Brokers Brokers Brokers.need some opinions

[ebisucapt]

So I looked at a boat I was interested in. I had already secured a buyers broker. The broker for this boat first started out with wanting me to put up 10% up front to look at the boat. Of course I said no. I went looked at the boat and was interested in it and wanted to put in an offer. So I had my broker contact them. He was told they have a common broker agreement form they would send him.

In the mean time I was sent an offer agreement. I was reading through it and seen two thingsI didn’t like. 1) The seller broker wanted me to pay $500 closing cost. 2) They would be acting as a seller and buyer broker. This cut out my broker. It didn’t seem right to cut my broker out as he helped me a lot. And no one else wants a closing fee. So an offer did not go in.

Now to be honest I felt the boat was to old to support the price he was asking. So the offer I wanted to put it in was a low ball and did not expect it to be accepted.

But I meet the owners Great couple. My question is since he gave me a business card should I call him and let him know what his broker is doing? I think it is underhanded at best. And should have been so loyal to my broker?

This is a large Florida broker. I don’t think I should mention there name here.

[Keel Scraper]

Make your own deal and present it to the seller broker and the owner. They can counter offer, reject the offer, except the offer or just ignore you. Don’t be afraid to walk away.

[billknny]

Originally Posted by ebisucapt

So I looked at a boat I was interested in. I had already secured a buyers broker. The broker for this boat first started out with wanting me to put up 10% up front to look at the boat. Of course I said no. I went looked at the boat and was interested in it and wanted to put in an offer. So I had my broker contact them. He was told they have a common broker agreement form they would send him.

In the mean time I was sent an offer agreement. I was reading through it and seen two thingsI didn’t like. 1) The seller broker wanted me to pay $500 closing cost. 2) They would be acting as a seller and buyer broker. This cut out my broker. It didn’t seem right to cut my broker out as he helped me a lot. And no one else wants a closing fee. So an offer did not go in.

Now to be honest I felt the boat was to old to support the price he was asking. So the offer I wanted to put it in was a low ball and did not expect it to be accepted.

But I meet the owners Great couple. My question is since he gave me a business card should I call him and let him know what his broker is doing? I think it is underhanded at best. And should have been so loyal to my broker?

This is a large Florida broker. I don’t think I should mention there name here.

Let's see... large Florida broker, who demands 10% down just to look at a boat... Let me guess... the boat you were looking at had more than one hull...

I think that 10% down to show is totally bogus. People need to just say NO to such a thing.

There is nothing wrong with refusing to work with buyer's brokers. You just need to be upfront about it.

I know buyer's brokers are popular on this forum, but I have to say I really don't think they are a useful addition to the process.

[Spindrift NH]

Did your broker see the agreement that was sent to you by the sellers broker?
If not send it to him.

[ebisucapt]

I did send it to him.

[ebisucapt]

I had to fly 14 hours. Drove over a thousand miles up and down the southern east coast from NC to Key West and back. Very disappointing trip over all. Looked at many boats. Not many interested me after looking at them.

[Madehn]

My own experience with a buyers broker was great- he vetted many boats for me before finding "the one" . He was always upfront - made appointments on time, always did exactly what he said he would or more. Eased the process greatly and put a lot of hours in before he made a dime. i am not connected to him in any way other than the purchase of my boat but i would highly recommend him-- Kent Little of Little Yacht Sales in Kemah Tx. His expertise was invaluable and his ethics were impeccable.

[Spindrift NH]

Sorry you didn't find what you were looking for. That's a big trip to look for a boat.



I don't see anything wrong with telling him that you think his broker is shady and that had an influence on your decision not to put in an offer. I've only purchased two boats with brokers involved, neither one required me to pay a closing cost. I certainly would consider that when placing an offer.

[RainDog]

You should let your buyer's broker put in the offer. If you submit an offer directly to the seller's broker, I think he is in the right not wanting to split the commission.

I for sure would contact the owner of the boat and let them know if you think their broker is not representing their interests.

We just finished boat shopping and found most brokers are incompetent. We let several owners know about this during the process. The fact that most brokers are incompetent is one of the best reasons to use a buyers broker.

[sailscubasurf]

In my 35 plus years of sailing and buying/selling boats, my experience has been that brokers are less than useless....

[jb2c]

Buyer's broker can be invaluable. Much depends on your level of knowledge of boats and the buying process.

[boatman1]

I can't help myself: reading the phrase "most yacht brokers are incompetent" tells me more about the poster than about the professionalism of brokers. I think of Keith Yeoman; he's forgotten more about boats (the selling and the sailing of) than most yachtsman have in their knowledge base. And a fine man. Bob Reed; ditto. Alan Hamerstrom; ditto. And etc.
If you haven't something nice to say, perhaps it's best not said. If a broker representing me determines that a 10% fee is necessary to establish the seriousness of a buyers' intention to purchase, so be it. I've never heard of a $500 closing fee: I suppose that there could be transactions in which there's enough aggravation in the paperwork that such a charge would be justified.

[Zoidislander]

I'm in the PNW, and just last month purchased a boat using a buyers broker. I highly recommend Chuck Seaman@ Seattle Yachts. He did an excellent job for me.

[Dogscout]

Whether you think brokers have value or not is the point of the OP's inquiry. He described something that seemed a little bit shady to him and asked our advice regarding contacting the sellers directly.

If it were me, I'd simply make sure that all parties knew what every individual was up to. Simply put everything in the daylight and see who moves next. Place your offer through your broker to the sellers broker and maybe even let the sellers know that you made an offer and thier broker should be contacting them. Don't pay any fees that you think are beyond what is reasonable. The moment you subvert the process is the moment that you set out to hide or harm.

[Palarran]

I'm trying to sell my boat myself and will add my thoughts on it.

It's effin ridiculous how much brokers want to sell a boat - 10%. For what? Most boats are listed on Yachtworld and the buyers narrow down what they are looking for. It's computer time vs actual visiting yards to find a boat.

In the case of Palarran, it's a very thin market given its size, age, and price. A buyer who is looking for a plus 50' cat for under $500,000 that is less than 20 years old has 24 cat's worldwide to choose from. Most can take 10 of those right off the list, which leaves 14 cat's to decide from. Three of those are sister ships, so not much for selection IMO. I've had three inquires in 4 months, so not a great response using boats.com, cruisers forum, and catamaransforsail.com.

After this winter season I'm going to list the boat with a broker, but only with a seller's commission, which is 5%. Again, IMO if you are looking for this type of cat, the buyer will do the research on yachtworld and find it themselves. If they choose to use a buyer broker, they have to pay for them.