Broker fee if im buying a boat?

[slowgoesit]

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.

Actually, the buyer almost ALWAYS pays the broker's fees, because he paid more for the boat because he purchased a boat represented by brokers, than he probably would have paid to a private seller. But I guess it depends on how you look at it. Me? I call fuel priced at $2.09 & 9/10ths, $2.10, but I always did believe in calling a spade a spade, and not something else entirely!

 

[Salish Nomad]

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.

+1

 

[slowgoesit]

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

That's interesting. I have yet to run across a broker who will dock said boat at their dock without charging the seller for the privilege! Not saying they don't exist, just that I've never run across them!

 

[Baker]

Actually, the buyer almost ALWAYS pays the broker's fees, because he paid more for the boat because he purchased a boat represented by brokers, than he probably would have paid to a private seller. But I guess it depends on how you look at it. Me? I call fuel priced at $2.09 & 9/10ths, $2.10, but I always did believe in calling a spade a spade, and not something else entirely!

I completely disagree. The boat is worth what the market says it is worth.

 

[slowgoesit]

I completely disagree. The boat is worth what the market says it is worth.

Never said it wasn't. But boats listed/sold by brokers generally sell for more than FSBO boats. Probably because they are more widely advertised, and viewed by a broader potential group of buyers. But we can agree to disagree!

 

[firehoser75]

Don't just trust some "designation". We had some bad dealings or experiences with a so called "Certified Professional Yacht Broker" in Sydney BC. First off, even though he was aware that we had been using a buyer's broker up til talking to him, he would not allow that broker to take part at all. Then he had the listed boat in his marina with major safety issues like unsafe propane and gasoline storage. When our surveyor found that the stringers had separated from the hull in one place, he tried to tell us that that was not important and was nothing to worry about. He offered to get someone to "repair it" on their days off to lessen any expense to the seller, with no warranty to us the buyer.

Quite frankly I found this broker to be "less than ethical" and to me the CPYB designation means next to nothing! Just a case of "buyer beware".

 

[Baker]

Don't just trust some "designation". We had some bad dealings or experiences with a so called "Certified Professional Yacht Broker" in Sydney BC. First off, even though he was aware that we had been using a buyer's broker up til talking to him, he would not allow that broker to take part at all. Then he had the listed boat in his marina with major safety issues like unsafe propane and gasoline storage. When our surveyor found that the stringers had separated from the hull in one place, he tried to tell us that that was not important and was nothing to worry about. He offered to get someone to "repair it" on their days off to lessen any expense to the seller, with no warranty to us the buyer.

Quite frankly I found this broker to be "less than ethical" and to me the CPYB designation means next to nothing! Just a case of "buyer beware".

Did you report them to the CPYB? ALso if you are talking to a broker representing the seller, then you likely just cut your broker out of the deal. Your broker should be the POC.

 

[firehoser75]

Baker, my buyer's broker, same as my seller's broker when I sold my sailboat, was the POC. The other broker (CPYB) informed him that he could not represent us in this "deal". We had been looking for this brand/model of boat for a while. Our broker, even though he did not see the boat with us, or talk directly to the listing broker, and was not "going to be part of the commission" was still more than willing to give us advice and help us along the process. He was fantastic, and we were planning on "giving him" a "present" if that deal had proceeded. He did not know that, nor ever ask.

No I did not contact the CPYB as it would have devolved into a he said, he said kind of thing "getting no where". Also, rightly or wrongly, I don't put alot of faith in organizations like that and have found they usually tend to "look out for their own".
This experience showed me that a designation can mean nothing. The "Certified" broker was terrible (IMO) while the "regular" broker we had been using was fantastic, and I would highly recommend him to anyone. The good one (Richard at YSW in Vancouver) was very knowledgeable, open, honest, helpful, and fair! He represented us when we finally purchased Pilitak and we could not have been happier with him. No we are not related, just satisfied customers.

 

[Baker]

Baker, my buyer's broker, same as my seller's broker when I sold my sailboat, was the POC. The other broker (CPYB) informed him that he could not represent us in this "deal". We had been looking for this brand/model of boat for a while. Our broker, even though he did not see the boat with us, or talk directly to the listing broker, and was not "going to be part of the commission" was still more than willing to give us advice and help us along the process. He was fantastic, and we were planning on "giving him" a "present" if that deal had proceeded. He did not know that, nor ever ask.

No I did not contact the CPYB as it would have devolved into a he said, he said kind of thing "getting no where". Also, rightly or wrongly, I don't put alot of faith in organizations like that and have found they usually tend to "look out for their own".
This experience showed me that a designation can mean nothing. The "Certified" broker was terrible (IMO) while the "regular" broker we had been using was fantastic, and I would highly recommend him to anyone. The good one (Richard at YSW in Vancouver) was very knowledgeable, open, honest, helpful, and fair! He represented us when we finally purchased Pilitak and we could not have been happier with him. No we are not related, just satisfied customers.

Well it sounds like y'all have a great broker. Yeah there are certain brokers and certain boats that don't co broker. Not a fan of that set up. It totally screws the seller. He is likely offering his seller a discount or just totally screwing his seller.

 

[Nepidae]

Boat Broker

First, I'm contra to the other parties that say use a broker, a buyer broker.

