Buyers Broker

[Pete Carr]

Later in the year we hope to be buying a sailboat, in most likelihood from somewhere in the med.
An independent broker (UK based) to act purely for us came highly recommended, and we have even viewed a couple of boats in the UK through him, we really get on with him and would like to use him, but I have a couple of niggly doubts.

The original proposal was that he and the sellers broker split the commission,
He has now split from the company he used to work for and has set up his own company and has advised he no longer does the split brokerage deals, and that his new company fees are around 4-6% of the final selling price, and that I will have to pay this on top of any agreed sale, in fact he wants 50% up front before I have even decided on any particular boat.

Is this sort of fee normal, for sellers brokers? I would be very disappointed if I thought he was trying to pull the wool over our eyes.

There are a couple of boats I enquired about through him, that are still possibles, but these were when he was with his previous company, could it be that as introductions were made through his old company, he can no longer negotiate a split commission through his new company?

Many Thanks

Pete C

 

[pvb]

What is he doing for this commission? Is he going out and looking at boats in the Med? If so, it could be a bargain. But if he's simply sending you details of possibilities, you could do that yourself for nothing.

 

[Pete Carr]

What is he doing for this commission? Is he going out and looking at boats in the Med? If so, it could be a bargain. But if he's simply sending you details of possibilities, you could do that yourself for nothing.

I am searching for the boats, His service would be to handle the sale and transfer funds and hopefully negotiate the best deal on my behalf. I have heard horror stories of individuals (especially first time buyers like me) having all sorts of problems with sellers brokers, and overseas paperwork.
Which I would like to minimise.

 

[Poey50]

If part of his fee depends on the final selling price he isn't exactly incentivised to negotiate a lower price on your behalf. I'd never pay up-front for a potential service.

 

[fredrussell]

So if he’s on a commission the more you pay for boat, the more he gets, right? I’m not sure he’s going to haggle too hard in that case.

Edit: Poey beat me to it.

 

[pvb]

I am searching for the boats, His service would be to handle the sale and transfer funds and hopefully negotiate the best deal on my behalf. I have heard horror stories of individuals (especially first time buyers like me) having all sorts of problems with sellers brokers, and overseas paperwork.
Which I would like to minimise.

Assuming the potential boat is in the Med, would he go out and negotiate locally, and sort the paperwork locally? Would his travel and accommodation bills be included in his commission? Or are they extra?

 

[peteK]

The seller pays the commission not the buyer.

 

[pvb]

The seller pays the commission not the buyer.

Normally, but the OP is employing someone to represent him, and that someone wants a commission too.

 

[jordanbasset]

Later in the year we hope to be buying a sailboat, in most likelihood from somewhere in the med.
An independent broker (UK based) to act purely for us came highly recommended, and we have even viewed a couple of boats in the UK through him, we really get on with him and would like to use him, but I have a couple of niggly doubts....

Pete C

Hi Pete,not sure what sort of boat you are looking for, (May be of interest to put the type of boat you are looking for on the thread) there are lots of boats for sale out there and I really think you are complicating the buying process. I can understand you being a little wary, but in that case getting a recommended surveyor would be better use for your money. The buying process itself is not that difficult

 

[Biggles Wader]

Hi Pete,not sure what sort of boat you are looking for, (May be of interest to put the type of boat you are looking for on the thread) there are lots of boats for sale out there and I really think you are complicating the buying process. I can understand you being a little wary, but in that case getting a recommended surveyor would be better use for your money. The buying process itself is not that difficult

Agree. I assume you know roughly what sort of boat you want and are aware of the price range required so you just need someone to advise you on the condition of any individual boat you choose. That would be a surveyer who you would pay. Depending on the price range that could be a lot cheaper too without the vested interest issues mentioned above.

 

[RJJ]

The problem with the split-fee gig is obviously that the seller's broker needs to agree it. Then you risk a conflict of interests - if some brokers are willing to split, but others not, guess where your representative is going to lead you?

If you are doing the search and viewing the boat, I am unsure how a buyer's broker justifies a few per cent on price. You still need a surveyor and a good one will hold your hand through negotiations. If you are very cash poor and saying "find me the best possible deal on a sunfaff 37" then maybe.

Remember also that, more so than with a house, there is value in having a relationship with the seller. For anything more than five years old, you aren't just buying the boat you are buying the maintenance they have put in and the knowledge they can pass on. A year on and I am still emailing the guy who sold me the boat every time I have a question.

 

[Kukri]

In merchant ship sale and purchase the seller’s broker and the buyer’s broker are both paid by the seller, the paperwork is handled by the lawyers for each party and the rate of commission is always 1% each.

Yacht brokers charge a much higher rate of commission on a much lower price.

 

[pandos]

if you need/want a professional to accompany you and hold your hand whilst buying a boat, why should the broker acting for a buyer reduce his fee for doing the same thing as he has agreed with his employer to do....

unless it is a large purchase the actual sum involved seems small if you think he can get a reduction through haggling better than you can, or save you time and energy looking at unsuitable boats then his services/fee would seem reasonable.

you should bear in mind that not all foreigners are dishonest and out to liberate unwary brits of their cash a decent broker in a med port will be a good protection and get yourself a surveyor that you trust... I know some people will fly a surveyor out from the UK/Ireland to check out a boat immediately prior to purchase that can be worthwhile and eliminates any complications with jurisdiction if the surveyor makes a boo boo ....

 

[Caer Urfa]

If the boat overseas is already with a broker then no way will they want to split any commission with another broker

 

[[3889]]

Hearsay only, but I've heard commission splits for yachts advertised on Yachtworld are fairly common, the benefit to the seller's broker being securing a sale.

Edit: Not just hearsay.
Co-Brokerage: What the Yacht Buyer Needs to Know - YachtWorld.

 

[langstonelayabout]

The expression ‘buyers broker’ doesn’t appear to be correct. I would call this person a ‘buyers agent’.

The agent’s fee and his expenses would need to be paid for by the buyer in a way similar to that of the buyer’s surveyor. Indeed, the agent may also be the surveyor.

The buyers agent would be to receive instructions from the buyer and assess boats that the buyer can’t see himself. Then, if the buyer wishes it, the agent could instruct the vendor for boat availability and the surveyor for surveys, etc. The job of the buyers agent is effectively that of a ‘competent customer’.