In our years in the marina brokerage business, the team at Simply Marinas has often been asked by sellers when the best time to sell is. There is no magic month. Instead, we tell sellers to allow plenty of time between making the decision to sell and putting the marina on the market. To get the highest price, takes planning, foresight, money, and months, if not years of preparation.
Sellers need to think about what buyers want and how to ensure their marina checks all the boxes. As brokers who work with both buyers and sellers, we are well-positioned to offer our insights into how best to position your marina for a profitable sale. While buyers will rely on paper to give them an overview of your finances, a walk around your yard can sometimes tell them much more.
Deferred Maintenance
Before you put your marina up for sale, take a good long look at your entire facility through the eyes of a buyer. Over the years it becomes easy to overlook that corner full of old boat parts, the dumpsters that don’t quite hold all the trash, the deck boards that are showing signs of age, but the fresh eyes of a buyer will spot all of this. If your yard and docks aren’t in top shape, you can expect offers to come in below your asking price.
Electric: Infrastructure repairs and upgrades are non-negotiable and should be handled early. Spend the money and hire a marine electrician to ensure your marina’s electrical system is operating safely and efficiently and meets current National Electric Code guidance.
In an article written by Dan Williams in Marina Dock Age magazine, he addresses whether you need to overhaul your entire system or just retrofit what you have. He says the priority is to make sure the system is safe, but beyond that look at the type of boaters you serve. “Older boats are often the source of ground-fault issues, and newer boats have electrical systems vastly different than those of 50 or 60 years ago — not to mention, an overall greater electrical load due to the need to power all of today’s modern boating conveniences,” he said. Also look towards whether or not other areas of your marina need to be renovated where it would make sense to include electric.
Do you want your marina to project to potential buyers that it’s ready for the future or is it enough to have a system that is functioning well and safely? That’s a decision to make early and then jump to action if an upgraded electrical system is needed.
Docks and Racks: The condition of your docks will dictate how a potential buyer views the condition of your entire operation. Old, cracked, and warped docks give the appearance of an aging marina. If the docks aren’t sound, what’s the state of the rest of the operation? It may be possible to spot fix problem areas, but if cords are hanging in the water and decks are popping up, or if the docks pose a safety hazard, its best to spend the money for a full renovation. The other option is to sell the property as is, at a lower cost, but the market for those properties is fairly limited.
The Yard: It costs little to remove trash and debris and do planting around the property, and these quick fixes give a fresh look that tells buyers the marina is managed well. Adding to the appearance of a sound operation, are signs of environmental compliance like recycling bins, covered trash cans, oil spill kits on the fuel dock, and a functioning pumpout. Don’t let an oil sheen in the basin, paint spills on the ground, or rusty oil drums in the corner, chase away potential buyers.
Expansion
Are you making the best use of your entire marina property? A property that can be expanded, to add more profit can appeal to buyers.
On the Water: While most marinas have maxed out their potential footprints in the water, some still have room for a new dock or extension of an existing dock. It’s also possible a reconfiguration of the dock layout could afford added space. If you’ve considered expanding your docks, talk with local officials or marine engineers who can let you know if an expansion is feasible under local and state codes and guidelines. Even if you don’t undertake the expansion yourself, the value of the marina increases if you’re able to tell a potential buyer there’s room for more boats and more profit.
Upland: Expansion can also extend to upland areas. Is there space for a drystack or rack storage? Could a tract of land be turned into an RV park or space for rental cabins? If you can supply the vision for added upland amenities, along with confirmation from your municipality that the change is possible, you can raise that selling price.
Added Profit Centers
Modern marinas are much more than places to store boats. Today’s facilities are destinations with all the amenities and conveniences a visitor would want for a day trip or weekend away. Buyers understand this and will be looking for marinas that have the extras that boaters want. While it may not be cost-effective to install a swimming pool and add a restaurant, there are simpler and less expensive ways to add profit to your bottom line and entice more buyers.
Concierge: Add a concierge service for your boaters. Have staff available to provision boats before boaters arrive and wash down the boat after a day on the water. Hold events or offer event space. Marinas sit on beautiful waterfront land that maybe can accommodate parties or weddings. Lease space to a food truck to offer food onsite to hungry boaters.
Boat Rental and Clubs: Boat rentals and clubs have added costs but are relatively simple to run and can be profitable quickly. Whether you have room for powerboats or can better accommodate paddle boats, there are always people looking for a day on the water without the cost of owning a boat.
Boat Storage: A small area for paddle sport storage, an upland tract for trailer storage or added rack storage can mean more income at a minimal investment. Even a shed for water toy storage may be possible and while it may not be a large income generator, it can go a long was as a boater amenity.
There’s a lot here, which is why we recommend you start exploring a marina sale well before you’re ready to sell. There’s more to cover in the question of what do marina buyers look for, so stay tuned for part 2 coming next month.
If you’d like to read more, sign up to receive our Marina Seller’s Guide or contact us. Simply Marinas is always available to answer your questions and help you determine where to invest now to bring a higher sale price later.