What to Expect in a Boat Survey and How to Prepare

8 MIN. READ

Floridians love the open water. Did you know that Florida has the most registered recreational vessels of any state?

Whether you’re new to boating or a seasoned captain eyeing a vessel upgrade, being an educated consumer is important. Picking a safe and seaworthy boat guarantees an enjoyable seafaring experience as well as a sound financial investment.

As a leading South Florida boat lender, we highly recommend scheduling a boat survey before you cast off. Here’s why.

What Is a Boat Survey?

A boat survey is a detailed and objective inspection of a vessel. The survey allows you to get a clear picture of the boat's overall value and condition and ensure it meets some key safety requirements before you buy your dream boat and go out to sea.

Vessel surveys are conducted by expert marine surveyors with a keen eye for detail. They can check safety equipment, propulsion systems, hull integrity, electrical systems, sanitation, navigation lights, and more.

Besides ensuring the vessel meets the federal requirements outlined by U.S. Coast Guard regulations, surveyors can apply recommendations from organizations like the American Boat and Yacht Council.

There are two main types of boat surveys: condition and valuation surveys, and pre-purchase surveys.

Condition and Valuation Survey

This type of boat survey is the less comprehensive option of the two. It includes a visual inspection of the boat as well as a checklist that assesses the vessel’s general care and maintenance.

Boat depreciation can be tricky to assess, but a condition and valuation boat survey will give you reliable insight into the vessel's value. Some types of boats depreciate faster than others, and the latest models are packed with innovative boating technologies, so they may lose their value more quickly than older ones.

Boat valuations remain the best way to assess a fair market price for a used boat and ensure that you make a sound financial decision with your purchase.

Pre-Purchase Survey

A pre-purchase survey is a more thorough inspection. In addition to determining a realistic used boat appraisal, the goal is to create an action plan for making the vessel safe and seaworthy or managing long-term maintenance.

During a pre-purchase survey, the marine surveyor will test several components, including wiring, waste systems, and water pumps. They will also check the vessel’s structural integrity and propulsion systems.

A pre-purchase survey is a much more in-depth inspection than a condition and valuation survey, and it typically includes some hands-on testing during a sea trial.

Who Needs a Vessel Survey?

The short answer: anyone considering a used boat purchase. We highly recommend having a marine surveyor check the vessel prior to the purchase for a few different reasons.

First of all, a pre-purchase survey gives you a longer-term view of the boat. The vessel survey report will help you plan for potential repairs, upgrades, and long-term maintenance.

Secondly, a vessel survey will give you an accurate idea of what the boat is worth and ensure you pay a fair price.

Here are a few scenarios in which we recommend getting a boat survey:
 

• You’re thinking about selling your boat. A condition and valuation survey is a good way to set a fair price.
• You’re shopping around for a used boat. We recommend a thorough pre-purchase survey to identify potential issues.
• Third parties, such as insurers or lenders, may require a vessel survey. Refer to their guidelines to get a better idea of what to test.
• We also recommend getting a vessel survey if you want to buy a boat that you can't view in person.

Boat Surveys for Financing

Financing a used boat purchase with a recreational loan is a popular option. In this scenario, the boat's value is a major consideration for the lender because the vessel is often used as collateral for the loan.

If the boat isn’t worth the loan amount or will depreciate too quickly, the lender may find it difficult to justify financing the purchase.

The condition of the boat is another key consideration. Some lenders won’t finance a boat in poor condition due to accelerated depreciation or might offer a recreational loan with a shorter term.

After getting your pre-purchase survey, we recommend contacting a credit union for boat financing. Credit unions are typically more flexible than banks and will work with you to find lending terms that make sense for the vessel's value and your budget.

Boat Surveys for Insurance

Boat insurance isn’t legally required in Florida, but we recommend insuring your vessel. While not all insurers require a vessel survey, many ask you to schedule a pre-purchase survey before issuing a policy.

Getting a survey will give your insurer a precise idea of what the boat is worth, and you’ll be able to purchase a policy that is tailored to your needs and the value of the vessel without overpaying for coverage you don’t need.

What to Expect During a Boat Survey

Whether it’s light corrosion on the hull or hairline cracks caused by stress, all used boats show signs of usage. To the untrained eye, these signs are easy to miss.

The role of a boat surveyor is to investigate these signs and uncover any underlying problems. Depending on the scope of the survey, they can focus on cosmetics, perform high-level checks, and ensure the boat is safe and seaworthy.

If you opt for a more in-depth vessel survey, you can expect advanced testing of all the systems, thorough internal and external inspections, and a test at sea.

At the end of the vessel survey, you’ll receive a detailed report outlining the surveyor’s findings. You’ll also be able to ask any questions you have about the boat's condition.

We encourage you to discuss the scope of the survey and the testing methodologies with the surveyor prior to the evaluation so you’ll know exactly what they will look for.
 

