Broker Commissions

[Roy10289]

I am planning to sell my current boat and contemplate using a broker as I do not live close to where the boat is used or stored. Can anyone who has sold a boat in the past tell me of their experience in dealing with a boat broker? Are their commission amounts written in stone? Also what are typical rates for the NE US at the current time?

 

[KD3PC]

Although commissions are "negotiable", you will find that they vary between 6 and 10% for the most part.

Some brokers actually work for you, others not so much...one I worked with last would often hand me the address and say good luck. When I would call for directions or details...he never knew anything or how to get there, or "I have not seen the boat" -even one of his listings. If it was not at his pier, he would not show the boat.

Others will meet clients and take them to your boat, and sell the boat as much as possible....at least they will know the details of your boat, or should.

As a buyer it is often good to not have a good/interested selling broker, as a few years back I looked at a boat with the selling agent absent, made my offer, it was accepted. When the selling agent went on the sea trial with me and the surveyor, he must have said a dozen times, " I didn't know this boat had a" generator, air conditioners, NEW sails, auto pilot, in such good shape, etc, etc

YMMV, but in this market I would make sure that my broker was the energetic, active one - interested in selling my boat.

all the best

 

[sailaway78]

My Experience

With brokers is limited to just one boat sale. But I learned a lot. Mostly I think it depends on the individual broker. Also, some states brokers are highly regulated and some not. First off, be sure that the broker is very knowledgable about boats in general and yours in particular. SEE PREVIOUS POST Are you going to be firmly locked in to him. For example, if you come up with a buyer on your own, do you still have to pay commissions. Commission in my area are around 10%, and also with a minimum fee. As in every thing else, there are good and bad ones. A good one will be helpful, a bad one a PITA.

 

[BobM]

With the advent of the internet why bother? The only reason I would employ a broker is if I had so much money and so little time that I couldn't possibly show my boat. Even if I was out of state, I would probably run internet ads and offer one of the guys at my club money to show the boat.

 

[Joe]

"open" listings?

Do yacht brokers participate in "open" listings? An open listing is non-exclusive, the seller pays a commission to any broker who brings a buyer. The brokers are allowed to advertise the boat to generate more buyers and sellers for their businesses but have no claim on a commission unless they procure the buyer. You rarely see open listings in Real Esate... although I have negotiated "one party show" agreements with For Sale by Owners. In the mobile home sales game, open listings are common... as are net listings, where the broker keeps everything over a stated amouint that goes to the seller. (bad deal for the buyer) Just curious.

 

[Johnb]

When I bought my boat the broker handled things like taking it to the boat yard for survey and taking us out for test sails. I understood they accepted liability during the time they were doing that. They also acted as "escrow" agents, taking my "earnest money" and acting as referee between me and the seller when it came to issues around passing the survey and what would have happened if it had not.

I guess it depends on how much is at stake and how complex it is going to be. If you are just going to meet, agree, pass the money and pass the title then it would be tempting to avoid those fees if you can sell it yourself.

The seller in our case was outside of the country and I figure the broker did a good job of showing the boat and attending to a lot of details.

 

[Barnacle Bill]

A good broker will sell your boat. Brokers have access to other brokers. Brokers often have a list of people looking for boats and know lots of people which is helpful in getting a boat and a buyer together. A good broker will post your boat on effective Internet sites that attract buyers from around the world. Many boat owners get tired of tire kickers and so let the broker deal with these folks. A good broker will be informative and will help the prospect learn about what boat he/she feels might fit best and a good broker will cut the BS or misconceptions that buyers might have and put them on the right track. Brokers have relationships with other brokers which broaden your prospect possibilities. Many brokers are dealers that offer full service which might be a good thing when dealing with some problems. Brokers will have access to financing. Knowledgeable brokers know boats, accessories, can problem solve boat issues and help with sorting out what is important and what is not and can steer one to the correct boat for the type of sailing the prospect wishes to do and the boat suitable for the waters they intend to sail on. A good broker will earn his keep and you will be happy with the results.

 

[zeehag]

roy--my ericson is still listed with a broker. as it is valued at under the minimum pricing for their 10 percent--nonnegotiable fee, they only get 3000 dollars for their fee, so they willnot push this boat. there are many boats for sale. i have had my ericson on market for 4 yrs, using a broker for 3 1/2 of those. there is no reason to use one-- they arent doing anything at all. until the boat sells for over 60,000 dollars, they are not working hard-- fee is too small.

 

[Warren Milberg]

Having worked as a broker, I think that you would be well served to use a trusted broker to selll your boat. Ask around to get recommendations for a local broker who will be near your boat. As in any business, there are good ones and not so good ones. While you could try to sell your boat yourself, buy ads here, on the internet, and lots of other places, you will eventually (1) have to vet potential customers to sort the serious ones from the lookers, (2) you'll have to travel to your boat to show it and possibly do a sea trial, and (3) the buyer's survey may produce items that have to be negotiated and or wokred out in the final sales agreement. A good broker can do all of these for you in addition to gaining access to a customer base that you may have difficulty finidng on your own.

Brokers typicall charge around 10 per cent of the sales price for boats a certain size and may have minimum charges for boats under their size mimimums. If you decide to use a broker, make sure you spell out beforehand just what you expect him/her to do and make sure you both are on the same page before signing a brokerage agreement.

 

[larryw]

Anything over say, 30 ft, and a broker is the way to go. I tried selling this one on my own, it was a PITA. Under 30 ft, most buyers are local, and least in SoCal, but when you get up to 40, buyers can be international. The broker is the way to go.

