Broker fee if im buying a boat?

[SILENTKNIGHT]

I recently started to connect with brokers, and they all seem interested to help me find a boat to buy. Do i have to them a $$ fee? or does he split it with the sellers listing agent?
most of the boats i have already viewed online, they haven't showed me anything new?

 

[Crusty Chief]

Buyers broker is paid commission from the sellers, not you directly. Highly recommend a buyers broker, they work for you and will have your best interest in mind. Depending on the value of the boat dependent on who can help you.
Best of luck.

 

[DavidM]

Usually if you contact a broker and they help you find a boat listed by another broker, then that selling broker will split their commission with your broker and you pay nothing.

David

 

[Baker]

Agree with all of the above. Please consider the services of a broker to represent you in the buying process. It costs you nothing and they represent YOUR interests.

 

[slowgoesit]

Usually if you contact a broker and they help you find a boat listed by another broker, then that selling broker will split their commission with your broker and you pay nothing. David

Sometimes they won't split the commission with the buyer's broker. We rejected a boat earlier this year, initially because seller's broker refused to split the 10% commission with the our buyer's broker. He also was passing out bad information regarding the condition of two of the four fuel tanks, which leaked, and had been taken out of commission 16 years prior . . . which the seller's broker knew about, having been informed in writing by the seller at the time of listing the boat . . . ad still showed total amount of fuel available with all 4 tanks functional. . . . broker said they were all working, no leaks. Seller's broker also refused to pass on our offer to the seller, stating that "he won't take that price, so I'm not going to present it to him. . . ." Not knowing what the listing agreement stated, I didn't know if that was legit or not, but at the time, we had no way of contacting the seller. Lots of other items led to our dismissing, not the boat as much as working with the seller's broker.
Months later, I happened to run into the Seller on one of the forums, I pm'd him and told him about our experience with his broker, and he was pissed as hell! Said he was going to have words with his broker . . . boat was listed with another broker shortly thereafter. 7 months later, he sold the boat for less than what we had offered him through his broker . . . in the offer that the broker never presented to him . . .
Sorry to be long winded, but seller's brokers are generally under no obligation to split the commission with the Buyer's broker, although most will.

 

[Baker]

Sorry to be long winded, but seller's brokers are generally under no obligation to split the commission with the Buyer's broker, although most will.

That is certainly true. But the foundation of the entire system is based on co-brokerage. If I used a broker to sell my boat, there ould be no way I would list it with a broker that does no co broker with others. NOW, with that said, there are "discount" brokers that will sell your boat for less than the normal 10% but they will not co broker. If the seller agrees to that, then I hope they know what they are getting into. They are extremely limiting the exposure of their boat. I personally will not buy from a discount broker. In my opinion, they cheapen the "profession" and cause (financial)harm to other traditional brokers.

 

[SILENTKNIGHT]

wow, i really hope that does not happen to the broker thats helping me buy a boat.

 

[DavidM]

wow, i really hope that does not happen to the broker thats helping me buy a boat.

If it does then have a heart to heart conversation with the selling broker- either share or no sale. If that doesn't work then if you really want the boat then consider reimbursing your buyer's broker from your own funds.

Yacht brokers are not regulated and are not covered by the same rules that real estate agents are. So if the seller's broker doesn't want to split his commission with another broker, he can do that. But in my short year as a yacht broker in Annapolis it never happened. That is a pretty tight broker community and all operate under that unwritten rule.

I was advised if I were trying to sell a boat in another state to make sure that the commission split was agreed before going any further. As I recall some would insist on 60/40 and that is reasonable if the listing broker in another state does the showing for you, but never 100/0.

David

 

[Baker]

wow, i really hope that does not happen to the broker thats helping me buy a boat.

I honestly don't know where you are coming from so please allow me my response.....


What "broker" is helping you buy a boat???? That is a rhetorical question. Many people just innocently call a broker that has a boat listed for sale. THEY ARE NOT HELPING YOU BUY A BOAT!!!!!!! They are helping the seller SELL a boat. They are further motivated by the full commission without having to co broker. I am in now way saying that brokers in this situation will take advantage of you. But the motivation is there.

 

[bligh]

I'm not a big fan of buyers brokers. I'd rather suggest hiring an experienced captain or some other 3rd party to assist you that is not compensated upon your purchase of a vessel. Often you will meet people in your shopping journey that will advise you and field questions for you just for their love of boating.

