Brokerage rates

[Observer]

Would any recent sellers be willing to share with me (by PM if not publicly) the rates of commission agreed with brokers on boats in the £100k-£300k price range?

TIA.

 

[Nautorius]

6% paid by a freind a few days ago. Rate started at 8% and was reduced to 6% with hagling. Another collegue recently did a deal whereby commision was 7% if sale agreed in first 4 weeks, 6% if in next 4 weeks and 5% if after 9 weeks. I like the latter a lot!

Paul

 

[pheran]

8% + BTW. But thats in Holland and seems fairly general without much scope for haggling

 

[mainshiptom]

I agreed on 4% with my agent.

 

[jimmy_the_builder]

5% earlier this year when we sold the P42.

PS we spotted Fair Prospect in Darthaven at the weekend, but I don't think you were on board otherwise I'd have come and said hello.

Cheers
Jimmy

 

[zingaro]

commission Rates

I have just paid 5% & VAT to Sunbird who have just sold my motor boat.

 

[Deleted User YDKXO]

Would any recent sellers be willing to share with me (by PM if not publicly) the rates of commission agreed with brokers on boats in the £100k-£300k price range?

TIA.

I think to talk in agreed % terms is all a bit academic. If there is a deal on the table between buyer and seller which is a few quid apart, in my experience, the broker will often trim his commission to close the deal, especially these days. IMHO, it's far more important to find the right broker who maximises the chance of selling your boat rather than selecting a broker on the basis of quoted % commission rates. Also, even more important, you need to choose a broker who you can trust to pay out when the deal goes through. Don't forget that there will be £100-300K paid into the broker's account by the seller (at which time title passes to the seller) and you are hoping/praying that the broker passes the proceeds less his commission on to you, the buyer, without going bust in the meantime

 

[Observer]

I think to talk in agreed % terms is all a bit academic.

Let's see: 8% of £250k = £20,000; 4% of £250k = £10,000. Hmm. £10k difference (+ VAT of course). I'm not sure I agree with your definition of "academic"

 

[pheran]

..... Don't forget that there will be £100-300K paid into the broker's account by the seller (at which time title passes to the seller) and you are hoping/praying that the broker passes the proceeds less his commission on to you, the buyer, without going bust in the meantime

No, no, no,no....I am amazed that you would even contemplate risking what you acknowledge is a large sum of money in this haphazard way. There are plenty of ways of protecting your funds whilst 'in transit'. One is by involving a third party which is the way the sale of my last two boats have been handled. In my case, the third party was a Notary, with the funds from the buyer held in a separate protected client account.

 

[Tranona]

Let's see: 8% of £250k = £20,000; 4% of £250k = £10,000. Hmm. £10k difference (+ VAT of course). I'm not sure I agree with your definition of "academic"

Only relevant if the boat sells for the same price. Would the 4% broker put in the same effort and achieve the same price as the 8% one?

The only figure that is relevant is the net proceeds of the sale into your account.

 

[mjf]

The only figure that is relevant is the net proceeds of the sale into your account.


So should you not instruct on that basis then? You get what you want/need broker sets his own fee.

 

[Deleted User YDKXO]

Let's see: 8% of £250k = £20,000; 4% of £250k = £10,000. Hmm. £10k difference (+ VAT of course). I'm not sure I agree with your definition of "academic"

There's 2 points to make here. Firstly a broker charging 8% might actually be better at selling your boat than a broker charging 4%. If the broker charging 8% sells your boat for £10,001 more than the broker charging 4%, then you're in the money. In fact, the broker charging 8% may well be willing to cut his fee just to get a deal so the difference might be a lot less than that. There are often reasons why brokers offer low upfront fees and it's usually because they're useless at selling boats and they need lots of boats on their books to make any money. Which would you rather have? A broker who says he charges 8% but who is actively selling your boat and will compromise on his commission to get a deal or a broker who charges 4% and does f*** all and you end up having your boat on his books for months/years and which you eventually sell for much less than asking price?
Thats why I say % fees are academic. Get the best broker for selling your boat not the cheapest

 

[Deleted User YDKXO]

The only figure that is relevant is the net proceeds of the sale into your account.


So should you not instruct on that basis then? You get what you want/need broker sets his own fee.

IMHO, you shouldnt tell the broker what your minimum net is until you are in the latter stages of a sale negotiation otherwise the broker won't try to get a higher price.

 

[Phoenix of Hamble]

My neighbours boat sold on an escalating deal..... 4% of sale price upto a certain amount, 5% upto another and 6% for anything above that....

I thought it was a great idea as it encourages the broker to reach as high a price as possible....

 

[Nautorius]

My neighbours boat sold on an escalating deal..... 4% of sale price upto a certain amount, 5% upto another and 6% for anything above that....

I thought it was a great idea as it encourages the broker to reach as high a price as possible....

Essex Botyards used to do that when they were selling my Regal. I still like the 'faster the sale, the more the commision' angle.

Paul