Buyers Broker - Why I Think It's a Good Idea

[Jklotz]

We are close to closing on our new (to us) boat soon. Survey and sea trials were last week and went well. This will end a 1.5 year hunt. My 1st solo attempt to buy a boat was pretty much a disaster (I won't go into that here, I've posted about it before), so I was finally convinced I needed to enlist the help of a buyers broker. Since signing up with him (Jeff Merrill), he has:

- Found out 2 boats I was looking at were already under contract and one was taken off market before I wasted much time
- Spent hours on the phone educating me on the process, sent lot's of docs explaining the process
- Took 1/2 a day to go through boats at Trawlerfest showing me what to look for on a used boat
- Gave me tons of contacts for insurance, surveyors, boat yards, mechanics, etc, etc
- Negotiated the offer on our behalf
- Included many stipulations of what docs were to be provided, boat would not move after survey, ensuring access to all onboard electronics, subscriptions, passwords, etc, that I'd have never known to do
- made a detailed timeline, which listed all contacts, places, hull numbers, insurance info, marinas, etc, etc (it was very detailed)
- Held deposit in escrow
- Helped negotiate insurance (not directly, but told me the right questions to ask and typical costs, etc)
- Flew across the country to be at the survey, took many detailed notes and pics, including scanning of all important boat docs, USGC docs, licenses, etc that might not be there after we close. He also made a diagram of what all the through hull's were when we had it hauled out. I didn't even realize he was doing that until afterwards when he gave them to me. During survey, he was constantly working. (It was a long couple of days!)
- Found and booked really cool hotel for survey days
- Set up title transfer process
- Provided great detail of every step of the way

I know I'm leaving a lot of stuff out, it's been a very eventful couple of months and my memory is not what it used to be. Regardless, in my mind, it has been completely worth it, and, if I were to buy another, I wouldn't hesitate to hire him again. Anyway, I thought this be of help to others in the process.

I'm sure there are other great brokers out there, didn't mean this to be an ad for Jeff, he's just the only one I have had experience with. Feel free to list others you've had a good experience with.

 

[CharlieO.]

I have watched some of his YouTube videos, seems like a likable fellow with experience. Did he get a split commission from the selling broker? Did you have to pay him any additional expenses? Just curious, if you’d be willing to share that. Dollar figures not needed.

 

[mvweebles]

First, fingers crossed this closes without a hitch. Sounds like you're close.

Second, great post. Broker bashing is popular sport on the internet. It's often justified as many are not career professionals. The list you've given is fairly common for a professional broker with years of experience and frankly explains why many brokers have a dollar floor before they'll work with a buyer or seller. It's not greed, it's that they simply cannot afford to provide the type of service they demand of themselves without funding. Don't get me wrong, I know there are are awful brokers out there, but there are quite a few who value their reputation and know that today's buyer is tomorrows seller.

Congrats. And thanks for the shout out. You were as appreciative to Jeff Merrill as you you were dissing the previous guys.

Of course, pictures when you're comfortable sharing after closing.

Peter

 

[Jklotz]

I have watched some of his YouTube videos, seems like a likable fellow with experience. Did he get a split commission from the selling broker? Did you have to pay him any additional expenses? Just curious, if you’d be willing to share that. Dollar figures not needed.

Price didn't change, they split the commission. He was very upfront about that. Ultimately I did pay for it, of course, but price would have been the same represented or not.

 

[Jklotz]

First, fingers crossed this closes without a hitch. Sounds like you're close.

Second, great post. Broker bashing is popular sport on the internet. It's often justified as many are not career professionals. The list you've given is fairly common for a professional broker with years of experience and frankly explains why many brokers have a dollar floor before they'll work with a buyer or seller. It's not greed, it's that they simply cannot afford to provide the type of service they demand of themselves without funding. Don't get me wrong, I know there are are awful brokers out there, but there are quite a few who value their reputation and know that today's buyer is tomorrows seller.

Congrats. And thanks for the shout out. You were as appreciative to Jeff Merrill as you you were dissing the previous guys.

Of course, pictures when you're comfortable sharing after closing.

