few large yachts comply with PYC (Passenger Yacht Code) which allows for more than 12 but less than 36 guests. Example being the Lürssen’s 450ft “Flying Fox” the largest charter yacht on the market.
This is a great question. You can choose to go the “normal” route and do Mediterranean summers or Caribbean winters, where you’ll have many yachts to choose from. Otherwise, with some good planning ahead you can charter a yacht in very remote areas around the world. Some clients may want to go heli-skiing, which will require a special charter route and special yacht. Some clients may want to visit the Maldives, some may want to see Patagonia, there are limitless options. We are open to discussing your charter needs and bear in mind, the sooner, the better results you will have.
Charter rates on certain vessels vary between high and low season. For example chartering the Med during the winter will have a better rate than the summer. Another factor is the timing for special events. Say a New Year’s charter, you’d want to book that way in advance if possible, for a better rate. Booking in advance makes better as the preparation will not be rushed, and it guarantees you’ll have an unforgettable vacation on board.
We would suggest placing more importance on the amenities, toys and crew reviews rather than how the boat was designed from the exterior. If the boat looks to be aging and is an eye sore, we suggest another option. The fact of the matter is that most of your time you’re going to spend on board and not looking at the boat from the outside. The entertainment aspect and crew of each yacht is what makes the experience an unforgettable one. Please call us regarding this matter for further assistance.
This question is complex because there are numerous charter contracts, with different booking firms using different contracts depending on their location mostly. A few of the most popular contracts you’ll come across include MYBA, CTI, and SEMT. They do differ so please consult with your charter broker for a further explanation. Booking usually happens once the dates are set, and a deposit is received in escrow of the charter broker. The balance of the charter is due about a week from the date of your charter. The contract states your rights, the laws protecting you and the charter yacht, the terms and conditions of such said charter and the structure of expenses and payment dates.
Yes, your charter broker will ask for a deposit once the dates have been booked.
Once you book your charter, you will receive a note from the crew welcoming you. Along with this note, you will receive a list of food, beverages, snacks, etc. in the form of a preference sheet. Once your party returns this list, the crew will know exactly what they need to provision the boat with to make your experience great. You may also have special requests such as a proposal dinner, flowers, gifts, decorations etc.
There are a few charter yachts that are helicopter capable. In those cases, you can request to be picked up via the yacht’s helicopter. Please note the helicopter may be excluded from the charter contract, so have your broker ask this question to the booking agent directly.