Brokers fee on small boat am I reading this right

[l'escargot]

You should know better than that! Get yourself a calculator and try again.

What's 8% of £12500 on your calculator then?

 

[pvb]

What's 8% of £12500 on your calculator then?

OK, I'll try to explain it to you as simply as possible. The broker's minimum fee is £1000 inc VAT. The broker charges 8% commission, plus 20% VAT, which equates to 9.6%. So the broker charges £1000 for any boat less than £10417, as 9.6% of £10417 is £1000.

 

[l'escargot]

OK, I'll try to explain it to you as simply as possible. The broker's minimum fee is £1000 inc VAT. The broker charges 8% commission, plus 20% VAT, which equates to 9.6%. So the broker charges £1000 for any boat less than £10417, as 9.6% of £10417 is £1000.

You've overthought that - my broker's not VAT registered...

 

[pvb]

You've overthought that - my broker's not VAT registered...

I guess comprehension wasn't one of your strong points at school....

 

[johnalison]

The first time I read the OP, I wondered if they meant "minimum selling price of" £1000, but they don't do they? It just means that they don't want to deal with any boats unlikely to fetch upwards of £15,000.

 

[steveeasy]

The first time I read the OP, I wondered if they meant "minimum selling price of" £1000, but they don't do they? It just means that they don't want to deal with any boats unlikely to fetch upwards of £15,000.

8 percent commission plus vat is in all fairness quite reasonable. If they sell a boat for 10,000 they will charge £800 plus Vat of £200 totalling £1,000. if they ell the boat for 15,000 it only £1200 plus vat. sounds a bargain to me, unless ive got it wrong. the commission rates ive seen are more like 12.5%.
If I understood the additional clause, sell it privately and we will only charge £500. seams very reasonable, most would charge the full commission.

Steveeasy

Ive already realised my Vat is incorrect and therefore ive given up working it out, reasonable deal though.

 

[pvb]

Ive already realised my Vat is incorrect and therefore ive given up working it out, reasonable deal though.

You're a bit quicker than l'escargot! Perhaps his username is apposite.

 

[thesaintlyone]

8 percent commission plus vat is in all fairness quite reasonable. If they sell a boat for 10,000 they will charge £800 plus Vat of £200 totalling £1,000. if they ell the boat for 15,000 it only £1200 plus vat. sounds a bargain to me, unless ive got it wrong. the commission rates ive seen are more like 12.5%.
If I understood the additional clause, sell it privately and we will only charge £500. seams very reasonable, most would charge the full commission.

Steveeasy

Ive already realised my Vat is incorrect and therefore ive given up working it out, reasonable deal though.

Yes it a bargain on a boat worth 15000 but on my Jouster where I would be happy to take £2000 its a bit harsh especially considering you cant stick a for sale sign on the boat cause they would get upset. Fine if they want to sell only expensive boats then go for it just let us cheaper boat owners do it ourselves or cut your commission to something more reasonable reflecting the value of each boat probably would have been happier paying £500

I did have the boat on Apollo duck and I'll probably put it back on will try Ebay Classifieds Gum tree just seems to attract scams.

As I said my biggest reason to go to a broker was the local interest

 

[pvb]

Maybe there's an opportunity for brokers to offer a slightly reduced service for lower-priced boats? Perhaps they could just pass on interest to the owner to arrange viewings, rather than the broker conducting viewings?

 

[prv]

its a bit harsh especially considering you cant stick a for sale sign on the boat cause they would get upset. Fine if they want to sell only expensive boats then go for it just let us cheaper boat owners do it ourselves

Huh? Who would get upset if you stuck a for-sale sign on your boat? If you're not entangled with a broker, why on earth shouldn't you do it yourself? That's what most people with cheaper boats do.

Pete

 

[thesaintlyone]

Huh? Who would get upset if you stuck a for-sale sign on your boat? If you're not entangled with a broker, why on earth shouldn't you do it yourself? That's what most people with cheaper boats do.

