Brokers . . . Obligated to submit all offers to client? - The Hull Truth

auguste · 01-28-2009, 04:54 AM

Wondering

I was in contact with a broker in Florida and asked him if his client would accept $x for a boat. The broker said that they will not tell their clients of any offer that is not at least 80% of the asking price, and that he would not accept any formal offer either, even if I included a conditional deposit/cheque with the offer.

Real estate agents are required (around where I live) to place all offers to the owner of a house. Are brokers required to do the same?

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Afishinado · 01-28-2009, 04:57 AM

Dunno (but I doubt it Auguste), I broker some of my cranes, and I submit every offer, no matter how small... Just so my minimum fee is in it, why not?

thomas70 · 01-28-2009, 05:01 AM

Maybe the owner has already turned down offers that were not 80% of the asking. I know we are getting people offering half of what we are asking for some of our boats, and the owners are getting mad at us when we show them the offers.

LI32 · 01-28-2009, 05:14 AM

If the owner left instructions - "don't present me with any offers less than $x", the broker need only follow those instructions. If you don't think it is worth x%(80% or whatever) of asking price, then move on. Simple fact is the broker doesn't want to waste his time either - many sellers just aren't in a rush to sell and won't give away the boat, because if they have been arount 20 or 25 years, they know with the low volume of new boats being sold, used boat prices will come back in 2-3 years, and they can afford to wait it out. I have noticed a lot of good quality, low priced, mid-size (28-40') used boats have moved in the last two months, so many feel anyone who had to sell put their boats on the market - the inventory may not go up much further.

auguste · 01-28-2009, 05:26 AM

Thanks guys

I was just wondering if there was a regulatory or other requirement for them to "formal offers" to the owners

Thanks

MONSTAWHALA · 01-28-2009, 05:47 AM

I would ask the broker if he is not presenting because it is the owners wishes to not be presented with lower offers. If it is the criteria set by the owner , its one thing..........However , if its the criteria set by the broker , its another.

I would find that out, because if its the broker being stubborn , then I would find the owner via the registration numbers, and present it to him directly. While I dont advocate going around a broker, there are times when it may be necessary.........

itwonder · 01-28-2009, 06:09 AM

Provided you don't care about po'ing the broker, you can go to http://publicrecords.onlinesearches.com/cgi/vessels.php and look up the owner to contact directly. It's possible the boat may be owned by a LLC, or is in an estate, or bank owned, and those could be a dead end. But I've found in the past that if you have to work to hard to make a deal, it's probably a bad deal.

prockvoan · 01-28-2009, 06:10 AM

Here in Louisiana,the Broker doesn't have to tell any low ball offers to the seller,but if I were the seller,I would want to know what the market is doing in my area.

RI Builder · 01-28-2009, 07:11 AM

Quote:

auguste - 1/28/2009 6:54 AM

Wondering

I was in contact with a broker in Florida and asked him if his client would accept $x for a boat. The broker said that they will not tell their clients of any offer that is not at least 80% of the asking price, and that he would not accept any formal offer either, even if I included a conditional deposit/cheque with the offer.

Real estate agents are required (around where I live) to place all offers to the owner of a house. Are brokers required to do the same?

.

Auguste:

I do not know the answer for sure, but I do know that Florida boat brokers have to be licensed, which means they are regulated. Here is a link, that may help. You could contact them and ask if the offer has to be presented.

http://www.myflorida.com/dbpr/lsc/YachtandShip.html

jbryzek · 01-28-2009, 07:19 AM

brokers are not obligated to bring all offers to the owner. When people sign up with a broker they usually tell that broker the lowest they will go on the boat. If you are calling or emailing the owner everyday presenting low ball offers usually the broker would get shit canned and they would list with somebody that might have a higher end base of clients. (might not work but they think so) Also florida brokers are regulated but only on boats over 32 feet and they cant regulate if you take an offer to an owner or not. Thats up to the brokerage house. If you are throwing out low ball offers it never hurts to try but you are better off trying to get the owners directly.

I just had one this morning where the guy took 8k off a 22k asking price as an offer and then was pissed I did not bring his verbal offer to the owner. We have already shot down 18k and 19k this week so why would I waste all of our time and get the hopes of the buyer and seller up. for a 14k offer. Just my two cents but as you said it never hurts to try.

JAGSARE1 · 01-28-2009, 07:29 AM

Quote:

jbryzek - 1/28/2009 9:19 AM

why would I waste all of our time and get the hopes of the buyer and seller up. for a 14k offer. Just my two cents but as you said it never hurts to try.

The reason you "waste your time" is because things change all the time. Over all the years I have been a boat owner(and invariably a buyer and a seller), I have seen sellers refuse a certain number only to accept a lower number down the line. As a commission sales rep, you are never "wasting your time" presenting offers. This is one of the aspects of boat brokerage that earns the poor reputation. Seller says don't bring me an offer under $100K...economy goes to $hit, seller falls into dire financial circumstances and will take any offer and is wondering why he is getting no offers? Broker is following the direction of the seller and doesn't bother to check in to see if the situation has changed. There are tons of reasons why a broker SHOULD check in frequently with a seller but won't waste the effort.

