Originally Posted by TakeFive
Artificially inflated prices mean lower volume, which means lower commissions. A broker gets no commission until a boat sells, and it will just sit on the market if priced too high.
According to what I've been told, the average boat sits on the market about a year before it's sold. That's a long time to wait for a commission, especially if you're just getting into the business.
Based on soldboats information we got on the Sabre 38 & Tartan 37, the longer a boat was on the market, the larger the gap between asking price and selling price. (I don't know if the asking price from soldboats is the original or just the last asking price before the boat was sold.)
The soldboats information certainly showed that pricing a boat properly will get it sold faster. And you would think that would compel brokers to do whatever they can to get the seller to agree to a listing price that will be in line with boats that sold quickly. But we saw many boats that were on the market a year or more where the original listing price hadn't budged.