Choosing a yacht broker might be the most important stage in the process of selling or buying a vessel. The question shouldn’t be if to hire one in general, but which one. Many buyers or sellers are concerned by the high commission rate of the yacht brokers, which can get as high as 10%. However, the right broker would fully deserve such a decent portion of the pie. Yacht brokers are similar to real estate brokers, but their certification is not mandatory pending on their location. For some states in the US such as Florida and California, brokerage certification is a must. However, a broker without the credentials shouldn’t be underestimated, because a long list of successful brokers have achieved top sales by their personal qualities, feeling for the industry and experience.
Here are some reasons of why you should hire a broker to sell your yacht:
- It would save you lots of stress.
- The right broker would get you through the process smoothly.
- Brokers will advertise your vessel in MLS websites where only brokerage companies have access to, like the YATCO MLS.
- They will advertise your vessel in the social media
- Brokers have access to a large database of contacts, including other brokers or other clients who might be interested i the yacht you are selling.
- Brokers know the market and would advise a realistic price reflecting the current trends.
- The right broker will get to know the boat, take pictures and be ready to answer any questions concerning the vessel.
- They will prepare an appealing description attracting clients.
- The broker will be responsible for showing your vessel to new prospects.
- The broker will deal with correspondence seller-buyer.
- The broker will arrange sea trials and surveys.
- Brokers can advise you on aspects such as corporate ownership, loan payoffs, bills of sale, an other documents needed for transferring ownership.
- Brokers can also help a buyer obtain financing and assist with changing documentation.
- Central brokers might sacrifice part of their commission to realize the sale.
- A central agreements means your broker will be fully committed to the sale.
There are two types of broker-seller agreements – Central Listing Agreement and Open-Listing Agreement
A central listing agreement is also called exclusive listing. In this case, the seller gives exclusive rights to one broker who has his commission guaranteed. Central brokers are also obligated to co-broker the deal in case a broker different than the one selling the boat shows up with a buyer. The benefits of offering the vessel to the market with a central broker are that he would put all his effort into selling the vessel because he has his commission guaranteed.