how does yacht brokerage work

What Do Yacht Brokers Do? 8 Things To Expect (Selling & buying)

From buying to selling boats and enjoying life on the high seas, the exciting life of a yacht broker seems like a dream to many.

What exactly is involved in their job?

This article will highlight some of the key responsibilities of a yacht broker.

Table of Contents

The 8 Main Functions Of Yacht Brokers

A yacht broker helps to make sure that everything goes smoothly behind the scenes of buying and selling a yacht.

They do a lot to help to make sure the stress of buying or selling a yacht is less stressful and can help to speed the process up.

1) Looking at the Boat

Whether the client is purchasing a boat or selling one, the yacht broker will first need to view the vessel.

This is in order to get a good idea of the condition of the yacht. He or she will need to appraise the condition of the boat.

Another responsibility is to talk to the crew about the maintenance schedule. The yacht broker will also need to look at the ship’s papers. Having all of the right certificates in order and documents is crucial to sealing the deal.

2) Appraising the Boat

The yacht broker will also want to talk to his industry contacts to get an idea for how much the yacht is sold for.

The yacht broker has the important job of saving the seller or buyer time and pain when it comes to selling a boat.

A yacht broker can help with assessing the boat and surveying it to make sure it is in premium condition. They will attend the survey with you, or for you, if you are not able to. The broker will act as the intermediary during the process of the sale.

3) Filling Out The Paperwork

The yacht broker’s job is to make sure that the paperwork gets done. This includes collating the documents for the actual closing of the sale, preparing technical specifications, to making sure the yacht has all of the appropriate certificates.

They will also guide the yacht owner through aspects such as loan payoffs, corporate ownership, bills of sale, and similar documents.

4) Briefing The Parties Involved

A yacht broker will need to direct clients to the best possible marine lawyer for their specific yacht.

The yacht broker may need to help encourage the deal to keep pushing through.

5) Marketing

Marketing is an essential part of the yacht broker profession, especially when they are representing the seller of a yacht.

In the past, a yacht broker operated out of a big office building, and people would walk by and visit because they were considering purchasing a yacht.

Now, in the era of the internet, people from all over the world have access to a yacht broker and their services.

The yacht broker may make use of advertising such as banner ads or videos. Marketing yachts effectively makes use of the internet, so a yacht broker may make posts on social media, classifieds, or their personal website to sell a yacht or find one.

Some yacht brokers might make a video walk-through of the yacht and explain the features to potential clients. Others will have a professional website that acts as a point of contact.

6) Duties While Selling

As stated above, the broker will list the yacht on Yachtworld and other appropriate outlets. They also have the responsibility of pricing the yacht reasonably. Brokers will have access to recent sales, and they know how much they should go for based on recent sales prices.

When they receive responses to the yacht adds, they will prescreen responses so as to find those that are most likely to lead to a sale.

A yacht broker will also have the duty of showing the boat to people who are interested in buying it. They’ll give them the tour, and be sure that the boat is in pristine condition.

The yacht broker will also answer any questions that the buyers have.

Another responsibility they have is to communicate negotiations with the yacht owner. They will also handle the pricing of the yacht , which is where they might get their earnings from.

Finding the right price is a big part of getting the boat sold.

Part of their job would be to take pictures of the boat and to write a description of it that entices buyers.

7) Securing the Sale

Guy doing an inspection of a tiny house on wheels

When a price is agreed upon, the yacht broker will draw up the sales agreements and will also accept deposits.

Modern technology allows them to do this electronically with smartphones, tablets, and computers.

A yacht broker will secure sea trials where the potential buyer will take it for a test drive on the water as well as schedule surveys.

After the sale is made, they will transfer the funds to the yacht owner.

A yacht broker can assist a buyer in getting financing for the yacht.

8) Duties After the Sale

The broker’s job doesn’t stop after the boat is sold.

They can also assist in docking, boat detailing, and refining it to meet the buyer’s needs.

Their industry connections can help a lot in this process after the boat is sold, and helps to make boat ownership a rewarding experience.

Types of Agreements With Yacht Brokers

Some yacht brokers take a 10% commission on the sale of the boat and might bring it down in order to secure a sale on a boat. There are different types of agreements.

A central agency agreement, or an exclusive listing, means that a seller has hired a specific broker to sell their boat.

The broker may then list it on Yachtworld or a similar site. They then enter a co-brokerage agreement. Co-brokerage is when another broker finds a buyer for the yacht, and the original broker splits the commission with them.

Almost 70% of all yacht sales are done in this way because of this incentive. In this agreement, even if an owner brings in a buyer or donates the boat, they are still liable to pay the broker commission.

Most of the yacht sales are completed with a central agency agreement.

Another type of sale is the open listing agreement. In this setup, the owner can bring in more than one broker for the sale.

The owner also retains the right to sell the yacht on their own.

A disadvantage to this type is because they are not guaranteed commission, they might not spend money that is necessary to advertise the boat. It also might result in communication errors among more than one broker and prospective buyers.

However, on the other hand, a motivated broker might be more likely to bring in a sale because then they would be guaranteed the entire commission. The typical length of the agreement is around six months.

Yacht Broker Duties If You Are Buying

Brokers help to ease buyer’s anxiety when putting down large amounts of cash for a luxury yacht.

They might set up a separate bank account for the transaction and the necessary deposits.

The contract will specify what the contingencies of the sale are, and also how much or how the money will be returned if the sale does not go through.

For the buyer, the yacht broker will have the advice they need to find the right boat at the right price. They’ll be able to open doors and find opportunities that benefit both parties and create a win-win situation.

They work as an advocate on behalf of the buyer and will be priceless when it comes to negotiating and securing a sale.

Know The Role Of The Broker

In most sales, the broker is a worker for the seller and not the buyer.

This is an important part to remember. Their job is to get the highest price possible to satisfy the buyer and to make money. It is possible for a buyer to enter into an agreement with a broker with a buyer’s broker agreement.

A buyer’s broker represents the buyer, not the person selling the boat.

When they know what type of yacht the buyer is looking for, they will search for it through their contacts and resources available to them. They will assist in finding the right boat for the buyer’s needs and budget as well as assist in the necessary paperwork.

