How to Buy a Yacht

The most expensive mistakes in yacht acquisition are made before a single listing is opened. A yacht is a working vessel with a crew, a programme and an operating budget; the right one is the yacht that fits how you will genuinely use her, not the one that photographs best.

Begin with the questions that shape everything else: who will be aboard, for how long, in which waters and in which months. A family spending four weeks each summer in the Western Mediterranean needs a different yacht from an owner planning a winter in the Caribbean followed by a high-latitude season.

A written brief turns preferences into a search specification. It should state priorities in order, distinguish essentials from preferences, and be honest about the decisions that are still open.

A good brief protects the buyer from drifting toward whatever is currently advertised. It also allows an adviser to say, early and plainly, where the brief and the budget do not meet.

The asking price is only the first figure. Running costs—crew, maintenance, berthing, insurance, fuel, management and periodic refit—continue every year, and the yachts that look most attractive on price are sometimes those whose next major works are imminent.

Set two numbers before searching: the maximum purchase price including acquisition costs, and the annual ownership budget you are prepared to sustain. Annual costs vary widely with size, age, flag, programme and crew structure, so no single percentage is reliable; they should be estimated yacht by yacht.

Acquisition costs to anticipate include survey, sea trial, legal review, registration, any import or tax costs, insurance, and the works required before first use.

Length overall (LOA) is the figure most people quote, but it is a poor measure of space on its own. Gross tonnage (GT) describes internal volume, and two yachts of the same length can differ substantially in volume, beam and layout.

Size also brings regulatory and operational thresholds. Larger yachts typically require more crew, larger qualifications and different compliance regimes, and may be restricted from smaller harbours and anchorages. Draft decides where the yacht can go; range decides how far she can go between fuel stops and how independent she can be.

A pre-owned yacht offers immediacy: she exists, she can be inspected and surveyed, and she can usually be in use far sooner than a new build. Her history—maintenance, refit and class records—becomes part of what you are buying.

A new or nearly new yacht offers current design, systems and warranty arrangements, but availability is limited and pricing is set by the yard or the first owner's position. A full new build is a different process entirely, with a construction contract, stage payments and a build programme measured in years.

This guide concerns the purchase of an existing yacht. New-build buyers should read the dedicated new-build guide, and Lund keeps new-build opportunities separate from pre-owned inventory.

Builder reputation influences engineering standards, after-sales support, availability of documentation and, often, how the market values the yacht later. It is not a substitute for survey: a well-regarded yard does not guarantee how a particular yacht has been maintained.

Consider the yard's support network for the systems aboard, whether original build documentation is available, and whether sister ships exist that indicate known issues or strengths.

Motor yachts, sailing yachts, explorer yachts and catamarans answer different briefs. Explorer yachts prioritise range, autonomy and robust systems; sailing yachts offer a different experience and different maintenance demands; catamarans offer volume and stability on a shorter length; displacement and planing motor yachts trade speed against range and comfort.

Choose the type that fits the programme, then compare yachts within it.

A yacht purchase involves several distinct disciplines, and each should be engaged before the moment it is needed. The buyer's broker manages the search, comparison, negotiation and process. An independent surveyor inspects condition. A maritime lawyer reviews the agreement, title and transaction structure. Tax and registration advisers address VAT, customs, flag and ownership structure. A captain or technical adviser may assess operational suitability, and an insurer should be approached before closing.

Who represents whom matters. A listing broker typically represents the seller; a buyer's broker represents the buyer. Ask every party, in writing, whom they act for and how they are paid.

Lund Group acts as a buyer-side adviser: defining the brief, searching public listings and verifiable private opportunities, comparing yachts, coordinating viewings, negotiating, and managing the process to closing. Lund does not replace independent surveyors, lawyers, tax advisers, flag consultants or insurers, and introduces specialists where the buyer has none.

Most pre-owned yachts are offered through central listing broker arrangements and appear across multiple platforms. The same yacht may be advertised by several brokers with different photographs, prices or specifications, so listings should be treated as a starting point rather than as verified fact.

A disciplined search tracks each candidate against the brief, records the source of each figure, and notes what still needs to be confirmed—price, location, availability, VAT status and condition.

An off-market yacht is one whose owner is willing to discuss a sale without public advertising. These opportunities exist, but they are not a hidden inventory that any single broker controls, and they require the same verification as any public listing.

A credible off-market introduction can be verified: the owner's authority to sell, the yacht's identity, and the terms on which she is offered. Be cautious of any claim that cannot be.

Compare candidates on the same criteria: suitability for the brief, condition evidence, maintenance and refit history, class and flag status, location and availability, asking terms and the likely cost of works before first use.

Before travelling, confirm the yacht's current location, viewing access, whether she is under offer, and whether charter commitments affect timing. Ask for recent photographs, the inventory and key documents in advance.

An asking price is the seller's opening position, not a valuation. Value depends on condition, history, builder, specification, VAT status, location, market depth for comparable yachts and the seller's circumstances.

