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Old 09-08-2020, 02:12 PM   #1
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Brokers, Fee's, needs?

So lets say I have a boat that worth between 25-35k. I found the next boat I want and a deal has been made pending I sell mine. What's the cost for a broker? Is one needed for a boat of 25-35k and the deal has been made for the new one? Are there tax advantages in Washington State for using a broker for the sell/buy? How do you pick a broker?
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Old 09-08-2020, 02:41 PM   #2
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You don't have to use a broker. You can try selling yourself.

He will be able to put it into the boat MLS system, though you can put it on BoatTrader and Craigslist.

You pay him 10% to take care of the hassle of dealing with people, and the hassel of the paperwork.

Your call.

Re the tax question.are you talking about sales tax? That is paid by your buyer on the selling price of the boat. Not you as a seller. That doesn't change whether you use a broker or not.

Ask for broker recommendations from other boaters and on here.
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Old 09-08-2020, 02:55 PM   #3
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I've bought both a boat and motor home in that price range without a broker. Both times the seller and I used the same bank. We did an electronic funds transfer sitting in the bank with a banker. As soon as the funds cleared from my account to the sellers he signed the boat over to me. We went together to the licensing agency to record the sale and for me to register in my name.

I don't think the broker brings much to the table in that price range other than a Yachtworld listing. There just isn't enough commission in it for them to work very hard. A Buddy sold a $25K boat through a broker. Broker charged a flat fee of $5K on any sales under $50K and 10% above $50K. He didn't do much other than the Yachtworld listing.

I'd advise on Craigslist, in Boat Trader and on marina bulletin boards
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Old 09-08-2020, 04:24 PM   #4
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For some reason I remember someone saying if I had X boat that was worth 25k and was buying Y boat that was 50k and used the same broker I would only pay tax on the difference so the broker fee would pay for itself? Could have had one to many drinks that night..
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Old 09-08-2020, 04:30 PM   #5
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I gave handled boat and motor home purchases & sales and used electronic $ transfers on most. Agree with DIY in that $ range and as long as you are OK WITH and able to do the showings, sea trial, etc.
Have and use a written offer agreement with contingencies. Responsibilities and time frames clearly spelled out. You will then need to provide a bill of sale snd clear title transfer
If needed I can email the forms I have used if you PM me.
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Old 09-08-2020, 04:33 PM   #6
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For some reason I remember someone saying if I had X boat that was worth 25k and was buying Y boat that was 50k and used the same broker I would only pay tax on the difference so the broker fee would pay for itself? Could have had one to many drinks that night..
That is generally true if going through a dealer with a trade. I have not heard that a broker satisfies it but could be wrong.
Will be anxious to hear from others re buy/ sell broker deals.
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Old 09-08-2020, 04:40 PM   #7
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For some reason I remember someone saying if I had X boat that was worth 25k and was buying Y boat that was 50k and used the same broker I would only pay tax on the difference so the broker fee would pay for itself? Could have had one to many drinks that night..
I believe, here in Florida anyway, that would be a trade-in allowance. If the transaction includes a trade in the value of the trade in can be taken off the purchase price of the boat and tax is only due on the net price. This is only through a broker/dealer and has to be the same transaction.
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Old 09-08-2020, 06:20 PM   #8
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Some Brokers have a minimum commission. I just sold my boat a couple of weeks ago. 10% or $3,000 dollars whichever is greater. This covers the broker if a sell the boat to a charity for $10.00. However, in my contract, I made it quite clear that a buyer that is "ready willing and able" is not enough to earn a commission - the commission is earned only when it actually closes. If you are using a buyer's broker, not enough to find you a boat you like, it must close. Hope this helps.
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Old 09-08-2020, 06:27 PM   #9
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When I bought our last boat here in Washington State the title changed from the seller to the brokerage house to me. I was told that the seller used his boat as a trade in on a different boat and only had to pay sales tax on the difference. I'd like to learn more on this process as Washington State sales tax runs anywhere from 8.5% to 9% depending on the location of the brokerage house.
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Old 09-08-2020, 06:56 PM   #10
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When I bought our last boat here in Washington State the title changed from the seller to the brokerage house to me. I was told that the seller used his boat as a trade in on a different boat and only had to pay sales tax on the difference. I'd like to learn more on this process as Washington State sales tax runs anywhere from 8.5% to 9% depending on the location of the brokerage house.
Here you go.

https://dor.wa.gov/education/industr...lers/trade-ins
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Old 09-08-2020, 07:14 PM   #11
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Menzies,

Thanks. The trade in advantage on the sales tax, if the brokerage house is willing to do it, can offset the broker's fees.

Now to find a broker with the right boat willing to do a trade.....
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Old 09-08-2020, 07:40 PM   #12
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I sold the last 2 boats through Boattrader.com. Had good success. But you need to clean out the boat of all personal items and misc junk. Make the boat shine. Take good quality well lit photos of everything and every angle. Donít try to hide things, give an honest perspective of the boat and price it properly. Put more photos rather than less photos. Boat/US has sales agreements on their website.
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Old 09-08-2020, 07:55 PM   #13
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Brokers, Fee's, needs?

