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Old 24-11-2015, 06:50   #1
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Broker Question - List Boat with Right of First Refusal?

I have a friend that may need to list his boat soon. He wants to sell it to me, but we are not quite ready, as we have to sell our house first. Could he list the boat with a broker, and give me a Right of First Refusal to match the price and then pay no broker commission? Or would he end up paying the broker regardless even if I end up buying it?

My friend is paying for dry storage waiting around for our house to sell, and I am just looking for options for him.

I guess he could always post on Cruiser's Forum as a For Sale By Owner first, if he was in a pickle and really needed to sell.

My wife is a Realtor and she was going to end up with such a listing, and estate sale, where the one son could buy if he matched the offer, but the listing ended up falling thru. Guess I could call a few brokers and ask also.

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Old 24-11-2015, 07:06   #2
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Re: Broker Question - List Boat with Right of First Refusal?

YES

Just have him tell the broker thats how he want to do it. He owns the boat, he dictates the terms of the listing agreement.

IMO no reputable broker will have an issue with this if it is one excemption, multiple, well yes.

As a realtor , if your wife would consider it reasonable, then I would say its reasonable.

LD
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Old 24-11-2015, 07:21   #3
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Re: Broker Question - List Boat with Right of First Refusal?

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YES

As a realtor , if your wife would consider it reasonable, then I would say its reasonable.

LD
Thanks for the reply.

I should have mentioned, our family went thru a similar thing when my grandfather died with his property, so that is the #1 reason my wife considered it. I have no idea if that is normal for Realtors either.

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Old 24-11-2015, 07:48   #4
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Re: Broker Question - List Boat with Right of First Refusal?

Assuming that you know the boat well, and your serious about buying it, why not offer to pay the storage fees as a down payment on the boat? Kinda like a lease to own on a real estate transaction.
Just an idea, good luck!
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Old 24-11-2015, 09:14   #5
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Re: Broker Question - List Boat with Right of First Refusal?

I have written listing agreements with an exclusion several times. Usually the seller has a friend who he knows is going to buy the boat as soon as this, this, or that happens. So far, I've never had to honor it because the friend never came through. But, maybe it will work out for you.

Good Luck to you and the seller.
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Old 24-11-2015, 09:46   #6
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Re: Broker Question - List Boat with Right of First Refusal?

If he is just tired of paying the storage how would it work you picking up the storage till your house sells. Although it might fill the adage of how to lose a friend.
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Old 24-11-2015, 10:25   #7
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Re: Broker Question - List Boat with Right of First Refusal?

Don't pay the storage fees. Just add a clause to the agreement that the commission will be halved if you buy the boat since the owner is supplying the buyer (you). Since the broker would usually share the commission with a buyers broker, he'll probably agree to this.
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Old 24-11-2015, 11:05   #8
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Re: Broker Question - List Boat with Right of First Refusal?

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Originally Posted by FollowingCs View Post
I have a friend that may need to list his boat soon. He wants to sell it to me, but we are not quite ready, as we have to sell our house first. Could he list the boat with a broker, and give me a Right of First Refusal to match the price and then pay no broker commission? Or would he end up paying the broker regardless even if I end up buying it?

My friend is paying for dry storage waiting around for our house to sell, and I am just looking for options for him.

I guess he could always post on Cruiser's Forum as a For Sale By Owner first, if he was in a pickle and really needed to sell.

My wife is a Realtor and she was going to end up with such a listing, and estate sale, where the one son could buy if he matched the offer, but the listing ended up falling thru. Guess I could call a few brokers and ask also.

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After reading proposals including my own. Your best bet is just let your friend list it. First right of refusal doesn't sound like he is doing you or himself any real favors since it seems dependent on your house sale. Just muddying the waters. Listings have a time period, if it hadn't sold after that and you have sold your house, great. If not find another boat. Or second mortgage the house if he is giving you a real deal.?
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Old 24-11-2015, 11:55   #9
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Re: Broker Question - List Boat with Right of First Refusal?

Obviously a lot depends on the quality and value of the boat.