 

[BruceK]

Buyers broker is paid commission from the sellers, not you directly. Highly recommend a buyers broker, they work for you and will have your best interest in mind.....

The concept that the seller pays your "buyers broker" has always seemed strange. I know it`s how USA operates, and that some people love their "buyers broker" but typically, he who pays the piper chooses the tune.

 

[sledge]

One risk of using a buyers broker is that his/her bias will steer you towards boats that might not be what fits you best. I’d suggest spend some time first seeing a lot of different boats and develop a short list.....

 

[FF]

That folks are still willing to pay 10% to a broker always surprises me.

5 or 7 decades ago the brokers would have to pay to advertise in Yachting , Motor Boat, etc .
Full pages adds were expensive and took time to set up, only a few could be pictured the rest just listed.

Look at any 1950ish mag to see the adds.
For interested clients color photos sent were the norm, again lots of work and some expense.

Today a quick run thru with an electric camera , or cell phone , and posting is quite easy. Not free , but far less than publishing in a magazine.

SO why 10th the cost of the boat for such minor work?

$20,000 extra for a $200,000 boat ?

OUTRAGEOUS ! But nice work if you can get it.

 

[psneeld]

https://www.sycyachts.com/blog/thin...uying-a-yacht-through-a-florida-yacht-broker/

What Floridian Laws do you need to consider when buying a yacht through a Florida Yacht Broker?



Florida yacht brokers and the yacht industry are well-regulated. Florida is one of two states that require a yacht and ship broker to be licensed by the state. You should ensure that your broker is licensed by the Division of Florida Condominiums, Timeshares, and Mobile Homes (Division) under Chapter 326, Yacht and Ship Brokers’ Act of the Florida Statutes. This chapter of the statute governs and regulates salespersons and yacht brokers across Florida.
Knowing this, you should ensure that the state of Florida licensed your potential broker. And that he/she is working within the law for your benefit and protection.

 

[slowgoesit]

Some brokers earn their money, IMHO they are good brokers, some don't, IMHO they are bad brokers. I can't figure out why some brokers go to the effort to post ads for boats, then never return calls/e-mails from perspective buyers. We are interested in a boat in PNW, I used the yachtworld link a little over two weeks ago, asking for more info on the boat. Got immediate automated e-mail saying someone would get with me soon . . . . crickets. Called the actual broker shown as the listing agent on YW, left voice mail . . . . crickets, e-mailed the broker, crickets . . . . retaining a buyer's broker hopefully they will have better luck getting information from the listing broker. In this case, the seller's broker had the opportunity to sell the boat without a buyer's broker, but decided to ignore more than 4 attempts from me to get me more information. IMHO they are demonstrating themselves to be a "bad" broker. And they are a supposedly well respected brokerage firm Ah well, Now need to find a
"good" buyer's broker.

 

[Alaskaflyer]

Some brokers earn their money, IMHO they are good brokers, some don't, IMHO they are bad brokers. I can't figure out why some brokers go to the effort to post ads for boats, then never return calls/e-mails from perspective buyers. We are interested in a boat in PNW, I used the yachtworld link a little over two weeks ago, asking for more info on the boat. Got immediate automated e-mail saying someone would get with me soon . . . . crickets. Called the actual broker shown as the listing agent on YW, left voice mail . . . . crickets, e-mailed the broker, crickets . . . . retaining a buyer's broker hopefully they will have better luck getting information from the listing broker. In this case, the seller's broker had the opportunity to sell the boat without a buyer's broker, but decided to ignore more than 4 attempts from me to get me more information. IMHO they are demonstrating themselves to be a "bad" broker. And they are a supposedly well respected brokerage firm Ah well, Now need to find a
"good" buyer's broker.

Heehee, I bet I know which one Similar experience, after beating on the door for a while I had to go straight to the owner who I found after some internet sleuthing, told him about my experience and how he's wasting his 10% on a future commission, assuming the dude ever actually communicates with a buyer and gets it sold - but I see it's still listed with the same firm. Too bad. Problem is, the owner appears to now live in a different state than the boat? I imagine this broker brags that he can magically divine who is a tire kicker - to use a car and airplane term - and who is serious, without ever having a conversation. In my short career as a salesman I learned to never assume who was a buyer, too many "next-door millionaires" walking into the office wearing overalls, out there.

