Using a Buying Broker?

Snboard976 · #1 (**permalink**) 10-03-2008

I am wondering what the pros and cons of enlisting a buying broker are?

My understanding is that they split the commission with the selling broker so it doesn't cost me anything. I would like to see some comps for a boat that I am making an offer on and I don't know another way to do it (NADA and BUC are not a true reflection of what is being bought and sold.) A buying broker would also be another set of knowlegable eyes to look a boat over before it is surveyed and purchased.

On the other hand, I feel like the selling broker is more motivated knowing that they will be recieving a 10% commision.

What do you think?

camaraderie · #2 (**permalink**) 10-04-2008

Do a thread search...several extensive discussions here already. The broker ALWAYS works for the seller no matter what they are called! The selling broker can give you comps and WILL if you tell him you are walking without them. When you bring another broker into it the selling broker splits the commission with "yours".
You want to hire someone for advice...hire a surveyor.

josrulz · #3 (**permalink**) 10-04-2008

Camaraderie is right about doing a search, you'll find lots of info. Personally, I chose to use a buyer's broker on my boat search. Now, Camaraderie is also right that it's not usually the way to go. He might be "your" broker, but in every scenario he works for the seller because he gets paid by the sale.

If you're considering a buyer's broker, you need to be aware of this. I would also recommend that you find someone in your area who comes with lots of recommendations in acting in this capacity (for buyers). A good buyers broker will give you information when you need it, find boats for you, and advice when you need it. Also a big help because he's seen almost every boat I've seen. A surveyor only sees the one you choose (don't get me wrong--you NEED a good surveyor when the time comes too).

Anyway, I do not regret working with my broker, who has been great about not pushing me to buy, and in fact has recommended against boats that could have made him money much more quickly, but perhaps were not ideal. The problem is, most brokers aren't like this. So you should be aware. Even in my case, I know he gets paid by the sale and keep that in mind always. Camaraderie is essentially right, it's just that there are exceptions (very few) to how brokers behave.

camaraderie · #4 (**permalink**) 10-04-2008

Nothing to argue about there Jos!

Snboard976 · #5 (**permalink**) 10-04-2008

Thanks for the advice. Sounds like the best thing I could do would be to get certified as a Yacht Broker so I can keep half of the commision as a buying broker for myself.

What are the comps that you are talking about?

k1vsk · #6 (**permalink**) 10-04-2008

The seller's broker has the same access to comp sales (actual selling price) as a broker whom you would hire and can provide that info to you. The caveat obviously is you need to determine the integrity of the selling broker given his ties to the seller and his self-interest at completing the sale.

xort · #7 (**permalink**) 10-06-2008

If there are 2 brokers, there will be a split in commision usually 5% each. But sometimes if a selling broker has nobody to split the commision with, he can 'help' the deal.
I think Cam's suggestion about a surveyor was to get one involved before making an offer. Many surveyors will do a quick once over of the prospective boat and a check of boatsold for a nominal fee.
I found Boat US buyers service to be pretty good for pricing help.
I think if you find a REALLY good buyers broker, he is worth having on your team. Good luck finding one.

JiffyLube · #8 (**permalink**) 10-06-2008

I used a buyers broker in the process of getting our boat, and I would use that person again. I had good results with them, with no pressure to buy. They attended the survey (which was out of town), and make sure all the paper work was done right. It worked exactly like in real estate.