 

[Tim R.]

If your boat is nice enough it will sell without a broker. This is the same reason why you do not see a lot of really nice boats on YW for long if at all.

I bought and sold my Pearson 28 privately(sold to first looker locally)
I bought my Ericson 35 from a broker but sold privately(sold to first looker 500mi away)

My present boat(1997 Caliber 40lrc) I bought privately from Texas although they were in Maine at the time.

In my opinion, most(not all) brokers add very little value. It used to be that you needed them for advertising but now with the internet and forums like this, YW is really not needed. They do get clients into their office to look at certain boats and can sometimes sway a buyer your way but that is rare.

I may not be typical but I have alwys done my own homework and known more about any boat a broker has shown me. I also tend to know exactly what I want and have never had a broker talk me into another boat.

As for commission, everything is negotiable. Especially if you have a nice boat that will command a good price and will sell quickly. You can always get another broker if you do not agree on his cut.

 

[JK_Boston_Catalina310]

In my opinion, most(not all) brokers add very little value.

I guess this is true if you don't put the same amount of time and effort into finding a good broker as you do into finding a good boat.

I bought my first boat from my uncle. No broker needed.

I bought my second boat through a broker. His name is Shep and the guy is great. (I'll give him a little plug, Shep Shove at Eastern Yachts in Hingham, MA)

Over the last 3 years, he has probably spent more then 30 hours with me a various boat shows. Sometimes we were looking about boats he represented, sometimes we were looking at other boats. He is extremely knowledgeable and very honest. Because of the time he spent with me, when it was time to buy a boat, I went to him to be my buyers broker.

We ended up buying a boat that his company listed (different broker). But he helped us look at a number of other boats before we made an offer. He even reduced his commission to try and get the buyer and I closer on the price. I would not hesitate to list a boat with him or use him as a buyer broker for a boat.

 

[PrincessoftheLake]

I think a good broker can well be worth the commision you pay. I have a local guy here in Minnesota that I have bought a boat from and he has sold a boat for me. He was a big help in listing the boat at the right price and as Barnacle Bill states, he had a lot of local knowledge and knew a lot of people looking for boats and it was a big help. He also does listings in Bayfield which is really cool and he will do the trips up there to show boats so you don't have too. I would have to say he is the best yacht broker I ever had.

 

[jdeatsch]

Roy,

Since we're somewhat close (in the grand scheme of things) my experience as a buyer might be of help to you.

I was a serious buyer (just completed the deal a week ago) and for TWO months was seriously shopping. You'd think that brokers would be falling all over themselves this time of year in the cold country.

Au contraire Batperson.

I contacted a number of brokers who had boats listed on Yachtworld (for example). I was completely ignored by all but two and one was going to 'contact the owner'. THAT never happened in a two week period. The other was so disjointed in his communication that I finally gave up.

FINALLY I found THE boat and the right broker/salesman. He actually wanted to SELL something. He steered me the right direction, was a huge help (still is) and went out of his way.

I had less than success with 'RCR Yachts' in Erie, couldn't raise anyone at RCR Yachts in Rochester, and gave up in disgust with Hawk Yachts. YMMV.

I do wish you luck finding the right broker if you decide to go that way.

Jim

 

[jdeatsch]

I forgot to mention (and cannot, for some reason edit my former post) the good broker, Bob at Finger Lakes Sailing in Ithaca. Jim

 

[Roy10289]

Thanks for the info Jim. I appreciate your input. May I ask if you did any shopping without a broker and if so were individual sellers honest to deal with?

 

[jdeatsch]

Good point Roy,

I did, in fact, attempt to contact two private sellers about their boats. I called both and emailed both.

They completely ignored my requests.

Maybe it's me.

 

[BillyK]

You need a Broker to get on yachtworld.com and it seems that anything over 30 needs to be on there to sell somewhat quickly. my father tried to sell his 32' luhrs for 5 years on his own until he went to a broker. Once that happened, he was listed on yachtworld and the boat sold in 2 weeks. If you want to catch a fish, you need to fish where the fish are all feeding.
On the flip side of that, i just purchased a 1990 Catalina 30 and i really wasn't interested in dealing with private sellers. It was a much better experience going with a good broker since they handle everything.

 

[Roy10289]

I realize that brokers,if they do their jobs can sell a boat quickly. I guess the key words are "do their jobs". I contacted a local broker to where my boat is 2 weeks ago. They were at a boat show,but called back that day. They said that they would research and call me back with a price that they felt was reasonable for my boat. It's been 2 weeks and I still wait for a call. If they are like this before I sign an exclusive contract with them,what can I expect in the future. It's so unfair in that they ask an exclusive right to sello for 3 months, and then for 6 more months I can't sell to someone myself who might have seen an add or whatever that they may have posted somewhere.
I am really torn to know what to do. My boat is in great condition and if people who want to buy would look they would see a good boat at a great price. Of course you must present it to the correct market. I listed an ad on this site and to date received only one response (with no message of anything requested) other than their email response.
I am conflicted in that I have a nice boat in great condition that I don't want to take less than it's worth by letting a broker eat my price with his commission and restrictive contracts.
I'm sorry to bother everyone with a problm we all have had at one time or another. Thanks for all the advice and for letting me vent.

 

[BillyK]

What's your market location? i've worked with a handful of brokers that i could recommend since they did their jobs very well, at least with me they were very active. I'd think since a good broker will get more exposure to your vessel, that you could command a better price, and at least make up for some of the cost of commission.