Broker travel expenses

[geauxcruise]

Looking for some insight on who pays a Brokers travel expenses? Example: Broker is Alabama and 2 boats he has suggested we look at are in South Florida, which is going to require air travel, hotels rooms, etc. What is normal? Just in case its a $$ sensitive issue, price range of vessel is between 250K to 325K. Thanks in advance to anyone who can offer some insight.

 

[Hawgwash]

Is your relationship with him a long standing one?
Why is he suggesting these two?
Has he seen them in person?
If not, I doubt I would be footing the bill for his look see. I would make the trip myself and suggest he co-ordinate with a broker there.

If you are only working from pictures, I'm betting there are some folks here who might take the initial look for you.

Barring all that, you might just want to ask him how it works.

 

[O C Diver]

Regarding expenses, I would assume the broker pays his expenses any you pay yours. But, as with so many things, check the contract you have with your broker as it should be spelled out clearly there.

Ted

 

[geauxcruise]

Is your relationship with him a long standing one?
Why is he suggesting these two?
Has he seen them in person?
If not, I doubt I would be footing the bill for his look see. I would make the trip myself and suggest he co-ordinate with a broker there.

If you are only working from pictures, I'm betting there are some folks here who might take the initial look for you.

Barring all that, you might just want to ask him how it works.

One of the vessels is his recommendation based on what we are looking for, and one is we found ourselves that we had him research. We are planning on going ourselves for sure this week!! Just didn't know if he needs or wants to go also, and if he does go, who pays his expenses.

 

[menzies]

He is in all likelihood making 60% of the 10% listing fee by bringing the buyer.

On the 250K that will be 15K, on 325K that will be 19.5K. He needs to be paying his own way.

 

[dhays]

FWIW, when my broker and I flew from WA to Marina Del Rey to survey and sea trial a boat that we had an accepted offer on, I pain her travel. It was a one day trip, down and back.

 

[Captain Paul]

I would not be paying for my brokers travel expenses. I would expect him to setup my inspection with the listing broker. He would be welcome to come if he wanted but I would also tell him it wasn't necessary. Is there a reason you need him there?

 

[DavidM]

I would have a conversation with your broker.

Commission splitting deals vary depending on how much work the buyer's broker does. Usually the first showing by the listing broker doesn't affect the split which is often 50/50, but subsequent showings may.

Your buyer's broker will decide whether it is necessary for him to go on a showing: either to protect his split of the commission or to make sure that the deal closes after survery findings. So, in general it is his decision if he travels or not as he has a vested interest in doing so.

I have bought a couple of boats far from my home base and in these cases my buyer's broker either didn't travel to the boat or paid his own way for the seatrial and survey. These were $100K+ boats.

Having my buyer's broker present at the survey certainly smoothed the subsequent negotiations. He knew exactly what was wrong as he had seen it with his own eyes and could represent it as such to the seller.

David

 

[Larry M]

[STRIKE][/STRIKE]

I would not be paying for my brokers travel expenses. I would expect him to setup my inspection with the listing broker. He would be welcome to come if he wanted but I would also tell him it wasn't necessary. Is there a reason you need him there?

That's how it worked for us twice. A local broker we had been working with in the PNW set everything up. They had a co-brokering agreement with the boats we went to look at. One was in Southern Cal and the other was in Florida. We bought the one in Cal. Our broker handled all the $'s from us, paper work etc. The listing broker was a good guy and worked well with our broker but ultimately both were paid by the seller.

 

[ksanders]

I cannot imagine paying a brokers expenses to go look at a boat.

 

[Xsbank]

Kevin nailed it - "no!"

 

[SoWhat]

Unless the broker is a registered marine surveyor I can't think of any reason why he would be there. The survey will drive price negotiations.

 

[Hawgwash]

I cannot imagine paying a brokers expenses to go look at a boat.

Not knowing how far into the process they are I assumed (shouldn't do that) it was maybe a lack of confidence in window shopping alone.

 

[yachtbrokerguy]

I have had clients pay for me to travel to look at a boat. Not to see what color the pillows may be but to tell the client if the boat is good enough that he should spend the money for him and his wife to travel a long distance to inspect it themselves.
If the broker goes without the buyer just to inspect the boat, so the buyer does not have to make the trip, then paying the expense of the broker is reasonable. Especially if the deal does not happen. The buyers broker should travel to the survey without a doubt. Unless I have a close relationship with a client I would not want to spend the money myself. But I have traveled from Florida to California, Europe, New England, the Great Lakes and more for clients I know, without charging them.
I do "courtesy showings" all the time of boats here to buyers for brokers from out of state, so that broker does not have to travel here.
Menzies thinks the broker will get 60% of the commission, but most interstate deals are 50/50 and the brokers have to split 50% with the office, nothing like the $15,000 to $19,000 he writes about.

 

[DavidM]

Tucker's comments match my own experience as a buyer/seller and a year spent as a yacht broker in Annapolis.