When we bought our boat in '10 I had gotten to the point after meeting with brokers, telling them what I wanted and never hearing from them again, to go it on my own. I found the boat. I hired the surveyors. I negotiated the selling price. The only broker involved was the seller's broker, at the offer & closing.

Second, understand there is something called a fiduciary relationship. He who pays the broker gets the protection of the broker. The broker owes his legal responsibility to that person. Money talks.

Let's take a scenario where you find the boat you want. You tell the buyer broker, who is being paid by the seller, as many mentioned, my offer is X but I would go to Y. What do you think you will pay for the boat?

IF the broker, who is being paid by the seller didn't tell the seller about the Y price, then he could, if the seller found out, get sued.

Now, if you want to hire your own broker, as a buyer broker, then you are paying for the protection. LEGALLY, it doesn't work any other way. Something for nothing only occurs in songs and chicks are never free.

DO NOT BE MISLEAD, a broker can not owe a legal allegiance to 2 opposing people, period.

Third, a contract is what dictates the legalize of the situation. BUT, a person can not contract away their responsibility to protect. A ski area can say on a ticket that they aren't responsible. IF they don't do everything in their power to protect the people using the facility, they can be sued.

Read, & reread any contract. That will tell you everything about the sale. IF it isn't in the contract, it doesn't count, no matter what anyone SAYS.

Fourth, YOU have been doing the leg work so you seem to be able to poke around a boat. What I did when I found our boat was to ask the selling broker if I could have a walk thru survey done, which he readily agreed to.

The walk-thru gave me an idea of the value of the boat, which for me wasn't what I paid for the boat. Pointed out some issues.

Later after the walk-thru, a week or so later, I called the broker, who told me he was expecting an offer. I gave him mine, $20K less and got the boat. I then gave a deposit, and then had a full survey done, with normal restrictions, good survey, financing, etc.

I had a friend, from my Auxiliary, who knew the ropes of boat buying. He checked my sales contract at purchase. AT LEAST, you could hire a lawyer for an hour's work to read yours.

This is not a good time to get the best price. Boats are flying off the 'shelf'.

I'd wait until Feb. The new administration will have shown their hand and I anticipate our robust economy will be in the toilet. That would be a better time for you to buy. Prices will drop.

Any specific questions you might have, drop me a line.

Good luck.

 

[David Burgess]

If you want a professional look no further than David Rankin at Grand Yacht Sales in Vancouver BC. Simply the best most experienced and honest man I’ve had the pleasure to deal with, Period.

 

[Baker]

First, I'm contra to the other parties that say use a broker, a buyer broker.

Good luck.

Nothing wrong with that. You have experience and have been counseled as well. Using a broker for a purcahse and everything I have said on here is somewhat of a blanket statement. IOW, there can be exceptions. But to anyone reading this, especially since there is so much "new traffic" on this site with people new to trawlers or boating in general, my general advice would be to get a broker.

When making an offer on a boat that is sight unseen, I also include that in the conditions of the purchase agreement....."Subject to personal inspection" or something like that....along with the other "regular" stuff.

A good point you make when dealing with a broker is that it can become cumbersome to go back and forth with questions....you call your broker....they call the other broker....sometimes that broker has to get the answer from the seller....then the path has to reverse itself. It can sometimes take 48 hours to get an answer to a question. And we all know that we don't think of all of the pertinent questions at the same time....so this might happen numerous times during a deal. Anyway....good discussion!!!

But I am pro broker all the way. A good one has significant experience in getting things done where the average Joe might walk away from a deal when the deal still could have been salvaged....just my opinion and experience.

 

[Jimintheair3]

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

You have No Clue, what they do. But in your opinion, "minor work"!

I wonder your reply, "what you do/did for a living was minor?

And yes they are regulated! If you think the broker is "pulling "something, contact his broker association. Read the "code of ethics", report to the Standard and Ethics Committee.

Why not call a friend, ask the audience or hire a professional?

I have used brokers, several times. I always remember "it is still just an opinion"!

Caviat Emptor

 

[AK-Firedude]

Looking for a broker to represent us as "buyer"

We are currently in Arizona but are looking for a broker to represent us as "buyers" in the Huntington Beach, CA area.

Does anyone have a good relationship with or great experience with knowledgable and ethical brokers in the area that can help us in our boat buying search?

Thanks in advance!

 

[BluewaterN47]

If you're looking for a trawler yacht and you want an honest, ethical broker with decades of experience, contact Jeff Merrill, the principal at JMYS (Jeff Merrill Yacht Sales). I've known him for 25 years, have used him as my buyer's broker in purchasing an American Tug 34, and his service was impeccable. Your can email him at jeff@jmys.com or telephone his cell directly at 949-355-4950, but I recommend that you first get a feel for his operation by looking at his website: https://jmys.com/


No business connection other than as a highly satisfied customer and longtime friend.


Jeff has very high standards!


Milt Baker, Nordhavn 47 Bluewater

 

[AK-Firedude]

We are currently in Arizona but are looking for a broker to represent us as "buyers" in the Huntington Beach, CA area.

Does anyone have a good relationship with or great experience with knowledgable and ethical brokers in the area that can help us in our boat buying search?

Thanks in advance!

I'm just going to start a new thread for this question...