I did a quick search on TF, and couldn't find a lot about this specifically. I understand that the standard brokerage fee is 10%. In general, I'm wondering if most brokers are willing to work for something less than 10%. In real estate, you can many times agree to a lesser commission. Thoughts?
Another Broker Question
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tiltrider1
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What a mixed bag question. The answer I would give would really depend on circumstances.
In general, it’s not a good start. When a deal gets stuck, that would be a time to ask a broker to give up some to make it happen.
Some brokers are not worth the 10% and some are worth every penny. An individual cannot justify the cost to put their boat in Yachtworld. A broker who is unable to put your boat in Yachtworld is a clear sign of not being worth the 10%.
There is so much more that goes on that takes time and money away from a broker.
In general, it’s not a good start. When a deal gets stuck, that would be a time to ask a broker to give up some to make it happen.
Some brokers are not worth the 10% and some are worth every penny. An individual cannot justify the cost to put their boat in Yachtworld. A broker who is unable to put your boat in Yachtworld is a clear sign of not being worth the 10%.
There is so much more that goes on that takes time and money away from a broker.
Comodave
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Generally 10% is the rule. When we sold our last boat I used the broker that sold us our current boat. Since we are kinda out in the boonies I told the broker all I wanted him to do is get it on Yachtworld and then do the sales paperwork. I would do all the showings. We agreed on 5% commission. He did a great job of what we needed. He did all the photos and a great video.
Comodave
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It sold in a couple of days.
PPandE
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About the only circumstance where I’m aware of brokers regularly taking less than 10% is when the boat is listed for several million dollars or higher. It takes about the same effort to sell a 100k boat as it does a million dollar one. Above about ten million and all bets are off.
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If you are talking about your Mainship I would skip the broker for the first couple weeks of the sale. Advertise locally and maybe a little further out. Try several avenues for your advertising. Keep a log of potential buyers so as to exclude them from the commission when and if you resort to a broker.
If you cant make a sale happen, then go to a broker.
pete
If you cant make a sale happen, then go to a broker.
pete
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One idea that might work to cushion the blow a bit is to negotiate that the 10% is applied to net proceeds received, not gross selling price. If you end up making repairs or incurring costs (excess slip fees if you move to brokers dock?), the commission is applied to the balance.
Value of boat may be a factor. 10% of a $75k boat isn't much. But for a $750k boat, broker may have some flexibility, especially if the broker specializes in your brand or style of boat and may have a Rolodex of potential buyers.
Good luck with whatever you do.
Peter
Value of boat may be a factor. 10% of a $75k boat isn't much. But for a $750k boat, broker may have some flexibility, especially if the broker specializes in your brand or style of boat and may have a Rolodex of potential buyers.
Good luck with whatever you do.
Peter
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There is a broker in Maryland named Knot 10. They will list and sell you boat for 7%. BUT they must bring the buyer AND Seller. If they have a listing and another broker brings a buyer they charge 8%. They get 3% and the buyer broker gets 5%.
There are SO many things that can sink a sale in boats that brokers would rather not deal with making much less than 5% and I think its rare that the listing broker attracts a buyer without their own representative.
Having said that I did sell a sailboat using Knot 10. The buyer called the listing broker who arranged the survey and sea trial. Luckily that buyer did buy and I only paid 7%.
When I bought the boat I now have, I found it on Facebook. The advertiser was a broker who knew the selling dealer. I'm sure that broker got his 5% or half of a listing fee. The selling dealer took the boat in on trade. He had both a general survey as well as an engine survey done by different people. I was able to review both, called and spoke to both and saved myself a survey fee. And there were no surprises for me. Luckily.
If I were to try and buy another boat, I would look on this website and other forums for a seller and use Yachtcloser.com for the transaction.
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Yes, you need to do your research, for instance, ask your prospective broker how many boat he has sold, (and by that I mean he listed the boat AND he found the buyer), in the last year.
Like Real Estate, many boat brokers specialize only in getting a listing posted, then they sit back and wait for some other broker to find the buyer, close the sale, then they sit there hand out for their commission check. . . . those are the brokers who you want to avoid.
If a broker has sold,, say 50% of the boats he actually lists that's a broker who is actually pounding the pavement to find you a buyer.
tiltrider1
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If there is a broker who specializes in your make of boat, that broker is usually your best bet. They know the market and the market tends to seek them out for their knowledge. It’s not uncommon for them to have a list of customers looking for your specific boat.
The next best broker is one who moves a lot of boats. At first glance they might appear to be selling boats below market, when in reality they know what it takes to sell your boat.
I don’t like brokers who ask you what you want for your boat and then are happy to list it and let it sit on the chance some one might be willing to pay too much.
Look at a broker’s yachtworld listings. Look at the pictures and the descriptions. Do you feel excited about the listings or do they have fuzzy or narrow views of a boat that leave you wondering what the boat is really like?
The next best broker is one who moves a lot of boats. At first glance they might appear to be selling boats below market, when in reality they know what it takes to sell your boat.
I don’t like brokers who ask you what you want for your boat and then are happy to list it and let it sit on the chance some one might be willing to pay too much.
Look at a broker’s yachtworld listings. Look at the pictures and the descriptions. Do you feel excited about the listings or do they have fuzzy or narrow views of a boat that leave you wondering what the boat is really like?
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A listing Broker, like real estate agents, will frequently split the commission with the buyers broker. I've heard of some brokers that will not actively sell the boat, but instead for a reduced commission list the boat and handle escrow. This is effectively a FSBO deal and they will take a few %. As stated, like in million dollar real-estate, yachts will sometimes work on a lower commission rate.
For a typical recreational boat, I would be cautious about attempting to negotiate the brokerage rate. It would need to be done at the time you're signing a contract with the listing broker. If he agrees to a reduced rate, I wouldn't expect him to work very hard on the sale.
For a typical recreational boat, I would be cautious about attempting to negotiate the brokerage rate. It would need to be done at the time you're signing a contract with the listing broker. If he agrees to a reduced rate, I wouldn't expect him to work very hard on the sale.
Go to the Knot10 website. They are a very well known broker and are a full service broker that does everything for you like any other broker. One of their offices is within walking distance of where I live aboard fulltime. I also personally know a DeFever trawler TF owner who was able to whittled down (after much fenagling) Curtis Stokes to 9% this past spring.
Yes, all terms need to be in writing up front and yes, some selfish selling brokers will not split a commission or work with a buyers broker.
I encourage all sellers to continue to fight for lower brokerage fees to break the greedy status quo. It worked in the real estate market but we all need to participate. Remember, the answer is always no if you don't ask.
Yes, all terms need to be in writing up front and yes, some selfish selling brokers will not split a commission or work with a buyers broker.
I encourage all sellers to continue to fight for lower brokerage fees to break the greedy status quo. It worked in the real estate market but we all need to participate. Remember, the answer is always no if you don't ask.
The Brockerts
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I've bought and sold without a broker. Thats what I would recommend
The Brockerts
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We've done both as well. Less drama without a broker, more information flow, smooth closing, quicker, and less $$$ as well! That's just our personal experience. YMMV
