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Question about when you sell a boat

2K views 12 replies 10 participants last post by  midwesterner 
#1 ·
Don't cry for me. I'll be upgrading. But I need to sell the one I have. What are the benefits of using a broker? Do they show it for you? I assume they take a percentage? If so, what is kind of average?
 
#2 · (Edited)
I have been boat shopping and I have some observations. I have never bought or sold a boat except my sailing dinghy. But as I have called around shopping for various boats I have encountered a number of brokers.

I find that their service varies widely. There are some who tend to represent marinas and have more experience with powerboats. Some of them know very little about sailboats and have been unable to answer most of my questions. There are some, where I think I know more about sailboats from reading and researching than they do.

I'm looking for a real bargain, an older boat somewhere in the $8,000 to $30,000 range. Some of these brokers have tried to steer me toward more expensive boats. They don't seem as interested in selling a $15,000 boat as they are in selling a $60,000 boat. Obviously, their percentage commission would be a lot higher.

You have to figure, that if a broker has 60 or a hundred boats in their listing, if they sell two boats a month, they will make money whether or not it takes them six to nine months to sell yours.

The best brokers I have spoken to are the ones who have told me that they sail and they were very knowledgeable about types of boats and features like different keel types. Some have been able to really spend time with me talking about the pros and cons of different style boats for my particular lifestyle. The sailor/brokers have indicated that they would take me out on the boat to demonstrate it. The more motor boat oriented brokers either didn't mention a trial sail or they said they would have to arrange a time for the owner to show me how the boat sails.

If you live near your boat and could show it, it might benefit you to manage your sale yourself. I have spoken to many owners on SailboatListings.com and it felt more personal and they were able to answer all of my questions.

I'm always a little nervous when I contact the number in any ad and realize that I have reached a broker. I am worried about being badgered with a hard sell. But I have been amazed at how little many of them seem to care about selling a $20,000 boat. I would expect to get weekly emails or phone calls to find out if I'm still interested, like used car dealers do, but I have had very little of that.

Many of the individual owners I have contacted have been very nice and have invited me to come see their boat and have offered to take me out sailing on it. I guess it all depends on how close you live to your boat and if you have the time to show it and handle the calls.

If you decide to work with a broker, I would suggest you interview them and find out if they are sailors and see what their experience is, and if they specialize in brokering sailboats. Such Brokers will do a better job of marketing your boat, I think.

A few of my potential dream boats have been offered by brokers. I would be more inclined to deal with a boat offered by an individual.
 
#3 ·
My last purchase was direct from the Owner, he was trying not to go Broker it was a $3500 straight commission on a $18,000 Boat. This is on the high side because it was close to Annapolis but you get the idea. 15 years ago I bought and sold the same Boat through the same broker only because it was so clean he knew it was a quick sale. No broker want to get caught up in the small older hard sells its that simple. If you're not in those categories a Broker can be invaluable if you are be prepared to do it yourself in a tough market. Good luck.
 
#4 ·
Bought two boats and sold one. In both cases the brokers were experienced sailors and work with to make a sale. When I sold the one boat it was a trade in for the purchase. Look for a dealer owned boat as they may be willing to take a trade as part of the deal. Also if the broker is aware of a boat that is just sitting he/she may help you get a lower price, any commission is better than none.
 
#5 ·
Most brokers get a 10% commission on the sale of a boat. Most also want to make at least $2k on the sale of a boat. Most can also post your boat to YachtWorld, and in some cases eBay, in order to attract customers.

The broker is supposed to represent the sellers interest, while conforming to a code of ethics, in the sale.
 
#6 ·
I think for the "low price" market a broker makes little sense to the seller, esp given minimum commissions and the ever-lower market values for older boats. In today's world with Craigslists and the like it seems most $30K or less boats are bought and sold there.

The areas that the broker can help is with escrow services, and to act as a buffer when a buyer starts picking your baby apart during a showing. There are other escrow services available to help secure deposits for both parties.

Our son has bought and sold three boats over the past decade, all on Craigslist.
 
#7 ·
I think for a seller a broker can keep the perpetual tire kickers away. If someone is serious they can act as the gatekeeper and allow inspections and a survey if they make an offer. Obviously you can save that 10%, but it might be money well spent. They can in some cases make their % by being the intermediary between the buyer and seller. That adds negotiation leverage.
 
#8 ·
As has been stated, the standard fee is 10%. And many brokers will not deal with boats priced below $20,000 as the fee isn't worth their time. I've moved up three times. The first two I found a boat I liked that a dealer had taken in trade, and was able to trade my boat in to the dealer. Neat and clean. This last time (2008-2009) I found far fewer trade-ins as the new boat market is much different that it was in the past. Far fewer new boats being sold and most used boats were brokerage, not dealer trade-ins. That meant I had to sell mine, then buy the "new" one. Since my boat was priced below $20K I sold it myself using sailboatlistings.com. It did take a lot of time answering emails and phone calls, showing the boat, etc. I came to the conclusion that the brokers do earn their fee.
 
