Originally Posted by Capt Phil
Not much, Jamel. A 10% commission is normal but can be negotiated down with some brokers. You can try contacting the seller directly but many listing agreements included a 'small print' clause that a commission is due the broker for a period of time after the listing agreement expires. So the golden handcuffs to the broker can remain even after the listing period is over.
You and the seller need to be prepared to prove that you had no knowledge of the boat being listed previously. If you have even read a newspaper that the broker advertised in, the seller may be on the hook to pay the broker his commission even though he hasn't lifted a finger to earn it.
Many times the seller will just pay the commission to avoid being sued by the broker. Not a great process by any means... Capt Phil
In a free country you can choose to sell the boat yourself or use a broker. Similarly when purchasing
you can do all the ferreting around to locate the seller and arrange to see the boat when it suits each seller or you can use a broker. I have had a good broker experience in selling my last boat. I am glad that I didn't have to:
1. Field all the calls from dreamers with no money
2. Take the ones who did have the money out to the boat and listen while they ridiculed my nice little boat and then insult me with a low ball offer.
3. Take liars who had no intention of buying
the boat for a free test sail.
My broker put in many hours for free for "buyers" who wouldn't listen. This is just one of the many "buyers" that inspected my boat.
1. We told the bloke that the boat had some Osmosis
and showed him photos of the affected areas and he conceded that it was not structural and yes the boat was fine.
2. The bloke decides to go ahead with the survey
3. The broker takes his dingy over and picks up my boat 2 miles away and brings it over to the marina for the survey
inspects boat & informs the buyer it has osmosis
. As the surveyor
wants to justify his $800 fee he paints a very black picture of the minimal osmosis and scares the "buyer" off, all the while telling the "buyer" how fortunate it was that he hired such a competent surveyor who has saved him from disaster.
5. Broker has to deliver my boat back to the mooring
6. The so called buyer now argues with the broker that someone else other than him should be paying the surveyor's fee and the marina haul out
costs because the boat is such a dog.
As the broker is on commission, he gets paid nothing for his effort. Who would be a broker? And yes they actually want money for it because they have to pay for the office rent, feed their wife and kids
and hopefully make a small profit.
My broker was worth every cent that I paid him.