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Old 05-10-2018, 19:48   #1
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Going around a broker

So finally looking for our big boat for extended cruising with my family, found one for close to the right price in the right part of the world with the majority of the features we want. We went to look at it and met the owner prior to the broker showing up talked with him for awhile and gleaned much more info than the broker could provide once we were looking the broker rushed us off the boat after about an hour he was quite pushy actually...

Due to the nature of what we are looking for our market is much smaller than typical. Some features are

-Metal hull, either steel or aluminum with no wood decking
-Pilothouse with dual helm stations
-55-65 feet

We made an offer the broker brought us a counter back, we countered again. Not to sure if we will get much closer, the amount we are apart is roughly equal to the brokers commission.

I am considering approaching the owner about dealing without a broker as we could both benefit from this. I have done this with real estate with good success in the past so don't see why it would not work here. Is there some sort of etiquette here??
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Old 05-10-2018, 19:55   #2
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Re: Going around a broker

Only that the owner is bound by contract to pay the brokers fee anyway.
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Old 05-10-2018, 20:00   #3
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Re: Going around a broker

Etiquette?

I think that's spelled e-t-h-i-c-s
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Old 05-10-2018, 20:01   #4
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Re: Going around a broker

I think you know the answer to this … not sure if etiquette is the right term. I’d call it dubious, perhaps unethical, to do what you suggest. Unless you have actual evidence the broker is behaving dishonestly or unethically, then taking the action you suggest seems to put you in this category.

It’s also likely the seller has signed a contract with the broker which obligates him/her to work through this person.

If the seller were to approach you directly with a counter, it might be reasonable to proceed without the broker. But this would raise red flags for me as the buyer. If the seller is willing to ignore a contract or renege on an agreement with the broker (i.e. lie to this person), then what else might this person be willing to lie about?
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Old 05-10-2018, 20:34   #5
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Re: Going around a broker

This is what I thought. Even though I have had good experiences with doing it with regard to real estate transactions (we know some cool re agents) I was unsure how the boat market handles it

That said in my dealings over the years the industries with low amounts of "ethics" or morals are always salesy types, insurance, etc. So I don't mind playing the same way they tend to which places finances and the amount of money in pocket before anything else...
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Old 05-10-2018, 20:58   #6
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Re: Going around a broker

We recently sold a boat. Prior to listing the vessel, I had several potential buyers.
I named them to the broker and he agreed that if any of them purchased the boat, he would not get a commission.
I undertook that after he had listed the boat, any new contacts, from wherever , had to go through him.
In the end, he sold the boat, and earned his commission.
I am a firm believer that if you cheat someone, in the end it bites you on the bum!


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Old 05-10-2018, 23:16   #7
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Re: Going around a broker

In my real estate days we called this move the commissiondectomy. And it’s a thoroughly scumbag move.
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Old 06-10-2018, 00:32   #8
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Re: Going around a broker

Morals, values and ethics. You either have them or you don't.
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Old 06-10-2018, 02:09   #9
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Re: Going around a broker

No, lots of grey areas in modern life and no one is perfect.

Learning to listen to your conscience can be an ongoing process, gets clearer / stronger as you let it guide you.

What goes around comes back around so well worth doing, keep practicing.
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Old 06-10-2018, 04:33   #10
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Re: Going around a broker

Quote:
Originally Posted by stainless guy View Post
That said in my dealings over the years the industries with low amounts of "ethics" or morals are always salesy types, insurance, etc. So I don't mind playing the same way they tend to which places finances and the amount of money in pocket before anything else...
Dear lord. Talk about stereotyping. Just because you met some louts in a few industries is not an excuse for being unethical. Be part of the solution, not part of the problem.

And you appear to be rationalizing that because the broker was "pushy" it might be OK to stiff him. If everyone who was pushy in business got treated that way the unemployment rate would be stratospheric.
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Old 06-10-2018, 05:02   #11
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Going around a broker

I sold a boat. I had it listed with a contract with the broker. The buyer and I decided the broker was getting in the way of the negotiation, not helping.
The buyer and i came to terms. I took the terms to the stunned broker, he did the paperwork and I paid him his commission.
Perhaps I could have negotiated the commission down but...
He listed the boat.
He found the buyer
He handled all but the end of the negotiation.

Simple.
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Old 06-10-2018, 08:22   #12
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Re: Going around a broker

I will probably just try to negotiate the brokers commission to get the deal closer,
either that or step back and wait for the asking price to drop as the vessel likely will not be a quick sale hi
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Old 06-10-2018, 08:48   #13
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Re: Going around a broker

I don't know how it is in Canada, but if you'd signed a brokerage contract in America and then "went around the broker," you'd have a lawsuit on your hands FROM the broker, and rightly so.
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Old 06-10-2018, 08:54   #14
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Re: Going around a broker

Quote:
Originally Posted by stainless guy View Post
I will probably just try to negotiate the brokers commission to get the deal closer,
either that or step back and wait for the asking price to drop as the vessel likely will not be a quick sale hi
The broker’s commission is not something you pay for. It is paid for by the seller, because this person is the seller’s broker. If you’re talking about a buyer’s broker — your broker — then you can certainly do this.

I suppose you can suggest the broker take less, but he/she is not working for you. They are working for the seller.
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Old 06-10-2018, 08:54   #15
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Re: Going around a broker

As everyone else said doing this would be, to put it politely, morally questionable.

It would also violate the contract between the seller and the broker and would certainly expose the seller to a lawsuit that would be a shoe in to succeed.'

Unless the broker does something illegal or in violation of the contract the seller is obligated by the contract. There might be some room if the broker was extremely negligent in performing his/her duties but that is the only gray area I can see.
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