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Random Quote: I never hold a grudge. Once I get even with the SOB I forget the whole thing.
if you are buying a boat? I understand what they do when you sell but if you are buying what do they do and how much do they charge? When does it make sense?
I haven't used a broker to purchase a boat myself, so I don't how the fee arrangement is structured, but if you're looking for a very specific boat or model and/or the purchase price (ie. lots of $$$) warrants it, a broker to represent your side of the transaction could be a good idea. Just like buying real estate--the seller has a broker that represents their best interest, and normally so does the buyer. And they both have access to inventory that may not be available on the open market.
When you have a broker act as your agent as a buyer he/she can provide the following services:
1) Do complete Multiple Listing Searches to help you find the right boat in the right price range
2) Do Sold boat searches in order to develop compareable value data. This will help you and the broker to determine fair market value based upon actual transaction prices, not some arbitrary "book value".
3) Negotiate the offer to purchase with your well being in mind. Remember, if you go to the listing agent or agency, their fiduciary duties belong to the seller, not you. It is their job to represent the seller and act in the best interest of the seller, not the buyer.
4) Draw up the offer to purchase and contract of sale in usch a way to protect you at every step. This will allow you to have (typically) 3 to 5 specific steps where your contigincies must be met. If not, you can terminate the offer and contract and receieve your deposit back.
5) Be the escrow agent that holds your deposit as well as being responsible for disbursement of all funds at contract closing. This is in lieu of the Seller's broker being in charge of your money, should you select not to have a buyer's broker represent you.
6) Assist you in finding a real S.O.B. for a surveyor as well as assist in making all appointments for haul outs, surveyors, sea-trials , etc. Not to mention picking you up at the airport, acting as taxi, and so forth.... These can be invaluable if you are on umfamiliar turf.
7) Be there for the survey, to better help you understand if something pops up. He/she can also better understand the vessel and deficiencies so that the contract can be re-negotiated based upon survey findings. These follow-up negotiations can be even more delicate as well as important as t your original negotiations.
8) Help keep you grounded by not being emmotionally attached or motivated. While this is of more value to a seller, it can be very important to a buyer. By being a third part, the byuyer's broker can see things from a more objective point of view than a guy/gal that is realizing a dream come true.
9) and for all of this you pay not one penny more, as the buyer's broker splits the deal with the listing broker. Does it make more sense now?
Obviously a reputable broker can be a great asset in certain types of transactions.
In general though, while brokers do represent your interests, the bottom line is they are typically most interested in getting ANY deal done. An interesting study was done with realtors where it showed that when they sold their own homes they tended to get around 8% higher values than the average market. This is because they were truly representing themselves and waited for the right bid. When they are representing someone else, they just want to get a deal done and are often encouraging their clients to accept any clean looking deal that comes along that has a high likelihood of closing.
The message there is to understand the market you're in, and to stand up for what you think fair market value is.
The buyer's agent, and the seller's agent, are really on the same team. They both want to get a deal done.
This is not a slam or an accusation on the many good brokers out there...but as a salesman I know what *most* of them are driven by!! And it ain't your best interests!
"The buyer's agent, and the seller's agent, are really on the same team. They both want to get a deal done." Unfortunately I agree. If you get a good broker with real estate or boats. Keep him/her! They are worth thier weight!
__________________ 1992 Grady White Overnighter 206G
I've never heard of using a broker to represent you in a boat purchase. Odd. I hope that business does not develop. It's bad enough when buying a house that the selling (buyer's) agent takes 3% and does nothing to earn it.
"It's bad enough when buying a house that the selling (buyer's) agent takes 3% and does nothing to earn it."
If there was really abolutely no work (none, zero, etc.) involved for all this fabulous pay, everyone and their sister would be doing it. Shoot I'd quit my job for that kind of deal and spend 7 days a week boating and just watch the checks roll in.
"It's bad enough when buying a house that the selling (buyer's) agent takes 3% and does nothing to earn it."
If there was really abolutely no work (none, zero, etc.) involved for all this fabulous pay, everyone and their sister would be doing it. Shoot I'd quit my job for that kind of deal and spend 7 days a week boating and just watch the checks roll in.
I work in real estate. That's pretty much what the situation is.
Thanks for all the responses (and the entertainment). I think I get it. For those in the know- are buyers brokers involved with all types of boat sales or do they typically stay at the higher end? For instance, would they help someone purchase a 10 year $20K boat?
Where do I sign up, Easy street here I come, no work and a six figure income.
whoa, whoa, whoa. Who said anything about a six figure income? Realtors like to ACT like they make big money, but the majority make less than $20,000 a year. Most are housewives, looking for an excuse to get out of cleaning and doing dishes.
What does a broker do for you 
