Boat Buying: Survey Says, Your Dream Boat Awaits

Buying a boat is a big decision, and it's important to get it right. A boat survey can help you do that by uncovering any potential problems and giving you peace of mind about your purchase. But what kind of boat survey do you need? There are several types of surveys available, including insurance surveys, pre- or post-transport surveys, and full-condition surveys. In this article, we will guide you through the different types of boat surveys and help you choose the right one for your needs. We will also offer tips on selecting a surveyor and explain what to expect during the survey process.

Why get a boat survey?

A boat survey is a detailed technical inspection that assesses the condition and value of a boat. It is a crucial step when buying a boat, especially when purchasing a used boat, to ensure you are making a sound investment. Here are some reasons why getting a boat survey is highly recommended:

• Uncover potential issues: A marine survey will help identify any hidden problems with the boat. Used boats, in particular, may have underlying issues that are not easily noticeable to the untrained eye. A professional surveyor will thoroughly inspect the vessel and identify faults or damage, giving you a clear understanding of the boat's condition. This information is invaluable in making an informed purchase decision.
• Peace of mind and safety: As with any significant investment, such as buying a house or a car, you want to know what you are getting. A boat survey provides peace of mind by assessing the safety and seaworthiness of the vessel. Marine surveyors are trained to identify issues that could compromise the safety of the boat and its passengers. By addressing these issues beforehand, you can ensure a safer boating experience.
• Negotiate the price: A boat survey allows you to make an informed decision about the purchase. If the survey uncovers defects or necessary repairs, you can use this information to negotiate a better price. It empowers you to either request the seller to address the issues or adjust the asking price accordingly.
• Insurance and financing requirements: Many insurance companies and lenders require a boat survey before providing coverage or financing for a used boat. They want to ensure that the vessel is in good condition and poses minimal risk. By obtaining a survey, you increase the chances of securing insurance and financing for your boat.
• Expert opinion: When buying a boat, especially from private sellers, it is beneficial to have an expert opinion. A marine surveyor will provide valuable insights into the boat's condition, value, and any necessary improvements. This expert opinion can give you a better understanding of the boat's worth and help you make a more confident purchase decision.
• Protect your investment: A boat is a significant investment, and a marine survey helps protect your financial interests. By identifying potential problems and hidden issues, you can avoid buying a boat that requires extensive and costly repairs. A survey ensures that you are fully aware of the boat's condition and can make an informed decision about whether to proceed with the purchase, negotiate, or walk away from a bad deal.

In summary, getting a boat survey is a wise decision that can save you time and money in the long run. It provides valuable insights into the condition and value of the vessel, ensuring that you make a well-informed purchase. By uncovering potential issues and providing expert opinions, a boat survey gives you peace of mind and helps protect your investment.

Types of boat survey

There are several types of boat survey, each with its own specific purpose and focus. Here are some of the most common types:

Condition and Valuation (C&V) Survey

The Condition and Valuation survey is the most common type of boat survey, typically conducted when purchasing a used boat. It involves a comprehensive inspection of the entire vessel, including its propulsion systems. This survey helps determine the actual value of the boat by identifying any necessary repairs or upgrades. For larger, more expensive boats, separate engine and rigging surveys may also be performed in addition to the C&V survey.

Insurance C&V Survey

The Insurance C&V survey is similar to the Condition and Valuation survey but is conducted solely for insurance purposes. As a result, it tends to be less comprehensive and focuses on a specific list of items that the insurance company wants to be checked before providing coverage for the vessel.

Damage Survey

A Damage survey is usually carried out after a boat has been involved in an accident or storm and is often required by insurance companies. This type of survey assesses the extent of the damage and provides an estimate of the cost of repairs.

New Yacht Survey

A New Yacht survey is generally only necessary for large, expensive boats, especially custom-built yachts. It involves multiple visits by the surveyor to the manufacturer during the construction process to ensure that the yacht meets the required standards and specifications.

Pre- or Post-Transport Survey

This type of survey is conducted to assess the condition of a boat before or after it has been transported. It is often used for insurance purposes to identify any damage or issues that may have occurred during transportation.

Full Condition Survey

The Full Condition Survey, also known as a pre-purchase survey, is the most comprehensive type of boat survey. It includes an in-depth inspection of the hull, engine, mechanical systems, propulsion gear, electronics, safety systems, interior cosmetics, and more. This survey is typically recommended for prospective owners of used boats or new boats that have been sitting in a yard for an extended period.

Choosing a surveyor

Choosing a boat surveyor can be a challenging task, especially since the industry is largely unregulated. However, it is a crucial step in the boat-buying process, so it's important to select the right one. Here are some tips to help you choose a surveyor:

Qualifications and Experience:

Look for a surveyor who is certified by a reputable organization such as the Society of Accredited Marine Surveyors (SAMS) or accredited by bodies like the International Institute of Marine Surveyors (IIMS), Yacht Designers & Surveyors Association (YDSA), or the National Association of Marine Surveyors (NAMS). Check their practical training, boating and/or mechanical background, and experience in surveying similar makes, models, and types of boats.

Recommendations and Reviews:

Start by asking for recommendations from past clients, friends, or trusted sources. Word-of-mouth referrals can provide valuable insights into the surveyor's work quality and professionalism. You can also check online reviews to gauge their reputation and customer satisfaction.

Clear Communication:

Choose a surveyor who communicates effectively and explains the survey findings in plain language. They should provide clear recommendations and advice, helping you understand any issues and necessary actions.

Insurance and Terms:

Ensure your chosen surveyor has Professional Indemnity and Public Liability insurance. Carefully review their terms and conditions to understand your rights and protections.