Peter

Thanks Peter. I'll be happy to post some pics after she's ours. Here's a preview from the haulout:

 

[Delta Riverat]

I'll be happy to join the club. He's not a buyer's broker, he was in fact the seller's broker but he did us well.

Barney Fie at Richard Borland Yachts, Alameda CA.

Barney showed us a few boats and I was quick to point out that I knew nothing about operating vessels of this size, only outboards, 20 feet and less. Don't worry he says, we have Captains.

Then we sat down to talk business. He explained the whole offer-contract buying process with careful detail including the 3 opt-out points, survey, sea trail and re-offer. They he showed us the last recent survey on a deal that didn't go through. All went well and there were no surprises. We did the offer and contract, sea trial and survey went well except for neither head worked when were were expecting only 1 non-op from last survey. No deposit was ever required. Barney helped me load the 2 new heads and get a tech going installing them.

While all this was going on the wife and I got at least 20 hours of training with the captain at no charge. Safety and engine room checks, close maneuvering, docking and anchoring. Which was quite a bit as I didn't even know how to start the engines (or turn them off) when I bought the boat. So in a few months after the deal was closed we got the boat fixed up and cleaned up (bilge was filthy) we got trained enough to be confident in running the boat. I changed the oils, filters and impellers and the new heads were in and operational.

So the wife and I took the 85 mile re-homing cruise to our dock in the Delta and all went well.

Thanks Barney, we couldn't have done it without you -

 

[Diep]

I will also third or fourth the sentiment.

We had a great broker who did many of the things mentioned above getting us into our boat last winter. Some additional pros in using a (good) broker as a buyer:

When a target boat is identified they make all the calls. They get the story, find out if it is still available, set up the showings. There is a lot of work here if you are looking at a lot of boats.

Once you are both on the same page they might swing by a boat in advance so you don't end up wasting your time. This is great if you are not local (or just busy)

You look at everything with YOUR broker. Usually the other broker is not in attendance. If you go on your own you would spend half your attention dealing with an unknown broker rather than focusing fully on the boat. When its just you and your broker you can look and speak freely about the boat without dealing with the selling broker's sales pitch.

After the showing they handle follow up. If you didn't like the boat you step off and its over. Your broker calls the other party, gives the result/feedback etc.

So in addition to facilitating the transaction (which is itself a lot of work) they can really help in the search process.

 

[Pprior]

We are close to closing on our new (to us) boat soon. Survey and sea trials were last week and went well. This will end a 1.5 year hunt. My 1st solo attempt to buy a boat was pretty much a disaster (I won't go into that here, I've posted about it before), so I was finally convinced I needed to enlist the help of a buyers broker. Since signing up with him (Jeff Merrill), he has:

- Found out 2 boats I was looking at were already under contract and one was taken off market before I wasted much time
- Spent hours on the phone educating me on the process, sent lot's of docs explaining the process
- Took 1/2 a day to go through boats at Trawlerfest showing me what to look for on a used boat
- Gave me tons of contacts for insurance, surveyors, boat yards, mechanics, etc, etc
- Negotiated the offer on our behalf
- Included many stipulations of what docs were to be provided, boat would not move after survey, ensuring access to all onboard electronics, subscriptions, passwords, etc, that I'd have never known to do
- made a detailed timeline, which listed all contacts, places, hull numbers, insurance info, marinas, etc, etc (it was very detailed)
- Held deposit in escrow
- Helped negotiate insurance (not directly, but told me the right questions to ask and typical costs, etc)
- Flew across the country to be at the survey, took many detailed notes and pics, including scanning of all important boat docs, USGC docs, licenses, etc that might not be there after we close. He also made a diagram of what all the through hull's were when we had it hauled out. I didn't even realize he was doing that until afterwards when he gave them to me. During survey, he was constantly working. (It was a long couple of days!)
- Found and booked really cool hotel for survey days
- Set up title transfer process
- Provided great detail of every step of the way

I know I'm leaving a lot of stuff out, it's been a very eventful couple of months and my memory is not what it used to be. Regardless, in my mind, it has been completely worth it, and, if I were to buy another, I wouldn't hesitate to hire him again. Anyway, I thought this be of help to others in the process.

