How to Buy a Superyacht

From due diligence to yearly costs, here’s what you need to know

If the call of the sea combined with the allure of luxe living has convinced you to take the plunge and purchase a superyacht, you’ll discover that your first yachting adventure will be acquiring the boat itself.

From zeroing in at the start on your dream boat among the hundreds for sale worldwide to ultimately configuring its crew, the many considerations that figure into the purchase make it more involved than, say, buying a mansion or even a private jet.

“It’s a process, not an event,” said Crispin Baynes, a broker in the New York office of Burgess, one of the world’s largest full-service yacht brokerages. “But it’s an enjoyable process.”

You might find yourself traveling the globe to check out boats on your shortlist, attending boat shows in locales such as Monaco or Dubai to see the latest in superyacht trends.

You may try on the superyacht lifestyle, as many potential buyers are advised to do, by chartering a boat or two. You could be surprised to find that quarters still seem awfully close on a 150-foot yacht, or, conversely, that a smaller boat, with a smaller crew, will do just fine.

“Rent a yacht for a week and see what you like and see what you don’t like, and then we can rent another one,” Baynes said he tells his clients who have not spent much time on the water. “You just start to get people experienced in the superyacht lifestyle without a lot of risk.”

Buyers have been known to take their time finding the right boat. “The longest time I’ve ever heard of was 13 years, and I would say, on average, we’re working with people from anywhere between six months and two years before they make a final decision and are ready to go,” said Jim Evans, managing director of the boutique brokerage SuperYachtsMonaco.  

Roman Abramovich’s 533-foot Eclipse, a superyacht that is said to be worth $1.5 billion.

Roman Abramovich’s 533-foot Eclipse, a superyacht that is said to be worth $1.5 billion.

What You’ll Pay

Pricing depends entirely on you and your idea of a proper yacht. Russian businessman Roman Abramovich’s 533-foot Eclipse, the second-longest superyacht in the world, has 24 guest cabins, two helipads, a mini-submarine and, rumor has it, a missile detection system. It’s said to be worth about $1.5 billion.

On the other hand, an older, low-frills 120-foot superyacht can be bought for $1 million. “Price is dictated not just by the size of the yacht,” Mr.  Baynes said, “but her age and where she was built.”

Doing Due Diligence

Once you’ve found the boat you want, now comes the nitty-gritty—agreeing on price, doing the financials and spelling out terms designed to protect both parties as the process moves forward. Buyer and seller enter into a memorandum of agreement that, among many fine points, spells out when and where the buyer can test the vessel and the conditions under which either party can call off the deal.

If you learn a few hours into your four-hour test cruise that your partner develops seasickness, it’s nice to know you can still get out of the deal. “He can say, ‘I’m done with this. I’m not proceeding because I feel sick,’” Mr. Evans said. “He doesn’t have to give any reason whatsoever after the sea trial.”

Should the deal proceed, the yacht is lifted from the water or put in dry dock to be surveyed by engineers. To back out at this point, Mr. Evans said, the owner must find just cause. “He can say, ‘We found a problem with the engine. Here are the details of the problem. Either you fix it or I’m tearing up the contract,’” Mr. Evans said.

Cash is King

Financing the purchase of a superyacht is possible, but quite rare. Chris Cecil-Wright, founder of the eponymous London-based boutique brokerage Cecil Wright, said he doesn’t recall in his 25-year career having ever sought financing for a client to buy a boat. “It tends to only be for people who’ve got their money being used more effectively elsewhere, rather than people who need to borrow the money.” There are instances, he said, when an owner might rely on financing to draw capital out of a boat.

Now, You Own a “Company”

So, assuming the boat checks out, as do your finances, within six weeks of signing the memorandum you should take possession of your yacht.

Owning a superyacht, you’ll soon discover, means you’re now effectively running a business. “You own a company that has 12 employees who all live together and work together, that’s the crew,” Baynes said. “You’ve got insurance, you’ve got maintenance, you’ve got fuel costs, you’ve got dockage costs.”

The size of the crew depends on the size of the superyacht and the amenities. It can vary from an essential few—captain, engineer, steward, chef and deckhand—to dozens. More than 70 crew members reportedly man the Eclipse and Azzam, the world’s longest superyacht at 591 feet, which is owned by Khalifa bin Zayed Al Nahyan, president of the United Arab Emirates.

The buyer can negotiate to keep the crew that has been with the yacht. If you want to start new, the broker or lawyer who guided you through the purchase can direct you to agencies that provide crew. Many of the largest brokerage firms such as Burgess have divisions that can staff your boat as well as manage the entire operation. “All the client has to do is tell us when he’s arriving,” Mr. Baynes said, “and if we’re doing our job properly with the crew, and the yacht is in the right position, the Champagne is cold, the Jacuzzi’s hot and you step on to your superyacht and off you go.”

One rule of thumb in yachting is that annual operation and maintenance will cost 10% to 15% of the boat’s purchase price. Mr. Cecil-Wright reckons the true cost is based on the boat’s size: A 50-meter (150-foot) yacht will require a similar level of staffing and the same berthing fees, regardless of whether it cost $20 million or $60 million. “I would say that 50-meter boat would cost you about $2 million a year to run,” he said.

The cost of yachting seems no obstacle, because a lot of people believe having their own boat is more than worth the investment of money and time. Sales of superyachts grow a bit year to year, and Mr. Baynes said the demand for boats around 180 feet long outstrips current inventory.

“Going on a superyacht is an incredibly private and exclusive experience, so you can really be on your own and get away from it all. People genuinely value that,” Mr. Baynes said. “Even though there are crazy things going on in the world, our clients will value that time away on their yachts, because for some of them, that is the only time they really get to spend quality time with their family and their friends.”