Mistakes to Avoid at the Boat Show, Part 4
Many boat buyers don’t understand the commissions that are paid in the transaction of buying a boat. It’s a common problem, since the only person who loses out is a buyer who does a deal without his own broker—thinking he’s going to save money.
“Buyers often want to go directly to a listing broker and take out the selling broker,” says Tom George, president of the Tom George Yacht Group and a Certified Professional Yacht Broker (CPYB). “The buyer doesn’t pay a dime more by having his own broker. It’s paid by the seller. So either the listing broker is going to make the commission or it’s going to get split between his broker and the listing broker.”
Since the seller pays the same amount of commission either way, it doesn’t affect the cost of the boat for the buyer. So if you’re not saving money, what good does it do not to have your own broker? The answer is not much. “There are so many things that the buyer’s broker can assist with, from recommending the best and most qualified surveyor to knowing what to ask for in a survey review to managing survey deficiencies to closing paperwork and proper protocol,” George says. “It’s to the buyer’s advantage to have a guy on his side, working for him. Otherwise it’s like walking into a courtroom without an attorney.” And as frightening as that sounds it happens all the time—whenever buyers call the listing broker directly.
The buyer’s broker is a key part of any good deal. “We’re there to represent the client,” George says. “And try to protect him as best as we can.”