What are broker's fees like - SailNet Community
 1Likes
Reply
 
LinkBack Thread Tools
post #1 of 19 Old 04-03-2007 Thread Starter
Senior Member
 
saurav16's Avatar
 
Join Date: Mar 2007
Location: NY
Posts: 312
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 9
 
Send a message via AIM to saurav16
What are broker's fees like

Hi,

Found some boats online on yachtworld.com. Just to get an idea what are the standard brokerage fees. If the boat is $10k will the broker take a percentage or will they take a flat rate like $2k? Thanks in advance for your help.
saurav16 is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
Advertisement
 
post #2 of 19 Old 04-04-2007
Here .. Pull this
 
Join Date: Jan 2007
Posts: 2,031
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 9
 
The broker gets a percentage of the final selling price - around here the standard is 10%. It is unconscionable that they actually earn money for the stunts they pull on innocent, unsuspecting newbies, and they are not shy about trying it on folks who have been around the block a time or two either.

Don't ever believe what a broker tells you until you have verified it yourself. Don't ever agree to anything verbally - have a written letter or an email covering every single detail - keep in mind that the bulk of them were fired from used car dealerships because of unethical behaviour...

Never, Never, Never use a surveyor that the broker "recommends".


Am I sounding a tad bitter here ???

Last edited by Sailormann; 04-04-2007 at 12:12 AM.
Sailormann is offline  
Quote Quick Reply Share with Facebook
post #3 of 19 Old 04-04-2007
ASA and PSIA Instructor
 
Join Date: Apr 2000
Posts: 3,543
Thanks: 7
Thanked 23 Times in 23 Posts
Rep Power: 16
 
I believe 10% of the selling price is common if not standard. The broker usually collects that fee from the proceeds at the closing. That fee is split with any broker you are working with, the reason I encourage using a broker yourself for any serious boat search. Brokers will generally have an exclusive listing -- they get the fee whether you talk with them or not.

In some cases, the broker may wants the boat payment made out to his firm, who distributes the balances onto the owner and/or prior lender. Find out beforehand who will get what checks at the closing. This is not a good situation in my opinion as if the broker absconds or goes belly up before the onwner/lender has the funds, you are SOL.

Last edited by sailingfool; 04-04-2007 at 12:09 AM.
sailingfool is offline  
Quote Quick Reply Share with Facebook
post #4 of 19 Old 04-04-2007 Thread Starter
Senior Member
 
saurav16's Avatar
 
Join Date: Mar 2007
Location: NY
Posts: 312
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 9
 
Send a message via AIM to saurav16
if the owner of the boat uses a broker are they barred by a contract to make a deal with the buyer on their own? Which would save me and the broker a lot of money?
saurav16 is offline  
Quote Quick Reply Share with Facebook
post #5 of 19 Old 04-04-2007
Here .. Pull this
 
Join Date: Jan 2007
Posts: 2,031
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 9
 
It wouldn't save the broker any money - he would lose money as you are negotiating with the owner directly - unless I am not understanding your question correctly.

But to answer the question...there are many different arrangements entered into. Sometimes boats will be listed with more than one broker, sometimes the vendor will have an arrangement such as you asked about, where the broker does not receive any commission if the vendor finds a buyer on his own.

Usually, this will only happen if the vendor has listed the boat independently, and the broker notices the listing on a website or in a magazine. Brokers sometimes contact these vendors and come to an agreement that they will receive a commission if they find the buyer. If the sale process was initiated through the broker, then the vendor is usually liable for the broker's commission, regardless of how the boat is sold.
Sailormann is offline  
Quote Quick Reply Share with Facebook
post #6 of 19 Old 04-04-2007
Best Looking MALE Mod
 
Cruisingdad's Avatar
 
Join Date: Jul 2006
Location: Washington State
Posts: 9,917
Thanks: 3
Thanked 123 Times in 57 Posts
Rep Power: 10
     
Saura,

Not sure if it was clear, but it is the SELLER that pays the broker fees. You can sit out and wait for the seller to come off contract with the broker (assuming he does not sell it first), but if you initiate any contact through the broker (or he finds out about it) the seller owes him a full fee. That contact is usually good for 12 months after the end of the contract. In other words, you cannot go through his broker, decide to wait a week after it comes off listing, then try to negotiate outside of him... the seller still owes a fee.