Sample Reports and Pricing:

Ask to see samples of their previous work to assess the layout, detail, and clarity of their reports. Additionally, get a quote for the survey and understand what is included in the price. Survey costs can vary, so getting multiple quotes can help you make an informed decision.

Use of Specialized Tools:

Surveyors use special tools like moisture meters to inspect the boat's structure and systems. Ensure your chosen surveyor utilizes appropriate tools and technology to conduct a thorough inspection.

Turnaround Time:

Inquire about the expected turnaround time for receiving the survey report. This can vary depending on the complexity of the survey and the surveyor's workload.

Remember, selecting the right surveyor is essential to ensure a comprehensive assessment of your prospective boat. Taking the time to research and ask the right questions will help you make a well-informed decision.

What to expect on survey day

On survey day, you can expect the broker, buyer, surveyor(s), and seller to meet at the boat's in-water location. The surveyor may arrive early to begin performing the inspection, which will include an extensive pre-purchase checklist, ensuring proper Coast Guard safety equipment requirements, and testing all systems. As the buyer, you should be present but also allow the surveyor to work without distractions. They will report all findings to you at the end, so while you can ask questions, be sure not to interrupt their work.

Once the initial inspection is complete, or the scheduled haul-out time approaches, the seller, broker, or hired captain will begin moving the boat towards the haul-out location. This will often be your first time riding the vessel, but it will not be considered a sea trial unless previously agreed upon.

The vessel will then be hauled out and left in the sling or on the forklift while the bottom is power-washed. A clean hull ensures the surveyor can clearly examine the hull and external running gear, and the boat will achieve more accurate performance metrics during the sea trial phase. During this phase, the surveyor will use a moisture meter along the hull and tap a special hammer to check for soft spots or structural issues. They will also inspect other external items on the vessel, such as the lower unit, intakes, and trim tabs. If an engine mechanic is present, they will also inspect the engine and other relevant parts of the external running gear.

After the surveyor is satisfied with their inspection, the boat will be returned to the water for the sea trial. The captain or seller will navigate the boat to an open area away from no-wake zones to perform the official sea trial. The surveyor will use this opportunity to test any systems that require the boat to be underway. The boat will be put through a series of tests, including gear changes, cruising speeds, RPM tests, and a wide-open-throttle test. These metrics will be compared to manufacturer standards to ensure the engine is functioning correctly.

As the buyer, you may be offered the chance to captain the vessel for a short time. However, this is not the time to learn how to operate the boat if you are unfamiliar with it. Instead, it is generally good practice to let the captain and surveyor handle the sea trial and communicate any additional tests you would like to be performed.

Once the sea trial is complete, the boat will return to the dock, and the surveyor will continue working through their checklist and testing any remaining systems. Unless there are major outstanding issues to discuss, you can head home and wait for the inspection results. It typically takes a few days for surveyors to compile their report, which will include photos, any issues found, and a fair market value price based on the boat's year and condition.

Additional Considerations:

• A pre-purchase survey is a snapshot of the vessel's condition at a specific point in time. It is not a warranty or a guarantee of future performance.
• Surveyors will not disassemble any areas of the vessel. They will open common spaces, but it is primarily a visual inspection.
• Speak with your surveyor ahead of time about any specific issues that would cause you to end the sale immediately.
• While asking questions is fine, try not to distract the surveyor. Even small vessels have large checklists and will require a full day to complete the survey.
• It is recommended to pay the surveyor on the day of the inspection to ensure you receive the report promptly.
• Remember that the surveyor works only for you, the buyer. You will be paying the bill, and any findings or reports will come directly to you.
• It is important to do your research and select a qualified and accredited surveyor. You can ask for recommendations and a sample survey report to review their work.

The benefits of a survey

A boat survey is a crucial step in the boat-buying process, offering numerous benefits to prospective buyers. Firstly, it provides peace of mind and in-depth knowledge about the vessel. A comprehensive survey includes an inspection of the boat's exterior, engine, control systems, safety equipment, and more. This detailed assessment enables buyers to identify any damage, ensure the boat's structural integrity, and determine if it is fit for its intended purpose.

One of the main advantages of a survey is the identification of potential problems. A professional surveyor can spot hidden issues that may otherwise go unnoticed. This allows buyers to make informed decisions, negotiate the price, or even withdraw their interest if significant defects are found. Surveys are particularly important when purchasing a used boat, as they can help uncover problems that may be costly to repair.

Boat surveys also play a vital role in obtaining financing and insurance for your vessel. Many lenders and insurance companies require a survey to be conducted before agreeing to finance or insure a used boat. A survey helps determine the actual value of the boat by exposing items in need of repair or replacement, which is crucial information for lenders and insurers.

Additionally, surveys offer a safety net and expert opinion when buying from private sellers. Most boat purchases occur privately, leaving buyers with little to no legal protection. A survey provides extra protection and empowers buyers to make confident decisions. It can also put buyers in a better position if they decide to sell the boat in the future, as a survey report can showcase the vessel's condition and any improvements made.

Lastly, a survey is beneficial when purchasing a boat for commercial use. Obtaining a certificate of survey is mandatory for operating a vessel commercially, ensuring that the boat meets specific standards and is safe for its intended purpose.

In summary, a boat survey is a valuable tool for any prospective boat owner. It provides essential information about the vessel's condition, enables informed decision-making, and offers financial and legal protection. By investing in a survey, buyers can avoid costly mistakes, ensure their safety, and purchase their dream boat with confidence.

Frequently asked questions