Price per metre can be a useful rough comparison between similar yachts but becomes misleading across different builders, ages, volumes and conditions. Location affects viewing logistics, survey arrangements and sometimes tax position, but physical location alone does not establish VAT status.

A viewing establishes whether the yacht is worth pursuing. It is not a survey. The buyer walks the yacht, assesses layout, finish, guest and crew flow, and asks informed questions of the captain and broker.

Viewings are usually arranged through the listing broker and may be restricted when the owner is aboard or the yacht is in charter. Privacy should be respected on both sides. A second viewing, often with a technical adviser or captain, is where serious interest is tested.

An offer is normally made in writing and sets out the price, the conditions—usually survey and sea trial—the proposed timeline, the deposit and the place of delivery. It is a negotiation document, and its conditions matter as much as its price.

There is no standard discount from asking price. The gap between asking and agreed price depends on the yacht, the market for comparable yachts, time on the market and the seller's position. Negotiation should be grounded in evidence—comparables, condition and known works—rather than in a rule of thumb.

Once terms are agreed in principle, they are recorded in a purchase agreement, often called a memorandum of agreement. Many transactions use a recognised industry form such as the MYBA Memorandum of Agreement, but other forms and bespoke agreements are also used, and the choice of form and governing law should be reviewed by the buyer's lawyer.

The agreement typically covers the price, deposit, conditions, survey and sea-trial arrangements, acceptance or rejection mechanics, what is included in the sale, delivery location and closing documentation.

A deposit is normally paid on signing the agreement and held by an agreed stakeholder or escrow agent rather than by the seller directly. The amount is negotiated and set out in the agreement; there is no universal percentage.

Confirm who holds the deposit, on what terms it is returned or released, and that the stakeholder is identifiable and accountable before any funds are sent. Verify payment instructions independently; payment fraud is a real risk in high-value transactions.

The survey is the buyer's independent technical inspection of condition. It is commissioned and paid for by the buyer, and the surveyor should be independent of the seller and the listing broker.

Depending on size and type, the survey may include hull, structure, machinery, systems, electronics and paintwork, and may involve specialist surveys for engines, generators, rigging or coatings. A haul-out allows the underwater hull, running gear and through-hulls to be inspected and is common on many purchases, subject to facilities and the agreement.

The sea trial tests the yacht under way: machinery under load, steering, stabilisers, navigation and systems in operation. It is not a test drive for impressions; it is a structured technical exercise, normally attended by the surveyor and engineers.

Survey and sea trial are distinct and both matter. Findings from either are used to accept the yacht, negotiate repairs or price adjustments, or reject her within the terms of the agreement.

Due diligence covers the documents behind the yacht: proof of ownership and title, mortgages or encumbrances, registration and deletion arrangements, class status and outstanding recommendations, flag compliance, crew and charter commitments, warranties, and the VAT and customs history.

Seller-supplied information is a starting point, not full due diligence. The buyer's lawyer and advisers should verify title, encumbrances and tax status independently.

The flag determines the legal regime the yacht operates under, including crew, safety and commercial requirements. The right flag depends on the owner, the ownership structure, the yacht's size and whether she will be chartered.

Flag choice interacts with ownership structure and tax and should be decided with specialist advice, not by reputation alone.

VAT and customs status can materially affect value and use. Whether VAT has been paid, and on what basis, should be verified from documents, not assumed from where the yacht is located or what the listing states.

Tax treatment depends on the owner, the structure, the jurisdictions involved and the intended use. Lund Group does not provide tax advice and does not promote tax structures; buyers should take independent advice before committing.

Insurance should be arranged before the yacht changes hands, so cover begins at delivery. Insurers will want the survey, the intended cruising area and crew details.

Crew planning should begin before closing. The new owner decides whether to retain the existing captain and crew; continuity can be valuable, but contracts and expectations should be reviewed. A management company may handle crew, compliance, accounting and technical support; the extent of management is a choice, not a requirement.

Berthing, winter arrangements and the first season's programme should be considered early, as popular marinas can be booked well in advance.

Survey findings, upcoming class requirements and the owner's own preferences often lead to works before the first season. Budget for this in advance, and decide which works are essential before use and which can wait.

Large refits have their own planning, yard selection and project-management needs; see the dedicated refit guide.

Closing is the moment funds are released and title transfers. It is normally coordinated by the brokers, lawyers and stakeholder against an agreed list of closing documents—bill of sale, deletion certificates, protocol of delivery and acceptance, and any other documents specified in the agreement.

The place of closing and delivery can have tax and customs implications and should be agreed with advice.

At delivery the yacht is handed over with her documents, inventory and keys. Registration under the new owner, insurance activation and crew contracts should be in place.

In the first 30 days, owners typically settle crew arrangements, review the maintenance plan, confirm the operating budget and agree the first season's itinerary. The first season is also the time to learn the yacht, refine the programme and decide whether charter will play a role.