 

[Seevee]

Brokers "should" have a fiduciary responsibility to the party that's paying them. Unfortunately, in boating, there are no requirements or ethics, other that FL and one other state. So, one is really on their own.


Now, if a broker is not presenting offers, that's a HUGE issue and I could argue to fire them on the spot. If I were a buyer, I'd go around the broker, let the seller know and deal with him.



However, there are good brokers that are worth their salt. And the fee is always negotiable. 10% of a 50k boat might be a bargain, but 10% of a 700K boat, might be a bit much. I'd prefer to pay a flat fee, based on the work they do, plus a bonus for performance.

 

[slowgoesit]

Heehee, I bet I know which one Similar experience, after beating on the door for a while I had to go straight to the owner who I found after some internet sleuthing, told him about my experience and how he's wasting his 10% on a future commission, assuming the dude ever actually communicates with a buyer and gets it sold - but I see it's still listed with the same firm. Too bad. Problem is, the owner appears to now live in a different state than the boat? I imagine this broker brags that he can magically divine who is a tire kicker - to use a car and airplane term - and who is serious, without ever having a conversation. In my short career as a salesman I learned to never assume who was a buyer, too many "next-door millionaires" walking into the office wearing overalls, out there.

Alaskaflyer . . . . you a mind reader? Either that, or you worked with the brokers twin brother! My hat's off to you either way!


The sad thing is that my experience with this particular broker isn't unique. I have given up on several boats because of my inability to get more information on them from the listing brokers.

 

[BruceK]

Brokers "should" have a fiduciary responsibility to the party that's paying them. Unfortunately, in boating, there are no requirements or ethics, other that FL and one other state. So, one is really on their own....

They are an Agent for the owner, they have the responsibilities that go with 'Agency". That should include a fiduciary responsibility, and utmost good faith.
Trouble is, some brokers/agents have little understanding of their obligations and see themselves in business for their own benefit, not to serve the needs of their Principal(owner). It`s not just boats either. And it`s the bad ones you mostly hear about, though I`m sure there are good ones who serve their Sellers faithfully and well and deserve good publicity on TF for their good work.

 

[FF]

One "deal" brokers pull is docking your boat for "free" at their location.

Many will have in their contract a clean up charge (usually unspecified cost) to spruce up up the boat before showing it to a client.

You get the bills when the boat is sold.

Caviat Emptor

 

[Baker]

Brokers "should" have a fiduciary responsibility to the party that's paying them. Unfortunately, in boating, there are no requirements or ethics, other that FL and one other state. So, one is really on their own.

There are "professional standards" organizations that do help. One being the Certified Professional Yacht Brokers association (CPYB). I would imagine similar to SAMS and NAMS as it relates to marine surveyors.....as there are no regulatory bodies in the field either.

 

[CaptGary]

I had a great experience with a buyers broker when I bought in 2019. Even though I was the one who ultimately found the boat I ended up buying, I would use him again. He helped me walk through the purchase and registration paperwork, showed up for the survey and asked many questions, checked to see if the price was reasonable and helped me decide on a counter offer (that was pretty close to what we ended up paying). He split the commission with the sellers broker and they both seemed happy. When I picked up the boat, the sellers broker bought my wife and I dinner (with champagne). When I sold my old boat (through my broker) he waived his brokerage fee, because he thought he should have been able get more for it and was happy I stuck with him when buying my new boat. I now consider him a friend and am happy to see him when I run into him. I would definitely use him again and there are precious few professionals in the marine industry I would endorse.

 

[MonarchBeacher]

When using a broker to help you buy a boat, it's best to use one that a few listing of his own. Also, does the "buyer's broker" even know what they are selling? Have they previewed the vessel? Looked at the ads, comps and video if there is one? Are they full time or "just selling a few for something to do"? (would you use a part time lawyer?) As a broker, why would I share my listings with a "buyer's broker" if there was no chance in the future for reciprocity of their listings? This is a business after all.
In spite of what some posters think, advertising is expensive, (We use 30+ websites), along with good camera equipment ($10-15,000 of professional equipment: multiple video,wide angle, drones, underwater cameras, Flir infrared, boroscope). It takes a least 20 hours to appraise & value a boat, build and place ads (40 foot vessel and under). Plus we do a "125 point Checklist" to get an ideal of the vessel condition. So if you have a broker that is just using a cell phone camera, and an old ad, GET A NEW BROKER! Here in California we are licensed & bonded thru the CA Dept of Boating & Waterways and the pro's are members of the California Yacht Broker's Association and a few of us are CPYB (Certified Professional Yacht Broker's).

