View Single Post
Old 10-05-2016, 10:30 AM   #1
Daddyo
Guru
 
Daddyo's Avatar
 
City: Cruising East Coast US
Vessel Name: Grace
Vessel Model: DeFever 48
Join Date: Apr 2008
Posts: 2,420
Tutorial on a Buyer's Broker

At the suggestion of others I'd like to give a brief tutorial on buyer's brokers and what to expect or look for in choosing one as well as the buyer's own responsibilities in what can and should be a very pleasant buying experience.

What's a buyer's broker?
-A buyer's broker works for the buyer in helping investigate and purchase a boat.
-The broker is paid through the sharing of the commission with the listing broker. There is absolutely no cost to the buyer for the use of a buyer's broker.

What should I expect or ask of my buyer's broker?
-Your broker should have a good working knowledge of the general type of boat you are looking for. Ideally he should have an intimate knowledge of the peculiarities of the specific type of vessels you're considering.
-He should be knowledgeable of the marine industry as a whole.
-He should be knowledgeable about the type of use you intend for your boat, dock Queen, weekender, bluewater cruiser, circumnavigator etc?
-He will contact brokers to learn in detail the specifics of the boats you are considering. He should have the skill sets to ascertain the true condition of the prospective boats from the listing broker who often is not able or perhaps willing to give accurate information to the general public. You want your broker to know more about the boat than the listing broker. Having the upper hand as the third party expert can/will be a huge advantage in negotiating the price and terms of a boat both pre and post survey. When you can clearly illustrate to a seller or their broker the whys and costs of repairs or improvements they are going to be much more willing to concede to your requests. Often the seller does not truly know the condition of their own boat. You want an expert third party to inform them of their reality.
-He will handle all negotiations.
-He will handle all paperwork and escrowing etc. of funds in a manner that protects you.
-He will provide assistance in coordinating the survey, insurance, financing and any repairs etc.
-He might, as in my case, provide access to wholesale accounts for your boat equipment and supplies purchases.

What are the buyer's responsibilities?
Always communicate 100% honestly and openly with your broker. The more he knows about your preferences, timeline, budget, intended uses and your skill sets and willingness to perform tasks than the more rewarding your experience will be. Be honest with yourself and your spouse and take the time to mentally place yourself in the new vessel and all that will entail. Your broker, if he is a good one is working very hard to find the right boat at the right price for you. Reward his efforts and stay loyal to him as he only gets paid if you buy a boat through him. Imagine getting great service at a restaurant and than tipping the waiter at another table instead of your own.
__________________
Cruiser
Esse Quam Videri
Daddyo is offline   Reply With Quote