I'm sure there are other great brokers out there, didn't mean this to be an ad for Jeff, he's just the only one I have had experience with. Feel free to list others you've had a good experience with.

I contacted him a couple times via email and never got a response. I think he may filter by budget and mine was below what's worth it to him, but it would be nice if they would post that.

 

[Jklotz]

I contacted him a couple times via email and never got a response. I think he may filter by budget and mine was below what's worth it to him, but it would be nice if they would post that.

Interesting. That doesn't sound like Jeff at all to me. Guy loves to talk on the phone! Must have gone to spam or something? Anyway, if you want to talk to him, pm me your details and I'll make sure he gets it.

 

[richspree]

We are close to closing on our new (to us) boat soon. Survey and sea trials were last week and went well. This will end a 1.5 year hunt. My 1st solo attempt to buy a boat was pretty much a disaster (I won't go into that here, I've posted about it before), so I was finally convinced I needed to enlist the help of a buyers broker. Since signing up with him (Jeff Merrill), he has:

- Found out 2 boats I was looking at were already under contract and one was taken off market before I wasted much time
- Spent hours on the phone educating me on the process, sent lot's of docs explaining the process
- Took 1/2 a day to go through boats at Trawlerfest showing me what to look for on a used boat
- Gave me tons of contacts for insurance, surveyors, boat yards, mechanics, etc, etc
- Negotiated the offer on our behalf
- Included many stipulations of what docs were to be provided, boat would not move after survey, ensuring access to all onboard electronics, subscriptions, passwords, etc, that I'd have never known to do
- made a detailed timeline, which listed all contacts, places, hull numbers, insurance info, marinas, etc, etc (it was very detailed)
- Held deposit in escrow
- Helped negotiate insurance (not directly, but told me the right questions to ask and typical costs, etc)
- Flew across the country to be at the survey, took many detailed notes and pics, including scanning of all important boat docs, USGC docs, licenses, etc that might not be there after we close. He also made a diagram of what all the through hull's were when we had it hauled out. I didn't even realize he was doing that until afterwards when he gave them to me. During survey, he was constantly working. (It was a long couple of days!)
- Found and booked really cool hotel for survey days
- Set up title transfer process
- Provided great detail of every step of the way

I know I'm leaving a lot of stuff out, it's been a very eventful couple of months and my memory is not what it used to be. Regardless, in my mind, it has been completely worth it, and, if I were to buy another, I wouldn't hesitate to hire him again. Anyway, I thought this be of help to others in the process.

I'm sure there are other great brokers out there, didn't mean this to be an ad for Jeff, he's just the only one I have had experience with. Feel free to list others you've had a good experience with.

Chuck Hovey Brokers have represented us well. I know Jeff Merrill and would give him aclades. My recommendation is to enlist a public insurance adjuster in the area where you keep your boat. In the event of a catastrophic loss you would do well to engage him and have him deal with the insurance side. He would act like a broker or a surveyor but with Insurance policy and language. He would assist in a final settlement but do your research, ask him what associations he belongs to where does he get his accreditations where else is he licensed? Good luck. Richard

 

[salish]

We've had four transactions involving Chuck Seaman in Anacortes WA. Great broker. Chuck is now representing Waterline/Boat shed here in Anacortes.

 

[Bigd]

We are close to closing on our new (to us) boat soon. Survey and sea trials were last week and went well. This will end a 1.5 year hunt. My 1st solo attempt to buy a boat was pretty much a disaster (I won't go into that here, I've posted about it before), so I was finally convinced I needed to enlist the help of a buyers broker. Since signing up with him (Jeff Merrill), he has:

