How to Buy a Used Yacht, Step by Step

Step 1. Define the mission and the total budget

Every good used yacht purchase starts with a sentence describing how the boat will be used. Something like: weekends on Long Island Sound with four adults, one or two weeks a year to Block Island and Martha's Vineyard. That sentence rules out more boats than any spreadsheet and keeps you from buying for a rare dream trip.

Then build a total budget. The purchase price is only one line. Add sales or use tax for the state where the boat will be kept, survey and haul-out, engine and rigging inspections, delivery, registration and documentation, and a first-year reserve. On a well-kept boat under ten years old, 10 to 15 percent above purchase price is often enough. On an older boat, especially one with original sails, rigging, canvas or electronics, setting aside 20 to 30 percent is realistic. Our guide on yacht ownership costs covers the ongoing budget.

Step 2. Arrange financing and an insurance quote early

Marine lenders typically want a down payment of around 10 to 20 percent, a credit review, and a satisfactory survey on the specific boat. Some limit the age of boats they will finance, often around 20 to 25 years, and longer terms are usually reserved for larger loans. Getting pre-approved tells you what you can actually spend and makes your offer more credible.

Insurance can be harder than financing for older boats, larger boats, or buyers stepping up significantly in size. Call a marine insurance specialist with the type, size and age you are considering. If a carrier will only write the policy with a hired captain for the first season, or excludes your intended cruising area during hurricane season, you want to know that before you sign anything. Our yacht loans and yacht insurance guides go into detail.

Step 3. Search smart and learn the real market

Most used yachts in the US are listed by brokers on the large listing networks, with private sales common under about $100,000. Search widely at first, then narrow to two or three models and learn them thoroughly: known weaknesses, engine options, model-year changes and what owners say in forums and owner associations.

Asking prices are wishes. A buyer's broker can pull sold boat data showing what comparable boats actually closed for, which is the single most useful number in any negotiation. Watch how long boats have been listed and how often they have been reduced.

• Compare the same model within three or four model years, adjusting for engine hours, equipment and refits.
• Note the region. Freshwater boats from the Great Lakes and inland lakes usually show less corrosion than saltwater boats of the same age.
• Ex-charter boats can be good value but carry heavy use. Price them accordingly.
• Ask for maintenance records before traveling to see a boat. Thin records are a warning sign on any yacht with diesels.

Step 4. Decide whether to use a buyer's broker

In the US, the seller usually pays the brokerage commission, commonly around 10 percent of the sale price, and it is typically split between the listing broker and the broker representing the buyer. That means a buyer's broker usually costs you nothing directly, while giving you someone whose job is to represent your interests, pull sold comparables, recommend surveyors and manage the paperwork.

The listing broker represents the seller. They can be helpful and honest, but their duty runs to their client. If you buy without your own broker, you take on the research, escrow and closing coordination yourself or through a documentation agent or maritime attorney. Look for a broker who is a member of a professional association such as YBAA or CYBA and who knows the type of boat you are buying.

Step 5. Look at the boat like a buyer, not a guest

Your first viewing is not a survey, but it can save you the cost of one. Spend an hour looking for problems before you fall for the cockpit or the saloon. Open every locker and hatch, turn on systems, and look in the bilge and engine room with a flashlight.

Step 6. Make an offer with the right contingencies

A US yacht offer is normally made on a written purchase and sale agreement, often based on a standard industry form, with a deposit (commonly 10 percent of the offer price) held in the broker's escrow account. The agreement names the price, the inventory included, the closing date and location, and the conditions under which you can walk away and get your deposit back.

The essential contingency is acceptance after survey and sea trial. That wording lets you reject the boat, or propose a revised price, based on what the inspections find. Set realistic deadlines, often two to three weeks for survey and sea trial, and make sure the inventory list includes the tender, electronics, spares and anything else you expect to stay with the boat.

Step 7. Survey and sea trial, the heart of the deal

Hire an accredited marine surveyor who works for you, not the seller. A pre-purchase survey covers the hull, deck, structure, systems and safety equipment, usually with a haul-out to inspect below the waterline. On diesel-powered boats, hire a separate engine surveyor who will check the engines and generator, take oil samples for laboratory analysis, and run the engines under load during the sea trial. On sailboats, add a rigging inspection, ideally with someone going aloft.

The sea trial should run the boat as you would: engines at idle, cruise and wide open throttle for a short period on power boats, sails hoisted and reefed on sailboats, every system turned on. Our marine survey guide explains exactly what a surveyor checks and how to read the report.

Step 8. Accept, renegotiate or walk away

Once the reports arrive, sort the findings into three groups: safety items that must be fixed, significant issues that change the value, and normal wear consistent with the boat's age and the price you offered. It is reasonable to ask for a price adjustment or seller repairs on the first two groups. Asking the seller to pay for routine wear you should have expected rarely works and can sour the deal.

If the findings are serious (structural damage, failing engines, widespread wet core), walking away is often the right decision. That is what the contingency is for, and the money spent on survey is cheap compared with buying the wrong boat.

Step 9. Closing, title and documentation

Closing transfers ownership and pays the seller, and it is where clean paperwork matters most. Your broker, a documentation agent or a maritime attorney will normally handle the steps below.

Step 10. Taxes, delivery and the first month

Sales and use tax depends on where the boat is principally used and stored, not only where you buy it. Some states cap boat taxes, and Florida offers a nonresident exemption when a boat leaves the state within a set period, but the rules change and carry strict conditions. Talk to a tax professional before closing if you plan to structure the purchase around them.

Plan delivery early. Hiring a delivery captain for an unfamiliar boat is often wise even for experienced owners, and riding along is the best orientation you can get. In the first month, change fuel filters, check through-hulls, test every alarm and pump, label circuits, and start your own maintenance log. Fix the survey's safety items before anything cosmetic.

Models mentioned in this guide

Catalina 320

Cruising Sailboats, 33 ft

Used $30K to $85K

Beneteau Oceanis 46.1

Cruising Sailboats, 48 ft

Used $300K to $640K

Leopard 45

Sailing Catamarans, 45 ft

Used $380K to $760K

Lagoon 450

Sailing Catamarans, 46 ft

Used $250K to $580K

Grand Banks 42 Classic

Trawlers & Explorer Yachts, 43 ft

Used $75K to $360K

Sea Ray 480 Sedan Bridge

Motor Yachts, 51 ft

Used $200K to $350K