What is the typical sales commission?
Ten percent. If there is both a selling and a buyer's broker involved, the commission is split according to an agreed upon formula, but the seller can expect to pay 10% commission.
How "negotiable" is the sales commission?
The commission is the wages of the broker. They don't get paid unless the sale goes through. So unless their services are deficient, sellers and buyers rarely request a broker to reduce their commission, except on boats over a million dollars.
What is the most important step in buying or selling a boat?
Shopping for the right broker. It's best to interview several, ask for references from past customers. Ask their experience not only in sales, but in sailing. Are the professionally certified? You want someone both professional and knowledgeable. Then make sure you feel comfortable with the broker you select.
I'm a prospective buyer who likes to look at boats myself. If I select a broker, can I still shop on my own?
Sure. Just be sure to let any other brokers know that "I am working with Wes or Lothar at San Juan Sailing"…or whomever you choose. Say that right up front, before they show you the boat. That way there is no misunderstanding and relationships work smoothly.
As a buyer, isn't it smartest to work directly with the broker who has the boat for sale?
Usually the answer is "no". Engaging a broker as "your broker" means that broker is specifically looking out for your interests in the transaction. While both brokers can be professional, two minds are often better than one, and it can pay to have a broker negotiating the best deal for you.
As a seller, should I expect my broker to be the broker who sells my boat?
Sometimes. But a quality broker works cooperatively with other brokers to get your boat sold. Greedy brokers push their own boats. Quality brokers look at what boat is best for their clients and work with other brokers to find the clients.
How long is the typical listing agreement?
Normally 90 to 180 days. That allows time for the broker's marketing efforts to show results. Some boats take longer to sell, others may sell quickly.
How long is the average boat on the market?
That depends upon three factors: the economy, the presentation/pricing, and the marketing. Generally, larger, more expensive boats are on the market longer than smaller, less expensive boats.
What is the best time of year to sell a boat?
Smaller boats sell better in the spring, with the onset of good weather. They are "impulse buy" boats. Larger boats sell better in the fall. In fact, the worse the weather, paradoxically, the more likely bigger boats will sell. That's why major boat shows, like the Seattle Boat Show, one of the largest, occurs in January.
When is the best time of year to buy a boat?
When it's the worst time to sell a boat. If you buy a small "impulse boat" in the fall, the selection will be less, but the price likely less. Big boat prices tend to weaken in the spring, after the major selling season has past. Once again, selection may be reduced and your ideal boat may already have been sold.
I'm looking to buy "a deal". What should I look for?
Look for two things: first, a boat that has been overpriced and on the market for over a year, maybe two. Price her too high and she eventually sells too low…but it's good for the buyer. Second, with a very knowledgeable professional surveyor and the luxury of time, shop for a quality brand that looks "unloved", and make an offer in the worst weather possible. Poor curb appeal drops the price, but sometimes "looking unloved" means she truly is unloved…with potentially disastrous future repairs.