- Found out 2 boats I was looking at were already under contract and one was taken off market before I wasted much time
- Spent hours on the phone educating me on the process, sent lot's of docs explaining the process
- Took 1/2 a day to go through boats at Trawlerfest showing me what to look for on a used boat
- Gave me tons of contacts for insurance, surveyors, boat yards, mechanics, etc, etc
- Negotiated the offer on our behalf
- Included many stipulations of what docs were to be provided, boat would not move after survey, ensuring access to all onboard electronics, subscriptions, passwords, etc, that I'd have never known to do
- made a detailed timeline, which listed all contacts, places, hull numbers, insurance info, marinas, etc, etc (it was very detailed)
- Held deposit in escrow
- Helped negotiate insurance (not directly, but told me the right questions to ask and typical costs, etc)
- Flew across the country to be at the survey, took many detailed notes and pics, including scanning of all important boat docs, USGC docs, licenses, etc that might not be there after we close. He also made a diagram of what all the through hull's were when we had it hauled out. I didn't even realize he was doing that until afterwards when he gave them to me. During survey, he was constantly working. (It was a long couple of days!)
- Found and booked really cool hotel for survey days
- Set up title transfer process
- Provided great detail of every step of the way

I know I'm leaving a lot of stuff out, it's been a very eventful couple of months and my memory is not what it used to be. Regardless, in my mind, it has been completely worth it, and, if I were to buy another, I wouldn't hesitate to hire him again. Anyway, I thought this be of help to others in the process.

I'm sure there are other great brokers out there, didn't mean this to be an ad for Jeff, he's just the only one I have had experience with. Feel free to list others you've had a good experience with.

20% fee?

 

[OCEANA]

I always use a good buyers broker and it has helped me arrange better deals and avoid bad boats and process missteps. I have encountered Jeff Merrill on one boat search and he seems to be a rare find. If you are in the Northeast and looking I have another good recommendation.

 

[Docktopus]

I’ve bought two boats using Kirby Long at Napa Valley Marina. Just an absolute gem of a human being and honest as the day is long. I wouldn’t hesitate to use him again. For us, each purchase was a big step up in size and complexity so working with someone was a necessity. We didn’t know what we didn’t know, but he got us in the right boat for both times.

 

[GMS]

20% fee?

Typically the 10% brokage fee is split between the Seller's broker and the Buyer's broker (and that is what it sounds like happened in this transaction).

 

[GREGGWESTERFIELD]

For the hardest working buyer’s broker on the Texas Gulf Coast, I recommend Josh Johnson at Little Yacht Sales in Kemah, Texas. He has acted as our Buyer’s Broker on four occasions. top knotch. Of course he got to be seller’s broker on three of our boats, so far.

 

[BluewaterN47]

We are close to closing on our new (to us) boat soon. Survey and sea trials were last week and went well. This will end a 1.5 year hunt. My 1st solo attempt to buy a boat was pretty much a disaster (I won't go into that here, I've posted about it before), so I was finally convinced I needed to enlist the help of a buyers broker. Since signing up with him (Jeff Merrill), he has:

- Found out 2 boats I was looking at were already under contract and one was taken off market before I wasted much time
- Spent hours on the phone educating me on the process, sent lot's of docs explaining the process
- Took 1/2 a day to go through boats at Trawlerfest showing me what to look for on a used boat
- Gave me tons of contacts for insurance, surveyors, boat yards, mechanics, etc, etc
- Negotiated the offer on our behalf
- Included many stipulations of what docs were to be provided, boat would not move after survey, ensuring access to all onboard electronics, subscriptions, passwords, etc, that I'd have never known to do
- made a detailed timeline, which listed all contacts, places, hull numbers, insurance info, marinas, etc, etc (it was very detailed)
- Held deposit in escrow
- Helped negotiate insurance (not directly, but told me the right questions to ask and typical costs, etc)
- Flew across the country to be at the survey, took many detailed notes and pics, including scanning of all important boat docs, USGC docs, licenses, etc that might not be there after we close. He also made a diagram of what all the through hull's were when we had it hauled out. I didn't even realize he was doing that until afterwards when he gave them to me. During survey, he was constantly working. (It was a long couple of days!)
- Found and booked really cool hotel for survey days
- Set up title transfer process
- Provided great detail of every step of the way

I know I'm leaving a lot of stuff out, it's been a very eventful couple of months and my memory is not what it used to be. Regardless, in my mind, it has been completely worth it, and, if I were to buy another, I wouldn't hesitate to hire him again. Anyway, I thought this be of help to others in the process.

I'm sure there are other great brokers out there, didn't mean this to be an ad for Jeff, he's just the only one I have had experience with. Feel free to list others you've had a good experience with.

