Broker questions

[Aeronut2003]

I posted a while back about my plan, but I'll recap here. I've been laid off and I'm selling my house and planning a sailing sabbatical for a few years at least. So the house is going to be sold soon and I'm starting to get more serious about the boat buying process so I have a few questions about buyers brokers.

1. I'm looking at boats anywhere from Maine to south Texas, and I plan to go look at a few in the coming months. How do choose a buyers broker? Do they act as my broker no matter where the boat is purchased? Should I have a broker in every state? If I find a boat in Florida and another in Texas, do I use the same broker to set up viewings?

2. Speaking of viewings, should I get a broker first, then have them set up viewings for me? Or contact the listing broker directly, then if I want to put in an offer go and find a local buyers broker?

3. I currently have a broker sending me listings from pop yachts. He's based in Hawaii, which is not where I'm going to buy a boat. But the listings are everywhere, so am I obligated to use his services? Like if I have him set up a viewing, am I obligated to then use that broker for the purchase?

I guess I need a rundown of the whole process. I understand what the purpose of the broker is and the survey and sea trial process, it's just the listings all over that I'm unsure of how to begin and don't want to come off as the rookie I am. ha ha
Thanks in advance!
-Chris

[AZCoyote]

Interested in the answers and how far you have come in the journey. I am selling a house and looking on the east coast but primarily in FL. I have worked with a broker in CA and asked him about boats in FL. He was helpful, but he was not interested in assisting with either of the boats (Not buying a million dollar boat) and suggested I find a broker in FL. My guess is different states have different rules and most of your "obligation" is just that and depends on the service you will receive. A broker in HI is unlikely to help with finding surveyor or sea trial.

[AZCoyote]

Forgot a question - did you find a broker in FL you liked? I am looking for a buyer's broker there.

[dougweibel]

Are you obligated legally? Not unless you signed a contract with the broker. If you did read it.

Are you obligated morally? If you just have a broker sending you listings on the internet and nothing more then I'd say certainly not.

Will a broker work solely in your interest as a buyer's broker. If you sign a contract with the broker specifying s/he is a buyer's broker working in your interest then yes. In the case where you end up looking at a boat also listed by that same broker then you will generally be asked to amend the contract so that the broker works as a transaction agent representing both buyer and seller.

It can be difficult to work with a broker as a buyer's broker unless you either are only looking at boats in a specific geographic area or are only looking at a specific make of boat. In the first case find a good broker in that area. In the second case find a broker who is an expert for that brand of boat. Look at listings and find a broker who lists a lot of that brand.

If neither of the two apply you are often better off not working with a buyer's broker, unless you are looking at $$$ boats. What exactly would the broker do for you if you are just looking for boats in a certain price range that might be anywhere. You'll get about the service you've been getting - just forwarded listings.

My 2 cents. Others may have different perspectives.

[mvweebles]

I am one of the skeptics that do not believe in the existence of a "Buyers Broker." Commissions are split between selling and listing brokers, with cuts taken for each brokerage office. Some brokers specialize more heavily in finding listings, others in selling inventory. Some with niche brokerages or new boats do both.

OPs budget is a crucial piece of missing information. Yes, it's mostly because a broker doesn't want to waste a bunch of time for a small payday while a newbie buyer decides on basics like center vs aft cockpit, but also because brokers of higher price point boats have experience with longer sales cycles and understand that a buyer needs time. And that today's buyer will be tomorrows seller. Low-cost boats (say, under $100k - mind you, the commission is split up to four ways) is a highly transactional business. At this lower price point, you won't get too many bites of the apple with any single broker.

Personally, I would be as respectful of time as possible - I know travel right now is difficult but it's always easier to view a boat that is at the brokers Docks versus an owners bsckyard. But if possible try to narrow your choice down to a few acceptable models.

Good luck

Peter