A buyer’s broker will typically get a split in commission from the seller’s broker.

There may be no cost to the buyer for using a buyer’s broker, but be sure to read the details of the agreement before signing.

A yacht broker has priceless industry knowledge that will assist in the buying and selling of yachts. A trustworthy broker will help save buyers and sellers time and money when they are making the purchase. They’ll pool the talents and resources of a team of brokers to support the transaction go quickly and smoothly.

Finding the right yacht broker with experience and integrity will make a big difference in the process. A yacht purchase is a significant investment, and teaming with the right people helps to ensure that the investment is the right one.

They understand the market and all of the nuances involved in buying and selling.

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What A Yacht Broker Can Do For You

Especially when buying or selling a large boat, the right broker can reduce stress and make the transaction go smoothly and painlessly.

A broker can take the complications out of buying or selling your next boat. (Photo: Michael Vatalaro)

When BoatUS member David Issacson bought his first boat 26 years ago, he searched the newspaper classifieds in the morning (remember those?), located a couple of candidates before noon, and by 3 p.m. wrote the seller a check for $1,000 for a 17-foot boat he took fishing that day. "It was so simple then," he says. "Pretty much like buying a cheap used car. I don't even think I got a bill of sale. It was all done with a handshake." Now that he's retiring, he's looking for his fourth boat, which he says will be much bigger, probably in the 42- to 45-foot range. "I have no idea what it's going to take now. I've never had a boat that was documented or had a loan on it. I don't even think they have classifieds in the paper anymore, and I'm not sure what the process is these days."

Issacson is exactly the type of person who could benefit from using a boat broker. Boat brokers are similar to real-estate agents, but with important differences: They're far less regulated, and their commission is 10 percent rather than six percent. Unlike realtors who must take classes, sit for an exam, and be licensed in every state, only boat brokers in Florida and California have to be licensed and only California requires an exam. In most other states, anyone can call themselves a boat broker. And while all brokers have certain legal responsibilities to their clients, selecting one should be done carefully. Ask around at your marina or boatyard and get referrals from others who have used a broker before. Talk to two or three and get a feel for them, just as you would with a real estate agent. One way to increase your chances of finding the right broker is to look for a Certified Professional Yacht Broker (CPYB). These brokers are members of the Yacht Brokers Association of America (YBAA), have taken a comprehensive exam, have pledged to abide by a code of ethics, and will work with the BoatUS Dispute Mediation Program (see links in sidebar).

If You're Selling

There are several advantages to using a broker, the biggest of which is exposure. Plastering "For Sale" signs in yacht clubs and marinas can't equal the power of a broker's listing, especially with larger boats that have a smaller pool of buyers who may not even be in the same state. Brokers typically list boats through websites such as Yachtworld, which is easily searchable by anyone, anywhere in the world. Only brokers can list boats on the site, which functions much like the Multiple Listing Service for real estate agents.

Here's How A Broker Can Help

If you're the seller, a broker will:.

Advertise your boat. Brokers should list your boat on Yachtworld and advertise in other places where appropriate. Find out what their marketing plan is and get it in writing.
Price your boat realistically. Brokers have access to recent sale prices and know a good starting point.
Prescreen responses to advertising. This will avoid most tire kickers.
Show your boat to prospective buyers. This will save you from wasting time with buyers who don't show up.
Communicate all offers from potential buyers to you.
Negotiate the selling price. This is where brokers can really earn their money.
Draw up sales agreements and accept deposits. Many brokers can do this electronically over computers, tablets, and even smartphones.
Arrange for sea trials and schedule surveys.
Coordinate closing.
Transfer funds to you. Now you can start shopping for your next boat.

Correctly pricing a boat is critical to getting it sold, and an experienced broker has a very good idea of what a boat will sell for and can price it accordingly. Brokers typically have access to what similar boats have sold for in the local area and they'll prepare a listing based on the kind of boat and type of buyers expected. They'll take photos, write an enticing description, and recommend things to improve the look and marketability of your boat. Brokers can also help you navigate some of the more confusing aspects of selling such as corporate ownership, loan payoffs, bills of sale, and other documents needed for transferring ownership. Aside from listing and advertising the boat, their most important job is helping move the process along once a buyer is found. Brokers can also help a buyer obtain financing and assist with changing the USCG documentation. While the 10-percent commission is usually not negotiable, brokers will sometimes discount it for a sale that might be falling apart because of a survey report or other defects found on a boat. The different listing contracts used by brokers can be confusing, but they're not complicated once you understand the two main types, a central agency agreement and an open listing agreement.

A central agency agreement (sometimes called an exclusive listing) means you've hired a specific broker to sell your boat. With this type of agreement, the broker typically lists your boat on Yachtworld and — this is important — is obligated to sell it through a co-brokerage arrangement. Co-brokerage means that if another broker finds a buyer for your boat, your broker agrees to split the commission with him. This incentive to help each other is why about 70 percent of all brokerage sales are co-brokered. Keep in mind, though, with this type of agreement, even if you bring in the seller or end up donating your boat, you'll still be liable for the broker's commission. The majority of brokerage sales are central agency agreements.

An open listing agreement means you've given more than one broker the right to sell your boat and you also retain the right to sell it on your own. The disadvantage is that because no broker is guaranteed at least a part of the commission, it's not very likely any of them will spend the money to list your boat on Yachtworld or pay for other advertising. There can also be confused communications between multiple brokers and potential buyers. On the other hand, a hungry broker may be more motivated to bring you a buyer because he would get the entire commission. With this type of agreement, if you find your own buyer, you don't owe anyone a commission. For either type, don't be pressured into signing for a longer term than you're comfortable with. Six months is typical, but don't be afraid to ask for less, though a broker typically needs at least a couple of months to generate interest. Usually, you can walk away from any contract after giving 30 days notice. Most agreements automatically renew, so give notice before that if you want to cancel. No matter what kind of listing, ask for biweekly progress reports.

