I bought my trawler with no broker involved. In a clean, ordinary deal this is very straightforward, no different than buying a used car. It helps if the boat is documented. We did the deal standing in front of the desk at UPS (because they had a notary and the title has to be notarized). The paperwork took all of 10 minutes: I handed over a check, he handed over the title. Yes a survey was done (a telephone call and writing a check). And it wasn't the guy next door, I live in California and the boat was in Tennessee. There is nothing, absolutely nothing, that a broker would have added to the transaction other than 10% cost. For a boat not in very high demand, or a messy deal involving difficult characters and lots of questions about boat condition, perhaps they can earn their 10%. Particularly, if there is no trust between buyer and seller, then an intermediary is advisable.
Lawsuit Rocks the Yacht-Sales World
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The friendliest place on the web for anyone who enjoys boating.
If you have answers, please help by responding to the unanswered posts.
If you have answers, please help by responding to the unanswered posts.
I bought my trawler with no broker involved. In a clean, ordinary deal this is very straightforward, no different than buying a used car. It helps if the boat is documented. We did the deal standing in front of the desk at UPS (because they had a notary and the title has to be notarized). The paperwork took all of 10 minutes: I handed over a check, he handed over the title. Yes a survey was done (a telephone call and writing a check). And it wasn't the guy next door, I live in California and the boat was in Tennessee. There is nothing, absolutely nothing, that a broker would have added to the transaction other than 10% cost. For a boat not in very high demand, or a messy deal involving difficult characters and lots of questions about boat condition, perhaps they can earn their 10%. Particularly, if there is no trust between buyer and seller, then an intermediary is advisable.
Hippocampus
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Agreed but have sold houses at 3%. Bought commercial property with multiple complications (seller was a town, needed permits from atomic energy commission, hazardous bio wastes, radiographic emissions and wastes, zoning and access permits, town obligated to supply and maintain roadway access etc.) . Done at fixed fees. One fee for all due diligences and negotiations. Second at completion of all zoning and permitting. Third at final closing. Also performance requirements and penalties if not completed by set dates. A huge amount of work. Agency chosen due to knowledge and relationships with involved parties. They had in house legal counsel and other services. In others words they dealt with nearly all soft costs/needs and price negotiations. Their prior relationships and insights made it happen at fair market and in a timely manner. Their total fees were well below 10% (of the land price) and no question they earned it. Unlike a boat none of it was boilerplate. There were nuances that were novel to the town so time was spent handholding and educating that side of the deal. Things like parking requirements and reserving the ability to expand or sell off land for independent development by other entities.
Have two friends who have worked as boat brokers in the past. Push a button the boilerplate fills the screen. Put in the variables for that particular boat transaction and print it out. Even escrow isn’t heavy lifting as they have a previously set up routine. The time spent is interacting with buyer/seller not the paperwork. Yes there’s value added by boat brokers and they serve a very useful function but I don’t think it’s 10%.
Have two friends who have worked as boat brokers in the past. Push a button the boilerplate fills the screen. Put in the variables for that particular boat transaction and print it out. Even escrow isn’t heavy lifting as they have a previously set up routine. The time spent is interacting with buyer/seller not the paperwork. Yes there’s value added by boat brokers and they serve a very useful function but I don’t think it’s 10%.
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Gordon J
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Not much choice
There is injury. One has a binary choice, sell your boat or don't sell your boat. Cheaper boats can be sold on boat trader or perhaps Facebook, but more expensive boats need the coverage of Yacht World. Only brokers can list on yacht World. Brokers collude to charge 10 percent.
Sounds like Collusion to me.
There is injury. One has a binary choice, sell your boat or don't sell your boat. Cheaper boats can be sold on boat trader or perhaps Facebook, but more expensive boats need the coverage of Yacht World. Only brokers can list on yacht World. Brokers collude to charge 10 percent.
Sounds like Collusion to me.
If you followed the link, there was specific reference to the real estate lawsuit.
ronobrien
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More forms for lawyers to facilitate. I think I see an additional motive.
HopCar
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I had several friends who were boat broker. I often told them the only difference between them and a used car salesman was a pair of Topsiders.
guy with a boat
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Don’t use brokers if you think they are so bad. Or choose one of the many good ones. Ten percent is too much? Negotiate a lower fee. You might/will get less knowledge, experience, commitment, and fewer services, but you will pay a lower fee. Sometimes it works out refuse to pay market fees and sometimes it doesn’t.