Quote:
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I sold the last 2 boats through Boattrader.com. Had good success. But you need to clean out the boat of all personal items and misc junk. Make the boat shine. Take good quality well lit photos of everything and every angle. Donít try to hide things, give an honest perspective of the boat and price it properly. Put more photos rather than less photos. Boat/US has sales agreements on their website.


Agreed on the boattrader.com. I paid for the more expensive listing and the boat sold in 4 days.

I also paid a broker a $300 document fee to help me with the paperwork and to act as a third party for the transaction. Looking back I probably didnít need to do this, but it was the same broker that sold me the boat and she had all the information and dealt with the buyers bank and a temporary permit, etc.

I put a lot of effort into the pictures, as Iíve been a victim of so many listings with poor pictures. I think I had 78 pictures...I canít remember if the ad had a limit or not but I got a lot of them up there. And great tip, get all your junk out of the boat!

I also spent a good amount of time writing my ad and detailing all the maintenance I had done since I owned the boat over 5 years.

The 3rd or 4th couple that looked at the boat couldnít give me their money fast enough, they wanted no survey or inspection or haul out. I thought it was a little careless myself, the boat was a 2006 with 500 hours on twin 5.0ís also with ďsatanís outdriveĒ twin Bravo IIIís.....I did have copies of all my parts and service so that may have helped.

Iím having fun with the outdrive comment, but after watching the mechanics tear one down Iím surprised they even work!
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Old 09-09-2020, 09:36 AM   #14
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Yep, this is what I thought I was hearing the other night on the dock.

Thank you for the tips on selling, I have 99% of the stuff cleaned out, the things that will be on the boat, will sell with the boat. The boat is polished up nice, just laying down the last coat of varnish this coming weekend. Installing the 3 new hatches, and putting all the paperwork in one pile.


The hard part will be putting a price on her, I knew getting into this boat it would cost a fair bit to bring her back to the condition she is in. I have spent about 15k in materials/ parts and probably about 1000 hours in the last year of my time.

And do I sell the dink with her? Its really nice, and fits the lift on the boat. But does it really add much to the total price of the boat? Or am I better off selling it on the side? I do not want this one on my next boat, its just to big for me.

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Old 09-09-2020, 09:50 AM   #15
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No dinghy can be a big block to a prospective buyer and they will knock down the offer based on what it is going to take to buy themselves another.
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Old 09-09-2020, 10:15 AM   #16
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For some reason I remember someone saying if I had X boat that was worth 25k and was buying Y boat that was 50k and used the same broker I would only pay tax on the difference so the broker fee would pay for itself? Could have had one to many drinks that night..
It’s been a few years since we lived in Washington but I think you’re right. Give a call to Marine Documentation Services in Anacortes. I’ve used them on a private sale (no broker) and they were more than helpful.

Marine Documentation Service, Inc.
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Old 09-09-2020, 10:30 AM   #17
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Itís been a few years since we lived in Washington but I think youíre right. Give a call to Marine Documentation Services in Anacortes. Iíve used them on a private sale (no broker) and they were more than helpful.

Marine Documentation Service, Inc.
As noted above, only when they accept the 25K boat as trade in on the new boat.
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Old 09-09-2020, 11:13 AM   #18
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No dinghy can be a big block to a prospective buyer and they will knock down the offer based on what it is going to take to buy themselves another.
Agreed. Having a dinghy that already has a storage solution was a big bonus when I was looking (assuming it was in good condition and worth owning). I was making that same calculation as Menzies mentions with most boats I looked at. So even if it doesn't add a lot to the price, it adds a lot of people who are more interested in your boat than might otherwise be.

BD
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Old 09-16-2020, 10:06 AM   #19
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Agreed. Having a dinghy that already has a storage solution was a big bonus when I was looking (assuming it was in good condition and worth owning). I was making that same calculation as Menzies mentions with most boats I looked at. So even if it doesn't add a lot to the price, it adds a lot of people who are more interested in your boat than might otherwise be.

BD
Thank you, It will be listed with the boat, if they want to cut price, I will keep it!
And I am going to list with a Broker, the tax adjustment between the two will cover his fees. And he is a hell of a nice guy!
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Old 09-16-2020, 09:20 PM   #20
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It's called simultaneous closings. You get all parties to agree to the same date and the closing company (i.e. Like a Pacific Maritime) does both transactions, your boat sale becomes a trade-in and thus reduced sales tax owed on your boat purchase.


Broker fees are still due on the contract price of each boat, simultaneous closing doesn't affect the broker amounts paid.


The other thing to look at is the sales taxing jurisdiction. Typically, the buying brokers address dictates the sales tax rate. As example, if you're using a buyers broker located in Seattle, but buying a boat from a broker in Anacortes, you'll pay Seattle tax rate (10.1%) instead of the Anacortes rate (8.8%). Depending on the price of the boat, if the sales tax difference is a large amount, you can do some negotiating to get an offset.
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