Buyer's Broker

[menzies]

We are using a broker to represent us on the search and purchase of our next boat.

I don't really get any value regarding finding the boats we want to see as they can be easily found on YachtWorld etc.

But once I find the boat I am interested in I give it to him and:

He works to set up the visit. Will arrange the surveyor, oil analysis, reports etc. Can do comps on Soldboats. Can handle the negotiations, and a number of other small things. All at no cost to us (paid out of his share of the seller commission).

We didn't bother with one when we bought our existing boat. I don't necessarily regret tat, I had zero buyers remorse and felt everything was fair with that transaction.

However one thing bothers me about this arrangement.

Are selling brokers willing to work with a buyers broker? In real estate is it the model in most cases, but I wonder if there is a real hesitancy to do so in yacht sales? It feels like the selling broker is not being responsive to our guy.

 

[GFC]

I used a buyer's broker when I bought Beachcomber, but not in the traditional sense. I paid him a flat fee that was much less than what the commission would be, but I did all the negotiations, arranged for the transports and all the other stuff.


I used the broker as a go-to person to answer any questions that might come up along the way and to bounce ideas off.


It worked out well for both of us.

 

[Marin]

We used a buyer's broker to find the boat we currently have in the PNW. He worked with the selling broker in Alameda and they split the commission. Based on how well that process worked we would always use a buyer's broker to find and buy an existing boat (don't need a broker to build a new one).

Using a buyer's broker saved us a ton of time. We had no interest in looking at tons of boats, walking docks, etc. We determined exactly what we wanted and then had the broker find it for us, in this case down in California.

 

[dhays]

Are selling brokers willing to work with a buyers broker? In real estate is it the model in most cases, but I wonder if there is a real hesitancy to do so in yacht sales? It feels like the selling broker is not being responsive to our guy.

We used a buyers broker when we bought our C-400. I think it was a great help. I have only purchased 1 boat (advantage of having a father who bought a lot of boats over his lifetime). However, my broker has handled hundreds of deals over her career. That experience really was helpful.

Any buyers broker, despite what we may like to believe, is actually working for the seller and is paid by them based on the final sale price. (Unless you high one as a consultant as GFC did.) The key for us was that she is a friend, fellow yacht club member, and one of the most experienced sailors you will find. Simply put, she was really looking out for my interests. The next time I purchase a boat, I will likely use a buyers broker again. Unfortunately, I will have to find one with as much experience and knowledge with powerboats as my former broker has with sailboats.

Like Marin, we found our boat in CA. My broker flew down to Marina Del Rey with me for the sea trial, survey, and pre-purchase haulout. One annoying thing was that the sellers brokers were terribly chauvinistic towards my broker. Unfortunately, my broker said she runs into this a lot in her profession.

Good luck with finding the right boat.

Dave

 

[Daveo]

I'm working with a buyers broker right now and find that sellers brokers are much more forthcoming with accurate information about condition and how much cash it would truly take to purchase when communicating with him than they have been with me. Plus, having another person involved in the search keeps it moving. I might throw up my hands in frustration and give up but my broker, wanting to see a commisionable transaction, keeps me looking for the elusive perfect boat. Third big advantage is that with a broker on my side I feel much more comfortable contemplating a purchase far from home. I have had him look at boats that while near him in FL are just too far from my base, Boston, for me to easily visit. So, to conclude, IMHO the buyers broker does add real value. Not so different from real estate. Dave

 

[bligh]

Are selling brokers willing to work with a buyers broker? In real estate is it the model in most cases, but I wonder if there is a real hesitancy to do so in yacht sales? It feels like the selling broker is not being responsive to our guy.

Hmm , well how would you feel if i cut one of your paychecks in half?

 

[Hawgwash]

Hmm , well how would you feel if i cut one of your paychecks in half?

I'd feel pretty good about that if I had established a reputation of working with everyone and had a good supply of class boats that attracted other brokers and their clients.

Or I could piss on all their boots, do a disservice to my client and wait to get the whole commission...maybe.

 

[bligh]

I'd feel pretty good about that if I had established a reputation of working with everyone and had a good supply of class boats that attracted other brokers and their clients.

Or I could piss on all their boots, do a disservice to my client and wait to get the whole commission...maybe.

Well, you know who you are, but many salesman want all the commission to themselves. I had a broker refuse to work with my buyers broker. He told me that over the phone. So it does happen.

 

[Hawgwash]

Well, you know who you are, but many salesman want all the commission to themselves. I had a broker refuse to work with my buyers broker. He told me that over the phone. So it does happen.