I have spent decades in the commercial real estate marketplace. I brokered hundreds of deals over many years and gradually transitioned to the other side of the table. Now I pay the fees (or not) and select the brokers. I could certainly FSBO my own deals and have done some that way. I have learned that, for many reasons, I am money ahead to select good brokers and pay them. They make money and I end up with more in my pocket after the dust settles.
Regarding easy and hard deals, good brokers aren’t charging (and getting paid) for the hours that the transaction takes. They are getting paid for the years of learning and experience that prepared them to guide you efficiently and effectively, and to recognize and avoid land mines before they happen. They also get paid for networking outside of the MLS/YW and putting deals together before they ever hit the market. Many of the best boats and properties are sold before the listing services ever see them.
If you don’t value any of these things or they don’t apply to what you are doing, then don’t use a broker. There is really just no reason to criticize the industry because of the mistakes of a few. Just as bad, don’t overlook the value to be had by using an experienced pro.
I have spent decades in the commercial real estate marketplace. I brokered hundreds of deals over many years and gradually transitioned to the other side of the table. Now I pay the fees (or not) and select the brokers. I could certainly FSBO my own deals and have done some that way. I have learned that, for many reasons, I am money ahead to select good brokers and pay them. They make money and I end up with more in my pocket after the dust settles.
Regarding easy and hard deals, good brokers aren’t charging (and getting paid) for the hours that the transaction takes. They are getting paid for the years of learning and experience that prepared them to guide you efficiently and effectively, and to recognize and avoid land mines before they happen. They also get paid for networking outside of the MLS/YW and putting deals together before they ever hit the market. Many of the best boats and properties are sold before the listing services ever see them.
If you don’t value any of these things or they don’t apply to what you are doing, then don’t use a broker. There is really just no reason to criticize the industry because of the mistakes of a few. Just as bad, don’t overlook the value to be had by using an experienced pro.
rslifkin
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Sometimes that can be a very useful factor, especially if you're working with a broker that specializes a bit in what you're trying to sell (or buy). Someone I know sold a sailboat recently. When they reached out to a local broker to list it, he immediately mentioned that he happened to know someone shopping for pretty much that exact boat. Showed the guy the boat, sold for more than they were originally expecting to get for it and there was never even a listing written. Not a whole lot of work on the broker's part, but him knowing the right set of people got it sold much faster and more easily than it would have otherwise.
Versingetrix
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As a residential real estate broker the debate about the value proposition of brokers is a matter of varied personal opinion. But, what I hope is that this suit opens up the past sales data so that there can be a better general understanding of boat values when considering the purchase of a boat, or help understand the value of the one we are selling.
In real estate you have a myriad of tools to gather data points with and as a broker part of my job is that of guide to understand those data points. I always appreciate it when my clients come in with high level knowledge and an idea of the path that leads to the goal. This generally leads to better informed decisions all around. Like houses, boats come in various conditions that determine value and helping clients understand how condition affects value against past sales of similar widgets is one of the areas where brokers add add value.
In real estate you have a myriad of tools to gather data points with and as a broker part of my job is that of guide to understand those data points. I always appreciate it when my clients come in with high level knowledge and an idea of the path that leads to the goal. This generally leads to better informed decisions all around. Like houses, boats come in various conditions that determine value and helping clients understand how condition affects value against past sales of similar widgets is one of the areas where brokers add add value.
SteveK
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@Versingetrix
As a real estate broker myself and multi boat owner of the two, house and boat, are more difficult to compare. A house always has multiple comparisons whereas a boat seldom has identical multiple choices in one market time frame with which to compare data points.
Houses are fixed to the land they occupy whereas a boat can be moved to a new location. Location, location, location comes to mind as the determining value of a house.
Seldom is a boat value near a house value, the land being the greater of the total cost in most cases. A boat value is based on what is available in the market when the buyer is looking.
As a real estate broker myself and multi boat owner of the two, house and boat, are more difficult to compare. A house always has multiple comparisons whereas a boat seldom has identical multiple choices in one market time frame with which to compare data points.
Houses are fixed to the land they occupy whereas a boat can be moved to a new location. Location, location, location comes to mind as the determining value of a house.
Seldom is a boat value near a house value, the land being the greater of the total cost in most cases. A boat value is based on what is available in the market when the buyer is looking.
