Yacht Purchasing Issues

I am not a broker but as most of you have, we have worked with many.

The assumption made here is that selling a boat is as easy as finding a customer and coming up with the right price.

Most of you know that Brokers usually work on many deals prior to selling your boat. All brokers know better than to try and overprice the boat, they would much rather see a sale go through for a lower price than loose the potential Customer.

I have always had to manage the sale process so that the Broker does not sell the boat too cheap just to get a commission.

Finally, we are in a free market economy, if enough of you do not like the Broker fee structure, sell the boat yoursef, eventually Brokers will have to lower their commissions to bring you back.

Mr. Market determines boat prices; brokers merely observe Mr. Market who, depending on the day, wakes up either cranky--resulting in higher sales prices--or blissful, with resultant softer pricing. There are always "maverick" deals which, due to death, divorce, failing business, panic, and the like, infrequently elude Mr. Market's general grasp.
But I would disagree that a boat will "sell too cheap just to get a commission".
Unless someone in the deal just flew in from Mars.

As for selling the boat "yoursef" (sic), with brokers having to "lower their commissions to bring you back", well, good luck working sans a MLS system to advertise your boat, not to mention the knowledge of what the last few sold for in an ever-changing market...ah, there's that word again: the Market.
You might be pleased (or perhaps not) to know that we are currently in a Buyer's market, i.e., lots fewer of those folks as opposed to that overwhelming species known as the Seller. And his relative, the Desperate Seller.

Interestingly, the 10% commission structure in Yacht Sales has withstood the test of time for...a long time. Mr. Market, that nosy old galoot, sticks his schnozz in here as well:if it is not worthwhile for Broker 'A' to sell broker 'B''s vessel (due to a reduced commission, say), broker 'A' will find another vessel that fits his/her economic model...until the owner of broker 'B''s listing figures out that false economy is not serving his/her interests well and then....readjusts.

Just my two pennies' worth.

Maybe I did not explain eloquently enough so here it goes agian.

I totally agree, let Market forces dictate not only the proper commission structure, but also the role Brokers are to play.

A friend of mine decided to hire his Broker by the hour. Paid him $75/hour plus expenses to find him his dream boat.

Eight months later the total bill was for 361 hours ($27,075) and roughly $8,000 in travel. The Broker worked his but off and found him an awsome deal. In talking to his Broker it was a very positive experience, he got paid for every hour he put on the job, including all of his phone calls and conversations with other Brokers and my friend.

Now one year later, the boat got sold by the same broker for 5% more than it was bought for. They are looking for a bigger boat and have increased his rate to $100/hour and changed his flights (if necessary) to first class. They told me he is more of a friend than a Broker now and they would not dare put their firends in coach.

Again, the Market will change and evolve IF NECESSARY, and as you say the current system has worked and apparently not enough people feel that it should be any different or by now it would be so.

I personally have no problems with it. Our broker has helped us with three boats this year and we are hopefully going to close one more this week. We went from a 34 to a 44 to a 48 and now hopefully a 58. The experience to date has been phenomenal. If this deal goes through we will be picking our boat up in East Florida to bring back to Texas. The broker may make the trip with us, we can't wait.