Oh, I know it happens and I guess there are markets that can accommodate it but it does go both ways.

If I found my dream boat and the selling broker was standing in the way I would not go quietly.

 

[BruceK]

The selling broker is better off sharing the loot (sale!) rather than getting 100% of no loot(no sale!).
A buyers broker would be unusual here. Most buyers DIY the buying process. I can`t get past the contradiction the buyers broker gets paid by the sellers broker, and therefore by the seller. But, it seems to work over there, relying on the integrity of the buyers broker.

 

[bligh]

T. I can`t get past the contradiction the buyers broker gets paid by the sellers broker, and therefore by the seller. But, it seems to work over there, relying on the integrity of the buyers broker.

Thats the funny part . Both brokers get paid upon a sale. So completing a sale quickly is in the interest of both the buyers and sellers broker. Moreso than the buyer.

 

[bcam]

We recently purchased another boat. We liked the selling broker but used a broker to represent us. The selling broker originally refused to co-broker the sale, which was fine as we were still in the looking phase. As a courtesy to our broker, we were given access to the boat for a look see. That was in May, we went back in July for a second look. When we decided that it was the right boat for us, we used our broker to make the offer. The two brokers agreed to a fee for our broker that was less than a split of the commission.
We had the security of someone being on our side to make sure that everything was kosher. Both brokers were happy. Everybody made some money and that';s a good thing.
Another part of the equation for me was the fact that our broker had arranged a number of showings over the past year. I felt that he had earned anything that he was paid by the selling broker.

 

[Hawgwash]

I can`t get past the contradiction the buyers broker gets paid by the sellers broker, and therefore by the seller.

That whole concept, just like the real estate mumbo jumbo, is a load anyway. The guy who writes the cheque(you/me, the buyer) pays it all.

But, it seems to work over there, relying on the integrity of the buyers broker.

In this global everything age, N Am. and probably Canada more so, too many invading cultures where the scam is part of the deal, are making "buyer beware" a greater reality than ever. A handshake is a fools game.

 

[ljk]

I think the extent to which selling brokers are willing to work with buying brokers depends on the geographic area. I bought a boat in Punta Gorda this past Spring and the selling broker had no problem working with my broker and he told me this is a common arrangement in that area.

On the other hand, I helped a buddy buy a boat in late 2014 in Miami. There we had a couple of selling brokers reluctant to work with our (buying) broker, assumptively because they didn't want to split the commish.

 

[Bacchus]

I think the extent to which selling brokers are willing to work with buying brokers depends on the geographic area.

I used a buyerbroker for our 2012 purchase and had great success.
Seller broker offered 60% of fee to buyer brkr w/o any hagling or negotiating...amazing what the prospect of a sale can do.
Win-WinWin as my broker was a brother and we shared the 60%.
Absolutely essential that ALL contact be thru the buyer brkr.
Don
'08 MS 34HT
"Bacchus"

 

[Hawgwash]

I think the extent to which selling brokers are willing to work with buying brokers depends on the geographic area.

Personalities play a big part as well. If a buyers broker is known to be a time wasting flake he may not get a lot of co-operation.

In June, after 3 weeks of trying to get a response from a listing broker who claimed he never got any of my texts or emails, I got a meeting. Spent an hour with him on one boat and can honestly say I would not recommend him on either side of the deal. I can't imagine other brokers getting excited to work with him either.

 

[BruceK]

In real estate here there is sometimes a "conjunction" sale arrangement. Broker A has the listing, Broker B has a buyer, usual split 60/40 favoring lister. Your buyer/seller broker deal sounds similar. Paying your buyers broker yourself is a solution, but who knows if he gets something from the selling broker too. It`s messy, most people here just cope with the seller broker BS.
My previous boat had a charge over it (owner in default), we finalised the deal, which the lender adopted and then controlled, in the lenders lawyers office. Interesting, and a little scary.

 

[ktdtx]

A buyer broker, looking for the long term, is also considering that if they work with honesty, integrity, efficiency (and more) they will probably get your listing when it comes time to sell.

If you are dealing with a "salesman" it may not work. If you are dealing with someone trying to build their name or their company it is more likely to work.

 

[Daveo]

I think that ktdxt has hit the nail on the head. Excellent service gets not only your re-sale but also your referrals! That is what makes you better than a living wage in real estate. Scumbag brokers chasing the quick buck, on either side of the transaction, will get the reputation that they deserve. Obviously the more transparency in the marketplace the better.