Do I Need a Boat Broker?
When looking to buy or sell a boat, the first question you may have is whether or not you need to go through a broker. Here we explore some of the benefits of using a broker, including how much it will cost. We hope that by reading this information, you will be able to make an informed decision on your next steps. So without further ado-let’s dive in!
What is a broker and what do they do?
A boat broker is someone who helps you buy or sell your boat, not only sourcing possible vessels or buyers, but also negotiating prices. They help with marketing and drawing up legal documents too. They will also be able to offer expert advice on the boating industry.
Why it might be worth your time to use a broker
They have access to information about available boats and can help ensure that your offer is fair and reasonable. Your broker will also prepare an ‘Offer to Purchase’ that will have all necessary elements so your interests are protected during the transaction process. All in all, a broker can reduce the stress of buying and selling a boat and to make sure the transaction goes through smoothly.
How much does it cost?
The average broker is paid solely on commission and the standard industry commission is generally 10%…although there may be some room for negotiation as the percentage that they’ll charge you tends to depend on the value of your boat. When you sign a contract, there are often many details that need to be read carefully before signing. Make sure you understand the terms of the agreement before you sign.
What are the benefits?
One of the best features a broker provides is handling all aspects of your sale, from beginning to end. They can take on everything for you so that the process doesn’t seem like such an overwhelming task. They will organize a surveyors report and can also arrange for any work to be carried out to make sure your boat is ready for sale.
What are the pre-purchase services?
If you’re looking to buy a boat, a broker can help provide the perfect loan and marine insurance for it. You may also want to get pre-approved for a loan before buying so that you know how much money is available! You can find out more about financing here; Boat Loans
Will a Broker set up an escrow?
Brokers can set up escrow for you, so that the money won’t pass to a seller until all of their conditions are met. This helps prevent you from paying for a boat that has delinquent property taxes.
What are the Post-Purchase Services?
Your broker will help make sure you have an accurate record of the sale and they can help ensure that all of the paperwork is in order. They can also recommend instructors for classes if this is your first boat purchase!
Whether or not you choose to use a broker it is important to do your homework. Researching the pros and cons will be helpful in making a decision, but it is worth considering that you are not just getting one person’s help with the boat sale process, instead, you are gaining access to the broker’s entire network of contacts and referrals who can help you throughout the entire life cycle of owning your boat.
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