Selling It Yourself

For Sale By Ow ner (FSBO) certainly sounds attractive. Not only do you pocket 10 percent more than if you used a broker, but you're in charge of the whole process. Selling it yourself has drawbacks, however. You won't be able to get the same kind of national exposure a broker can, and you'll be responsible for keeping the boat in top condition and available for showing. And, because most boat shopping occurs on weekends, expect to be tied down during your time off. Finally, like many others, you may simply dislike negotiating. But if you want to save some serious money, BoatUS can help. Our thousands of online classified listings are viewable by anyone, anywhere in the world, and we offer an escrow service that takes the anxiety out of the financial part of the transaction. We also offer members full documentation service, boat financing, comprehensive insurance, and on-water and roadside towing coverage.

If You're Buying

While owners may find the process of selling to be an anxious one, buyers are looking for their next dream boat and are likely to be enjoying looking around, trying to find the perfect fit. But buyers tend to get apprehensive once it comes to plunking down hard cash. This is where a broker can make the process less stressful. Brokers should have a separate bank account for holding deposits and there should be wording in the contract specifying what the sale is contingent upon as well as how and when the money will be returned if the sale falls through.

It's important to remember that the broker in a typical sale is getting paid by and working only for the seller, not the buyer. A broker will try to get the highest possible price (that's what his commission is paid from) and will try to sell his client's boat even if it's not necessarily the best deal for you. You're on your own with negotiations and paperwork advice. You can, however, enter into an agreement with a broker through a buyer's broker arrangement. A buyer's broker will represent you, not the seller. Once they know what you're looking for, they can scour their sources and suggest likely boats for you to view, assist in negotiating a price, and help with the paperwork. Typically, a buyer's broker gets a commission split from the seller's broker so there's no cost to you, but read the agreement before signing.

When it's time to seriously consider a boat, it will need to be hauled out and surveyed — something that's usually paid for by the buyer, though as with anything in a sale, that's negotiable. Never use a surveyor recommended by the broker or seller; it's critical to hire an independent, qualified surveyor (see links, below) who has no stake in the outcome. Not only will the survey uncover needed repairs and deficiencies, it will also establish a fair market value, all of which can be used for negotiations. It will almost certainly be needed for financing and insurance as well.

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Charles Fort is BoatUS Magazine's West Coast Editor. He often writes local news items for BoatUS Magazine's Waypoints column and contributes to Reports, in-depth tech features in every issue written to help readers avoid accidental damage to their boats. He is a member of the National Association of Marine Surveyors, he's on ABYC tech committees, and has a 100-ton U.S. Coast Guard license. He lives in California.

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Yacht Brokerage Guide

From finding the right yacht to negotiating the contract, buying a luxury yacht is a huge investment of time, and can be an unnecessarily complex process if you don’t have the right yacht brokerage on your side.

With the right yacht broker representing and fighting for your interests, buying a yacht becomes hassle-free and downright exciting. Without the right yacht brokerage giving you expert industry and legal advice, buying a yacht can become fraught with stress and even financial risk.

So how do you choose the right yacht brokerage?

How do you find a yacht brokerage that will put all their resources to work for you, not just one broker. In a virtual sea of yacht brokerages all doing things the same old way, Worth Avenue Yachts stands out for its innovative, highly successful approach to buying and selling yachts. Rather than using one broker per client, Worth Avenue pools all its brokers’ knowledge, contacts, and experience to work for each and every client. This means that when you buy a yacht or sell a yacht through Worth Avenue Yachts, you’re benefitting from the resources and expertise of more than a century of our brokers’ combined experience.

It’s an approach that works.

Since launching in 2011, Worth Avenue Yachts has sold over 1.2 billion dollars worth of yachts, with a speed of sale over 50% faster than industry average. Worth Avenue Yachts was responsible for nearly 10% of all global yacht sales in the 100’+ range last year, and are an industry leader in the sale of Westport yachts.

Yet the Worth Avenue yacht brokerage service doesn’t stop with buying and selling yachts. With dedicated yacht charter brokerage , yacht management , and yacht construction divisions, Worth Avenue Yachts is the ultimate yacht brokerage to look after your yacht throughout its lifetime.

So how does the yacht brokerage process work when buying a yacht?

1. Your yacht broker will sit down for an in-depth discussion with you about your yachting preferences; do you want to buy an existing yacht or would you like to design your own yacht . They will establish what your needs are, what kind of designs you like, and how you would like to use your yacht. This is where the broker’s expert knowledge begins to become apparent, as they discuss the pros and cons of certain yacht builds and hull types, talk about typical resale values and charter opportunities, and get down to technical details you might not have thought about as a brand new yacht owner – such as whether the draft on that full displacement yacht you like will be too deep to navigate the shallow waters of the Bahamas. A good broker helps you avoid the costly mistakes of a first-time buyer.

2. Once your preferences have been narrowed down, the broker will get to work on your behalf, trawling through global databases and getting on the phone to their networks to locate your dream yacht. As an international yacht brokerage with a global network, Worth Avenue will not just limit their search to local yachts for sale, they will even tell you about yachts that aren’t technically on the market yet. Remember, with Worth Avenue Yachts, you’ll have the combined power of all the brokers working for you, not just one broker jealously guarding their leads and contacts, as often happens with other yacht brokerages with an individual broker-per client system.

3. They’ll then organize viewings of your shortlisted yachts. Where possible, your broker will recommend you charter out the yacht you have your eye on or a similar yacht so you can get a real sense of what the yacht is like to live on; how does it perform in the water, what are the noise levels like, is the space sufficient for your family and friends? The more yachts you tour and (ideally) charter, the more you’ll get a sense of what are the non-negotiables when it comes to onboard facilities, which yacht builds and designers you favor, and what kind of price you should expect to pay. An ideal place to view large numbers of yachts at once is at the major yacht shows , where Worth Avenue Yachts has a strong presence.

4. Once you’ve decided on a yacht, your yacht brokerage team swings into action on the legal side of the sale process – drawing up contracts, dealing with surveys and sea trials, and negotiating counteroffers. The expertise of a top yacht broker in these matters is absolutely indispensable – allowing you to avoid the pitfalls of the unwary and negotiating you the best deal possible.

From the first discussion right through to the day of delivery and beyond, a yacht brokerage is right there beside you, every step of the way.

Image courtesy of Drozdin Vladimir

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What Does A Yacht Broker Do?

