Purchasing a boat can spark enthusiasm, be it your first dinghy
purchase or a cruiser purchase. However, before parting with your
hard-earned cash, there is a crucial step to prevent costly errors: a
marine survey. The process is straightforward and guides you through
everything you need to know to maximise value.
What is a marine survey?
For a qualified marine surveyor to legally conduct a survey, they
must complete an independent assessment of the nautical vessel, which is
then compared to all other assessments to complete a house survey
equivalent. The surveyor inspects the hull, structure, engine, rigging,
electrics, and safety features to then create a valuation report,
detailing the condition of the boat and any deficiencies.
Those financing or insuring the vessel may require you to obtain a
survey, however, even if you are paying out of pocket, it still holds
value. Surveys help buyers build confidence to proceed with the
purchase, however. Surveys help buyers build the confidence to proceed
with the purchase or provide the evidence to justify walking away or
negotiating the price.
The two main types of survey
Pre-purchase survey: Before you officially buy the
boat, the survey is conducted to present a holistic view of the
condition of the vessel so you can make an informed decision.
Condition survey – This survey is often required by
insurers for older boats. These surveys focus exclusively on safety and
seaworthiness, and not on valuations.
Some surveyors will offer more specialised services, such as rig
surveys for sailing yachts and engine surveys for more complex powered
vessels. If you’re purchasing a boat that has an unusual hull material
or an older engine, it may be useful to ask your surveyor if a
specialist should also be involved.
The survey process
For most surveys, the boat must be out of the water so the hull can
be inspected below the water line. The surveyor will:
- Inspect for osmosis, cracking, delaminations, or repairs on the
hull - Inspect the deck, fittings, and rigging for signs of wear or
corrosion - Evaluate the engine, gearbox, and drive train, and potentially
include a sea trial - Evaluate the electrical and plumbing systems
- Inspect safety equipment (e.g. fire extinguishers, lifejackets, and
flares) to make sure they comply with current requirements - Conduct moisture readings on GRP hulls to check for signs of water
ingress
If possible, it’s best to be there when the survey is being
conducted. A good surveyor will explain what they find and being there
to see these issues usually gives buyers insight into the issues much
more than reading the survey would.
Choosing a surveyor
Inevitably, no two surveyors are the same. So, try to find an
evaluator that is a member of a relevant professional organisation, such
as the Yacht Designers and Surveyors Association (YDSA) or the
International Institute of Marine Surveying (IIMS). Look for
testimonials, and check to see if the surveyor is experienced with the
specific type and size of vessel you are purchasing. Additionally,
ensure that the surveyor has professional indemnity insurance.
Consider choosing a surveyor who is not associated with the seller or
broker of the vessel. The survey’s value primarily comes from its
independence.
Reading the report
The length of maritime survey reports can be extensive. It is easy to
become overwhelmed by the detail. Consider potential safety concerns or
structural issues first, as these are the most important regarding the
usability and value of the vessel. Used boats will naturally show signs
of cosmetic wear and tear, and that should not disqualify the vessel
from consideration.
If a survey reveals problems, the buyer has a number of options. The
buyer can request the seller to fix the problems before completion,
negotiate a price reduction to cover the cost of repairs, or if the
issues are significant enough, walk away from the transaction. While a
survey can reveal good or bad news, being aware of what is included puts
the buyer in a better negotiating position.
Final thoughts
A marine survey is an essential part of the boat buying process.
While it will never guarantee that you will own the boat trouble free,
it will give you the best estimate of what you are potentially taking
on. This will allow you to make an informed decision, and will give you
peace of mind. If you plan on buying a boat this year – budget for a
survey from a qualified marine surveyor. Your future self will
appreciate it, as will your bank account.