What Is a Condition & Valuation Survey?

A Condition & Valuation Survey provides an objective assessment of a vessel’s overall condition and estimated value. It is typically used when an owner, lender, broker, estate, or other interested party needs a professional evaluation of the vessel without the full scope of a pre-purchase survey.

At Steel Rose Marine Services, a Condition & Valuation Survey focuses on documenting the vessel’s structure, systems, equipment, and general condition while also providing an opinion of fair market value and replacement cost. The result is a concise professional report that can be useful for a variety of ownership, financing, and valuation purposes.

What is a Condition & Valuation Survey?

A Condition & Valuation Survey is an inspection intended to document the vessel’s present condition and establish an informed opinion of its value.

The survey typically includes an inspection of the vessel’s major structural, mechanical, electrical, plumbing, safety, and navigation systems, along with its overall cosmetic and functional condition.

Depending on the vessel, the inspection may include:

• Hull, deck, superstructure, and structural components
• Through-hulls, seacocks, and underwater fittings where accessible
• Propulsion and steering systems
• Fuel systems
• AC and DC electrical systems
• Batteries, chargers, and shore power systems
• Bilge pumps and drainage systems
• Plumbing and sanitation systems
• Navigation and communication equipment
• Safety equipment
• Anchoring and deck equipment
• Sailboat spars and accessible rigging components
• Interior condition and installed equipment
• Vessel identification and specification information

The exact scope will vary based on the vessel’s size, age, design, systems, accessibility, and intended use of the report.

Who is this type of survey for?

A Condition & Valuation Survey may be useful for vessel owners, lenders, brokers, estates, financial institutions, or other parties who need an independent assessment of a boat’s condition and value.

Common reasons for requesting this type of survey include:

• Establishing a current market value
• Supporting vessel financing
• Preparing a vessel for sale
• Estate or legal documentation
• Ownership records
• Evaluating the condition of a vessel after a period of ownership
• Documenting major upgrades or restoration work

Because the purpose of the survey can vary, the scope can be adjusted to meet the needs of the client or requesting institution.

What does the survey include?

The survey provides a broad inspection of the vessel and its major systems with an emphasis on overall condition, significant deficiencies, maintenance concerns, safety, and value.

The survey may include inspection of structural components, hull and deck condition, propulsion and steering systems, fuel systems, electrical systems, batteries and charging systems, plumbing and sanitation, safety equipment, navigation equipment, deck hardware, anchoring equipment, interior condition, installed machinery and equipment, and sailboat rigging where applicable and accessible.

Unlike a pre-purchase survey, the inspection may be more condensed and focused on the information needed to establish condition and value.

How is it different from a Pre-Purchase or Insurance Survey?

A Pre-Purchase Survey is generally more comprehensive and is performed for a prospective buyer who wants to understand the vessel as thoroughly as possible before completing a purchase. It may include more extensive system testing, a haul-out inspection, and an in-water trial run.

An Insurance Survey is performed primarily for underwriting purposes and focuses more heavily on the vessel’s overall condition, safety, major systems, standards compliance, and value so the insurance company can evaluate the vessel for coverage.

Does the boat need to be hauled out?

A haul-out is not always required for a Condition & Valuation Survey.

Whether a haul-out is recommended depends on the vessel, the purpose of the survey, and the level of inspection required by the client or requesting institution.

A haul-out allows the surveyor to inspect the hull bottom, keel, rudder, propellers, shafts, struts, and other underwater components that cannot be fully evaluated while the vessel is in the water.

If the report is being used for a lender or other third party, it is a good idea to confirm whether they require an out-of-water inspection before scheduling the survey.

Is a trial run required?

A trial run is typically not required for a standard Condition & Valuation Survey.

The survey is primarily intended to document the vessel’s overall condition and value rather than provide a detailed assessment of performance while underway.

If additional operational testing is desired, an in-water trial run can be added to the scope of the survey when appropriate.

What does the client receive?

Following the inspection, the client receives a professional report documenting the vessel’s condition and significant findings.

The report typically includes:

• Vessel specifications and identification information
• Condition statements for major systems and equipment
• Findings related to standards compliance, deficiencies, maintenance, safety, and general marine practice
• An overall condition statement
• An opinion of fair market value and replacement cost
• Surveyor’s certification
• Photographs

The report is intended to provide a clear and professional record of the vessel’s condition and value at the time of the inspection.

How are fair market value and replacement cost determined?

An opinion of fair market value and estimated replacement cost are developed using similar research methods.

The surveyor considers factors such as the vessel’s make, model, age, condition, equipment, upgrades, configuration, geographic market, and comparable vessels currently offered for sale or recently sold when reliable information is available.

Fair market value reflects the estimated value of the vessel in its current condition within the existing market.

Replacement cost reflects the estimated cost to replace the vessel with a new vessel of similar type, size, quality, and purpose.

These values are based on available market information and professional judgment at the time of the survey.

Can a Condition & Valuation Survey be used for financing?

Yes, in many cases.

Lenders may require a professional marine survey to verify the condition and value of a vessel before approving financing or using the vessel as collateral.

The specific requirements vary between lenders, so the client should confirm what type of survey, report format, valuation information, and surveyor qualifications are required before scheduling the inspection.

A Condition & Valuation Survey is often well suited for this purpose because it provides both a professional assessment of the vessel’s condition and an opinion of fair market value.

How much does a Condition & Valuation Survey cost?

Survey pricing varies based on vessel length, type, systems, location, accessibility, and overall complexity.

Pricing is typically calculated on a per-foot basis, with adjustments made for vessels that require additional inspection time because of multiple engines, extensive equipment, multiple decks, complex electrical systems, or other factors.

Steel Rose Marine Services publishes general pricing information on the website to help clients understand typical costs before requesting a formal quote. View survey pricing details.