Pete

Because the Marina is tied in with the Broker on site

 

[prv]

Because the Marina is tied in with the Broker on site

Oh-ho! So there's a term in your berthing contract saying that if you sell the boat, it has to be through the on-site broker?

Did you know that when you moved in? Would have been a major turn-off for me, but of course there isn't always a choice if you want to be in a particular area.

They're clearly not interested in small, cheap boats, so would it be worth asking for an exception in your case? Worst they can say is no. When does your contract expire? Is moving elsewhere (depriving them of mooring fees) a credible threat?

There used to be a commonly-used clause in boatyard and marina contracts saying that they were entitled to 2% of the sale price if you sold while moored there (nothing to do with brokerage services). This was ruled unfair and unenforceable a few years ago, and the marina trade association strongly advises its members not to use it. Your situation isn't quite the same, but in your place I would at least look into the enforceability of this clause.

Pete

 

[pvb]

Because the Marina is tied in with the Broker on site

Ignore it, it's not a reasonable condition and is unenforceable.

 

[l'escargot]

I guess comprehension wasn't one of your strong points at school....

I find a lot of this forum incomprehensible...:encouragement:

 

[pvb]

I find a lot of this forum incomprehensible...:encouragement:

I find it difficult to understand how some people have enough money to buy a boat, bearing in mind their apparent inability to understand monetary matters. Always assuming people on here actually have a boat, of course.

 

[superheat6k]

I can understand a minimum fee, and they have made that very clear, IF they introduce the buyer, but expecting 2% or £500 if you do their job for them is a bit rich - as suggested selling it privately is perfectly normal for lower value boats, particularly as the cost to a broker does become disproportionate as the value decreases.

 

[thesaintlyone]

Oh-ho! So there's a term in your berthing contract saying that if you sell the boat, it has to be through the on-site broker?

Did you know that when you moved in? Would have been a major turn-off for me, but of course there isn't always a choice if you want to be in a particular area.

They're clearly not interested in small, cheap boats, so would it be worth asking for an exception in your case? Worst they can say is no. When does your contract expire? Is moving elsewhere (depriving them of mooring fees) a credible threat?

There used to be a commonly-used clause in boatyard and marina contracts saying that they were entitled to 2% of the sale price if you sold while moored there (nothing to do with brokerage services). This was ruled unfair and unenforceable a few years ago, and the marina trade association strongly advises its members not to use it. Your situation isn't quite the same, but in your place I would at least look into the enforceability of this clause.

Pete

The issue is with putting a for sale sign on the boat as I said seen a few people looking at small boats opposite which mine stacks up well against and would like to make it clear mine is available

 

[thesaintlyone]

I can understand a minimum fee, and they have made that very clear, IF they introduce the buyer, but expecting 2% or £500 if you do their job for them is a bit rich - as suggested selling it privately is perfectly normal for lower value boats, particularly as the cost to a broker does become disproportionate as the value decreases.

I need a quickish sale as this is the only thing stopping me from closing on the longbow (and please no more "Dont buy it deviations)

sorry to be blunt but I have made my mind up

 

[superheat6k]

The issue is with putting a for sale sign on the boat as I said seen a few people looking at small boats opposite which mine stacks up well against and would like to make it clear mine is available

If you want it to stand out you could try the traditional method of tying a broom up in the rigging, which means the boat is for sale, but then hang a sign saying this below it.

 

[pvb]

I can understand a minimum fee, and they have made that very clear, IF they introduce the buyer, but expecting 2% or £500 if you do their job for them is a bit rich - as suggested selling it privately is perfectly normal for lower value boats, particularly as the cost to a broker does become disproportionate as the value decreases.

But the 2% is a listing fee. Brokers go to some degree of trouble to inspect a boat, compile its specification, take photos, list it on their website, include it in printed details, make printed copies of the spec, etc. If you list it with a broker, then sell it "privately", why shouldn't the broker have some recompense for his efforts?