Why do private sellers think using a broker increases the value of their boat?

M

mrsrobinson

Well-Known Member
Mar 9, 2006
7,704
Virginia
Boat Info
2001 380DA
Engines
Caterpillar 3126
I found a private seller boat I liked on boats.com. Way overpriced but decided to contact the seller anyway since it was close to home and nice looking. We chatted a bit, I shared my opinion on his price and referred him to a broker in the area I like to confirm my opinion. He contacted the broker, who agreed with me. So the seller voluntarily dropped his $125K price to $93K, so I went to see it the next day.

Boat showed good overall. He told me he was going to list the boat with the broker, that the broker and him agreed to 7 days for me to work with him directly versus the broker since we'd started the conversation already and I had looked at the boat.

I offered $89K cash the next day. He said no, $93k was his bottom line. Broker listed it for $104,500. I tried the seller directly again (yes, I know you are not supposed to negotiate with yourself), he then said $95K was his bottom line since he's now listed it. I told him the boat did not increase in value simply because he listed it. He said the broker said it will sell quick. That was 3 weeks ago...
 
Broker or not at this point you're as implicated as the seller in the "value of a boat, broker or not" discussion - you brought the broker to the table! They aren't free....and why should the seller have to pay him at this point? He didn't even want the broker initially :)
 
My favorite line in some for sale by owner ads state "Save the brokerage fee and buy direct from the owner" when in actuality the only person "saving" a brokerage fee is the seller. Does anyone really think that if they can obtain $xxx,xxx.xx for a boat listing with a broker that they would just automatically drop it for a buyer they do not know for xx%?

I might be biased but normal human nature suggests the same.
 
Seems like they gave you a week to make a decision. You didn't and they moved on. The seller went under contract with the broker to sell, and now he has to pay the broker. Sounds like you snoozed.
 
bahamabreisus said:
Seems like they gave you a week to make a decision. You didn't and they moved on. The seller went under contract with the broker to sell, and now he has to pay the broker. Sounds like you snoozed.
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Not the case. He changed his price to $93K after talking to the broker (but did not list it with the broker) so I decided to go look at it. I assumed, fair assumption I think, the price was negotiable. Right before I left from looking at it he told me he was going to list it with the broker if I did not buy it. The next day I offered $89K he immediately reneged on his $93K price, and said $95K now that he has it listed with a broker, but they agreed to a 7 day window for me to work with him directly. He would not move off of his $95K reneged price during the 7 days.

What's funny/odd is the broker told me he'll take $95K going thru the broker.
 
My guess, the broker already has a few buyers lined up. If you are willing to pay 95k, call the broker and make the deal. Fair priced boats don’t last long in this market.
 
Ididntdoit said:
Why do buyers whine when a seller won't take their offer?
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If you are referring to me, I'm not whining, and please keep your unrelated comments to yourself. My question and comments were sincere ones, simply curious.
 
saopm said:
My guess, the broker already has a few buyers lined up. If you are willing to pay 95k, call the broker and make the deal. Fair priced boats don’t last long in this market.
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It's been on the market for over 3 weeks since the broker listed, no offers. It's a 17-year-old boat, 250 hours on the engines, multiple service records where the engines overheated. Even had the heads removed and sent out to be rebuilt recently after overheating. The owner appears to be a reactive service maintenance kind of person, not proactive. It shows well otherwise, just cautious about the mechanicals compared to other listings.
 
I am going to side step this potential pissing match and answer the original question. I have and will continue to sell thru the local SR dealer. Reasons…
1 they cater to people looking for a SR
2 they advertise so i dont have to
3 they weed out the wannabes and cantaffords
4 they handle the money and title transfers
I dont have big yachts so the 10% fee i pay them is a deal that i cant pass up.
Edit: and because they offer a 30 - 90 day warranty on used boats, they usually tack on an extra 10% to the price which covers the 10% i am giving for their fee, so its a wash.
 
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mrsrobinson said:
Such as? I have access to the sold comps, and anyone can go look at current listings.
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First is their personal network. Many good brokers know people who might buy your boat before you sign the contract.

And inquiring minds want to know just how to get access to sold comps?
 
Boat trader now lets private sellers advertise and Bob over at AnglersEdgeMarine will list your boat on all the sites (not including YW) for a few hundred dollar flat fee.

Some use brokers and some do not. I'm in the do not category.
 
The answer to you original question is that using broker doesn’t increase the VALUE of the boat, but it does increase the COST of the boat. Someone has to pay for the increased cost. Or, both the buyer and seller share that cost. The value of the boat hasn’t changed. But the cost to acquire it (or to sell it) has changed. It has increased by the broker’s fee. That increase will be paid for by the buyer, absorbed by the seller, or both.
 
scooper321 said:
The answer to you original question is that using broker doesn’t increase the VALUE of the boat, but it does increase the COST of the boat. Someone has to pay for the increased cost. Or, both the buyer and seller share that cost. The value of the boat hasn’t changed. But the cost to acquire it (or to sell it) has changed. It has increased by the broker’s fee. That increase will be paid for by the buyer, absorbed by the seller, or both.
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+1…. Same for a house
 
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He likely had to increase to $95k because now he is paying a brokerage fee... So in effect your $93k offer just became $84k due to the 10% commission he is obligated to pay the broker. The only thing I find weird is that if you and the seller initiated contact before and without the broker becoming involved then your deal SHOULD be free of the broker's fee. That being said it's a seller's market right now... You need to pay to play, it will likely calm in the near future but that's how it is right now.

Also if he has a loan on the boat he likely has a rock bottom number that he will not drop below. It's unfortunate but in today's boating market expecting a reduction in asking price is not a safe assumption. Same with houses, in fact people are paying far over asking prices. I sold my last boat (Four Winns H350 outboard) this summer and there was a bidding war for it!
 
MonacoMike said:
First is their personal network. Many good brokers know people who might buy your boat before you sign the contract.

And inquiring minds want to know just how to get access to sold comps?
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I have a friend who's a broker and he'll always run comps for me
 
My broker friend told me the market is slowing down, there's more inventory, and they are actually reducing prices. He told me the original price of $93k was fair, but not great.

No loan allegedly, original owner.
 
Of course its slowing down. Seen this for 30 years. OMG. The market going to to hell. Sorry no. Few people want to make loan payments, insurance payments, winter storage payments, on a boat they cant use till May.
 
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