Buyer pays Broker fees
- Thread starter BurnitBlue
- Start date
Koeketiene
Well-Known Member
Sold previous boat privately - buyer paid for lift-out, survey, etc...
Chrissie
Well-Known Member
The RYA site has downloadable sale contract forms, which state that the buyer pays for lift out for survey, and for survey, sometimes this is negotiated, particularly if the price has been cut to the bone already.
Its difficult to sell a survey, they are a report on the condition of the boat on the date the survey was done, and obviously if changes are made to the boat after that date, the survey is no longer current, which is fine for the owner of the boat and the owner of the survey, in particular if they are one and the same.
The report was done in part to provide a list of things to be done.
All the surveyors I know do the same as I do, If someone wants to transfer a survey I have completed, they need my permission, and upon a small hourly rate I will go out and check if the conditions are still as reported, and update the report as necessary.
The boat owner pays the broker fee, as it is he who is buying the services of advertising and promotion, and some owners will put the boat on with several brokers, setting different prices based on what price they require and what the broker has suggested he can get for them. Some are 8% but nowadays 4% is available.
Its difficult to sell a survey, they are a report on the condition of the boat on the date the survey was done, and obviously if changes are made to the boat after that date, the survey is no longer current, which is fine for the owner of the boat and the owner of the survey, in particular if they are one and the same.
The report was done in part to provide a list of things to be done.
All the surveyors I know do the same as I do, If someone wants to transfer a survey I have completed, they need my permission, and upon a small hourly rate I will go out and check if the conditions are still as reported, and update the report as necessary.
The boat owner pays the broker fee, as it is he who is buying the services of advertising and promotion, and some owners will put the boat on with several brokers, setting different prices based on what price they require and what the broker has suggested he can get for them. Some are 8% but nowadays 4% is available.
Seajet
...
Chrissie,
Thanks,
SJ
Thanks,
SJ
BrianH
Well-Known Member
Five years ago I considered buying a boat in Italy but was surprised to learn that, as buyer, I would be invoiced by the broker for a 4% commission on the purchase price agreed by the seller, who would also be invoiced by a similar percentage. This was apparently a standard yacht broker convention in Italy at that time.
Protesting to the broker I made it clear that I would be prepared to offer a certain price, subject to contract, of approximately 15% less than the asking price (overpriced compared to other European prices for that model), as a total of my cost, whatever way the broker and seller wished to break that down. This the broker refused, saying he would be prepared to drop his commission to me to 2%. In the event, the seller refused my offer and I purchased the same model in Holland at a sensible price - well, sort of, considering this was before the collapse of market prices.
I note now, five years later, that the broker has closed down and the boat still languishes in the boatyard for sale - at about 10% below the price I offered - still too high in the present economic climate and the boat's deteriorating condition, some people never learn.
Protesting to the broker I made it clear that I would be prepared to offer a certain price, subject to contract, of approximately 15% less than the asking price (overpriced compared to other European prices for that model), as a total of my cost, whatever way the broker and seller wished to break that down. This the broker refused, saying he would be prepared to drop his commission to me to 2%. In the event, the seller refused my offer and I purchased the same model in Holland at a sensible price - well, sort of, considering this was before the collapse of market prices.
I note now, five years later, that the broker has closed down and the boat still languishes in the boatyard for sale - at about 10% below the price I offered - still too high in the present economic climate and the boat's deteriorating condition, some people never learn.
