[skipmac]

Good question with no easy answer. I was a yacht broker many years ago and saw the business from the inside, and I saw all kinds. First, there are two commissions involved in a sale, the commission for the broker that listed the boat for sale and a commission for the selling broker. These of course can be combined in one sale with one broker.

The core of the potential conflict of interest in a yacht sale comes down to this. There is an obligation to get the best (ie lowest) price for the boat to the buyer and an obligation to get the best (ie highest) price for the sale to the seller, obviously mutually exclusive goals. This conflict is exacerbated if the broker sells a boat that he or she listed but does still exist even if listing and selling brokers are different.

One would think that engaging a buyer's broker might resolve the conflict but as you point out, there are not a lot of repeat customers in the yacht business. However, there is a lot of repeat business with other brokers in the area so there is a motivation to keep good relationships with fellow brokers in the business. Also you have to understand that brokers, like everyone else have their own opinions and prejudices so their recommendations will be colored by their own preferences.

From all this it may sound like the cards are stacked against the buyer but in the real world it comes down to finding the right broker. Just like sailors there are all kinds. I had one boss that told me I should tell a customer anything they wanted to hear (true or not) to close the deal. I didn't work for him for very long. Most brokers however were honest and tried their best to balance the deal for the buyer and seller; finding the right boat and price for the buyer while still insuring a fair return for the seller. However in the end, no sale no commission, so at least in regards to price you can usually assume the broker will do his best to get your offer accepted.

Surveyors bring up similar concerns and conflicts. In Ft Lauderdale one of the largest, big name surveying companies was well known in the trade as a seller's surveyor. The company would not comitt outight fraud and pass a boat with major structural problems but they would not look too closely at the details and the writeup was usually, in my opinion, sugar coated. This company got a lot of business from certain brokers.

So bottom line, again there is no easy answer. Best you can do is research your particular market, talk to other buyers, ask questions about specific brokers on this forum, etc. Then choose a broker and surveyor that will look out for your interests, but still caveat emptor. If you are shopping in the south FL market (my former home) send me a PM and I will be happy to make some specific recommendations.

Skip