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The pros and cons of discount yacht brokers |
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Discount yacht brokers normally simplify the complex negotiations that are often involved in the buy and sell process of boats, particularly the larger types. Boat owners would typically go to yacht brokers if they do not want to handle the sale of the boats themselves, or do not plan to trade in the existing boat with another one.
Going to discount yacht brokers for the sale of your boat has its pros and cons and it is up to you to decide in the end if you think the benefits outweigh the downsides of a brokered arrangement.
What brokers can do for you.
While you can choose to sell the boat on your own, this is not always the best and wisest option. Yes, it will probably give you the most out of your sale since you do not have to pay any third party, but it also means doing all the hard work yourself. The work includes all the documentation and registration requirements as well as the advertising for your boat. For an inexperienced seller, or even for someone who does not really plan to make a career out of boat selling, this could be a very tedious and daunting task.
What more, in the rare chance that a seller gets a legitimate offer for his boat, the buyer has to put a deposit in escrow. However, a buyer will reasonably trust a certified broker more for his deposit than give it to an individual seller.
Dealing with yacht brokers, therefore, could be much more convenient. An experienced yacht broker can easily see the serious buyers from those who are only out window-shopping. A yacht broker is responsible for advertising and showing your boat to potential clients. Since brokers are assumed to already have expert knowledge and the relevant networks, it is expected that they can do the work much faster and more effectively.
A reliable yacht broker should be able to explain to you the various listing options for selling your boat. Keep in mind that the big firms in the brokerage industry are not necessarily the best choices for you. Take time to research and know your prospective brokers before you sign a listing agreement. Choose a broker that is very aggressive, active in doing follow-ups and adheres to ethical standards in the brokerage industry.
Potential downsides
The most obvious downside of dealing with a broker is the commission that they get from the sale of your boat. Usually, yacht brokers get five to ten percent commission but some would still be willing to negotiate a discount. Considering the work that they will do to sell your boat, though, the commission is fairly reasonable.
But what is a more serious thing that you need to watch out is the danger of dealing with unscrupulous yacht brokers. The Internet has spawned over a thousand so-called brokers, who may not have the proper experience and credentials. Be wary of dealing with just any broker without checking their track record or you might end up suffering from misrepresentation of facts, inaccurate tax advice, incomplete specifications, and lousy deals.
Dealing with a brokerage firm to sell your boat also means you agree to sign a listing agreement, which is exclusive most of the time. If you do not get a good broker, your boat might be tied to that broker for a long time and you could miss on better opportunities from serious buyers.
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