How to Purchase a Boat 101

You’ve found your next boat, so now what?

Whether a long or short search, you’ve finally found the perfect boat. So, how do you purchase a boat? The first step in the purchase process is submitting a written offer. Written offers signal to the seller’s broker that you’re serious—most won’t present an offer unless it’s in writing. At this stage, a deposit isn’t required; that will come after the offer is accepted.

The Purchase Process

1. The Boat Purchase and Sale Agreement

This legally binding contract outlines key terms of the transaction. Important details to note include:

  • Offer Price: Based on your inspection and any anticipated updates or repairs. Boats typically sell within 10% of the asking price.
  • Key Dates:
    • Contract Acceptance Date – when the seller must respond to the offer
    • Acceptance of Vessel Date – when you choose to accept or reject the vessel
    • Closing Date – The funds are transferred, and paperwork is finalized (usually within 30 days)
  • Contingencies: This section allows for additional terms to be added to the Agreement. There may include financing, survey and sea trial, insurance approval, or specific items (like tenders) to be included in the sale.

The Purchase Agreement is sent via email for an electronic signature and presented to the seller’s broker. There may be verbal negotiations, or counter offers before all parties sign the final version. Once signed, a 10% deposit is due and held in escrow. The agreement isn’t binding until the deposit is received, so prompt payment is essential.

2. Survey & Sea Trial

Typically scheduled within 2–3 weeks of offer acceptance. A certified marine surveyor will inspect the vessel’s systems, structure, and mechanical components. This includes running the engines at idle, cruise, and full throttle.

  • Seller: Responsible for preparing the boat, de-winterizing systems, and providing an operator.
  • Buyer: Covers the cost of the surveyor, haul-out, fluid samples, and any agreed upon inspections. Buyers are encouraged to attend.

After your survey, you’ll need to decide between the following options:

  • Acceptance of Vessel: You accept the boat as-is with no further negotiation.
  • Conditional Acceptance:
    • Accept the boat with a Survey Allowance for essential repairs.
    • Accept the boat pending repairs by the owner.
  • Rejection of Vessel: You have decided the survey findings are unsatisfactory and you no longer want to proceed with the purchase.

Once the buyer signs an Acceptance, the deposit becomes non-refundable. Financing and insurance must be finalized prior to closing. If the Buyer rejects the vessel, the deposit is refunded in full (after any survey-related expenses have been paid) and the deal is canceled.

3. Closing a Boat Purchase

After Acceptance, closing paperwork begins. A closing coordinator will contact you with a checklist and send a digital closing packet. You’ll print, sign (with notarization if needed), and overnight the packet back. Wire transfers are required for final payment—personal or cashier’s checks are generally not accepted.

Once all documents and funds are received, the transaction is complete – congratulations!

Other Costs to Consider:

  • Survey Cost (Typically $30-$35/linear foot of the vessel)
  • Haul/Launch/Hang for Survey (Typically $8-$10/linear foot of the vessel)
  • Brokerage House’s processing fee ($500)
  • Sales Tax (Varies by state. Maryland tax is 5% of the purchase price with a $15,900 cap)
  • Registration Fee (Varies by state)
  • USCG Documentation Fee (Optional, though some lenders will require this. Typically, $800-$1000)
  • Storage Fees (Transient or Permanent Storage)
  • Insurance (Ask us for some recommendations!)
  • Transportation (Moving the boat via Captain, Truck, or shipping to a foreign port)

Ready to Take the Helm?

At Intrinsic Yacht & Ship, our team is committed to making your boat buying experience smooth, transparent, and enjoyable. Whether you’re a first-time buyer or a seasoned boater, we’re here to support you at every stage—from finding the perfect vessel to closing the deal and beyond. Have questions or need guidance? Don’t hesitate to reach out. Your next adventure starts here—with Intrinsic.

Author of Article: Blake Stephenson (Sales Manager)

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Intrinsic Yacht & Ship is a full-service new and used boat dealer and certified service center with locations in Annapolis, and Ocean City, MD. We proudly serve as the exclusive Mid-Atlantic dealer for Invincible Boats, Front Runner Boats, Sea Fox Boats, and Bay Rider Boats; and Scout Boats in Coastal Maryland and Delaware, offering premium brands and expert support for every step of your boating journey.

In addition to new boat sales, we have an extensive inventory of pre-owned vessels and can broker a deal for you on boats listed with other dealers. As a full-service yacht dealer, we also provide complete marine services, including marine electronic sales and installation, engine repairs, fiberglass and gel coat repairs as well as regular maintenance.

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