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In the Field: Sold!...to the Highest Bidder!

Sold! …to the Highest Bidder!
On October 27th, PMY’s Elizabeth Ginns Britten headed over to the Lauderdale Marina to watch the first-ever private-yacht auction.
 
 


 

On October 27th, PMY’s Elizabeth Ginns Britten headed over to the Lauderdale Marina to watch the first-ever private-yacht auction.

The 122-foot Flagship Bon Bon (right), formerly owned by Steve Hudson of International Yacht Collection, was auctioned off in approximately 15 minutes. The opening bid was $3.8 million, and it sold to the highest bidder, James Glidewell of Newport Beach, CA, who was represented at the auction by broker Kevin Merrigan of Northrop and Johnson, for $4.95 million.

The auction represents a major departure from traditional methods, like brokerage and private sale. Carl Carson (right) of the Yacht Auction Group, which hosted the event, says auctioning a yacht is advantageous to both owner and buyer for several reasons. To begin, on an assigned day and after a defined period of time, in this case—October 27th over the course of 15 minutes—the yacht can be sold for a predetermined price. Additionally, some buyers and sellers find it attractive that, 20 days after the auction, seller and buyer will pass papers at closing, making it a relatively quick transaction. Plus, Carson says the seller should save on brokerage and advertising fees associated, although there are other costs involved.

Read more about this new concept in yacht sale in an upcoming Megayachts column.

This article originally appeared in the November 2004 issue of Power & Motoryacht magazine.

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