This calculator gives the value of a yacht and its likely time on the market based on various attributes of the yacht and the time of year and location where it is listed. The technique used to derive the formula was taken from a study of the real estate market by Kluger and Miller in 1990*.
The study for this calculator used a data set of 61 yachts ranging in size from 21m to 55m. Full details of the derivation of the formula are contained in an article which Andy Williams wrote for issue 115 of The Yacht Report. View this article here
One of the benefits of a statistical technique such as this is that it can be used to construct a price index. There is sufficient sales volume in the superyacht industry to produce an index on at least a quarterly basis. The idea of a yachting index may seem unusual but when one thinks of household names such as the FTSE, Dow Jones, Nikkei and Halifax House Price Index the value may become clearer. A price index can provide an anchor which allows market participants to gauge the state of a market at any given time. Without a price anchor there is an information gap resulting in a lack of activity because buyers and sellers cannot agree. The devastating effect of this information vacuum was all too clear in the superyacht market in the wake of the 2008 credit crisis. A reliable index provides a benchmark such that even in down markets there should be no reason for sales volumes to seize up. At least, that is the theory!
** To determine the desirability of the location I discussed this with a number of brokers and the consensus was plain. Excellent locations are the South of France in Europe and in the US, Miami and Fort Lauderdale. Good locations are those which are within 2 hours by car of these centres. I also included Palma as a good location because, although access is not particularly convenient, there is a large concentration of yachts listed there. Average locations were all those outside of the excellent and good locations.