Selling through a broker

[Nick_H]

The market value is more usually defined as what someone is prepared to PAY. So, if the market value is £100k, because that's what someone is prepared to pay, and the seller has the choice of selling it privately and keeping £100k, or selling it through broker and keeping £95k, then there's an argument that the seller is paying the brokers fees, albeit the money comes directly out of the amount paid by the buyer.

The other side of the argument is that if the buyer values the involvement of the broker, and will therefore pay more than he would privately, then he's paying the brokers fee.

 

[ari]

Precisely. A boat is worth what it's worth. It's the owner that then gives a proportion of that to the broker, and indeed it's the owner that gets invoiced for it.

If I put a big advert for my boat in MBY at a cost of £500 (say, no idea what they charge), who pays for that, me or an eventual purchaser? Me of course, no good saying "ah but you added the amount to the minimum you'd accept for the boat", it's an absolutely nonsense theory! /forums/images/graemlins/grin.gif

What happens after my boat hasn't sold for a year and I've spent £6,000 on adverts, is my boat going to sell for £6,000 more because I still want to nett the same? /forums/images/graemlins/grin.gif

The brokers fee is a cost to the seller for selling his boat (just like advertising or any other selling medium), it's not a premium that the buyer pays over and above the cost of the boat, nor will a purchaser be willing to pay more for the boat because the commission fee is higher (which is where this ridiculous notion began).

 

[MapisM]

[ QUOTE ]
it's an absolutely nonsense theory!

[/ QUOTE ]Well I told that your view was the commonly accepted one, didn't I?
In this sense, also Nick is correct when he says that the mkt value is usually defined as the bid, not the ask price.
But.
In the great scheme of things, I rest my case.
When I'm dealing with a supplier of mine who offers to pay me a dinner in a good restaurant, I can't help thinking that I'd be the one to actually pay the bill, one way or another. And when I see a highly advertised product, I can't help thinking that I'd be the one to pay for those spots, if I were purchasing it.
Ever wondered why brokers (the good ones, anyway) are so kind and available towards serious prospect buyers? They know perfectly why, when and from which pockets their money will come from.
But if your viewpoint is based on who gets invoiced for the broker fee (or who pays the bill in the a.m. dinner), then of course we can agree to disagree - no problem at all.
Thre's no need to label as nonsense a viewpoint you don't agree with, anyway.

 

[ari]

[ QUOTE ]
Ever wondered why brokers (the good ones, anyway) are so kind and available towards serious prospect buyers? They know perfectly why, when and from which pockets their money will come from.

[/ QUOTE ]

Yes, the boats owner once they've sold it for him! /forums/images/graemlins/ooo.gif