By Robert Bowman | Posted On Jun 07, 2022 Updated On Dec 12, 2023

Whether you are in the market to purchase a boat or sell your yacht , choosing a professional, experienced yacht broker can not only alleviate stress during the process, but also save you time and money . A yacht broker, similar to a real estate agent, is someone who works on your behalf during the selling or buying process of a luxury boat, negotiating on your behalf, and ensures the entire transaction is completed smoothly. While a yacht broker might be thought of as the "middle man" in the transaction, a good agent will provide an exceptional amount of value throughout the experience.

Take a stroll around any major boat show and it becomes apparent that there are thousands of yacht brokers from all over the world, all with varying degrees of experience, distinctive areas of focus, and with uncertain levels of support from the brokerage firm they represent. United Yacht Sales has more than 250 yacht brokers on our team alone that are all over the world. So how do you pick the right one for you? And if you know a broker already, is he or she the right one for your specific situation? Choosing the wrong broker can result in missing out on the perfect boat or prolonging the sale of your current one, both devaluing the final sale price and costing you more in maintenance. Hiring a reputable, knowledgeable broker can make a world of difference in your experience and how successful your search for a buyer or seller becomes.

At United Yacht Sales, we will match you up with the perfect yacht broker near you that specializes in selling your type of vessel. We have a phenomenal sales record of nearly 8,000 sold vessels and a robust database to help you find the right boat or the right buyer quickly. If you want to be connected with a professional broker right now, please call our main office at 1-772-463-3131 and we will find the right fit for your boat.

We have compiled a list of 8 questions to ask when choosing a yacht broker:

1.) Ask The Broker For Examples Of Similar Boats They Have Sold And Referrals

(Seen above: Broker Mordy Miltz had a successful day fishing with one of his longtime customers.)

"I've found that I often become friends with my clients after working on multiple transactions with them," says Mordy Miltz , a broker with UYS in both Florida and the Northeast. "When you spend hours with a client, looking at boats, working with them on the best scenario, you develop a level of trust and understanding with each other. That client knows that I am going to put them first and work as hard as I can to make sure they have a positive experience."

"Whether a potential client is interested in buying or selling a sportfish or a motor yacht, I have a list of referrals I can give them," he continued.

Don't be shy about asking for a broker's history. A reputable broker that has experience with a lot of different clients will undoubtedly have some testimonials or referrals to provide.

2.) Is The Broker Affiliated With Any Professional Organizations Or Have a CPYB Certification?

There are several organizations that exist in the yachting industry that don't necessarily guarantee you a successful selling experience, but they do require a particular level of ethical adherence to be members. The Certified Professional Yacht Broker program, also known as the CPYB program, requires thorough training of the broker and sets a benchmark of ethical standards. "A Certified Professional Yacht Broker (CPYB) is recognized as having achieved the highest level of industry accreditation, available to qualified yacht sales professionals," says a mission statement on their website.

Other regional organizations in the industry offer similar training, ongoing education, code of ethics, and support system. The International Yacht Brokers Association ( IYBA ) has grown substantially in membership as brokers all over the country join to have access to their MLS system and online tools. The Yacht Brokers Association of America ( YBAA ) is similar in its standards and holds its members accountable. Ask your broker what professional organizations he or she belongs to!

3.) Ask Your Broker For a Market Analysis And Advertising Plan Before Signing An Agreement.

Is this asking price your broker suggested really in line with what boats are selling for in this market? Is the asking price set for a quick sale or to achieve the highest possible amount for you? How does the broker, and the brokerage firm that represents them, going to advertise your listing? These are all legitimate questions that can easily be answered at the beginning of the relationship by asking your yacht broker for a market analysis of your yacht and an advertising plan. Here are the things to look for:

Did your broker compare your boat against any recent sales in the marketplace?
When comparing your boat against other boats that previously sold, were there any major differences like engine power or equipment?
What current listings has the broker compared your boat against and are they "apples to apples"?
Did the broker check with anyone else in the organization that may have sold a similar boat recently?
Will the broker and their firm adequately market the vessel? Or is there plan to simply list on Yachtworld and send an email to other brokers?

4.) Will Your Broker Create A Professional Presentation For Your Yacht?

Yes, iPhones do take amazing pictures, but do you really want your yacht represented online to thousands of buyers with amateur photos? "Good professional photography of a yacht you are trying to sell is a must," says John Blumenthal , United Yacht Sales broker. "My clients deserve an excellent presentation of their boat through both images and video, so that potential buyers can see themselves cruising in it, enjoying their free time. Good video really paints the picture."

United Yacht Sales has a network of professional photographers and videographers all around the country that have vast experience working on yachts. We also have an excellent distribution method of getting those pictures and videos out to as many people as possible. For our sportfishing boat clients, for example, we heavily advertise with Sportfish Trader , which has become a leader in getting the latest listings out to potential clients.

5.) Will The Brokerage Firm Send Your Boat To Other Websites Owned By Competitors?

United Yacht Sales utilizes all three major industry MLS services to list your yacht in every place possible. All three of these MLS services can send your boat for sale to places like Yachtworld.com, SportfishTrader.com, BoatTrader.com, and others. But did you know that your broker can also opt-in to sending your boat to other competitor broker websites?

At UYS, we believe in getting the most visibility possible to your listing so we send all of our yachts for sale to our competitors so that they too might have a chance to find a buyer. Not everyone does this and is a good question to ask your potential broker.

6.) When It Comes Time To Close, Whether Buying Or Selling A Yacht, Does Your Broker Have a Support Team?

Nothing is worse when you have spent weeks looking for a boat or waiting on a buyer, the survey has completed, you're ready to close, and your broker drops the call on the paperwork. Or worse, there's a problem after closing and attorneys need to get involved. The United Yacht Sales closing team is one of the best in the industry with decades of experience. They've seen it all and they've dealt with it all. It's one of the benefits that our clients appreciate when it comes to selling or purchasing a boat. Whether it's a straight forward closing or a tricky offshore deal, our support team will ensure everything is clearly communicated to your broker and you.

We hope that you consider selecting a United Yacht Sales professional broker for your yacht purchase or selling needs. We pride ourselves on putting our clients first and continually work at educating our team, as well as staying up-to-date with the latest technology. Our marketing budget is 100% committed to assisting our clients with helping to sell their boats, not put towards new boats in inventory or trade-ins. We invite you to experience the benefits of working with a true professional yacht brokerage firm, where our efforts are entirely focused on your experience.

