Please select your home edition
Edition
upffront 728x90

Job done with Marine Auctions. (Part I)

by John Curnow on 2 Oct 2012
No matter whether it is a Catamaran, Cruiser, Sportsfisherman or Sportboat, Marine Auctions has them all. Marine Auctions
One of the age-old truths in this life is that something is only worth what somebody else is willing to pay for it. Now if you’re the type that can’t handle the truth, it is probably better for you to close this window right now and go read something else.

However, if being told the truth works for you and getting a real handle on what your vessel or pen is likely to return to you, then you’re probably the kind that is prepared to put your boat to market with Marine Auctions. Good on you for being honest with yourself, too. As a bonus, you might be pleasantly surprised to know that Marine Auctions achieves something in the order of 70% clearance rates. All of which means that if you are in the place where you want to move on, either to your next vessel or completely away from boats, as the prospect of paying next months marina fees and associated costs is just driving you nuts, then you really do need to look at the auction.


Now with their online auctions coming on stream, both in real time and time bombed (ala eBay), this is not only going to be a good thing, it will also probably help you out enormously as you’ll be before a bigger market. So there you have it. It will be job all done with Marine Auctions.

As with a lot of people in and around the marine business, Marine Auction’s CEO, Adrian Seiffert, is in, on or immediately adjacent to boats, just about every day of the year. Also like many of us, he does not get to use them that much for his own purposes, as he’s simply too busy. Case in point was when a client asked him to bring down a near new Capricorn 40 from Mooloolaba to Brisbane. He did it, but took along a driver with him, so that he could be on the laptop, going about the business of auctioning boats. Finding drivers also seems to be something Adrian gets asked to do a lot, as it turns out.

There are several strings in Adrian’s Marine Auctions bow these days, which is why there are around eight staffers. A former ocean racer, Adrian has been a registered valuer of plant and equipment for a long time and combining the two passions is what created Marine Auctions some eight years ago. Today, there is a specialist marine valuation division, buyer’s advocacy and a marine services side that handles assets like pens, both of which are also growing well you’ll be happy to know.

The ocean racer in him is smart enough to voice the adage ‘never say never’ when talking about going offshore again and you recognise a distinct glimmer in relation to doing another Hobart when you’re talking with Adrian, as well. That prudence and determination is also evident in not stopping with the development and enhancement of the Marine Auctions business, which is why they have just gone online with them.


‘It’s true that Australia is more in love with auctions per se than several other countries, but anything that is online is now global and you only have to look at rare coins, banknotes, fine art and cars to see that commodities do very well thank you, both in terms of at auctions and especially online. Indeed every record price for an item has been set at auction. In the United States just a couple of years ago, the Auction Industry as a whole was worth US$200B and the agriculture equipment side of that is phenomenal’, said Adrian.

Of course, not everyone is delighted with Marine Auctions. ‘Yes, the brokers do get upset with us, but we are moving boats that have been listed with them for a long time. We had an owner bring up a large Sportsfisherman from Sydney, which is a big, big market. It was a great boat with a good tuna tower fitted and naturally, it sold. Another client had a boat that was literally listed everywhere and we asked him to be realistic about his price, as I did not think we could get the price he wanted. He took $20,000 off his reserve and we ended up getting $20,000 more than what he had originally required. That does not happen all the time, but I sure wish it did’, Adrian commented.


So just where is the market in today’s terms then? Yet another seemingly appropriate adage is that there is not a boat afloat, which is not for sale. In current times however, it seems what some said about a characteristic of the late and great Steve Jobs is more than apt. There is now more of a reality distortion field around what an owner thinks a vessel is worth and what its really going to achieve are two different things. Adrian says, ‘Very much so. What it is worth and what someone will pay are different. Sometimes this is because people paid too much in the first place. I had a client who bought a vessel thinking he’d done well because he got 10% off the listed price. The problem was that the original asking price was something like 40% above the odds to start with. We're a certified practicing valuer and definitely keep our proverbial finger on pulse throughout the world and gather all the data we can through contacts, subscriptions to data services and the like.’

Continuing on, Adrian adds, ‘We auction 30 to 40 boats a month in Australia. We can tell you that a 2004 to 2008 model will be around 50% - 60% of new price and that over 10 years old it drops off a lot. However, it astounds me what people look at on our site and I often wonder. What we can confirm is that the traditional sports cruiser, such as a Mustang 3200, has been hit hard and it is due to over supply. Doing well are smaller Sportsfishermen like Boston Whalers, as too for good cruising catamarans, such as Fontaine Pajot and Perry. Big old racing yachts are a bit of problem and there are not many charters occurring for them up in the Whitsundays.’



‘We do reject boats, especially when the vendor has an unrealistic price expectation. Some may tell them what they want to hear, but we’ll tell them the real deal. What they don't want to hear, if you will. We don't have a lot of craft for sale at one time, just what is up for the next auction. So you may find it is usually just one of any particular brand or model. Buying a boat is easy, but paying ongoing costs is not so. With marina fees, another old adage has quite possibly increased and that is that you will require 20% of the purchase price annually to keep it going and this is mainly due to marina fees becoming dearer. There are a lot that do not move at all and we do often ask why someone is selling and a lot of the time they just say they do not use it. There are definitely advantages to the clubs or syndicates. If I was in the market, I think I'd look at that. A big issue for some buyers is obtaining finance. A senior person at one bank told me plainly - We will not lend on planes or boats!’

