Buying a boat // Questions about Brokers and Insurance

[goboatingnow]

Originally Posted by flightlead404

I don't understand this comment. If the brokers commish is based on the purchase price (it is, for boats and houses) no broker is working for you. They are incentivized to keep the price high.

Actually they are “ incentivised “ to find a sale not necessarily a high price. Because some commission is always better then no commission. I’ve seen brokers argue selling clients down in price.

[goboatingnow]

Originally Posted by k_21_au

Hi all,



As I commented on boatsisboats other thread I only found this forum about 2 weeks back



I happened to see a YouTube with a 'live a board' yacht and let's say saw the appeal. (After which reading much of the references available)



I haven't bought a yacht in my life..... yet but have 'flipped' a few houses in my life. In any case I think we complicate these thing more than needed. In that a Yacht deal is like a house deal or a car deal.



Seller lists a price (which is high), Buyer has a price in mind (which is lower) & then there is market price. Of course there are brokers in the middle that want to make $$'s.



I say if you are not 'attached' to the Yacht (car, house) make a reasonable offer (at the lower end of course). Then it's a matter of negotiating a fair middle ground.



If not guess what you walk away.



Pretty simple in my mind.



My 2cents.



Enjoying all the information on these threads.



Devante.

It’s not that simple , supply and demand play a part in setting the price as does both seller and buyer fatigue.

At the moment the market is getting close to asking price ( around here houses are getting over asking price )

So it all depends. If you do your research , you’ll quickly build enough knowledge to estimate where the actual price of the boat your looking at is roundabout , go in a little under that. Don’t lowball the offer

[boatsisboats]

@flightlead404

Good question and a simple answer from our point of view.

If you have ever attempted a decent size transaction yourself, you quickly realize that an agent has all of the tools to correctly and efficiently bring a deal to close. This is a good idea unless you want to use LegalZoom for your contracts and hope that you are doing it right.
The assumption is that your broker has the ethics to do the right thing for you (their client) and THEY HAVE A FIDUCIARY RESPONSIBILITY to do so. If they are seen to slam a deal through and just keep the price high for their own good, they are very open to being sued.
If you have a decent relationship with your broker (land or sea), and you see how they answer questions while looking into issues, you will know if they care about you.

In the end, the buyer agrees to a price and the buyer can ask for any credits they deem necessary regardless what the broker advises. Whether the seller accepts the price and possible reduced price is a different issue.

Hope that helps clarify my position. If they are not (in your opinion) appearing to work for you, get a new broker if contractually allowable.