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Compass Articles

February 21, 2024

Yacht Brokerage Explained: How to Navigate Your Buying Options

Fly Yachts - Fly Yachts Yachts For Sale - Fly Yachts Yachts For Charter - Fly Yachts Aircraft For Sale - Fly Yachts Yacht Brokerage -

Understanding Yacht Brokerage

When you’re looking into buying a yacht, it’s kind of like entering a whole new world. This is where yacht brokers come into the picture. Think of them as your guide through the ins and outs of buying a yacht. They know all the people, all the kinds of yachts out there, and how to make sense of the prices. They’re also super good at handling all the paperwork and legal stuff that comes with buying a yacht, which is a lot!

The Benefits of Working with a Yacht Broker

Expert guidance.

Having a yacht broker by your side is like having a friend who knows everything about yachts. They can tell you when it’s the right time to buy or sell, and they’re great at finding a yacht that suits what you’re looking for. They keep up with all the trends, so you don’t have to.

Access to Exclusive Listings

Here’s a cool thing about yacht brokers – they can get you into the door to see yachts that aren’t listed anywhere else. A lot of the fanciest yachts get sold before they even hit the market. So if you’re working with a broker, you’ve got a better shot at seeing more options, including the super exclusive ones.

Negotiation and Paperwork

Let’s be honest, buying a yacht comes with a ton of paperwork and some tough negotiations. Yacht brokers are pros at this part. They’ll fight to get you the best deal and make sure all that paperwork is filled out right. It makes the whole process a lot smoother and less of a headache for you.

Choosing the Right Broker

Finding the right broker is all about finding someone you vibe with. You want someone who gets what you’re looking for and isn’t just about making a quick sale. A good broker will listen, be honest with you, and make the buying process clear and straightforward.

Navigating Your Buying Options

Knowing what you want is key. Are you looking for something chill for weekend getaways, or are you planning on some serious ocean adventures? Telling your broker exactly what you picture for your time on the water helps them find the perfect yacht for you.

When it comes down to it, what sets a yacht brokerage apart is its dedication to making the buying process as simple and enjoyable as possible for you. And that’s where Fly Yachts shines. We’re all about making your journey to finding the perfect yacht a breeze. Give a Fly Yachts team member a shout, and let’s start this adventure together.

Fly Yachts welcomes you to explore the prestigious realm of luxury yachts and aviation, with a handpicked selection showcased on their Yachts for Sale page. Dive into the About Us page to learn about the company’s foundation, its dedicated team, and what sets them apart in the luxury market. If you’re inclined to have a yacht that reflects your personal taste, the Build a Yacht page lays out the process for customizing your dream yacht. For those plotting an opulent escape, the Charter Destinations page presents an array of stunning locations. The Compass Articles section is stocked with the latest advice and news for yachting aficionados. Planning to sell your yacht? Sell Your Yacht offers practical tips to navigate the sale efficiently. Aviation buffs looking for luxury in the skies can peruse the Aircraft for Sale page. To keep abreast of the newest trends in luxury travel, Gulfstream News is a must-visit. Embark on your luxury journey through their Homepage , and for any assistance, the Contact page is readily available. Fly Yachts simplifies navigating the magnificent worlds of luxury yachts and aircraft for both enthusiasts and potential buyers.

About FLY Yachts

Unmatched Industry Knowledge, Paired With Brokers Who Care Equals Yachting You Love.

Exclusive Waters: How to Anchor Yourself in the World of Luxury Yachts

Yacht Buying Mastery: Achieving Excellence in Luxury Maritime Investments

The Affluent Buyer’s Compass: Navigating the Luxury Yacht Market

Understanding the Role of a Yacht Broker

The world of yacht buying and selling can be complex and overwhelming, requiring expertise, market knowledge, and a keen understanding of the intricacies involved. This is where a yacht broker comes into the picture. A yacht broker is a specialised professional who acts as an intermediary between buyers and sellers, assisting them throughout the transaction process and ensuring a smooth and successful experience.

In this article, we will delve into the role of a yacht broker, exploring their functions, benefits, challenges, and limitations. Whether you are a buyer or a seller in the yacht market, understanding the role of a yacht broker is essential to making informed decisions as to whether they might be helpful to you in achieving your goals.

Qualifications & Regulation of the Yacht Broking Industry

In general, there are no specific educational requirements to enter the field of yacht brokerage and anyone can set themselves up as a broker. However, acquiring certain qualifications and certifications can enhance a yacht broker’s credibility, knowledge, and expertise.

Many yacht brokers choose to pursue professional certifications and memberships offered by industry organisations. For example, in the United States, the Yacht Brokers Association of America (YBAA) and the International Yacht Brokers Association (IYBA) offer certification programs that provide training, education, and professional development opportunities for yacht brokers. These certifications, such as the Certified Professional Yacht Broker (CPYB) designation, demonstrate a broker’s commitment to ethical conduct, professionalism, and industry knowledge. Training does not cover the global marketplace and differences arise between jusrisdictions.

Relevant experience in the marine industry, such as sailing, boating, or yacht management, is also useful. Strong knowledge of yachts, boat construction, navigation, and other related areas is valuable in understanding the intricacies of the industry and providing expert advice to clients.

Regulation of the yacht brokerage industry varies depending on the country or region. In some jurisdictions, there may be specific licensing requirements or regulations in place to ensure ethical conduct and consumer protection. For example, in the United States, individual states may have licensing requirements for yacht brokers, while in the United Kingdom, the industry is regulated by the British Marine Federation (BMF) .

Industry organisations and associations have codes of ethics and standards of practice that their members must adhere to. These codes and standards promote professionalism, integrity, and transparency within the yacht brokerage profession.

Functions of a Yacht Broker

What is the difference between a broker and a dealer.

While a yacht broker and a boat dealer may seem similar, there are key differences between the two. A yacht broker represents the interests of either the buyer or the seller throughout the transaction process. They provide valuable guidance, conduct market research, arrange showings, negotiate prices, and assist with the necessary paperwork. On the other hand, a boat dealer typically represents a specific brand or manufacturer and sells boats directly to consumers. Dealers often focus on new boat sales and may offer additional services such as boat servicing and maintenance.

