Marine valuations, to whom and what for?
Valuations are provided for a variety of purposes, including:
- Insurance underwriters for insurance appraisal
- Banks and financial institutions for finance
- Legal entities for divorce, probate, dispute resolution
- Australian customs and taxation for imported vessels
- Owners, and other third parties
What are marine valuations?
Fair Market Value implies a normal market, without the disruption created by events like the global financial crisis in 2007. Current Market Value reflects the current market, adjusted for any variation caused by temporary market fluctuation. It is the market value at the date of survey.
In stable economic times the fair market value and current market value should be the same.
Banks and financiers often request a forced or ‘fire sale’ valuation in the event of default.
The industry norm is 60% of market value, or less based on auction and market conditions.
Our marine valuations are based on research of comparable vessels to the same or similar design. Those recently sold with reference to brokers and our database. Or, listed for sale with adjustment for relative condition, brokerage commission and the current market.
Scope of our valuation reports
- Vessel particulars, design and construction
- Structural and overall cosmetic condition
- Machinery and major systems identified
- Items and equipment of significant value
- Summary condition and market valuation