What is a Boat Survey?
Generally a boat Survey in an inspection that assesses a vessel’s current condition with respect to seaworthiness, Industry construction standards and its conformance with USCG and National Fire Protection Agency requirements.
The Survey should also define its fair market value.
·Who are Boat Surveyors?
Marine Surveyors are knowledgeable and experienced individuals surveying vessels for a fee.
In North Carolina it is an unregulated Industry - anyone can ‘become’ or claim to be a Marine Surveyor. Most Banks and Insurance Companies however, require that the Surveyor have experience, meet certain criteria and are active members of National Surveying Organizations.
These organizations train, qualify and self-police their members. Two of the more well known organizations are: NAMS - (National Association of Marine Surveyors) and SAMS - (Society of Accredited Marine Surveyors).
Both organizations have Web sites where you can checkout their accreditations and members’ qualifications.
·What are the common types of boat Surveys?
Pre-purchase - A prospective buyer is considering a purchase and wants to know what shape the boat’s in and what its market value is. (Most lending agencies require this type of Survey to finance the vessel)
Insurance Surveys - Before issuing or continuing a certificate of coverage, the Underwriter will want to be assured that the vessel is ready for service with no major structural, mechanical or safety issues present. They also want to know its hull value. A qualified Marine Surveyor can supply that report.
Damage and Salvage Surveys - Marine Surveyors are often called to assess damage claims for Insurance Companies to determine cause, verify damage and comment on repair estimates.
·What to look for in a Surveyor -
1.He/she should be experienced, qualified and accepted by local Banks and Insurance Companies.
2.Check his/her qualifications with the national organization/s to which he/she belong.
3.Check his/her references.
4.Make sure there is no ‘Conflict of Interest’ - the Surveyor should not be ‘attached’ to or employed by the Seller, Yacht Brokers, or Repair Facilities.
The Surveyor works for you only and he/she should have no other interests affecting his judgment.
·What’s the price?
Like most services, “it depends” -- it depends on the type and complexity of the Survey. Size and value of the vessel play significantly in the effort involved and hence the fee.
Discuss the Survey fee and what the Survey will entail BEFORE you enter into an agreement with the Surveyor. Will he/she perform a sea trial, and/or other detailed engine, rigging, electronic or other equipment surveys?
What will be included in the Report and when can you get it?
·Getting ready for the Survey -
It is common practice that the Purchaser enters into a pre-purchase Contract with the Seller/Yacht Brokerage that (among other things) are contingent on a ‘satisfactory’ Survey. [Buyer/Seller negotiation issues are often dependant on what ‘satisfactory’ means.]
The Buyer normally arranges and pays for the Haul-out and Survey. Most Banks and Insurance Companies require an out-of-the-water Survey.
It’s extremely important to survey below the waterline - lots of needed and expensive repair can be hidden - hull, running gear etc. You wouldn’t buy a house without looking at the roof so make sure you and the Surveyor assess your vessel below the waterline.
·Selling your vessel -
Sometimes is smart to get a Surveyor to identify potential problems that may affect the sale. He/she can also define the fair market value and suggest ways to improve your ‘bottom-line’.
If you are a Seller scheduled to have your vessel surveyed for a potential buyer, you can help the process favorably if you ‘tidy up the place’ especially bilges, lockers and storage areas. Your boat looks bigger AND more desirable if it is free of dirt and junk.
Good luck, fair winds and see you on the water.
John Kelly, NAMS-CMS
Wilmington NC, 28409
910-543-0047