The Broker’s Role in the Buying and Selling Process – Buyers Broker vs. Sellers Broker

Where employed, the yacht broker plays a vital role in ensuring a smooth and successful transaction.

A buyer’s broker exclusively represents the interests of the buyer, working diligently to find the most suitable yacht, negotiate the best deal, and guide the buyer through the purchasing process. If you are a buyer, a yacht broker will work closely with you to understand your preferences, requirements, and budget. They will leverage their extensive knowledge of the market to identify suitable yacht options, arrange showings, and guide you through the selection process. Once you’ve chosen a yacht, the broker will assist in negotiating the best price and favorable terms on your behalf, as well as handling the necessary paperwork and legal documentation.

On the other hand, a seller’s broker represents the seller, focusing on marketing the yacht effectively, attracting potential buyers, and negotiating favorable terms on behalf of the seller. If you are a seller, a yacht broker acts as your representative, aiming to secure the best possible deal for your yacht. They will conduct market research to determine a competitive asking price, create professional listings and marketing materials, and promote your yacht through various channels to attract potential buyers. Additionally, the broker will handle inquiries, qualify potential buyers, arrange showings, and negotiate with interested parties. Their goal is to facilitate a successful sale while minimizing your involvement and maximizing your proceeds.

In some cases, a yacht broker may act as a dual-agent, representing both the buyer and the seller in a transaction. However, it is essential to be aware that in dual agency situations, the broker must disclose this relationship to both parties and maintain transparency throughout the process.

What Exactly Does a Yacht Broker Do for a Buyer?

When you engage the services of a yacht broker as a buyer, you can expect them to fulfill several essential roles throughout the yacht purchasing process:

Assess the Client’s Needs and Preferences

A yacht broker will begin by thoroughly understanding your specific requirements, preferences, and budget. They will take the time to discuss your boating goals, desired features, and intended use of the yacht. This allows them to tailor their search and focus on finding yachts that align with your needs.

Conduct Market Research and Identify Suitable Yachts

With their extensive knowledge of the boating market, yacht brokers conduct comprehensive market research to identify suitable yacht options. They have access to a wide network of listings, both publicly available and exclusive, enabling them to present you with a range of yachts that meet your criteria.

Facilitate Yacht Showings and Surveys

Once potential yachts have been identified, the broker will coordinate yacht showings, providing you with the opportunity to view and assess the vessels of interest. They will accompany you during these visits, offering insights and answering any questions you may have. Although they can also arrange for a professional marine survey to ensure the vessel is in good condition, a buyer should remember that the surveyor he chooses works for him, the buyer, and is completely independent of the broker. It is best practice for the buyer to select the surveyor – the broker should be able to supply a full list of surveyors working in the area for you to choose from – and allow the broker to coordinate the arrangements for the pre-purchase survey itself.

Negotiate Prices and Terms

One of the key roles of a yacht broker is to negotiate on your behalf. They possess in-depth market knowledge and negotiation skills, allowing them to secure the best possible price and favorable terms for you. They will advocate for your interests throughout the negotiation process, ensuring you achieve the most advantageous outcome.

Assist with Paperwork and Legal Documentation

Yacht transactions involve a significant amount of paperwork and legal documentation. Your yacht broker will guide you through this process, ensuring that all necessary documents are completed accurately and efficiently. This includes contracts, registration, title transfer, and other relevant paperwork to finalise the purchase.

Provide Expert Advice and Guidance

A yacht broker is your trusted advisor throughout the buying process. They can provide valuable insights and expert advice, drawing on their extensive experience and knowledge of the boating industry. Whether it’s selecting the right yacht, evaluating pricing, or navigating complex legal aspects, your broker is there to support you every step of the way.

By performing these crucial tasks, a yacht broker acts as your advocate and partner, making the yacht buying process smoother, more efficient, and ultimately more rewarding. Their expertise and dedication help ensure that your yacht purchase aligns with your needs and preferences while providing peace of mind throughout the entire transaction.

What Does a Yacht Broker Do for a Seller?

When you enlist the services of a yacht broker as a seller, they take on various responsibilities to help you navigate the yacht selling process efficiently and effectively. Understanding the key tasks they perform on your behalf will highlight the value they bring to the table.

Prepare Sales Particulars and Photographs of the Vessel

A yacht broker will gather detailed information about your yacht, including its specifications, features, inventory and history. They will create compelling sales particulars highlighting the yacht’s strengths and appealing to potential buyers. Additionally, brokers will take high-quality photographs that showcase the vessel’s aesthetics and key selling points.

Conduct Market Research and Agree on a Suitable Listing Price

Yacht brokers have a deep understanding of the market and current trends. They will conduct market research to determine a competitive and realistic listing price for your yacht. By analysing similar yachts currently on the market, recent sales data, and other market indicators, they can guide you in setting an appropriate price that attracts potential buyers.

Yacht brokers take on the task of coordinating yacht showings and inspections with potential buyers. They arrange viewings at mutually convenient times, ensuring that interested parties have the opportunity to see your yacht firsthand. During these showings, the broker will present the vessel professionally and answer any questions that arise. They will also coordinate the pre-purchase survey to assess the yacht’s condition.

As experienced negotiators, yacht brokers are skilled at representing your interests during price and terms discussions. They will handle the negotiation process on your behalf, aiming to secure the best possible price and favorable conditions for the sale. Their market knowledge and expertise in negotiating can be instrumental in achieving an optimal outcome.

Manage Transfer of Payments

The management of escrow for the seller is not always within the direct scope of responsibilities for a yacht broker, however, many have access to an Escrow account as part of their activities and do undertake this role. Escrow services, which involve holding funds or documents in a secure account until specified conditions are met, are otherwise handled by a third-party escrow agent or a trusted closing lawyer.

In the yacht selling process, the buyer and seller may mutually agree to use an escrow account to hold the funds until the completion of certain conditions, such as the satisfactory completion of documentation and transfer of title. This helps ensure a secure and transparent transaction for both parties.

