Depending on the value of boat, 6 or 8% is a lot of money. Personally, before spending that kind of money, I find out what it's buying me.
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Thread: Do Brokers Add Value?
23-03-12, 10:32 #21Ari
If a man speaks in a forest, and there is no woman to hear him, is he still wrong..?
23-03-12, 17:06 #22
So, I think the way the current system works is that you find out what the commission has bought you when a boat is sold, and not before ... I don't think that's great business practice but I guess it takes place with the endorsement of the YBDSA ? ... But then I can recall a time when they set a standard rate (£ per metre) for a survey, which their members applied and was eventually overturned as an anti-competitive practice.
Last edited by joliette; 23-03-12 at 17:16.
23-03-12, 18:10 #23Registered User
- Join Date
- Nov 2007
Firstly because it is difficult in advance to predict the amount of work involved in each individual transaction. If there was fixed fee system it would have to be set at fixed rates which would penalise some sellers as on average the person still has to make a living. Also I doubt many sellers would lay out sufficient fixed fees in advance with no guarantee of a sale.
Secondly there is then no incentive for the broker to make any effort to sell your boat if he is getting the fee anyway.
There have been many attempts in the past to have fixed fee or fixed fee plus success fee structures. They have all failed to catch on in any meaningful way.
Lets face it, yacht broking is not an easy business in the sense that you can put in a lot of work and not get the sale for reasons outside your control, and just the opposite some boats sell very quickly and with little hassle - but the broker only gets his money if there is a sale, so he has every incentive to make it work.
This is not to say that every broker is equally good or that the sale will happen anyway. In many ways the job has become harder with the explosion in information sources that allow people, both buyers and sellers to find eachother more easily.
So, the choice is yours. Do the work yourself - if you get lucky you might get a quick sale, or engage a broker so that he does the work and only gets paid when you get your money.
Both approaches can be equally successful - or not!
BTW you can always ask a broker to do the paperwork for you for a fee.
23-03-12, 20:27 #24
I am trying to sell my boat privately this year. I am in no hurry to sell. If it does not sell this year i may place it with a broker next year.
The absence of VAT certainly gives you an advantage over some of your competitors.
However i am loathe to let any broker ( large or small ) receive the proceeds from the sale of my boat. [ There are some dodgy brokers about - witness the news today that a Dorset based broker has been jailed for 3 years for pocketing over £200K VAT arising on boats he sold ].
A while back some bright forumite suggested that to safeguard sale proceeds he would require the buyer to make 2 payments. The brokers commission paid direcly to the broker and the net sale proceeds paid directly to the seller. Would that arrangement be acceptable to you and is it common place ? Thanks.
23-03-12, 21:18 #25Registered User
- Join Date
- Nov 2007
Pretty stupid crime - amazed he should think he could get away with it! At least no customer lost out.
Last edited by Tranona; 23-03-12 at 21:47.
23-03-12, 21:46 #26
I know i'm the minority, but I purposely avoid brokers.
When buying a boat, I like to deal with the seller/owner direct. Just a personal thing
23-03-12, 21:55 #27John Rodriguez Yachts. Cruising & Bluewater Yachts www.jryachts.com
24-03-12, 08:53 #28
24-03-12, 09:28 #29
24-03-12, 09:55 #30
Estate Agents fees on a £200k property @ 1% - £2,000 inc VAT
Legal fees for conveyancing of a £200k property, around £600 - £800 inc. VAT
Brokers fee on £200k boat @ say, 5% - £12,000 inc VAT
Brokers fee on a £50k boat - £3,000 inc VATNarrowboating From Stretford!!