Also, a broker would not be "less than reputable" as has been stated if he did not want the listing because of the exclusion. Brokers incur expenses and have overhead so not all are going to be willing to potentially have wasted their time and money on a listing with an exclusion. OTOH they might take the listing on an "open" basis but not provide the level of marketing that they would normally do. Would that be in your friends best interest?

However, there are many kinds of brokers so there will always be someone who will do it. Maybe these are the kind that many end up complaining about?
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Old 24-11-2015, 12:21   #10
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Re: Broker Question - List Boat with Right of First Refusal?

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Originally Posted by wunderluster View Post
I have written listing agreements with an exclusion several times. Usually the seller has a friend who he knows is going to buy the boat as soon as this, this, or that happens. So far, I've never had to honor it because the friend never came through. But, maybe it will work out for you.

Good Luck to you and the seller.
Thanks. We are along shot as well. I hope it works out also, but I have to sell a house, get the last kid in to college, make sure my job is okay working from the boat or find a new one, etc. etc. Lot's to do to make it happen.

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Old 24-11-2015, 12:28   #11
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Re: Broker Question - List Boat with Right of First Refusal?

If I were absolutely sure that I was going to buy the boat as soon as my house sold I would ask my friend if he would be okay with me giving him a reasonable deposit and paying his storage costs until my house sold and I could complete the transaction.
Seems like a win/win proposal.
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Old 24-11-2015, 12:36   #12
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Re: Broker Question - List Boat with Right of First Refusal?

My opinion is that it is unreasonable to ask a broker to try to sell your boat while your buddy might sell to you and pay no commission. Your buddy needs to either commit to a broker including the commission or try to sell it himself until your house sells or he tires of waiting. It is just not right expect a broker to work for nothing and I think any broker who accepts this contingency listing is a bad businessman.
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Old 24-11-2015, 12:43   #13
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Re: Broker Question - List Boat with Right of First Refusal?

yes, he can name potential buyers he wont pay commission on. I wouldn't feel bad about the broker, many brokers are not very on top of things, and don't put much effort into selling a boat at all. Some will. They know the risks.
Be aware most people think their boat is worth more than it will actually sell for. Disregard what boats are listed for. It often takes a seller a year to come to reality.
This can be the downside to buying a friends boat.
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Old 24-11-2015, 12:53   #14
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Re: Broker Question - List Boat with Right of First Refusal?

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Originally Posted by Dave22q View Post
My opinion is that it is unreasonable to ask a broker to try to sell your boat while your buddy might sell to you and pay no commission. Your buddy needs to either commit to a broker including the commission or try to sell it himself until your house sells or he tires of waiting. It is just not right expect a broker to work for nothing and I think any broker who accepts this contingency listing is a bad businessman.
During the years that I worked as a Yacht Broker I accepted many open listings. I also sold numerous boats that were open listed with other brokerage houses as well as co-oped plenty of deals with other brokers.
My philosophy of business allowed me to work in an effort to find "the right boat" for the buyer and help them get what they really wanted rather than try to persuaded them to buy something that wasn't the best fit simply because I had the exclusive listing.
I think that most brokers would agree that splitting a deal and making 5% instead of 10% is still better than making 0%.
Also I will say that it is often the case in that business that people do a lot of work for nothing. Not every exclusive listing ends up selling. Sometimes they expire and the boat goes away after months of effort. It is just the nature of the biz.
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Old 24-11-2015, 13:04   #15
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Re: Broker Question - List Boat with Right of First Refusal?

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Originally Posted by Dave22q View Post
My opinion is that it is unreasonable to ask a broker to try to sell your boat while your buddy might sell to you and pay no commission. Your buddy needs to either commit to a broker including the commission or try to sell it himself until your house sells or he tires of waiting. It is just not right expect a broker to work for nothing and I think any broker who accepts this contingency listing is a bad businessman.
It has been many years since I was a licensed broker (20) but I seem to recall a third category of listing in addition to exclusive listing and open listing and that is what was called an agency listing. Under the terms of an agency listing the brokerage house has the exclusive in that no other brokerage houses can also list but the registered owner of the vessel retains the right to personally sell the listed boat without owing the agency listing broker a commission.
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