Yacht Valuations
I get asked a lot about Yacht Valuations, here’s a quick breakdown of the main values.
List Price: The advertised price- Sellers/brokers can price high, low, or close to what they hope to get.
Market value – MV: The estimated amount for which an asset or liability should exchange on the valuation date, between a willing buyer and a willing seller, in an arms-length transaction after proper marketing and where each party had each acted knowledgably prudently and without compulsion.
Forced sale value – FS: An estimate of the expected realisable value without an adequate period of marketing for the sale of such an asset. An example would be a no reserve price placed at an auction.
Appraised value -AV: For yachts it is the estimated value placed on the vessel after a condition survey and a CMA (comparative market analysis) by an independent marine surveyor – Required by lenders and insurers.
Sales Price: Purchase Price, Contract Price- is the amount of money agreed to between the buyer and seller on the purchase contract.
IVSC: The International Valuation Standards Council is the independent global standard setter for valuation practice and the valuation profession.