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PaintedKite · 09-11-2017, 06:30

What is your experience regarding selling commission charged by brokers for late-model, like-new, mid-size sailing yachts? I've been offered 10%, which is being described to me as "standard". Is that typical? Is it often negotiated downward? Thanks!

Mike OReilly · 09-11-2017, 06:59

Ten percent is standard based on my reading and my limited experience (bought and sold two boats over the years). But that doesn’t mean you can’t try and negotiate it in your favour.

**skipmac** · 09-11-2017, 07:11

10% was the standard when I was a broker in Florida. Very seldom negotiated unless you're talking about really big dollar deals, as in seven figures.

**David M** · 09-11-2017, 07:14

Keep in mind that the higher the percentage, the more incentive they have to get your boat sold.

4arch · 09-11-2017, 08:27

10% is standard and I've rarely seen it negotiated although some brokers may be able to secure their clients reduced pricing for storage/slips/repair work. There are a handful of brokers out there who will take 7 or 8% but with that they're just getting you on Yachtworld and taking calls, not really proactively marketing your boat. Selling a boat is expensive, which is something to think about before buying one.

notiesbob · 09-11-2017, 08:36

That questions falls right into Practical Sailor info received today - https://mail.google.com/mail/u/0/?ta...fa152449ccc514

Greg Mason · 09-11-2017, 08:48

Unless you find the buyer yourself, I think you will find 10% is standard.

Cheechako · 09-11-2017, 08:55

Be aware that if you find a buyer, they still get their 10%, unless you listed the potential buyer at the start.
I assume listing brokers share the commission with an outside brokers if that broker sells the boat. Split? But might be worth asking. More brokers, more audience.
If that is the case, I've always thought that if the owner sells the boat, the listing broker should take only the 50% (?) commission he would if an outside broker sold it. .... and wonder if that could be negotiated.. at the time of listing..?
-Brokers seem to be a lazy lot to me, the problem is any disincentive you give may make them even less likely to go the extra mile to sell your boat over another.
-Pick a broker very near to where your boat is, you want to make it easy for them to actually show the boat. Putting boats in an ad for 50-100% commission is easy,getting out and doing the legwork is not.

Roniszoro · 09-11-2017, 09:01

My experience is that 10% is standard, but there is often a minimum number. e.g 10% of sale price or $5K which ever is more.

Cheechako · 09-11-2017, 09:09

Oh... and also... clarify if the commission is 10% of the asking price or the actual closing price.

Shrew · 09-11-2017, 09:10

Three 3 of the last 4 P&S agreements I entered were for 10%. The one that was less only took 3.5 but is was a 'For Sale by Owner' and you were paying for access to Yachtworld along with passing the escrow through the brokers account.

I've not known this to be negotiable.

Boat sales are less frequent than other sales (like real estate) and they typically sell for far less than real estate. This means that if the percentage were lower, it would really be impacting their bottom line.

I don't begrudge someone the right to make a living.

Mike OReilly · 09-11-2017, 09:23

Personally, I’d avoid using a broker all together if you can. If it really is as you describe PaintedKite: "late-model, like-new, mid-size sailing yachts,” then it shouldn’t be too hard to sell.

Selling does require work, and sometimes it’s definitely worth hiring this service out. But there are a lot of benefits to not having a middle-man in the transaction. One obvious advantage is being able to list the boat cheaper than a brokerage sale since you’re not having to pay for the broker.

tiopirata · 09-11-2017, 09:47

We at Sea Boats charge 5% commission, we are a global brokerage dealing in commercial vessels as well as pleasure yachts. Our associate group, Workboats International is also 5%. Commissions can be negotiated, though that is not common and generally occurs only on very high value vessels.