Buyers Etiquette

[Blue Claw]

Good day everyone, I am getting started in the process of looking for a cruising sailboat. The question I have is, would it be considered rude or improper to schedule and look at a boat listed by a broker if I plan on using my own buyers broker if a offer were to proceed . As opposed to getting a buyers broker before contacting the sellers agent . My daughter just bought a yacht and the sellers broker was rather mad that she looked at the boat twice before she got a broker to advocate on her behalf . I've bought and sold enough houses to know the sellers agent has the sellers interest in mind not mine. I don't know why he got so mad, maybe because it cuts his commission in half? As the buyer, a broker is free of charge to me, they get half of the commission paid by the seller. seems like a no brainer I would want someone looking out for my interests.

[Lake-Effect]

Originally Posted by Blue Claw

Good day everyone, I am getting started in the process of looking for a cruising sailboat. The question I have is, would it be considered rude or improper to schedule and look at a boat listed by a broker if I plan on using my own buyers broker if a offer were to proceed . As opposed to getting a buyers broker before contacting the sellers agent . My daughter just bought a yacht and the sellers broker was rather mad that she looked at the boat twice before she got a broker to advocate on her behalf . I've bought and sold enough houses to know the sellers agent has the sellers interest in mind not mine. I don't know why he got so mad, maybe because it cuts his commission in half? As the buyer, a broker is free of charge to me, they get half of the commission paid by the seller. seems like a no brainer I would want someone looking out for my interests.

I know in real estate that the selling and buying agents share commission, but is it that cut and dried in boats?

From an etiquette perspective, I suppose you could give the listing broker a heads-up about wanting to use your own broker.

Anyway, I'm just wondering what advantage you'd get from having a buyer's broker, if you've been doing all the finding and looking yourself? I would instead continue to be my own agent and use that to push the selling broker for the lowest price.

[Spindrift NH]

What incentive does a buyers broker have to get you the lowest price? The lower the price, the lower his commission too.

[Blue Claw]

My primary reasons for the buyers broker would be navigating the closing process, and helping to find an honest surveyor. As well as knowing overall the value of boats better than I. The buyers agents motivation would be, If I dont buy the boat he makes no money.

[Shrew]

Your daughter viewed a boat twice. At that point 100% of the work was done by the selling broker. She then showed up with a buying broker, whom with the selling broker is now being asked to split his commission.

The proper way to handle that would have been to have the buying broker reach out to the selling broker to initiate the process.

A buyers broker is there to do the initial legwork and FIND the boat that meets your criteria. The buying broker will even look at boats in an effort to bring to you a short list of the boats that meet your criteria. They can then handle the negotiation process with the selling broker.

If you feel capable of finding a boat on your own, then there is no for buying broker. There is no need to 'navigate' the closing process on your part. Not much of a need for a buying broker to arrange a surveyor. (You might not find a boat in the same geographic area as the buying broker).

[Blue Claw]

If my daughter had the buyers agent in place from the start wouldn't the sellers agent have needed to be there for both viewings anyway ? If so, he did no additional work. As for not needing someone with knowledge to help with paperwork it was a rather complex process. It was a documented vessel though.In my mind it seems to make more sense to find a boat I like, then get a broker local to the boat. Look at the boat once then get a buyers agent.

[john61ct]

But if that usual, mainstream methodology doesn't suit you, create your own arrangements.

As long as you're honest, and don't expect everyone to go along with your idiosyncrasies. . .

I want to do a lot if searching myself, and would not want my broker involved in the boats I find, unless I run into a specific situation I don't feel confident handling by myself.

Likewise, for the boats she finds for me, I would let them take the lead not get myself stuck in the middle.

However in both cases I would def want to select and manage the surveyor(s) myself ensure all possible important weaknesses made explicit.

[Paul L]

If you want to use your own buyers broker, then they should make the first contact with the selling broker. The two of them can work out the details of who will show you the boat. It is not appropriate to bring in a second broker once you've seen the boat with the selling broker.

As far as getting a good surveyor. Brokers, buying or selling, don't recommend surveyors who they think regularly sink deals. You are better off choosing your own surveyor.

[Tillsbury]

Agreed. I would use a buyer’s broker to find a boat. I haven’t, but I’ve done that with expensive cars.

I would find a good surveyor with good references to give me real advice on value and cost of repairs.

I would go to the vendor’s broker to do the deal, citing what my surveyor said if I want to negotiate price.

Then everyone knows what is going on, and who is working for whom.

[Blue Claw]

Thank you for all the input. So if I find a reputable buyers broker,say in Annapolis not too far and I would imagine plentiful. Would that same broker represent me if I found a boat not close by? scheduling with seller etc... . Sounds like I should find my own surveyor no matter what.

[jdtcanuck]

I recently purchased a boat using a buyers broker from the start of the search. The initial stage of my search was to identify potential buyers brokers and interview them to chose one who could meet my needs. The overall experience showed me both the advantages and disadvantages of using a buyers broker.

For disadvantages, I found that some selling brokers did everything in their power to try to not have to split the commission. This included the selling broker not forwarding offers to the seller, refusing to schedule viewing appointments or not showing up for scheduled appointments and attempting to convince sellers to not accept an offer. I found these tactics to be very frustrating and unethical.

When I did finally find the boat I purchased, my broker did recommend several surveyors. I did my own search for a surveyor and ended up deciding on one who independently but who happened to be on the brokers list as well. The surveyor was excellent.

For Advantages, my buyers broker visited boats very distant to me and used Facetime so I could also view and ask questions while listening to his impressions. He was very helpful in renegotiating a price reduction after the survey showed more work was required than expected prior to the survey. He also has been helpful to navigate a complicated closing since the buyer and seller are different nationalities and the boat is located in yet another country.

At the end of the process, I was very happy to have used a buyers broker.

Blue Claw, PM me if you would like to discuss over the phone.

[GreenWave]

Originally Posted by Lake-Effect

I know in real estate that the selling and buying agents share commission, but is it that cut and dried in boats?

From an etiquette perspective, I suppose you could give the listing broker a heads-up about wanting to use your own broker.

Anyway, I'm just wondering what advantage you'd get from having a buyer's broker, if you've been doing all the finding and looking yourself? I would instead continue to be my own agent and use that to push the selling broker for the lowest price.

Many listing brokers will not work through a Buyer's broker if you had already made contact with them directly. Ultimately, the listing broker will let you know if there is an issue.

[CarlF]

If you have enough money to buy a boat and want to make an offer today, no seller’s broker cares about etiquette.

If you ever suspect that a seller’s broker didn’t forward your offer, just get the address of the owner off the CG documentation database or from the boatyard and mail him a copy. He’ll work it out with the broker - likely by firing him.

And while brokers prefer to keep the whole commission, that’s a “high class” problem when your job is selling used cruising sailboats - where qualified buyers are few and far between. Any commission is a win and a paycheck that week.

So ignore the sputtering and hand-waving. Bring the buyer’s broker in anytime you like (just don’t sign anything before you do - or lie)

Since this is your first rodeo, you might be surprised that buyer and seller brokers often have private conversations about what “it will take” to get a deal done. Don’t tell your buyer’s agent anything that you don't want the seller’s agent to find out (like how high you might go on price).

But as long as you aren’t too trusting or pretend he’s your friend, a buyer’s broker can be a real help locating good boats and helping with the logistics of the purchase.

If you can afford it, hiring a boat buying consultant who you pay by the hour will get you the best advice. But few do that for obvious reasons.

[Blue Claw]

Originally Posted by CarlF

If you have enough money to buy a boat and want to make an offer today, no seller’s broker cares about etiquette.

If you ever suspect that a seller’s broker didn’t forward your offer, just get the address of the owner off the CG documentation database or from the boatyard and mail him a copy. He’ll work it out with the broker - likely by firing him.

And while brokers prefer to keep the whole commission, that’s a “high class” problem when your job is selling used cruising sailboats - where qualified buyers are few and far between. Any commission is a win and a paycheck that week.

So ignore the sputtering and hand-waving. Bring the buyer’s broker in anytime you like (just don’t sign anything before you do - or lie)

Since this is your first rodeo, you might be surprised that buyer and seller brokers often have private conversations about what “it will take” to get a deal done. Don’t tell your buyer’s agent anything that you don't want the seller’s agent to find out (like how high you might go on price).

But as long as you aren’t too trusting or pretend he’s your friend, a buyer’s broker can be a real help locating good boats and helping with the logistics of the purchase.

If you can afford it, hiring a boat buying consultant who you pay by the hour will get you the best advice. But few do that for obvious reasons.

I think I have decided the way I will approach this will be to schedule a first look with sellers agent. If I decide to put in an offer it will be through a buyers broker. In my opinion thats not asking too much from sellers broker.

[sailorboy1]

There may a commission split issue with looking a boat without your buyers agent and later calling one in.

But if you are going to use a buyers agent why wouldn't you always use them. They are going to make money, made them do something for you. Buyers agents should be able to get you info that the seller agent weren't tell you up front lots of times.