Yacht sales involve a considerable amount of paperwork and legal documentation. Your yacht broker will guide you through this process, ensuring that all necessary documents are completed accurately and in compliance with relevant regulations. They will handle contracts, transfer of ownership, title documentation, and other paperwork required to finalize the sale, ensuring a smooth and efficient transaction.

A yacht broker is your trusted advisor throughout the yacht-selling process. They provide expert guidance and insights based on their industry knowledge and experience. From preparing your yacht for sale to evaluating offers and strategizing marketing efforts, they offer valuable advice to help you make informed decisions at every stage.

By taking on these responsibilities, a yacht broker acts as your representative and advocate, streamlining the selling process and maximizing your chances of a successful sale. Their expertise, market insights, and professional network contribute to a smoother transaction, allowing you to focus on other things while entrusting the sale of your yacht to their capable hands.

Checking a Vessel’s Title

A yacht broker’s role includes checking the clear title and identifying any liens or secured loans associated with the vessel; however, the extent of their investigation may vary.

Yacht brokers typically conduct a preliminary check on the boat’s title and documentation during the listing process when they request relevant documents from the seller, such as the vessel’s registration, ownership history, and any recorded liens or encumbrances. They may also utilise online resources or databases to gather information about the boat’s title status.

While yacht brokers strive to ensure the accuracy of the information provided, it’s important to note that they may not conduct a comprehensive title search like a specialised maritime attorney or title company would. Their primary focus is on assisting with the transaction and ensuring a smooth process for the buyer and seller.

A yacht broker should encourage buyers to conduct their due diligence and seek professional assistance when necessary to ensure a clear title and mitigate any potential risks associated with the purchase.

If a potential buyer is concerned about the boat’s title and wants a thorough examination, it is advisable for them to seek the assistance of a maritime attorney or a title company that specialises in vessel documentation. These professionals have the expertise and resources to conduct a detailed search, examining public records, lien databases, and other relevant sources to determine the boat’s title status and identify any potential issues.

How Are They Paid?

Yacht brokers are typically paid through a commission-based structure. When a successful sale is made, the broker receives a percentage of the final sale price as their compensation – this is typically 8% in the UK and 10% elsewhere in the world. The specific commission rate can vary depending on various factors, such as the size and value of the yacht, local market practices, and the agreement between the broker and the client.

This sum can be quite considerable, with a payday of $100,000 on the sale of a $1m vessel.

The commission rate is usually negotiated and agreed upon between the yacht broker and the boat owner (seller) before the listing is finalised. It is important for both parties to have a clear understanding of the commission structure and the associated terms.

In the case of a yacht sale, the seller is responsible for paying the commission to the broker. Upon the completion of the sale, the broker’s commission is deducted from the proceeds of the transaction. The remaining amount is then disbursed to the seller.

It’s worth noting that the commission is typically calculated based on the final sale price, including any additional costs or upgrades that may be negotiated as part of the sale; this may also be lower if adjustments to the price have been made following the pre-purchase survey. The commission serves as the primary source of income for yacht brokers and is designed to align their interests with achieving the highest possible sale price for the seller.

It is important for both buyers and sellers to clarify the commission structure and any additional fees with the yacht broker upfront to avoid any misunderstandings or surprises during the transaction process.

Benefits of Using a Yacht Broker

Advantages for yacht buyers.

Engaging the services of a yacht broker offers numerous advantages for buyers in the yacht purchasing process. The following are some key benefits to consider:

Access to a Wide Range of Yacht Options

Yacht brokers have an extensive network and access to a broad inventory of yachts, including both listed and unlisted vessels. This grants buyers the opportunity to explore a wide range of options that align with their preferences, requirements, and budget. Brokers can present you with a curated selection of yachts that match your specific criteria, saving you time and effort in your search.

Time and Effort Savings

Searching for the right yacht can be a time-consuming and demanding task. By leveraging their expertise, brokers narrow down the options based on your preferences, saving you the hassle of sifting through countless listings and facilitating a more efficient yacht search.

Negotiation Skills and Financial Savings

Brokers have an understanding of the market value and current pricing trends, allowing them to negotiate favorable terms on your behalf. Their negotiation skills can potentially lead to financial savings by securing a lower purchase price or favorable conditions, ensuring that you receive the best value for your investment.

Expert Knowledge and Guidance

Yacht brokers possess comprehensive knowledge of the boating industry, including various yacht models, brands, and market trends. Their expertise allows them to provide valuable insights and guidance throughout the buying process.

Assistance with Paperwork and Legal Processes

Yacht brokers are well-versed in the necessary paperwork, contracts, registrations, and other legal requirements. They can guide you through these processes, ensuring that all documents are accurately completed and submitted in a timely manner. Their familiarity with the legal aspects of yacht sales minimizes the risk of errors and provides peace of mind.

Benefits for Yacht Sellers

The following benefits highlight the value that a broker brings to the yacht-selling process:

Broader Exposure and Marketing Reach

Yacht brokers have access to a wide network of potential buyers, industry contacts, and marketing platforms. They employ marketing strategies to showcase your yacht to a larger audience. By leveraging their connections and utilising various advertising channels, brokers can enhance the visibility of your yacht, increasing the likelihood of finding interested and qualified buyers.

Professional Listing and Advertising Services

Yacht brokers provide professional listing services to present your yacht in the best possible light. They know how to highlight the key features, specifications, and unique selling points of your yacht through compelling descriptions and high-quality photographs. A professional presentation enhances the appeal of your yacht to potential buyers.

Pricing Advice and Market Expertise

Determining the optimal asking price for your yacht can be a complex task. Yacht brokers provide pricing advice based on current market conditions, recent sales data, and the specific attributes of your yacht. Their guidance ensures that your yacht is competitively priced, attracting potential buyers while maximizing your chances of achieving a sale.

Screening and Qualifying Potential Buyers

Yacht brokers take on the responsibility of screening potential buyers to ensure they are qualified and serious about the purchase and have the financial capability to complete the process. They have experience in discerning genuine buyers from casual inquiries, helping you avoid time-wasting or unreliable prospects.

Assistance with Negotiations and Closing the Sale

Yacht brokers use their expertise to secure the best possible price and favorable terms. They handle the back-and-forth negotiations, providing guidance and advice to protect your interests. Additionally, brokers assist in navigating the closing process, ensuring that all necessary paperwork and legal documentation are properly completed.

