Boat Broker - The Hull Truth

bob-mt · 04-10-2007, 11:43 AM

I have found a boat that I would like to buy that is listed with a broker in NJ and I am located in Montana and the boat would be headed to Hawaii. My question is this- should I contact a broker of my own to look after my interest(just as you would in a Real Estate transaction) and would his commission come from the seller or would I be expected to pay on top of that? Does anyone have a broker that they could recommend?
Thanks,
Bob

Dal929 · 04-10-2007, 11:57 AM

I don't think having a broker of your own would afford you any benefit. Instead I think your broker would ultimately cost you more as both he and the sellers broker would split the commision reducing any possibility for a reduction in price as there are more hands in the cookie Jar.

TN FREEBIRD · 04-10-2007, 12:13 PM

If you hire a broker to act as a buyer's agent, his commission would typically be split with the selling broker.

Either way you're on your own as far as transporting the boat.

Straight A's · 04-10-2007, 12:25 PM

You do need your own agent. It shouldn't cost you anything because they spilt the commission.

Yacht brokers have this cute little clause in their contracts that stipulate that they can represent both the seller and the buyer. I don't understand how anyone can properly advocate for both side at once. Especially when they have a vested interest. If you were local to the boat you could better handle the broker, but you're not.

Also, consider the following: Yacht broker, like real-estate brokers, are required to disclose any problems that the boat may have. Would you rather they disclose to another broker or you, as you sit in Montana. There is a certain amount of plausible deniability when disclosing to you.

As far as the purchase price is concerned, the number of brokers should have no effect. The purchase price is based on the current market and vessel condition. What have other boats of that type sold for? What was there condition verses your boat? What is the loan value of the boat? The sellers broker is required to bring him your offer, even if he has to split his commission.

ReelNauti · 04-10-2007, 02:09 PM

Hire a surveyor to represent you if you really want to go forward. You could probably work out a deal for him to at least do a cursory examination of the boat. Based upon his findings you can then arrange to see the boat yourself, get a full survey and seatrial.