Yacht Broker Basics

Yacht Brokers work like real estate agents. They are agents whom people consult to find and purchase a boat, and whom people hire to market, represent, and sell boats for them. Traditionally, the broker is paid by the seller. A broker earns his sales commission by marketing and successfully selling a client’s yacht. A broker is not paid a salary or wage. He only earns income by diligently marketing a client’s boat until it sells and the transaction is complete. A broker’s time and expertise are his only ‘inventory’, and since 95% of his or her time does not result in a completed transaction, a broker must be careful where he invests his time. If you want the best broker available to assist you with your search and evaluation, you will be best served by establishing some mutual loyalty so that the broker will be incentivized to go the extra mile for you to dig for the facts about a target boat and to make inquiries on your behalf.

Although a broker may originally have a relationship with the seller, brokers have a duty to fairly represent the interests of both the buyer and the seller in every transaction. It takes a balanced and knowledgeable approach, and an ability to manage partially competing interests to bring a transaction together to all of the parties’ satisfaction.

As a shopper, it is in your best interest to select an experienced broker to assist you in identifying and evaluating a yacht and to have that broker represent you in your inquiries and transactions. It doesn’t cost you anything extra, since commissions are paid by the sellers, and if you connect with a professional and knowledgeable broker, he can deliver a huge benefit to you in finding and evaluating the right boat and coordinating a transaction that will be guided by a predictable and satisfactory process.

A good broker typically has a portfolio of yachts that he represents and markets and the scope of his portfolio of represented yachts will suggest the scope and depth of his expertise. If a broker is representing primarily 10-15 meter sailboats, he won’t be much of a resource for you in evaluating a 25 meter motor yacht, or an explorer-class vessel. It takes years to develop expertise in the more complex systems installed in larger yachts, and to understand the dynamics associated with flag state and classification selection.

Don’t be afraid to ask questions of your broker, to measure his willingness to give you straight answers and his apparent ability to help you effectively deal with the technical and legal issues related to your proposed purchase or sale.

For more inside secrets to yacht purchasing, sales and ownership, contact us at: daniel@aurorayachtsales.com or call +12064076411 or +393470485433.