Friday, January 23, 2009

The Great Boat Hunt - Fair Market Value?

I got a note from the broker today, containing a list of Morgan OI 33's that had sold over the last two years.  The amounts shown in the list were upwards of 30% higher than my offer. I think the broker is trying to tell me, in a non-confrontational manner, that my offer was too low. Based on my perception of the current market, I think he is wrong.

The boat is in Florida, and the asking price is $29,900, but I went out on the various websites available to me, and found no fewer than 5 Morgan OI 33's in Florida, for which the asking price was under $23,000.  On top of that, all of them were several years newer than the one I was bidding on.

I also asked BoatUS to give me an approximate value for a 1974 Morgan 33 OI, based on the market in Florida.  Their response was that recent sales for the region including Florida indicated that the boat might be worth slightly less than $22k, but that due to the age of the boat, I should be on the lookout for excessive wear and tear.

Finally, the NADAGuides showed an average retail value of $16,900 for a 1974 Morgan 33 OI, located in Florida and "in good condition with no visible damage or defects".  The report describes the boats selling for this price as follows:

"This boat will show moderate wear and tear and will be in sound running condition. The buyer may need to invest in either minor cosmetic or mechanical work."  

These descriptions fit with my impression of the Morgan I bid on.  What I'm saying is, in view of current market conditions, my offer is serious, and I believe, fair.

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