#9 ·
IMHO, there are a huge variation in quality when it comes to brokers. Good ones know the local market, some specialize in a particular boat make, and some understand that a strong relationship a sailing fanatic who's likely to become a repeat client is the way to success. Others just hang up a shingle, and don't have a "clew." Ask around your neighborhood, boating community is too small to hide good or bad. It's pretty easy to figure out who the good guys are.

10% as others have stated is the going rate here. Even if your current boat is relatively low cost, if you are stepping up substantially, I'd bet you can find a good broker who would help sell your boat, and help you find a new one, and maybe want the relationship because this is not your last deal even if you think it is!

We've sold small power and sail boats directly using Craig's list and other web sites. IMHO it's a pain. You get hounded by bargain hunters and dreamers who cannot write a check. Craig's list is like the bar scene in Star Wars. Some good folks, but also bad guys from all over the "galaxy." It's a lot of work, vetting the buyers. As other have said, it maybe the only way to sell if the price is not high enough to be attractive to a broker.
 
#10 ·
Sailingtexas
ebay
sailboatlistings
iboats.com
sailboatowners.com
and craigslist seem to be highly favored for the under $20k boats.

I've used each of them to list my boats. I've bought, and sold 3 boats in the 22-26 foot range in the last 4 years. I won't say which ones I had the most success with, but each of the listings above were VERY helpful to generate interest.

That being said, I ALSO contacted boat owners through brokerages, both using yachtworld and independent brokers some attached to Marinas.

I have NOTHING but favorable things to say about each broker I dealt with, and each knew their owners, and their boats quite well. The sell was not "hard" nor was it sugar coating. The warts and the bonuses were pointed out. The brokers were quick to follow up, and get back with questions from their owners.

If I were selling a boat under $20k, I'd attempt to list with the free/low cost sites first... if I started to become pressed to get it sold, I'd involve a broker in a heartbeat. They know how to sell, and know how to advertise your boat properly (including shotgunning all the places to list boats). They certainly earn their commission.

If I were buying a boat, I'd not hesitate to purchase through a broker. I'd actually prefer it. The free/low cost sites make this process much caveat emptor (and I assess the seller with probing questions to see if they know enough what they are doing to justify my usually long drive to go see a boat). Even with that, I've been burned and wasted a day driving. Most private sellers are quite good, and are awesome to deal with, but some are downright scum, and would show you a sinking boat and try to tell you it's recently "washed." My favorite was one that told me his boat had a road worthy trailer ( when he KNEW I had a trailer that fit his boat already that was registerred and working), and I got there and it had spent bearings and 2 flat tires (there was a plethora of other things wrong with the boat too, and he feigned not knowing, except his "uncle" who showed me the boat was a certified boat inspector). If they hadn't taken me on a nice tour of the thousand islands while I was there I'd have tried to have his license called in question.

When I listed my own boats sold on the low cost/free sites I made sure to point out the problems with my boats, as well as the good points. I wanted anyone to know exactly what they were buying. Then I went OVER the top if they worked with me to help get the boat to them. My boats were trailerable, and I offered what I could to help get the boat home (delivery or partial delivery was involved in my last 2 boats, negotiated with the cost). I also insisted on cash for purchase (this requires the buyer to make sure they do the legwork first - as you have to be serious to have cash in hand to buy). I made sure my buyers could see the titles of the boats I sold, and I did the title search for the ones I bought myself.

Hope my experience helps in some way.
 
#11 ·
Thinking about this I realize that I've only bought boats through brokerages, and never sold one that way, always sold privately and in all cases to friends or acquaintances.

I haven't bought a boat since 2004, though, and the Craigslists were in their infancy then. Today when window shopping it's pretty well all on line.

Brokers have an easily accessible and inspectable inventory, more 'one stop shopping' perhaps.. I have run into disinterested brokers and simply didn't go back. Those I've actually done a deal through were all pretty good.

Brokers at boat shows are interesting to watch. I believe some generally 'judge the book by its cover' when you step aboard and brand you a lookiloo in the absence of any indication of possible means. Our son joined a local prestigious club as a teenager and at one show I was wearing a shirt he gave me with the club's logo on it. Almost to a man the brokers were far more interested in me all of a sudden.

I think if I ever won a lotto I'd get dressed 'down' and tour the brokers and have some fun ;)
 
#12 ·
Thanks everyone for your thoughts.

Since a move out of state is why I'd be selling, I think using a broker is likely worth it since I'll also be selling a house and buying another. I know of a broker who is a sailor and knows a lot about my boat and has gone out of his way to help me in the past even though he wasn't making any money on it. If his fees are 10% then it's probably worth it.
 
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