Yet it is not all negative. Prices for new craft are down, as the factories do all they can to get competitive and a high Australian dollar helps domestic customers. Adrian comments, ‘$500k – 600k gets you a lot of boat. 18 months ago that was what you would have paid $1 to 1.1M for. I think only 20% of those who buy used craft from overseas do better than what they could have achieved here. I see it all too often when a craft comes in and the motors are gone because it has sat over there for years. Might have been 'cheap' at the time, but what is that really. We perform a lot of valuations for Customs on behalf of the Tax Office and it is not just GST you have to think of, but also duty when it is a country that does not have a free trade agreement with Australia, for instance.’

The auction system certainly sets up a true market valuation and the only one where you can get in excess of your asking price, as the haggling is between the prospective buyers and not the one buyer and a vendor. ‘Our boats are sold As Is/Where Is. Some vendors and purchasers get surveys done. We encourage people to bring whomever to inspect in the three to four weeks leading up to an auction. Then again, some just show up on the day. Interestingly, people tend to put more due diligence into smaller craft than big ones. Go figure. I recall one instance where people arrived for a sea trial with a picnic basket and bottle of wine. We did a short circuit just outside the marina and that was that’, said Adrian.


So we have certainly just seen some home truths about selling and indeed buying a boat from Adrian Seiffert of Marine Auctions. In Part II we’ll learn about new ways to get the job done with Marine Marine Auctions website

Schaefer 2016 Ratchet Block 660x82Bakewell-White Yacht DesignInSunSport - NZ

Related Articles

Mirabaud Yacht Racing Image exhibition at the World Sailing conference
The Mirabaud Yacht Racing Image award keeps growing and improving its structures. World Sailing’s annual conference reassembles World Sailing member national authorities, Committees, Sub-committees, Commissions, Class Associations, sailors, event organizers, boat manufacturers and observers. Up to 700 delegates are expected in Barcelona this year.
Posted on 26 Sep
Olympic Gold medalist and Volvo Ocean Race winner up for WS Board
Torben Grael (BRA) is amongst the 15 nominations for one of seven places on the Board of Directors of World Sailing Torben Grael (BRA) is amongst the 15 nominations for one of seven places on the Board of Directors of World Sailing in November. The five times Olympic medalist, Volvo Ocean Race winner and several times America's Cup competitor will bring a much needed sailing edge to the Board of World Sailing if he can navigate the politics of the controlling body of the sport.
Posted on 25 Sep
Southern Spars en route to Monaco – Stand QSE2
It’s been another big year for the NZ based company, there's lots of exciting things to talk about the Monaco Yacht Show It’s been another big year for the New Zealand based company, giving us lots of exciting things to talk about at the 2016 Monaco Yacht Show like our two big projects Adix and Aquijo. Adix, the three-masted 65-metre Dykstra schooner, has been transformed by a rig refit by Southern Spars and Future Fibres.
Posted on 22 Sep
Tony Parker - Basketball player and ambassador of the Bridge
Tony Parker, basketball player with an exemplary sporting career, took advantage of visiting France to launch 100 Club This important meeting took place last Saturday morning on 17th September in Nantes, between Tony Parker, godfather to the Bridge, and the companies which support this Franco American initiative, which will celebrate 100 years of fraternal exchanges between two countries. Tony Parker, the basketball player with an exemplary sporting career, took advantage of visiting France to launch the 100 Club
Posted on 22 Sep
Terry Kohler, driving force of North Technology dies at 82
Terry Kohler who purchased North Sails was the driving force behind the North Technology Group, has died aged 82 Terry Kohler who purchased North Sails from Lowell North over 30 years ago and was the driving force behind the North Technology Group, has died aged 82. With the combined company of North sails and Southern Spars, Kohler created the 'Engine above the Deck' concept which married the technology used to build the sails and spars to be designed and work as an integral unit.
Posted on 21 Sep
The Newport International Boat Show is opening next week!
Newport Exhibition Group has secured a record number of exhibitors, and organized more educational activities Newport Exhibition Group, owners and producers of the Newport International Boat Show, announced today that it has secured a record number of exhibitors, and organized more educational activities and attractions for showgoers than ever before.
Posted on 9 Sep
Brookes and Gatehouse Videos with Knut Frostad
Navico, the parent company for Brookes and Gatehouse (B&G), Simrad and Lowrance have prepared some terrific videos Navico, the parent company for Brookes and Gatehouse (B&G), Simrad and Lowrance have prepared some terrific videos with Knut Frostad, the legendary Volvo Ocean Race sailor and former CEO. See him talk about sailing in general, the B&G product choices and placement he made for his own boat, and then why he loves his Outremer 5X.
Posted on 8 Sep
Bavaria C57 – Something big is coming
Bavaria Yachts presents a new revolutionary sailing yacht, in the form of the new Bavaria C57, at the Yachting Festival Bavaria Yachts presents a new revolutionary sailing yacht, in the form of the new Bavaria C57, at the Yachting Festival in Cannes. The innovative design, the smart layout, the high-quality equipment and build quality, and the impressive performance set new standards - and not only for Bavaria Yachts. …..Something big is coming.
Posted on 8 Sep
Zhik sailors win 17 sailing medals at 2016 Olympic Regatta
The 2016 Olympic games are over and what a Games they have been - Zhik sailors dominated Zhik sailors won almost 60% of the medals contested at Rio de Janeiro. It was a regatta which tested sailors and gear - with one day being the most severe conditions ever experienced at an Olympic regatta. For the Zhik team riders on the waters of Rio, four years and more of hard work and dedication have paid off for many.
Posted on 29 Aug
PredictWind - One stop shop
PredictWind have taken the bold step of adding government provided forecasts to their award winning forecasting software PredictWind the world leader in forecasting believe that more is better, and have taken the bold step of adding government provided forecasts to their award winning forecasting software.
Posted on 15 Aug