My experience with brokers is a bit different than the above. A good, knowledgeable broker with integrity is an awesome assett. If it is someone that is passionate about boats and enjoys what he/she does, you will be pleased. Especially since you are new and boat searching, a GOOD broker will see things you will not and direct you appropriately. I have had 2 different brokers tell me (after seeing a boat that I leaned toward buying) tell me NO, that is not a good deal... walk away from it. However, there are also some real sharks out there... so it all depends on the broker, honestly.

I have no problem using a broker, and have on both sides of the transaction. The issue will be finding a good broker (at a 10k boat, that might be tricky).

Just my thoughts...

- CD
prishi likes this.

Sailnet Moderator



1987 Tayana Vancouver 42, Credendo Vides, (Mom and Pops boat, F/T Mobile Live Aboards in Puget Sound)

My Website:
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


Follow My Blog at:
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


Follow me on Facebook:

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Cruisingdad is offline  
Quote Quick Reply Share with Facebook
post #7 of 19 Old 04-04-2007
ASA and PSIA Instructor
 
Join Date: Apr 2000
Posts: 3,543
Thanks: 7
Thanked 23 Times in 23 Posts
Rep Power: 16
 
Depends

Quote:
Originally Posted by saurav16
If the owner of the boat uses a broker are they barred by a contract to make a deal with the buyer on their own? ...
Depends on the terms of the yacht listing contract the seller signs with the broker. The contact CAN say ANYTHING, but brokers prefer to have an exclusive listing, guaranteeing their fee if the boat is sold while the contract is in effect and exclusive listings are common. The better brokers insist on exclusives, mine did...The seller can sell the boat themselves, they would just still need to pay the broker his fee...so it doesn't happen...
sailingfool is offline  
Quote Quick Reply Share with Facebook
post #8 of 19 Old 04-04-2007
Senior Member
 
BarryL's Avatar
 
Join Date: Aug 2003
Location: Long Island, NY
Posts: 1,773
Thanks: 3
Thanked 43 Times in 38 Posts
Rep Power: 12
 
yachtworld

Hello,

I have bought two boats from yachtworld. In both cases, I had to leave a 10% deposit (on the agreed on purchase price, not the asking price) made out to the broker. When I made the final payment, that was made out to the seller. So I believe that a typical broker fee is 10%

As previously written, there are good brokers and there are bad brokers (and lots more bad brokers). You'll know pretty quickly which is which.

Also, the contract I signed was provided by the broker. It contained clauses that protected me as well as the seller. So, while the broker works for the seller, a good broker will protect the buyer as well.

Good luck,
Barry

Barry Lenoble
Deep Blue C, 2002 C&C 110
Mt. Sinai, NY

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
BarryL is offline  
Quote Quick Reply Share with Facebook
post #9 of 19 Old 04-04-2007
ASA and PSIA Instructor
 
Join Date: Apr 2000
Posts: 3,543
Thanks: 7
Thanked 23 Times in 23 Posts
Rep Power: 16
 
Broker protects the buyer...

Quote:
Originally Posted by BarryL
....It contained clauses that protected me as well as the seller. So, while the broker works for the seller, a good broker will protect the buyer as well...
Barry,
While I'm sure some brokers do use the standard sale agreement that provides reasonable protections to the buyer, we seen any number of broker agreements in threads on this board that did not...I think it a good practice to have an attorney look at a proposed agreement even if it looks "standard". You need the remember the broker represents the seller and only gets paid if the sale is consumated.
sailingfool is offline  
Quote Quick Reply Share with Facebook
post #10 of 19 Old 04-04-2007
Here .. Pull this
 
Join Date: Jan 2007
Posts: 2,031
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 9
 
Even in a case where the contract includes a holdback to ensure that all systems are operational and the boat is as represented, it can be very hard to get the broker to compensate for deficiencies...
Sailormann is offline  
Quote Quick Reply Share with Facebook
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the SailNet Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
Please note: After entering 3 characters a list of Usernames already in use will appear and the list will disappear once a valid Username is entered.


User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in









Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Similar Threads
Thread Thread Starter Forum Replies Last Post
Bahama Fees? Sailpilot General Discussion (sailing related) 2 07-26-2005 01:33 PM
Belize fees list... MarcellaRio Cruising & Liveaboard Forum 0 04-21-2005 10:00 PM
Fees into Bahamas slimqs Cruising & Liveaboard Forum 7 02-15-2004 11:48 AM
Two many brokers dogger44 Boat Review and Purchase Forum 1 12-11-2002 06:11 AM
Brokers: The 10-Percent Factor Tom Wood Buying a Boat Articles 0 01-17-2000 07:00 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome