Broker Costs

[lindabarzini]

I am on some lists of boat brokers and I see the same boats in several places.

Is it a good idea to use a broker so they can make sure everything is in order? Also, if they quote a price for a boat, is that the "out the door" price or is there an additional commission?

How much do brokers charge on average?

[Lizzy Belle]

Originally Posted by lindabarzini

Is it a good idea to use a broker so they can make sure everything is in order?

I am not sure what you mean by "everything is in order" - the broker sells the boat for the owner, but he doesn't do a 'survey' (for lack of a better word) or suggests what needs to be done (generally speaking). Any maintenance or paperwork to be found etc. is up to the owner; including, usually, telling the broker what exactly is still on the to-do list, and not the other way around.

Originally Posted by lindabarzini

is that the "out the door" price or is there an additional commission?

It's the asking price, you can make an offer. Whatever % the seller has to pay the broker is between seller & broker (tho the seller will keep it in mind when negotiating with you ).

Edit: unless you have a buyers broker, I keep forgetting that's much more common in the US. In that case, the broker works for you, finds boats for you to look at and you pay a fee for that. The survey etc. are still fully your responsibility tho.

[denverd0n]

Originally Posted by Lizzy Belle

Edit: unless you have a buyers broker, I keep forgetting that's much more common in the US. In that case, the broker works for you, finds boats for you to look at and you pay a fee for that. The survey etc. are still fully your responsibility tho.

Well, it depends. You can hire a fee-based buyer's broker, or you can work with a broker who will split the commission with the seller's broker, and then you don't actually pay your broker anything. In the latter case, who the buyer's broker really works for depends on state laws.

In some states, because both brokers are being paid by the seller, their "fiduciary duty" is to the seller, and only the seller. In some states the laws are that, even though the seller is paying, the buyer's broker has a legal duty to represent the best interests of the buyer. So you need to know local law.

The real bottom line, though, is that brokers are working for themselves. They want to get a commission. So they have a vested interest in finding a way to get a deal done as quickly as possible. Even with a fee-based buyer's broker, the quicker he can get you into a boat, the quicker he can move on to the next buyer. That's always a good thing to keep in mind.

[JPA Cate]

Denverd0n makes an interesting point, for sometimes a broker will accept a lesser commission if s/he can move the boat sooner.

Ann