Brokers and Offers? - SailNet Community
Reply
 
LinkBack Thread Tools
post #1 of 19 Old 01-12-2010 Thread Starter
Junior Member
 
Join Date: Jan 2010
Posts: 10
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
Brokers and Offers?

I finally want to make an offer on a boat (1985 36' Catalina) - but need advice on how to present it. I've gone out "boat shopping" with a local broker about 4-5 times over the past year - I've emailed him a list of boats I wanted to see at the local marina (whether listed by his office or not) and he set things up and took me around to view them. BUT - last week while visiting family about an hour away, I stopped by another marina to poke around since I was in the neighborhood. I saw a boat listed in the window of a brokerage office, walked in and asked to see the boat - and it turns out that THIS is the boat I'd like to make an offer on.

So, question: Do I make the offer to this new listing broker (who showed me the boat?) OR, do I go back to my local broker, who has been sporadically showing me boats over the past year, and have him present my offer to the listing broker?? The issue is obviously the commission - and I don't know the etiquette in a situtation like this.

I'd honestly prefer to just make the offer to the listing broker directly, but I don't want to offend or alienate my local broker because, well, he's local and part of my sailing community and I'll probably see him every weekend. I also don't know if my local broker would even be allowed to make the offer and get commission since the listing broker was the one who "introduced" me to the boat.

Any thoughts on how to handle this would be much appreciated - thanks!!
jleigh38 is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
Advertisement
 
post #2 of 19 Old 01-12-2010
Learning the HARD way...
 
eherlihy's Avatar
 
Join Date: Jan 2007
Location: Boston / Ft Myers Area
Posts: 3,995
Thanks: 157
Thanked 99 Times in 96 Posts
Rep Power: 9
 
If you are working with the broker, than you should probably work through the broker.

Most listings qualify for splitting the commission among two brokers. In addition, the broker that you are working with may be able to help negotiate on your behalf.


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

USCG Licensed OUPV Captain, ASA 101/103/104/105/106/118 Certified Instructor - Also certified in Recreational Marine Electrical Systems
eherlihy is offline  
Quote Quick Reply Share with Facebook
post #3 of 19 Old 01-12-2010
Senior Member
 
Join Date: Jun 2006
Posts: 5,006
Thanks: 5
Thanked 18 Times in 18 Posts
Rep Power: 12
     
If you've been using a broker I'd let him/her close the deal even if they didn't show you the boat, it doesn't cost you anything, really, because the commission is split by the brokers and doesn't have much to do with you, so there is little reason not to do it.

That said, I act as my own broker on these kinds of deals and find that it does help the listing broker move things along because the commission is double what they normally get, so there is something to be gained by not using a broker.

What are you pretending not to know ?

Please support my
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
wind_magic is offline  
Quote Quick Reply Share with Facebook
post #4 of 19 Old 01-12-2010 Thread Starter
Junior Member
 
Join Date: Jan 2010
Posts: 10
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
 
Thanks for the replies - I'm gathering that I should contact my local broker and have him present the offer to the listing broker.

My concern is that I don't want to tick off the listing broker by bringing another broker into the mix who will take 2/3 of the commission - since the listing broker DID show me the boat, and has answered a few of my follow up questions on the phone already. (for this particular boat, he's certainly put in more time than my local broker)

And, since I'll be giving an offer that's about 10% below asking price, I thought the listing broker might be more enthusiastic about pushing the deal through if he's getting the whole commission.

But if the proper thing to do is to have my local broker jump into the process and present the offer - then that's how I'll proceed. Please let me know if anyone has any other thoughts - thank you!
jleigh38 is offline  
Quote Quick Reply Share with Facebook
post #5 of 19 Old 01-12-2010
Learning the HARD way...
 
eherlihy's Avatar
 
Join Date: Jan 2007
Location: Boston / Ft Myers Area
Posts: 3,995
Thanks: 157
Thanked 99 Times in 96 Posts
Rep Power: 9
 
Quote:
Originally Posted by jleigh38 View Post
Thanks for the replies - I'm gathering that I should contact my local broker and have him present the offer to the listing broker.

My concern is that I don't want to tick off the listing broker by bringing another broker into the mix who will take 2/3 of the commission - since the listing broker DID show me the boat, and has answered a few of my follow up questions on the phone already. (for this particular boat, he's certainly put in more time than my local broker)
Brokers should split 50/50

Quote:
And, since I'll be giving an offer that's about 10% below asking price, I thought the listing broker might be more enthusiastic about pushing the deal through if he's getting the whole commission.
Do you trust the guy that you've been having drive you hither and yon? If so, who do you think will get the better deal from the selling broker; you or a broker who should be getting paid (via successful sales) for his insight into the market?