 

[va3mrj]

I recently started to connect with brokers, and they all seem interested to help me find a boat to buy. Do i have to them a $$ fee? or does he split it with the sellers listing agent?
most of the boats i have already viewed online, they haven't showed me anything new?

I have shared the brokers fee with a Buyer. It all depends on how an offer is worded. I have also got a reduced brokerage when the Selling Broker does not have to pay co op fees. I have also bought and sold boats without a broker, the majority of times I have not been represented by a Broker.

 

[BluewaterN47]

Buyer's broker

For a good perspective on using a buyer's broker, see what longtime trawler specialist Jeff Merrill says about that on his website. I've known Jeff for decades and he was my buyer's broker for an American Tug 34, and he was terrific.



https://jmys.com/purchasing-a-trawler/trawler-consultants/



And, as many people have told you, you don't pay anything for a buyer's broker because the seller pays the commission, which is typically (but not always) split evenly between the buyer's broker and the selling broker.


I would never buy a boat without a buyer's broker on my team!


Good luck,


Milt Baker, Nordhavn 47 Bluewater

 

[Baker]

Can we make one thing clear.....simply for someone that might be reading this. I don't want them out there shopping for "buyer's brokers" when brokers are everywhere. The vast majority of brokers are just.....BROKERS!!!! Sometimes they represent the seller. Sometimes they represent the buyer. The entire system is based on the reciprocation brokers have with each other to co broker with each other. I guess all I am saying is that there is no such thing as a "buyer's broker". It is just a broker that represents the buyer.

As you were.

PS....and I am a big fan of brokers representing either side of the transaction. Good ones can get things done that many people are not even aware of.

 

[Transpacdan2442]

Just before COVID shut down the border we bought a GB 36 in BC, Canada. We happily paid the broker's fee as they took care of all of the details of the cross border transaction plus charged the owner the delivery fee, cleaning up the boat, and filling the fuel tanks, and brought it from their docks in Sidney, BC to Friday Harbor, WA where they handled all of the custom's paperwork. They also worked with Pacific Maritime for the title search, doing the US documentation and arranging the import duty/state registration fees. It was seamless....money well spent.
They also allowed us to pay Pacific Maritime in USD as they are based in Seattle and held the escrow.

 

[Baker]

Just before COVID shut down the border we bought a GB 36 in BC, Canada. We happily paid the broker's fee as they took care of all of the details of the cross border transaction plus charged the owner the delivery fee, cleaning up the boat, and filling the fuel tanks, and brought it from their docks in Sidney, BC to Friday Harbor, WA where they handled all of the custom's paperwork. They also worked with Pacific Maritime for the title search, doing the US documentation and arranging the import duty/state registration fees. It was seamless....money well spent.
They also allowed us to pay Pacific Maritime in USD as they are based in Seattle and held the escrow.

It is rare for the buyer to pay broker fees. BUT.....if the big picture of the deal made sense to you, who are we to judge. I totally understand!!! Glad you had a great experience.

 

[Transpacdan2442]

Sorry. I misspoke. We did not pay the broker's fee. What I meant to say, that our experience was a good one and we went into this worried about the cross border transaction and it was so seamless that for peace of mind it would have been almost worth paying it.

 

[Shrew]

Can we make one thing clear.....simply for someone that might be reading this. I don't want them out there shopping for "buyer's brokers" when brokers are everywhere. The vast majority of brokers are just.....BROKERS!!!! Sometimes they represent the seller. Sometimes they represent the buyer. The entire system is based on the reciprocation brokers have with each other to co broker with each other. I guess all I am saying is that there is no such thing as a "buyer's broker". It is just a broker that represents the buyer.

Agreed. This is identical to the real estate world. You sit down with a real estate agent, and may be they have something that they're listing that you're interested in. If not, that agent goes to MLS and finds something for you. That MLS listing has a listing agent. <Poof> Now the agent you're dealing is the agent representing the buyer.

Land or Sea, it's really no different. In all cases, if the listing is with the broker or agent you're dealing with directly, their fiduciary responsibility is to the owner of the listing.