Broker's fee for unlisted boat

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HarlenW

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A broker learns that my boat may be for sale and has a client of his who is looking for that exact boat. The broker contacts me to see if I am interested. What would be an appropriate fee paid to the broker if I sell my boat to his client? The boat would sell for $270,000.

Thanks!
 
Tell the broker that which you must clear on the deal. Let him adjust the selling price accordingly. His commission is totally negotiable.
 
Since he didn't list the boat, show that boat (but will likely walk his client through survey, sea trial and do the paperwork for the sale so he has incurred minimal cost) offer him 1/3 of the usualy commission or 3% of the actually selling price but go no further than 5%. Figure that cost into your negotiations with the buyer.
 
I agree with Mike.
You are the listing Broker, if normal commission in your area is 10% he would get no more than half as the selling broker.
As to the 3% starter, that is up to you,,,,, there are more boats for sale than buyers.
 
quote:

As to the 3% starter, that is up to you,,,,, there are more boats for sale than buyers.

Click to expand...


I might add, there are A LOT MORE BOATS than buyers...a whole lot more
 
This doesn't make sense. If you are listing the boat on the web, the person looking for "that exact boat" would find it. If you are not, then give the broker a fair salary for bringing in the buyer.

I'd think between 5-10% depending on how much you must move off the asking price.
 
I'd also be clear with him on who he is working for.....in other words you are paying him...so he is working for you.....so he should be telling you how to get the best deal from the buyer, right??? or not...but I would want that to be very clear.

This really is where brokers can get a bad name, if they don't make everything clear, and why as a buyer you have to be careful with brokers....anyway...it can be done and done so all parties get a fair deal....you for paying him a commission, the buyer for having him find the boat, and the work he does to close the deal which includes paperwork and having a third party facilitate the transaction.
 
No, the broker will be working for the buyer. Yourself, as the listing broker or equivalent will have to look out for yourself.
The nature of the business has changed, same as real estate where you now have listing brokers and buyer brokers.
Whenever I have put a boat up for sale I always include the words, Brokers Protected, so they know that I will welcome an offer from their buyer but I am acting as my own listing broker.
 
When I listed my last boat I got many calls from brokers who said exactly the same thing, that they had a buyer looking for my exact boat. My sense was that these guys were looking to get the listing, but that no real customer existed. I offered them partial commission and or expressed what I "needed to net out of the deal" but they all went away when they learned they could not get full commission.
 
The answer is quite simple, you pay the broker NOTHING. The broker is the buyer's broker, not yours. What he gets for a comission is between the buyer and him - it doesn't figure into your equation. The only thing you care about is getting what you will accept for a sales price - PERIOD! The ONLY time you pay a comission is if you contract with a broker to SELL your boat, then you negotiate that fee with him and figure it into the selling price. In that case the buyer couldn't care less what you pay for a comission, he just pays what he negotiates to pay. If you each have a broker then they split the comission. Now, if it helps to move the process along then you can pay whatever you want to whomever you want to complete the deal.

If the broker is serious tell him to bring the buyer around to LOOK at the boat. If he wants a sea trial tell him the buyer needs to bring a deposit (you decide how much - 10-20% is not uncommon but it can be anything). Tell him the buyer is welcome to have it surveyed (at his expense, of course). If the buyer decides he doesn't want the boat based on failure of a survey and/or sea trial results he gets his deposit back less your costs. If the buyer decides to back out for reasons not stipulated in the purchase agreement (escape clauses) you get to keep the deposit. Obviously get it all in writing.
 
The broker could be working for you if that's what he agrees and he hasn't signed anything with the buyer. All I'm saying is get an understanding up front. He might say absolutely yes or no, just don't assume anything.

Also Sea Gull brings up a really good point. It could be he really has someone ready to buy the boat, but there are some dishonest brokers that will try and get your listing by saying I have an exact buyer for your boat. Sign this listing with me.....only to have the "buyer" disappear.

The more honest brokers will definately call saying they have people looking for your type of boat, and here is why you should list.
 
I would sign for up to 5% or a certain dollar amount and limit the contract to 2 weeks or for that specific buyer.

You will get many brokers "who have a guy who wants to buy your boat". Yeah, haven't heard that one before.
 
If you want, list it with the guy, but don't give him an exclusive listing or make the listing for a time you are comfortable with. By all means, get EVERYTHING in writing.
Remember- the faintest of ink is better than the most vivid memory.
Good luck.
 
Wow. If boat brokers really operate the way some of you desribe, that would land them in jail if they were real estate brokers. The amount of BS boat brokers get away with seems amazing. In real estate, it has to be made absolutely clear who you are working for under the Law of Agency. Also, "net deals" aren't allowed (not in VA, anyway). A "net deal" is when the the seller tells the listing broker that they need to make x $$$ on this deal. Then they tell the broker to price the property where they want. The seller gets his x $$ for the property, and the broker keeps the rest in commision. Very illegal.
 
I had hoped that this was a generic question but I see that more details would be helpful.

The broker works for the dealer who sold me the boat new. The dealer is getting out of the powerboat business to focus on sailboats and they had one Mainship 34 Trawler left in stock. The broker took this boat to a local boat show, got several people interested and sold the boat to one of them. He heard from a friend of mine that I might be selling my boat. So there is currently no Mainship dealer in my area and no used late model Mainship 34 Trawlers for sale in the region. And no chance for a new boat for some time until a new dealer gets established. Some of the other people who saw the boat remain interested. The broker can only make a sale by selling him my boat (which is just a year old and in perfect condition). The broker will no longer be working for the dealer once all of the powerboats are sold as he was the powerboat specialist.

I am happy to reward the broker a reasonable amount if his client buys my boat but I would be the one doing the showing of the boat, not the broker. Also, based on the interest my boat generates whenever we are at a marina, I think it might not be too hard to sell myself.

The 3% suggestion seems right to me or maybe flat cash referral fee but, again, I want to be fair to me and to him.

Thanks again.
 
Well then the question is the broker doing it through the dealer or not??? If not then 3% totally works because he is going to retain the entire amount. So if you are going to SIGN (and I emphasize that word) a deal with Joe Broker that says Joe Broker is going to bring these three people to the table and if one of them buys the boat over the x period of time, you will write Joe Broker a check for 3% of the net proceeds that is cool.
 
5% would be the max I would pay, of course 3% is better for you but I bet the broker is thinking 10%.

Go no higher than 5%. Chances are you can probably sell it on your own.

Good luck with the sale.

Jonathan
 
quote:
Originally posted by psugar

Well then the question is the broker doing it through the dealer or not???

Click to expand...

Not sure about this but I suspect he is doing it on his own since the dealer is letting him go, may have already done so. I guess it would depend on his contract with the dealer.

Besides, if the broker and I agree to a price, the dealer really doesn't need to be involved.
 
have you asked him what he expects? after he answers try a lower figure then you can decide if you want to go ahead. No doubt the buyer will want to negotiate as well and that give you another opportunity to discuss the fee. If you should be so lucky as to get your full price be happy.
 
just a thought - list the boat on boattrader...if these buyers are serious, they will probably be looking....
 
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