What I'd do is offer *your* broker 85% of asking price. If the seller agrees, you get an extra 5%, the brokers split the commission, and the seller sells his boat. Everyone goes home happy.
eherlihy is offline  
Quote Quick Reply Share with Facebook
post #6 of 19 Old 01-12-2010
Senior Member
 
blt2ski's Avatar
 
Join Date: May 2005
Posts: 6,862
Thanks: 0
Thanked 26 Times in 25 Posts
Rep Power: 11
 
Another issue that I have found that arises, "IF" you did not tell the listing agent that you had a "broker" they will sometimes not allow the other broker to bargain for you, and assume you are "Their" client.

Also, the broker whom showed you the boat, if boat brokerages work like home brokerages, the showing agent may NOT be the true listing agent, and he himself is the buyers agent, splitting the commision in house!

"IF" it were me, I would try to get my local agent involved, especially if he was a member of say your local YC or equal. He may help to a degree, "EVEN IF" the first issue I said above comes true.

Glad you found a boat you like!

Marty

She drives me boat,
I drives me dinghy!
blt2ski is offline  
Quote Quick Reply Share with Facebook
post #7 of 19 Old 01-12-2010
Senior Member
 
Join Date: Sep 2009
Location: Kingston Washington
Posts: 526
Thanks: 0
Thanked 3 Times in 3 Posts
Rep Power: 6
 
10% below seems like a high offer in this market, but that depends on the list. I'd check the book value and offer no more that low book and probably start negotiations below that. I'd recommend a survey to see what work needs to be done and deduct the cost of that from the offer.
Waltthesalt is offline  
Quote Quick Reply Share with Facebook
post #8 of 19 Old 01-12-2010
Senior Member
 
BarryL's Avatar
 
Join Date: Aug 2003
Location: Long Island, NY
Posts: 1,788
Thanks: 4
Thanked 43 Times in 38 Posts
Rep Power: 12
 
Hello,

If it were me, I would deal strictly with the new broker, the one who showed you the boat. Why should you involve the original broker? He has nothing to do with this boat - it's over an hour away. Note that unless you have special arrangements, the broker works for the seller, not the buyer.

Being a boat broker is a business and your local broker should understand that if you purchase a boat an hour away from him, that he doesn't deserve any money for that. He showed you some local boats, and the boats weren't right for you. Sometimes you win and sometimes you lose.

If I were broker for the boat you saw, I would not want to share my commission with your original broker. Again, your original broker has nothing to do with this deal.

Good luck with your boat search.

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 01-12-2010
Senior Moment
 
doubleeboy's Avatar
 
Join Date: Jul 2008
Location: Seattle, WA -Eugene OR
Posts: 598
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 7
 
jleigh,

A year ago I was in same place as you. I had been working with a broker, he had shown me lots of boats that were not his listings. He appeared to be growing weary of us so I gave it a rest. Found a boat that I could have had him show me but instead went to listing broker. To make a long story short when the negotiations were done and boat was under contract and we did survey and sea trial a few things showed up. I thought they were worth 6-7 thousand dollars. The seller dropped price a few thou and the broker dropped commission. This was a lot easier to pull off with only one broker in the picture.

My first broker found out and asked why I left him out of picture, I told him and also pointed out that I thought I could strike my best deal by involving as few commissioned agents as possible. He really had no comeback to that.

BTW, C36 is a nice boat, I have sailed on a couple and with fresh sails they are an easy boat to sail and preform well.

Good luck
michael
doubleeboy is offline  
Quote Quick Reply Share with Facebook
post #10 of 19 Old 01-13-2010
Senior Member
 
Join Date: Nov 2007
Location: Alaska
Posts: 260
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 8
 
BerryL andDoubleeboy took the words right out of my mouth !
The local broker might know the true history of the boat too ! ( you ought to here it up here ) ! I have no idea of price your at for buying ...I was told 10k less was the buying price on higher end boats !

One time I was window shoping and and a broker came up to me and offered assistance ,,,Told him I had xyz already working for me . Spent four hours with me showing boats that afternoon ..Bought him a burger and a couple of beers aa year ago and I get tips once in a while on boats !

I call on boats all the time just streight forward everytime and I have gotte great responces and lots of help !Just put it out there on the up and up and its all great !
Danny33 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
Negotiating prices with brokers TakeFive Boat Review and Purchase Forum 17 11-10-2009 09:45 PM
broker VS. by owner ddilman General Discussion (sailing related) 17 08-18-2006 08:38 PM
Yacht Broker "Certification" GordMay Boat Review and Purchase Forum 3 01-26-2005 12:59 AM
Internet Chartering Carol Bareuther Cruising Articles 0 06-12-2002 08:00 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