Qualities and Skills of an Effective Yacht Broker

To be an effective yacht broker, certain qualities and skills are essential for success in the industry. These attributes enable brokers to provide exceptional service and ensure a positive experience for both buyers and sellers.

Extensive knowledge of yachts and the yachting industry

Yacht brokers must possess comprehensive knowledge of different yacht types, brands, models, and their respective features. This includes understanding the technical aspects, performance capabilities, and maintenance requirements of various yachts. Staying updated with the latest industry and pricing trends , advancements, and regulations is crucial for providing accurate and up-to-date information to clients.

Strong communication and interpersonal skills

Effective communication is vital in building relationships with clients, understanding their needs, and articulating information clearly. Yacht brokers should be skilled communicators who can listen attentively, ask pertinent questions, and provide concise and relevant information. Interpersonal skills, including empathy, professionalism, and the ability to establish trust, are also essential for establishing rapport and fostering positive relationships with clients.

Excellent negotiation and sales abilities

Yacht brokers are responsible for negotiating prices, terms, and conditions on behalf of their clients. Possessing strong negotiation skills allows brokers to advocate for their clients’ interests effectively. A successful broker understands the dynamics of negotiation, employs persuasive techniques, and strives to achieve the best possible outcome for both parties involved. Additionally, having solid sales abilities helps brokers market yachts effectively, attract potential buyers, and close successful sales.

Attention to detail and organizational skills

Yacht transactions involve numerous details, documents, and deadlines. Yacht brokers must exhibit meticulous attention to detail to ensure accuracy in paperwork, contracts, and other essential documentation. They should possess strong organizational skills to manage multiple listings, client inquiries, and various aspects of the buying and selling process simultaneously. Being well-organized allows brokers to deliver a high level of service and ensure that nothing falls through the cracks during the transaction.

Trustworthiness and integrity

Trust is a fundamental aspect of the broker-client relationship. Yacht brokers must operate with the highest level of integrity and ethical standards. Clients rely on their brokers to act in their best interests, maintain confidentiality, and provide unbiased advice. Demonstrating trustworthiness and ethical conduct establishes long-term credibility and fosters strong relationships built on transparency and integrity.

By embodying these qualities and skills, an effective yacht broker can provide clients with exceptional service, professional guidance, and a positive experience throughout the yacht buying or selling process.

Challenges Faced by Yacht Brokers

The yachting industry is subject to market fluctuations influenced by economic conditions, global events, and trends. Yacht brokers need to adapt to these changes and stay updated on market dynamics to provide accurate advice and make informed decisions on behalf of their clients. They must navigate through both seller’s and buyer’s markets, adjusting strategies accordingly.

When supply is short, finding the exact yacht that meets all client requirements can be challenging, requiring extensive research, networking, and potentially longer search periods to identify suitable options.

Yacht brokers occasionally encounter demanding clients with high expectations or challenging personalities. Great brokers possess strong interpersonal skills and the ability to navigate difficult negotiations while maintaining professionalism and a focus on achieving mutually beneficial outcomes. They strive to manage client expectations, mediate conflicts and ensure a positive experience for all parties involved.

Yacht brokers typically earn their income through commissions based on the final sale price of a yacht. While this incentivises brokers to negotiate the highest possible sale price, it may also create potential conflicts of interest. Some buyers may be concerned that brokers could prioritise higher commissions over their best interests. It is important for clients to communicate their expectations and ensure transparency with their broker openly.

Finding the Best Yacht Broker for Your Needs

Not all brokers have equal expertise or experience; the yacht brokerage industry comprises professionals with varying levels of expertise and experience. Not all brokers possess the same depth of knowledge or extensive networks. It is essential for clients to carefully select a reputable and experienced yacht broker who understands their specific needs, has a strong track record, and can provide the desired level of service.

Word of mouth is the best recommendation.

Disadvantages of Using a Yacht Broker

While utilizing the services of a yacht broker offers numerous benefits, it is important to consider potential drawbacks and limitations associated with relying on a broker.

Commission Fees

Yacht brokers typically earn their income through a quite substantial commission based on the sale price of the yacht. This commission is a percentage of the final sale price and is paid by the seller. Buyers may find that this commission is factored into the overall price, potentially resulting in higher prices. Similarly, sellers should be aware that the commission reduces their net proceeds from the sale. It is important for both buyers and sellers to consider the financial implications and evaluate the value provided by the broker’s services.

Limited Control Over & Lack of Involvement in the Buying or Selling Process

Relying on a yacht broker means relinquishing some degree of control over the buying or selling process. Brokers are responsible for making decisions on behalf of their clients, such as negotiating terms and handling paperwork. While brokers strive to act in the best interests of their clients, there may be instances where clients would have preferred more involvement or different approaches. Clear communication and setting expectations can help address concerns regarding control and ensure a collaborative working relationship with the broker.

Potential Conflicts of Interest

As commission-based professionals, yacht brokers may face potential conflicts of interest. While brokers aim to prioritize their clients’ best interests, there is a possibility that their own financial gain could influence decision-making. Clients should openly communicate their expectations, including any specific concerns related to conflicts of interest, to ensure transparency and maintain trust throughout the process.

It is worth clarifying that while these potential drawbacks exist, they may not be applicable or significant in every situation. The value of a yacht broker’s services should be assessed based on individual circumstances, including the complexity of the transaction, personal expertise, time constraints, and comfort level with the yacht buying or selling process. Each buyer or seller must evaluate their specific needs to make an informed decision about whether to engage a yacht broker.

A good yacht broker can save you a LOT of time and effort in buying or selling a boat, but there can be a high price to pay in the form of commission on the selling price. In the end, whether to engage a yacht broker or not depends on your personal circumstances, preferences, and level of comfort with the yacht buying or selling process.

With such high sums at stake on a single transaction, it’s easy to see that lower-value vessels might have less attention than expensive ones; check the inventory of your local brokers and choose accordingly.

ABOUT THE AUTHOR

Sam Bartlett is an IIMS Surveyor, a Commercial Skipper of sailing boats, and a boat owner for over 30 years. She lives in St Martin in the Caribbean and provides yacht surveys, skippering and marine consultancy throughout the Caribbean.

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