One reason sellers use the brokers is because it insulates them from the annoying buyers. The sellers don't have to take calls and emails about the boat from an endless number of lookey-loos that do not have the means to complete a purchase. They don't have to show the boat to tire-kickers that have nothing else to do on the weekend or worse, wait for those that cannot keep an appointment. They don't have to take unrealistic offers from people that have no idea of the boat, the markets or the valuations. They don't have to write-up deals with conditions that will waste time and suspend other sales opportunities. If the sale eventually completes, the broker then indulges the hand-holding of a buyer in remorse or one that still doesn't realize, regardless of surveys and inspections, that no boat is perfect and all boats will need something. A broker earns every cent of the commission.
Why do private sellers think using a broker increases the value of their boat?
- Thread starter mrsrobinson
- Start date
mrsrobinson
Well-Known Member
For clarity, I'm not asking why sellers use a broker.
I'm still not understanding why listing with a broker increases the price/value of a boat. I understand why the price increases with a used car because the dealership reconditions the car and adds value to it. And in some cases even offers a warranty.
Brokers don't do either.
I'm still not understanding why listing with a broker increases the price/value of a boat. I understand why the price increases with a used car because the dealership reconditions the car and adds value to it. And in some cases even offers a warranty.
Brokers don't do either.
I can’t speak for every sale ….but if you want $100k for your boat without a broker…you want $100k with a broker….making the boat price $110k…. You’re not going to say... "okay now that I am using a Broker I will take $91k"
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So the answer to your question is sellers are crazy right now. Most think their boat is worth more than it is and some buyers foolishly overpay for said boat.
The other thing, I would hope brokers have some sales skills and can talk a buyer into uping the money.
Now, why don't you call the broker and offer $90 and see what happens, if you like the boat. Sounds like you're the only offer at this point.
The other thing, I would hope brokers have some sales skills and can talk a buyer into uping the money.
Now, why don't you call the broker and offer $90 and see what happens, if you like the boat. Sounds like you're the only offer at this point.
Well, subtle didn't work. I'll connect the dots:
The broker has a far better idea of what that boat can sell for than you do - more than $89,000. The hardest part of boat buying is finding a boat you like, in decent condition, at a price you can afford. You did. Then you got hung-up on haggling price too early, the buyer was not desperate and he knows his boat is worth more. No deal.
Why didn't you come up with another $3 or 4,000.00 in your offer to get things rolling? You still have a survey and mechanical inspection to get done. If the boat checks out - great, it's worth the $3 or $4,000 extra. If it doesn't, that is your opportunity to negotiate hard. Then the buyer knows why his price is too high, as well as you do. You have hard facts in your hand, not just your opinion.
A broker would have that deal done by now. So that is why the value goes up: he/she provided both of you - seller and buyer, with a valuable service.
Meanwhile, you're looking for another boat, again.
Pirate Lady
Well-Known Member
Excellent explanation. Clear, concise. You should write technical manuals.
Except the boat has apparently been sitting unsold for several weeks.
mrsrobinson
Well-Known Member
Agreed, the mechanicals concern me, and even a sea trial (which the seller already took me on) and survey will not make me feel better. I always get compression checks and do an oil analysis as well. Still, I think a 17 year old boat with only 250 hours on the engines should not have multiple "engine overheating" service requests and all reactive service/maintenance. For example, the risers and manifolds were just replaced only because the starboard engine overheated, again. This time the shop pull the heads and sent them out for a rebuild. It's an outdrive boat as well, I see all reactive repairs, and a lot of them. That's why I think it's a little overpriced.
Again, I appreciate your unrelated comments, but my thread was not about "why have you not bought this boat?"
I believe sellers increase the price when using a broker to make up some of the 10% commission they have to pay. We listed our 36DB with a broker they put it on their site Friday night and sold the boat Saturday morning, well I actually sold it for them had to give them almost $20k that sucked. now days you can sit on the couch and upload your pics to the sites and advertise for a few hundred bucks, and if you have to field a few tire kickers so be it to save thousands of dollars that’s how I see it.
That and brokers will inflate the price to draw the seller into a contract then over time drive the price down depending upon how many hits, bites, and hopefully offers. Dennison used to send out a flyer showing their yearly sales which showed the boat's year, manuf, model, location, listing price, and selling price. But, I haven't seen that in a while.
I think there is a size/value in a pre-owned vessel that a broker is essential for the average Joe to properly transfer a sale.
sbw1
Well-Known Member
- Oct 10, 2006
- 8,185
- Boat Info
- This is listed in my signature
- Engines
- This is listed in my signature
I increased the asking price of my boat after using a broker because his information was better than mine. I had a price in mind that was quite a lot lower than the boat's market value. We discussed pricing, and after reviewing his data set the price. Our discussions were eye opening. When I suggested a little higher number to provide some "wiggle room" he advised against that approach. His thinking, based upon experience, was the phone starts to ring when the price is right. We did it his way and the boat sold before the listing was published. He had a list of prospects.
mrsrobinson
Well-Known Member
This happened to me with my last boat. I found the seller and referred him to the broker who collected his 10%. I actually think I did more work then the broker. Took the pics, wrote up the description, etc.
mrsrobinson
Well-Known Member
Perfect, thanks, this makes sense.
BOB TYSON
Active Member
I have bought and sold multiple boats. I used a broker for the first time when I sold the last one, (460DA) 8 months ago. Before I engaged his services I told him what I needed to net. Sold it in 6 weeks. Broker shaved a bit off his commission, I shaved a bit and the seller came up a bit. Everyone was happy. Broker handled everything from advertising to final sale. I would do it again. (shout-out to the broker:Ray Brock @ Weber yachts)
Note: I was not local to the boat. I know this is a hot market. I also was very unimpressed with the local, big time broker at the marina where I had my slip in Sarasota. Competition is a wonderful thing!
Note: I was not local to the boat. I know this is a hot market. I also was very unimpressed with the local, big time broker at the marina where I had my slip in Sarasota. Competition is a wonderful thing!
mrsrobinson
Well-Known Member
I did this as well with one of my last boats that was 3 hours from home. Broker came back with an offer, I told him then what I needed to net, that he can figure out what that means for his commission. I got my net and all were happy. Different market then though.
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R-and-R
Active Member
- May 9, 2018
- 258
- Boat Info
- Boatless
- Engines
- Boatless
This was my experience also. I had underestimated the value of my boat. Broker listed it 20% higher than I expected. First bid came in 10 days, closed inside of 1 month.
mrsrobinson
Well-Known Member
No, it's still on the market listed at the same price.
Jus Cruisin
Well-Known Member
I'm going to use a broker for my Cobia in the spring. The broker is going to set the price, not me. That price will be what they feel is fair retail and which is also what I feel I could sell it for putting their effort into it. Their effort meaning getting it in all national sites, 60+ pictures and video. Sorting through calls, showing the boat, doing the sea trial, coordinating survey and closing. And they will store it indoors while it's for sale. It will be well worth their sales commission to me. And, what ever price it sells for is what it's worth. It is worth what someone is willing to pay for it.
RBB
Well-Known Member
- Dec 18, 2019
- 2,080
- Boat Info
- 2004 480MY
2006 44DB
2019 Sea Doo GTX 155
Pelican Kayak
2004 390 MY Sold
- Engines
- Cummins QSM11 680Hp
Cummins QSC 500
My only comment is that I sold a 390MY last winter and the buyers all wanted it, timing is everything. In my opinion it has slowed downed, but your comment about it is worth what someone is willing to pay for it is true to the bone for any given day. The broker I used got me more money than I told him, I was very happy.
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