Brokers and Offers? - SailNet Community

   Search Sailnet:

 forums  store  


Quick Menu
Forums           
Articles          
Galleries        
Boat Reviews  
Classifieds     
Search SailNet 
Boat Search (new)

Shop the
SailNet Store
Anchor Locker
Boatbuilding & Repair
Charts
Clothing
Electrical
Electronics
Engine
Hatches and Portlights
Interior And Galley
Maintenance
Marine Electronics
Navigation
Other Items
Plumbing and Pumps
Rigging
Safety
Sailing Hardware
Trailer & Watersports
Clearance Items

Advertise Here






Go Back   SailNet Community > On Board > Boat Review and Purchase Forum
 Not a Member? 


Reply
 
LinkBack Thread Tools
  #1  
Old 01-12-2010
Junior Member
 
Join Date: Jan 2010
Posts: 10
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
jleigh38 is on a distinguished road
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!!
Reply With Quote Share with Facebook
  #2  
Old 01-12-2010
eherlihy's Avatar
Learning the HARD way...
 
Join Date: Jan 2007
Location: Boston Area
Posts: 3,518
Thanks: 110
Thanked 61 Times in 60 Posts
Rep Power: 8
eherlihy will become famous soon enough
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 Certified Instructor - Also certified in Recreational Marine Electrical Systems
Reply With Quote Share with Facebook
  #3  
Old 01-12-2010
Senior Member
 
Join Date: Jun 2006
Posts: 4,998
Thanks: 5
Thanked 18 Times in 18 Posts
Rep Power: 11
wind_magic has a spectacular aura about wind_magic has a spectacular aura about wind_magic has a spectacular aura about
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.
Reply With Quote Share with Facebook
  #4  
Old 01-12-2010
Junior Member
 
Join Date: Jan 2010
Posts: 10
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
jleigh38 is on a distinguished road
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!
Reply With Quote Share with Facebook
  #5  
Old 01-12-2010
eherlihy's Avatar
Learning the HARD way...
 
Join Date: Jan 2007
Location: Boston Area
Posts: 3,518
Thanks: 110
Thanked 61 Times in 60 Posts
Rep Power: 8
eherlihy will become famous soon enough
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.
Reply With Quote Share with Facebook
  #6  
Old 01-12-2010
blt2ski's Avatar
Senior Member
 
Join Date: May 2005
Posts: 6,695
Thanks: 0
Thanked 21 Times in 20 Posts
Rep Power: 10
blt2ski will become famous soon enough
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!
Reply With Quote Share with Facebook
  #7  
Old 01-12-2010
Senior Member
 
Join Date: Sep 2009
Location: Kingston Washington
Posts: 506
Thanks: 0
Thanked 2 Times in 2 Posts
Rep Power: 6
Waltthesalt is on a distinguished road
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.
Reply With Quote Share with Facebook
  #8  
Old 01-12-2010
BarryL's Avatar
Senior Member
 
Join Date: Aug 2003
Location: Long Island, NY
Posts: 1,615
Thanks: 3
Thanked 27 Times in 26 Posts
Rep Power: 12
BarryL is on a distinguished road
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.
Reply With Quote Share with Facebook
  #9  
Old 01-12-2010
doubleeboy's Avatar
Senior Moment
 
Join Date: Jul 2008
Location: Seattle, WA -Eugene OR
Posts: 598
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 7
doubleeboy is on a distinguished road
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
Reply With Quote Share with Facebook
  #10  
Old 01-13-2010
Senior Member
 
Join Date: Nov 2007
Location: Alaska
Posts: 260
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 7
Danny33 is on a distinguished road
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 !
Reply With Quote Share with Facebook
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

 
Posting Rules
You may post new threads
You may post replies
You may post attachments
You may edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On


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


All times are GMT -4. The time now is 08:30 PM.

Add to My Yahoo!         
Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
SEO by vBSEO 3.6.1
(c) Marine.com LLC 2000-2012

The SailNet.com store is owned and operated by a company independent of the SailNet.com forum. You are now leaving the SailNet forum. Click OK to continue or Cancel to return to the SailNet forum.