Join Date: Jun 2008
Location: Fort Lauderdale
Thanked 11 Times in 11 Posts
Rep Power: 9
Re: What Is A Boat Really Worth?
Buyers and sellers can deal with each other any way that they choose.
Brokers can’t. They are agents and bound by agency law. It really is that simple. There is opinion being passed around here as knowledge that is just inaccurate. Deposits become cleared funds generally after ratification but prior to satisfaction of contingencies. Those cleared funds are held in the brokers escrow account (By law) until disbursed as per the ratified contract. Yes, there are exceptions to every rule but brokers are required to have and use escrow accounts in every state that I am aware of.
Now, all of you who believe that brokers are just crooks can stop reading here.
Reputable brokers belong to various professional groups depending on where they are located. The largest are the California Yacht Brokers Association, The Florida Yacht Brokers Association and the Yacht Brokers Association of America.
These associations all have rules of conduct and ethical standards which the members are bound by. In addition Florida and I believe, California, require brokers to be bonded and licensed.
Unfortunately there are always cowboys and undesirables in every industry. That means that buyers and sellers need to do their due diligence when entering into business relationships. It’s not that hard to do. A rudimentary approach would be to deal only with brokers who belong to a professional association. It’s not foolproof but a good start.
Open up a Yachting Magazine or Power & Motoryacht and look at what is being advertised for sale. Do you really think that these companies are owned and staffed by crooks? How would it be possible for fraud of the magnitude suggested here and on other forums of this type, for them to still be in business?
OTOH, the value of the boats being discussed here are generally at the lower end of the market. That means that in some cases you would not be dealing with the cream of the crop. Often brokers at this level are newer, part time or just marking time. I said often but I don’t mean all. There are also some very good people who simply like to deal in this product. Sometimes it takes some looking. If you find someone that you trust, use them, otherwise you are at the mercy of the listing agents that you call directly. Your choice.
IMO, Julie has come a long way. She started out posting her assumptions as fact but has since discovered that the process is a lot more complex than she realized.
At the end of the day you are buying a commodity not some mystical thing with special rules.
During this process people that you deal with are going to make money as the result of your purchase. If you believe that is bad then do something else with your money. Again, your choice.
Last edited by sailpower; 07-28-2013 at 12:11 PM.