Commercial Valuation: Determine the True Value of Your Vessel
The commercial valuation, although more streamlined than the pre-purchase appraisal, is a crucial process in establishing the economic value of a marine vessel.This appraisal focuses on static equipment checks, usually without conducting sea trials, providing an essential estimate for various situations.
When a Commercial Valuation is Necessary
- Insurance:In the case of contracts or renewals of hull policies, the commercial valuation provides a solid basis for determining the insured value of the vessel.
- Corporate Assets: When an accurate value is to be placed on corporate assets, the commercial valuation provides a reliable valuation.
- Division of Inheritance: If the boat is part of the estate, a commercial valuation helps to establish the estimated market value of the boat for the division of the estate.
The appraiser’s estimated value is a benchmark, reflecting the dynamics of a market that is often susceptible to significant fluctuations.
Valuation Methodology:
After a careful inspection, the appraiser compares the boat with similar models in terms of model, accessories, general condition and age. For unique or uncommon models, the analysis is extended to the corresponding market segment.
The commercial valuation can be included in the pre-purchase appraisal, providing the buyer with a fair value at the end of the report.
Important Considerations
- Detailed Inventory: In order for the appraisal to be accurate, the buyer must provide a detailed inventory of the vessel, including all appurtenances considered inalienable.
- Potential Resaleability: Popular models or those from prestigious shipyards generally have greater resaleability, facilitating a quick sale.
- Local vs. International Market: Market value can vary considerably depending on the geographical location of the vessel.
In conclusion, the maritime appraiser, avoiding tables and automatic formulas, performs an in-depth analysis considering variables such as the market situation, the maintenance the boat has had over time, the flag it flies and its general resaleability.
Please note that I can also support you in case of disputes and litigations.
Entrust the commercial valuation of your vessel to someone who has worked in the industry for years.