How to Choose the Right Marine Surveyor

Good survey results give you peace of mind that your boat is sound. That's why it is essential to find a knowledgeable surveyor to take on the work.

These questions will help you find the right marine surveyor:
 

1. Is the surveyor experienced with the type of boat being surveyed?
2. Does the surveyor have professional indemnity insurance?
3. Does the surveyor have a verified professional status?
4. Has the surveyor surveyed similar makes and models to your boat?
5. What does the survey include, and how long will it take to complete?

We suggest hiring a surveyor who is accredited by the National Association of Marine Surveyors (NAMSGlobal) or the Society of Accredited Marine Surveyors. Both organizations have a convenient search tool on their websites that allows you to enter your zip code to find a local accredited surveyor. You can also ask your boat insurance company or marina for a recommendation.

Should You Be Present During the Boat Survey?

It’s not a requirement. Surveyors can communicate with the seller to get access to the boat.

However, we think it’s best for you to be present on the day of the vessel survey. You’ll get to see how the surveyor works and have the peace of mind to know they did a thorough job.

Being present also means the surveyor can show you problematic areas directly. While you’ll receive a detailed report, seeing any potential issues in person will give you a better idea of their severity. You can also ask questions and discuss repair and maintenance options with the surveyor.

Understanding Your Survey Report

Your survey report will include a detailed overview of all the tests the surveyor conducted, along with any issues they found.

Keep in mind that a surveyor’s job is to identify damages, malfunctions, and other problems. All used boats have at least a few minor issues. If the surveyor didn’t find anything to report, they likely didn’t inspect the vessel thoroughly.

The issues listed on your boat survey report don’t necessarily mean the vessel isn’t a wise purchase. Instead, the purpose of the report is to give you visibility into the condition of the vessel and help you make the best decision possible. If you end up purchasing the boat, the survey report will be a helpful document for planning future repairs or maintenance.

If you requested an insurance survey for the boat, the findings outlined in the report can affect whether the insurer will agree to protect it. The same is true for a lender who might refuse to issue a recreational loan or at least require that you do a few repairs before agreeing to finance your boat purchase.

Remember that a marine surveyor can’t tell you whether a boat is a good purchase. Their role is to give you the information you need to make the best decision possible, but they can’t advise you regarding your boat purchase.

Immediate Problems

A survey report might find problems requiring immediate attention because they make the boat unsafe or are likely to worsen and cause serious concerns.

For instance, the surveyor might find a propane leak in the propulsion system or severe corrosion on the hull that threatens the vessel’s integrity.

These serious issues are grounds for a lender to deny financing or an insurer to decide against issuing a policy if they requested a boat survey for insurance. Another option is to require higher premiums. More importantly, the boat might not be seaworthy if the surveyor uncovers a major issue.

We advise considering the following options:
 

• Negotiate with the seller to have them fix these issues before the sale.
• Ask them to lower their price so you can fix these problems yourself.
• Move on and search for a different used boat.

Recommendations

Your boat survey will also include multiple findings and recommendations. While these issues aren’t major and won’t affect safety or seaworthiness, they can impact the value of the vessel and require your attention.

Here’s what we recommend doing with this information:
 

• Understand how these findings affect the value of the vessel and potentially negotiate a lower buying price.
• Actively monitor known issues and take action if they get worse.
• Be proactive and have a boat repair expert address the issues.
• Put together a maintenance plan to manage known issues and preserve the condition of your vessel.

Finance Your Used Boat Purchase With Power Financial Credit Union

Power Financial Credit Union has been a pillar of the South Florida community since 1951. In addition to offering affordable boat loans and other banking products, we pride ourselves on helping our members thrive and succeed in all their financial endeavors.

Choosing a credit union to finance your used boat purchase has several benefits. Even though a vessel is a purchase you will enjoy for many years, boats are assets that depreciate quickly in the eyes of a financial institution. It’s why some lenders might decide against financing your purchase after receiving a pre-purchase survey with a long list of potential issues.

At Power Financial Credit Union, we take a highly flexible and personalized approach to used boat financing. We treat each member as a person rather than a number, which means our boat loan experts will always take the time to review your individual circumstances and carefully assess your loan application.

Plus, as a not-for-profit financial institution, we redistribute any surplus through lower banking fees or advantageous APRs for our savings products. Thanks to this model, we’re able to offer used boat loans with affordable rates and payment terms that work for your budget. And if you’re returning  borrower, we’ll provide additional savings on your recreational loan.

Let’s talk about your used boat purchase! With fixed and variable rates and terms that range from 3 to 20 years, we have a recreational loan option for every vessel and budget. Membership is open to anyone working or living in South Florida, and you can get started by visiting one of our branches or learning more about our personalized boat loans online.