I have personally used Jeff Merrill as a buyer's broker and as a seller's broker several times over more than a decade, and he's always provided 100% value in my transactions--and much more. He is the most trustworthy broker I know, and he has earned my highest respect.

Whether you're buying or selling a trawler yacht, no matter whether you're a vastly experienced captain or an complete newbie, my experience has shown me that when you work with Jeff he has your back for the whole journey.

I personally believe that Jeff is the most well-informed yacht broker I know when it comes to the Nordhavn and American Tug brands (which is what he helped me with). He's also extremely knowledgeable about virtually every trawler brand and model, and he has hands-on experience with virtually all popular brands and models. He is also scrupulously honest, has a high sense of ethics, and has very strong allegiance to his customers. In fact, he turns customers into friends and he's always there for us.

Yes, he is happy to split commissions with other brokers. He's also very much as home in representing both the buyer and the seller in the same deal, a serious tightrope to walk--be he does it with that knowledge that comes from having been a yacht broker for virtually all his working life.

I've been buying and selling trawler yachts since the late 1980s, and I've dealt with the whole spectrum of yacht brokers, ranging from absolutely terrible to absolutely terrific, with many in the middle. Without question, Jeff Merrill gets my vote as the finest yacht broker I've ever used.

Milt Baker
Former Grand Banks 32, Grand Banks 42, Nordic Tug 34, Nordhavn 47, American Tug 34, and another American Tug 34

 

[Srupp9271]

I have watched some of his YouTube videos, seems like a likable fellow with experience. Did he get a split commission from the selling broker? Did you have to pay him any additional expenses? Just curious, if you’d be willing to share that. Dollar figures not needed.

That's my question too.

 

[Jklotz]

That's my question too.

I paid the negotiated price for the boat. From that, there is a 10% commission. Had I not hired a broker, the entire commission would have gone to the selling broker. Baked into the price. Since I did hire a buyers broker, they split it. Ultimately, of course, I did pay it, but the price would have been the same regardless. My broker did a lot of things I would have not known to do that was in my interest. The transaction went smoothly and I was informed of what was happening every step of the way. As it stands, I'd consider Jeff, the selling broker and the seller a friend, plus I got the boat I wanted at the price I was comfortable with. I am not sure it would have gone that way had I not had somebody in my corner. I'm glad I did.

That being said, I work in real estate and am used to a 6% commission for residential and 3% on commercial (roughly). On a $100k boat, it should probably be higher. On a $1M boat, IMHO, it's a bit excessive IMHO. But that's the industry norm as I understand it. The other downside is once your represented, the level of attention you can expect from sellers and their brokers diminishes. Understandable.

If I had it to do all over again, I'd still do it with Jeff or another respected buyers broker. No regrets.

 

[Jklotz]

20% fee?

No. 10%, split between brokers.

 

[Srupp9271]

I paid the negotiated price for the boat. From that, there is a 10% commission. Had I not hired a broker, the entire commission would have gone to the selling broker. Baked into the price. Since I did hire a buyers broker, they split it. Ultimately, of course, I did pay it, but the price would have been the same regardless. My broker did a lot of things I would have not known to do that was in my interest. The transaction went smoothly and I was informed of what was happening every step of the way. As it stands, I'd consider Jeff, the selling broker and the seller a friend, plus I got the boat I wanted at the price I was comfortable with. I am not sure it would have gone that way had I not had somebody in my corner. I'm glad I did.

That being said, I work in real estate and am used to a 6% commission for residential and 3% on commercial (roughly). On a $100k boat, it should probably be higher. On a $1M boat, IMHO, it's a bit excessive IMHO. But that's the industry norm as I understand it. The other downside is once your represented, the level of attention you can expect from sellers and their brokers diminishes. Understandable.

If I had it to do all over again, I'd still do it with Jeff or another respected buyers broker. No regrets.

Do you also know how the buyers broker gets payed if you buy a boat that's for sale by the owner ?

 

[CharlieO.]

Do you also know how the buyers broker gets payed if you buy a boat that's for sale by the owner ?

I think usually in that case the buyer is paying their broker, except in the rare case a FSBO may list with an offer of 5% (or other percentage) paying to the buyers broker. Most FSBO don't want to pay out a commission that's why they prefer to list it themselves.

