Hello out there in CF world. I need advice on how to handle a business relationship with a broker. Let me 'splain...
I have decided to buy my first boat and I've been working with a buyer broker. While I've done all the research
to identify boats that appeal to me, he has arranged about a dozen showings and accompanied me on about half of them (some were out of town). I'm happy with the advice he's been offering, especially since this will be my first boat and there are things I would not have considered without his guidance.
Nearly all the boats I've been considering are listed on yachtworld and are offered for sale
through (selling) brokers. No problem there, as I understand the seller is responsible for the commission and the selling and buyer brokers typically split it 50/50. However, some boats I'm considering are for sale
privately by owners and I don't know the proper protocol for seeing to it that the broker gets paid for his services in that scenario. I would not expect the seller to pay the broker a commission so I'm thinking I would be expected to compensate my buyer broker. So it comes down to this: how much would be right/fair to pay the broker? I would ask him to assist me all the way through the transaction if I purchase
a FSBO boat. Since he would under most other circumstances get about 5% of the purchase price
, should I expect to pay him that much out of my own pocket? Would a flat fee (slightly less than 5%) be proper and under what circumstances?
I intend to do the right thing and make sure this guy gets paid for all the guidance he has given and the transaction assistance I expect him to provide. It's really a question of how much is right/fair. Thanks for your advice on this, and if you are a broker please indicate so in your reply.