Another thing that your buyers broker can do that might be just as good as him going is to have a friend (of the broker) look at the boat for you or hire a surveyor to just take a quick look.

When I lived in Oriental, NC I looked at a couple of boats for my former colleague in Annapolis, one of which was a very nice Pacific Seacraft that closed a few months later. The others weren't worth another look. In another case my buyer's broker got a surveyor in New Orleans he knew to look at a boat that looked good in the pics, but had been used as a teenage hang out and was trashed. That surveyor took pics of things the listing broker didn't want a buyer to see including some used condoms underneath the bed , and that was the end of that boat buying possibility. Best $100 I ever spent on a boat.

David

 

[Drake]

When we were looking at boats, our broker arranged visits with the local broker. If we had wanted our broker to come with us, we would have paid his expenses. But, we were satisfied to go without him.

 

[menzies]

Menzies thinks the broker will get 60% of the commission, but most interstate deals are 50/50 and the brokers have to split 50% with the office, nothing like the $15,000 to $19,000 he writes about.

I am bit confused by this statement.

Isn't the broker and the "office" one and the same.

The agent is the one who has to split his commission with the broker/office under which he holds his license?

Are you a broker or a sales agent?

 

[geauxcruise]

Update!!!

Looking for some insight on who pays a Brokers travel expenses? Example: Broker is Alabama and 2 boats he has suggested we look at are in South Florida, which is going to require air travel, hotels rooms, etc. What is normal? Just in case its a $$ sensitive issue, price range of vessel is between 250K to 325K. Thanks in advance to anyone who can offer some insight.

Ok, thanks everyone for the comments. But I need to update my original post.
The wife and I came to look at 6 vessels WITHOUT our Broker present. He set up all meetings and appointments. Vessel #6 was THE one! Offer made and deal accepted. NOW, a new question? Does Broker come to the Sea Trial, Cruise Inspection, and Mechanical Inspection at his own expense?

 

[geauxcruise]

Ok, thanks everyone for the comments. But I need to update my original post.
The wife and I came to look at 6 vessels WITHOUT our Broker present. He set up all meetings and appointments. Vessel #6 was THE one! Offer made and deal accepted. NOW, a new question? Does Broker come to the Sea Trial, Cruise Inspection, and Mechanical Inspection at his own expense?

Sorry, not "Cruise" Inspection. Meant to say SURVEY!!

 

[menzies]

Simple answer - absolutely yes!

This is where he starts to earn his money.

 

[Gordon J]

Not absolutely

Simple answer - absolutely yes!

This is where he starts to earn his money.

My buyers broker came along, at his own expense, and did little to assist. He sat on the fly bridge gabbing with the sellers broker. At the end of the day he thought his job was to find ways to keep the deal alive, so he could get his cut. Meanwhile, i was glued to the surveyors hip and bounced between the mechanical surveyor and three boat surveyor. If there its ever a next time i will stretch it over two days and probably leave the broker at home.

Gordon
Whose broker did not earn his commission

 

[menzies]

My buyers broker came along, at his own expense, and did little to assist. He sat on the fly bridge gabbing with the sellers broker. At the end of the day he thought his job was to find ways to keep the deal alive, so he could get his cut. Meanwhile, i was glued to the surveyors hip and bounced between the mechanical surveyor and three boat surveyor. If there its ever a next time i will stretch it over two days and probably leave the broker at home.

Gordon
Whose broker did not earn his commission

Did you have issues found at survey that you had to negotiate?

If not, I understand the above.

If you did, how did you negotiate those issues?

 

[dhays]

Ok, thanks everyone for the comments. But I need to update my original post.

The wife and I came to look at 6 vessels WITHOUT our Broker present. He set up all meetings and appointments. Vessel #6 was THE one! Offer made and deal accepted. NOW, a new question? Does Broker come to the Sea Trial, Cruise Inspection, and Mechanical Inspection at his own expense?

Same answer as I gave before. The only time that I purchased a boat long distance, the only time I viewed the boat was at the sea trial and survey. For that, I took my broker with me at my expense. Essentially, it cost me a plane ticket between Seattle and Longbeach. To me it was worth it. I didn't have to have her go, but I wanted her their to lend her expertise and advice.

My situation may have been unique. We were buying a sailboat and the broker is a friend as well as a very accomplished sailor. I'm a pretty experienced sailor after doing it over 50 years, she has even more experience. So, I wanted her there.

For us it was just a day trip. We left early in the morning and got back that evening. Did the sea trial and survey all on the same day.

 

[SoWhat]

[QUOTE/] Offer made and deal accepted. NOW, a new question? Does Broker come to the Sea Trial, Cruise Inspection, and Mechanical Inspection at his own expense?[/QUOTE]

Can't imagine he wouldn't be there. He's this ll close to a commission.

 

[knotheadcharters]

Ha ha ha nope!!!