 

[Jklotz]

That's my question too.

FWIW, forgot to mention how they are paid - Once you settle with the title company, they settle with the seller, brokers, taxes and registration fees. Until you close, they hold the funds in escrow. You write 2 checks - 1 for a 10% deposit upon offer and one for the balance. My broker covered his own expenses, including flights and hotel for sea trial and survey. That's how it worked in my case, I assume that is the norm in the industry?

 

[richspree]

I'll be happy to join the club. He's not a buyer's broker, he was in fact the seller's broker but he did us well.

Barney Fie at Richard Borland Yachts, Alameda CA.

Barney showed us a few boats and I was quick to point out that I knew nothing about operating vessels of this size, only outboards, 20 feet and less. Don't worry he says, we have Captains.

Then we sat down to talk business. He explained the whole offer-contract buying process with careful detail including the 3 opt-out points, survey, sea trail and re-offer. They he showed us the last recent survey on a deal that didn't go through. All went well and there were no surprises. We did the offer and contract, sea trial and survey went well except for neither head worked when were were expecting only 1 non-op from last survey. No deposit was ever required. Barney helped me load the 2 new heads and get a tech going installing them.

While all this was going on the wife and I got at least 20 hours of training with the captain at no charge. Safety and engine room checks, close maneuvering, docking and anchoring. Which was quite a bit as I didn't even know how to start the engines (or turn them off) when I bought the boat. So in a few months after the deal was closed we got the boat fixed up and cleaned up (bilge was filthy) we got trained enough to be confident in running the boat. I changed the oils, filters and impellers and the new heads were in and operational.

So the wife and I took the 85 mile re-homing cruise to our dock in the Delta and all went well.

Thanks Barney, we couldn't have done it without you -

Solid and how goes it now?

 

[Delta Riverat]

Still going well. Yeah, I've had to replace a lot of stuff like batteries, alternators, battery chargers, regulators and combiners. These things were working when I bought the boat but on their last legs and much was so old as to be defunct. Had a bottom job done last year and the hull is sound. The yard boss liked the boat even as he said "I'm not a trawler guy" The decks are teak but not spongy. The Volvo's have always started in 1 second and the gears are nice and smooth.

I'm a DIY guy so doing all this stuff was mostly parts cost. Not to mention that while you are in all the nooks and crannies doing stuff you find the "what was he thinking" stuff that also needs attention. Still having a great time on our boat, it's an excellent retirement hobby for me -

 

["Someday" Came]

So, I am looking at Nordhavns in the 55 to 60 foot range and will use a buyers broker.

My question is- how much does the brokers location matter relative to the boat?

Seems like most boats I see listed are in S. Florida or Seattle. I have had initial intro calls with a guy I like who knows these boats but he is not located in either of these locales.

Matter?

 

[mvweebles]

If it makes a difference, I'd add SoCal to your S-Florida/Seattle list since that's the importation point for many Nordhavns and ground zero for their brain trust. For example Jeff Merrill, based in Southern California and the broker the OP used, worked as a project manager for PAE for many years before launching JMYS. Clearly he's open to travel to attend the milestones of a sale. On another thread, OP was considering a steel Diesel Duck in the PNW. Judy Waldman out of So Florida specializes in steel trawlers (in addition to having been the broker for this particular trawler, she also has a sistership currently for sale). I'd engage her in a heartbeat regardless of the location.

As long as your broker has the proper experience and understands that the right boat may not be local, shouldn't make a big difference. But those are important differentiators that I'm not sure how to vet properly.

Peter

 

[Jklotz]

So, I am looking at Nordhavns in the 55 to 60 foot range and will use a buyers broker.

My question is- how much does the brokers location matter relative to the boat?

Seems like most boats I see listed are in S. Florida or Seattle. I have had initial intro calls with a guy I like who knows these boats but he is not located in either of these locales.

Matter?

My broker is in CA. I'm in Atlanta, was looking for an east coast boat. In my case, it worked out just fine, although my broker does quite a bit of traveling. I don't know if they all do that. 90% of what is required was done over the phone and email though, and that would have been the same no matter where we were each located.