Yacht Broker - how to deal with them? - SailNet Community
Reply
 
LinkBack Thread Tools
post #1 of 11 Old 10-06-2010 Thread Starter
美国华人, 帆船 教授及输送
 
Join Date: Sep 2006
Location: MD
Posts: 2,531
Thanks: 24
Thanked 23 Times in 15 Posts
Rep Power: 9
 
Yacht Broker - how to deal with them?

The used car salesman and new car salesman are often viewed as untrustworthy character by the public. Do yacht brokers suffer the same fate?

1. In real estate, brokers have (somewhat) a standard fee for listing, does YB have a standard fee also (percent)?
2. How does the selling broker split the commission with the buying broker?
3. Should one use one broker exclusively, or use as many as one sees fit? Who ever find you the best boat wins. In reality, I probably find the boat myself, call and deal the broker directly. What is your take?
4. What is the dealer profit of selling a new boat and the commission for the brokers. Do those figures make public like new car dealers?

I am sure I may be overly simplified the industry of selling and buying yachts. If you want to be critical, I would like to hear that. Please refrain your criticisms without offering answers. One liner answer like "Well..... it all depends" is not a answer.

Peace on earth.


Fine Print:
I am old school. Integrity is to do the right thing even when no one is watching.
rockDAWG is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
Advertisement
 
post #2 of 11 Old 10-06-2010
Telstar 28
 
sailingdog's Avatar
 
Join Date: Mar 2006
Location: New England
Posts: 43,290
Thanks: 0
Thanked 15 Times in 12 Posts
Rep Power: 14
         
The typical commission for a yacht broker is 10% of the selling price.

If you are listing a boat, there is only ONE LISTING BROKER, since that generally most listing agreements require exclusivity to protect their commission.

Unfortunately, there's no real standard for a buyer's broker in the yacht world, unlike real estate, so the terms vary.

Sailingdog

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

Telstar 28
New England

You know what the first rule of sailing is? ...Love. You can learn all the math in the 'verse, but you take
a boat to the sea you don't love, she'll shake you off just as sure as the turning of the worlds. Love keeps
her going when she oughta fall down, tells you she's hurting 'fore she keens. Makes her a home.

—Cpt. Mal Reynolds, Serenity (edited)

If you're new to the Sailnet Forums... please read this
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
.

Still—DON'T READ THAT POST AGAIN.
sailingdog is offline  
Quote Quick Reply Share with Facebook
post #3 of 11 Old 10-06-2010
Senior Member
 
Join Date: Jan 2010
Location: Boston, MA
Posts: 525
Thanks: 2
Thanked 1 Time in 1 Post
Rep Power: 6
 
I just bought my first boat less than a month ago, so I can offer you some current info. I talked to a few different brokers. One of them was rather used-car-salesman-esque, I didn't like him. I eventually settled on one who was highly recommended both here on sailnet and by the author of a book I read. Everyone seems to say "find a broker you trust", and that's what I did. I discovered a number of clients that had used my broker multiple times, for both buying and selling. Every boat I saw, I saw through him. He never asked me to sign anything saying I was exclusively using him, nor did he mention it, but I got the distinct impression he expected me to not use other brokers. A good number of the boats I saw were his suggestions, but more than half were ones I found on yachtworld and expressed interest to him (including the one I bought). He'd then call the listing broker and get the inside scoop, and if that sounded good, set up a showing.

I have heard the commission is 10%, as SD said. I believe it is split equally, 5% to the listing broker, 5% to the selling broker. If the broker represents both the buyer and the seller, I believe he pockets all 10%. That situation nearly happened as I had an offer on a boat my broker had listed, but the deal fell through. I felt like he kept a good balance of the interests between me and his other customer (the seller). I told him the information he needed to know, and I consulted with him during the negotiations to get his reaction on how much I should raise my offer, but I was careful not to give him too much info that he might accidentally let slip to the sellers.

1979 Gulfstar 37 Laissez Faire
rmeador is offline  
Quote Quick Reply Share with Facebook
post #4 of 11 Old 10-06-2010 Thread Starter
美国华人, 帆船 教授及输送
 
Join Date: Sep 2006
Location: MD
Posts: 2,531
Thanks: 24
Thanked 23 Times in 15 Posts
Rep Power: 9
 
Thanks Again, SD. It is a good to know and a good start as I embark the journey of acquiring my first keel boat.



Fine Print:
I am old school. Integrity is to do the right thing even when no one is watching.
rockDAWG is offline  
Quote Quick Reply Share with Facebook
post #5 of 11 Old 10-06-2010 Thread Starter
美国华人, 帆船 教授及输送
 
Join Date: Sep 2006
Location: MD
Posts: 2,531
Thanks: 24
Thanked 23 Times in 15 Posts
Rep Power: 9
 
rmeador, judging from your experience, it looks like you got yourself a great broker whom has the integrity and passion about serving his clients. If I live near you, I would want to talk to him.

Thanks for taking time to reply.


Fine Print:
I am old school. Integrity is to do the right thing even when no one is watching.
rockDAWG is offline  
Quote Quick Reply Share with Facebook
post #6 of 11 Old 10-06-2010
Senior Member
 
BarryL's Avatar
 
Join Date: Aug 2003
Location: Long Island, NY
Posts: 1,814
Thanks: 4
Thanked 48 Times in 43 Posts
Rep Power: 12
 
Hey,

IMHO, the ratio of good brokers to 'used car salesman type's is probably 25% to 75%, meaning that 3 out of 4 brokers are not good.

