Why Use a Broker to Help You Buy a Boat
Yacht Brokers are agents that people consult to find and buy a boat, and who people hire to list, represent, and sell boats for them. Traditionally, the seller pays the commissions that a yacht broker earns, yet brokers have a duty to both buyer and seller in every transaction.
The brokers role for the buyer
If you are not already working with a yacht broker, and if you find a boat in YachtWorld of interest, you can of course contact the listing broker directly. However a more rewarding option might be to select a yacht broker of your own, and consult with that broker about all of your boats of interest, and let that broker represent you in your enquiries and transactions.
- The Initial Enquiry – A professional broker working on your behalf will listen closely to your wants and needs and will help you determine if the boat you have in mind is right one for you and whether it represents good value.They will also help you determine whether there are similar boats on (and off) the market, the history of the yacht, how long it has been on the market, and the motivation of the seller. Anyone can look up asking prices on boats, but a professional broker has an intimate knowledge of current market conditions, a familiarity with similar boats, and information on recent sale prices and time on the market through www.soldboats.com, an industry resource not available to the public.
- Arranging Marine Finance and Marine Insurance – You may want to pre-qualify for a boat loan before you shop. That will give you some extra leverage and breathing room when you’re negotiating prices. YachtWorld offers a variety of specialist marine lenders.
- Making an Offer on a Pre-Owned Boat and Making an Offer on a New Boat – A professional broker can help their buyer decide on a realistic offer that increases the chances of buying a the vessel for a fair and reasonable price, and with the necessary elements in place to protect your interests. Your broker prepares the offer for your signature, which spells out the terms of the sale including obligations that you and the seller have agreed to, and a timescale for these obligations to be fulfilled. You also make a good-faith deposit on the boat, placed in the broker’s client account, and subject to a satisfactory sea trial and survey.
- Paperwork – Brokers are familiar with all the paper work needed to check whether the vessel has a clean and unencumbered title, including the paper trail to show payment of VAT where appropriate, and will check that there is no outstanding marine mortgage secured on the boat.
- Sea Trial and Survey– The buyer of a second-hand vessel will usually request a sea trial and have survey carried out. Buyers pay for the survey and for hauling the boat out of the water for inspection. The buyer’s yacht broker can attend the sea trial and marine survey, helping you determine how to address the surveyor’s recommendations yacht survey issues and put the problems in context. They can help estimate time and cost of correcting, and where to obtain accurate quotes for items that are unfamiliar.
- The Art of Negotiating The Deal – The buyer’s broker can use his position as an intermediary to keep the negotiations between buyer and seller moving to a successful conclusion, even in the event of unforeseen problems.
- Safeguard Funds – A professional broker should use a client account for your funds, and ensure that on completion of the purchase, any existing loan or other encumbrances are paid off. This safeguard is of critical importance to the buyer and seller, and can be a potentially serious hazard in a private transaction not involving a broker.
- After the Sale – Your broker or dealer can help you deal find moorings and maintenance specialists, as well as recommending local training centres at which you can increase your boating knowledge.