IMO, the best thing a broker could do is to call the seller and say, "sir, I got an offer well below your minimum, are you interested in hearing it or is the situation the same as before?" Gives the opportunity for lines of communication to remain open. What you hear alot from sellers is...gave the broker the listing and never heard from him again...

auguste · 01-28-2009, 07:44 AM

All great comments, and I appreciate the insight you have provided

THANKS everyone

jbryzek · 01-28-2009, 07:51 AM

Quote:

JAGSARE1 - 1/28/2009 9:29 AM

Quote:

jbryzek - 1/28/2009 9:19 AM

why would I waste all of our time and get the hopes of the buyer and seller up. for a 14k offer. Just my two cents but as you said it never hurts to try.

The reason you "waste your time" is because things change all the time. Over all the years I have been a boat owner(and invariably a buyer and a seller), I have seen sellers refuse a certain number only to accept a lower number down the line. As a commission sales rep, you are never "wasting your time" presenting offers. This is one of the aspects of boat brokerage that earns the poor reputation. Seller says don't bring me an offer under $100K...economy goes to $hit, seller falls into dire financial circumstances and will take any offer and is wondering why he is getting no offers? Broker is following the direction of the seller and doesn't bother to check in to see if the situation has changed. There are tons of reasons why a broker SHOULD check in frequently with a seller but won't waste the effort.

IMO, the best thing a broker could do is to call the seller and say, "sir, I got an offer well below your minimum, are you interested in hearing it or is the situation the same as before?" Gives the opportunity for lines of communication to remain open. What you hear alot from sellers is...gave the broker the listing and never heard from him again...

Your right but when the boat has been for sale for 3 days and we have turned down 3 offers....I dont bother calling them as there situation has not changed. (bigger boats yes,,you should always check in)

Shin-Dig · 01-28-2009, 08:02 AM

Quote:

jbryzek - 1/29/2009 5:51 AM

Quote:

JAGSARE1 - 1/28/2009 9:29 AM

Quote:

jbryzek - 1/28/2009 9:19 AM

why would I waste all of our time and get the hopes of the buyer and seller up. for a 14k offer. Just my two cents but as you said it never hurts to try.

The reason you "waste your time" is because things change all the time. Over all the years I have been a boat owner(and invariably a buyer and a seller), I have seen sellers refuse a certain number only to accept a lower number down the line. As a commission sales rep, you are never "wasting your time" presenting offers. This is one of the aspects of boat brokerage that earns the poor reputation. Seller says don't bring me an offer under $100K...economy goes to $hit, seller falls into dire financial circumstances and will take any offer and is wondering why he is getting no offers? Broker is following the direction of the seller and doesn't bother to check in to see if the situation has changed. There are tons of reasons why a broker SHOULD check in frequently with a seller but won't waste the effort.

IMO, the best thing a broker could do is to call the seller and say, "sir, I got an offer well below your minimum, are you interested in hearing it or is the situation the same as before?" Gives the opportunity for lines of communication to remain open. What you hear alot from sellers is...gave the broker the listing and never heard from him again...

Your right but when the boat has been for sale for 3 days and we have turned down 3 offers....I dont bother calling them as there situation has not changed. (bigger boats yes,,you should always check in)

Yes, but you tell the potential buyer that the owner has turned down higher offers, thus if he wants the boat...he needs to up his price.

csurp · 01-28-2009, 12:40 PM

Quote:

auguste - 1/28/2009 3:54 AM

Wondering

I was in contact with a broker in Florida and asked him if his client would accept $x for a boat. The broker said that they will not tell their clients of any offer that is not at least 80% of the asking price, and that he would not accept any formal offer either, even if I included a conditional deposit/cheque with the offer.

Real estate agents are required (around where I live) to place all offers to the owner of a house. Are brokers required to do the same?

.

If you present a formal written offer ( offered price, contingencies and survey/closing dates) with the accepted deposit (usually 10%) the broker is required to present it unless the seller has instructed him not to (Very unusual).. If he wont present your offer, report him to FYBA! Reputable brokers in FL belong to the Florida Yacht Brokers Association. The smaller boat guys and the used car types normally do not.

Verbal or "Would you take" offers are another matter.

Observation: In an earlier post you mentioned that you were working with a couple of "good" brokers. This is a prime example of why you should be working with someone you trust rather than "dialing for dollars". Your broker would have prepared your offer, collected your deposit and dealt with the listing broker for you. You would have the advantage of a known brokerage firm on your side and even the shady guys will think twice about not doing the right thing.

JAGSARE1 · 01-28-2009, 08:25 PM

Quote:

jbryzek - 1/28/2009 9:19 AM

We have already shot down 18k and 19k this week so why would I waste all of our time and get the hopes of the buyer and seller up. for a 14k offer. Just my two cents but as you said it never hurts to try.

That the boat has been for sale for 3 days was gem you didn't mention. Saying you have already shot down 18K and 19K this week seemed to insinuate the boat had been for sale longer.

Honestly, in this market, getting 3 offers in 3 days is quite honestly, hard to believe.