While I think the concept of a buying broker is nice, I don't know how that would work in the real world. For example, when I bought my second boat I looked all over the Long Island Sound, from the North Fork of Long Island to Mystic CT. I used Yachtworld primarily, and when I found an interesting boat I would email the broker. If I liked the response I would call and if I was still interested I would visit. What would a buyer's broker do in this situation? Perhaps it was because I was looking at cheap boats (28-32' boats for under $20K in ready to sail condition) but there often a big discrepancy between how the boat was presented in the ad and how the boat appeared in person. I don't believe that a buyer's broker would be willing to travel all over the place to earn perhaps $1000, but maybe I'm wrong.

In any case I learned to forget about boats represented by sleazy characters and only deal with people I felt were trustworthy.

To date, I have bought two boats from brokers, and each time I was satisified with the deal and I would recommend the broker again.

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 #7 of 11 Old 10-06-2010
Telstar 28
 
sailingdog's Avatar
 
Join Date: Mar 2006
Location: New England
Posts: 43,290
Thanks: 0
Thanked 15 Times in 12 Posts
Rep Power: 14
         
Many brokers aren't going to be very motivated to help you with sales of smaller, older boats... budget has a lot to do with it, since a boat broker would rather help a customer buy a $500,000 boat, than they would a $20,000 boat. The really good brokers will help you buy a $20,000, and are looking at you as a long-term investment... hoping that you will buy your future boats through them and sell your boats through them as well.

Sailingdog

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

Telstar 28
New England

You know what the first rule of sailing is? ...Love. You can learn all the math in the 'verse, but you take
a boat to the sea you don't love, she'll shake you off just as sure as the turning of the worlds. Love keeps
her going when she oughta fall down, tells you she's hurting 'fore she keens. Makes her a home.

—Cpt. Mal Reynolds, Serenity (edited)

If you're new to the Sailnet Forums... please read this
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
.

Still—DON'T READ THAT POST AGAIN.
sailingdog is offline  
Quote Quick Reply Share with Facebook
post #8 of 11 Old 10-06-2010
tdw
Super Fuzzy Moderator
 
tdw's Avatar
 
Join Date: Oct 2006
Location: Sydney Australia
Posts: 16,499
Thanks: 15
Thanked 104 Times in 97 Posts
Rep Power: 10
     
and if you havn't already done so have a read of this....

Boat explosion finally reaches a conclusion

dear old Cardiac...I certainly do not wish him ill but by gads I am bloody glad I never bought a boat off him......

Andrew B

“Life is a trick, and you get one chance to learn it.”
― Terry Pratchett, Nation

Malo 39 Classic
tdw is offline  
Quote Quick Reply Share with Facebook
post #9 of 11 Old 10-06-2010
Senior Member
 
NaviGsr's Avatar
 
Join Date: Sep 2009
Location: NYC
Posts: 107
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 6
 
Quote:
Originally Posted by sailingdog View Post
The really good brokers will help you buy a $20,000, and are looking at you as a long-term investment... hoping that you will buy your future boats through them and sell your boats through them as well.
This is very, very true, and an easy way to discern a stand-up broker from a sleeze.

Also, it should be very apparent by a broker's listings what they specialize in. Someone listing a majority of sailboats will be way more helpful to you than someone listing mostly power.

There are many negative things that can be said about brokers, but I don't think it's fair to compare them to car salesmen etc. A good broker may be hard to find, but a good broker is a tremendous asset when it comes to yachts, and will try to keep you as a client for life.
NaviGsr is offline  
Quote Quick Reply Share with Facebook
post #10 of 11 Old 10-06-2010
ASA and PSIA Instructor
 
Join Date: Apr 2000
Posts: 3,566
Thanks: 7
Thanked 24 Times in 24 Posts
Rep Power: 16
 
Quote:
Originally Posted by rmeador View Post
.. If the broker represents both the buyer and the seller, I believe he pockets all 10%. ...
I concur with your advice about the use of a broker, but I want to clarify that the broker represents the seller, and if you work "with" a broker who introduces you to another broker's listing, "your" broker is also representing the seller, who pays both.

Certified...in several regards...

Last edited by sailingfool; 10-07-2010 at 06:37 PM.
sailingfool is offline  
Quote Quick Reply Share with Facebook
Reply

Quick Reply
Message:
Options

By choosing to post the reply above you agree to the rules you agreed to when joining Sailnet.
Click Here to view those rules.

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
Becoming a yacht broker? sab30 General Discussion (sailing related) 7 02-06-2008 10:38 AM
Yacht broker to sell Beneteau - Phoenix Business Journal NewsReader News Feeds 0 09-30-2006 12:15 AM
Yacht broker to sell Beneteau - San Antonio Business Journal NewsReader News Feeds 0 09-29-2006 09:19 PM
Yacht broker to sell Beneteau - Bizjournals.com NewsReader News Feeds 1 09-27-2006 09:50 AM
Yacht Broker "Certification" GordMay Boat Review and Purchase Forum 3 01-26-2005 12:59 AM

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