Versingetrix
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@SteveK
Houses, like boats, are never exactly the same, and its not unusual that here in Seattle you DO NOT have multiple like for like comps unless you are buying in a new development…and even then, how many of the update packages did one owner spec for that floor plan versus the other? Lot location premium? View?
Sure, there are typically more recently sold houses to comp to versus boats, but CMA’s are also about a myriad of other variables and sometimes no direct comps…kind of like boats. To your well-worn location mantra, yes things will have different values based on their geographical location much like the rents I can ask for in my rental houses based on their locations. And all the above are data points, which was the gist of my OP that I would like access to past sales data along with the rest of the research one can glean from past solds; spec, hours, configuration, condition, etc. and the relative values they represent and then extrapolate what the current value might be and talk it over with my broker.
Am I using a broker for the next boat we are looking at? Yup, as one worth their salt is also worth their weight in gold...kind of like a good real estate broker right?[FONT="][/FONT]
Houses, like boats, are never exactly the same, and its not unusual that here in Seattle you DO NOT have multiple like for like comps unless you are buying in a new development…and even then, how many of the update packages did one owner spec for that floor plan versus the other? Lot location premium? View?
Sure, there are typically more recently sold houses to comp to versus boats, but CMA’s are also about a myriad of other variables and sometimes no direct comps…kind of like boats. To your well-worn location mantra, yes things will have different values based on their geographical location much like the rents I can ask for in my rental houses based on their locations. And all the above are data points, which was the gist of my OP that I would like access to past sales data along with the rest of the research one can glean from past solds; spec, hours, configuration, condition, etc. and the relative values they represent and then extrapolate what the current value might be and talk it over with my broker.
Am I using a broker for the next boat we are looking at? Yup, as one worth their salt is also worth their weight in gold...kind of like a good real estate broker right?[FONT="][/FONT]
Nick14
Guru
The ramifications of recent legal actions continue to unfold in the real estate world. Wonder what the intimate impacts will be on boat broker commissions? Seems like a very strong precedent.
https://www.cnn.com/2024/03/15/economy/nar-realtor-commissions-settlement/index.html
https://www.cnn.com/2024/03/15/economy/nar-realtor-commissions-settlement/index.html
SteveandZoila
Senior Member
Just a different thought, I own an office bldg. I pay 6% per year of the lease to my broker. I did a 10 year lease once and had to pay 60% of the annual lease up front!!!! I had no broker at that time. The guy probably still brags about the deal. Tough business,
BruceK
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Australia is fortunate to have www.boatsonline.com.au. FSBOS welcome and afaik no attempt to control brokers and brokerage.
But,we also have www.boatsales.com.au.
But,we also have www.boatsales.com.au.
sunchaser
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For those complaining about commissions, Mecum and BJ charge a 10% or higher sales fee. Then comes a sales tax. I missed out on a vehicle and gladly would have paid it. Cars, boats, airplanes, race horse etc are optional toys. One just has to pay to play - or walk away for free.
Purchased my boat with just the sellers broker, hella nice guy, always returned my calls and answered all my questions. 1972 GB36 woodie, which when looking they are in all kinds of condition. For me it was like buying a classic car, seller feels its worth a certain amount, you look it over, test drive it, operate the systems, talk about how it was maintained, it’s history and if you like the vehicle/boat you make a offer and squabble over the final price. The seller pays the broker, and off ya go. For me it was an easy uncomplicated deal, all paperwork was handled by sellers broker and title company.
That's very nice to hear. The brokers I've come across have either been neutral or professional / motivated to help. In the last 6 months I've only come across 1 who was quite arrogant still, which was weird because the market is softening significantly.
However I have come across many owners who my gut instinct told me were hiding or misrepresenting. I recently terminated my purchase Contract on one in fact.
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Some lawyers aren't fans of themselves either. One in particular even told me this joke:
Q- What's the difference between a catfish and a lawyer?
A- One is a scum sucking bottom dweller, and the other is a fish.
FoxtrotCharlie
Guru
We sold our boat (on the left) by ourselves using the AGLCA classifieds - low six figure amount. But if it had not sold quickly we would have used Curtis Stokes & Associates. Curtis has been a great supporter of AGLCA. We did use a buyers broker six years ago when we bought the boat - and yep, the seller had to pay the fees. Sellers broker did not like that he had to split the fee.
