yacht broker facts

Yacht Brokers: What Do They Do, Exactly and Why Do We Need Them?

Being represented by a professional brokerage house does not add a penny to the yacht purchase price for a buyer. The fee is totally paid for by the seller. Yes, the buyer’s broker is totally free to the buyer. So why not get your own broker to represent your interests when looking to buy a boat? You can have the listing broker represent both you and the seller but consider this: the listing broker’s job is to represent the seller and to get the highest possible price for the yacht, which is not necessarily your objective as the buyer.

That is why it’s best to have your own broker to represent your interests exclusively. When going into a purchase of this magnitude, yacht buyers need to know that they have a team of professionals that are acting entirely in their interests. Find a broker whom you feel comfortable with and trust and have him/her work for you. We have had buyers looking for as long as five years before actually buying (not typical, thankfully). But a good yacht broker will stick with you, educate you, and guide you through the process.

Choose a Yacht Broker Carefully

Before you choose your broker, make sure that you know what you want. Do your research and be realistic about your expectations. Decide what kind of boat will suit your needs, decide on a budget and make a list of the equipment and features on the boat that are most important to you. If you can, charter different boats to help you figure out more or less what is more important to you. For instance, will you give up a “walk around bed” to have a bigger cockpit or would you give up a big chart table to have more storage? These are extreme examples but unless you spend time on a boat, you cannot know what is important to you. Once you have a plan and a budget, it’s time to select your broker. Here are some things to consider:

Licensed & Bonded Broker

Requirements to become a broker is different in every state. Florida, because of the volume of yacht brokerage transactions, is one of the best jurisdictions in which to purchase a vessel. The laws are very favorable and very protective of the buyer. Here are some things that ensure buyers in Florida are protected:

• To become a yacht broker in Florida, one has to do a two-year understudy period under a licensed and bonded broker as a Sales Associate before being able to apply for a Yacht and Ship Brokers License.
• The brokers’ licenses are regulated by the state and require the broker to register with a bond ($25K errors and omissions) which is lodged with the state.
• Brokers are required to renew the license every two years which ensures that the details on record are updated.
• An escrow bank account is also required to be registered with the state and the details are updated at the time of license renewal.

So it’s important that your broker should be registered in the state where he/she operates for legal reasons.

Research the brokerage firm, i.e., their reputation in the industry. The biggest or most well-known brokerages are not always the best brokers. Smaller brokerages may be more personal than the very rigid structure of bigger corporations. Get testimonials from previous clients, interview your broker and make sure that they clearly understand your needs. Make sure that their specialty as a firm gels with what you are looking for. No point going to a dealer for 20ft Bayliner motor yachts when you are looking for a 50ft Bavaria Cruiser sail boat.

Yacht Broker Knowledge

The broker should be able to consult, advise, and educate the buyer on equipment or upgrades and help appoint vendors. Not only does he have to know the product/boat, but should also understand how to use the equipment and explain to a buyer how and why it is good to have certain equipment on board for your specific needs. For instance, a broker who has sailed/cruised and/or lived aboard will be better able to give the advice that a prospective cruiser needs. Weekenders or racers have totally different needs and the buyer should be aware of that.

Negotiating Skills

A good broker will know when to negotiate a little more aggressively and when to pull back. (A good deal is when both parties walk away happy). The seller’s bottom line is not always set in stone, even if they think so. Sellers always think their boats are worth more than it actually is but when you calculate holding costs like insurance, dockage, maintenance, haulout, etc., holding out for an extra $10,000 or $20,000 is not always the wisest decision. There are definite selling and buying seasons when boats will be cheaper i.e. phase-out season in the Caribbean when lots of boats go on sale from the charter fleets all at the same time. This would be the time to negotiate an incredible deal! Boats in certain regions will fetch better prices like boats in fresh water lakes. These boats typically have far less wear and tear because of the shorter seasons and the fresh water. Your broker should be aware of these market nuances.

Market Knowledge

There are currently about 80,000+ yachts listed for sale in the world. Most are in the major databases accessible also to the public, e.g., Yachtworld. However, some of the best deals are often not advertised, like bank repossessions, trade-ins, and boats that must be sold at any cost by a seller in a difficult situation. A professional broker knows where to find those “great deals” through his personal network. Brokers also have access to professional software and can compare and find the history of the real transactions on similar boats. This will give the buyer some perspective of what is out there and what to expect. We can provide photos, layouts, line drawings and spec sheets on any yacht in the world and therefore cut down on wasted trips to visit yachts that are misrepresented, unfortunately a common occurrence.

Yacht Buying Process and Logistics

The buyer’s broker is the person who ensures that all the components of the transaction are covered. The Buyer’s broker will perform the following duties:

• Ensure that the Purchase and Sale agreement as well as all the related documents used to negotiate the purchase are well written and protect all the parties in the transaction.
• Advise the buyer on the time line for acceptance closing etc. When doing a transaction like this the coordination, scheduling and time line is critical as follows:
• Date of the sellers acceptance of offer
• Scheduling the seller, buyer, brokers, surveyor and yard for haul out
• Date of final acceptance
• Date of closing with all related components – documentation, funding, insurance, transfer of possession etc.
• Assist the buyer in arranging the survey, haul-outs and sea trials. We assist in the survey follow up and analyze the survey findings with the buyer. Those findings could further lower the purchase price in a second round of negotiation, a process known as “conditional acceptance”.
• Advise the use of a documentation agent to obtain abstract of title and ensure that there are no liens or encumbrances and that the vessel is free and clear.
• Advise on vessel insurance
• Assist on vessel registration and flagging if it has been flagged offshore
• Assist and advise if the boat needs to be moved from the place of acceptance to the buyers home port
• Consult and advise the buyer on equipment or upgrades and help appoint vendors.
• Remain a friend and valuable resource for the buyer after the transaction has closed and the buyer owns the yacht. A quick disappearance act after the check clears is not the desired result!

Specific to Florida

The broker will check if the boat can be legally sold in Florida ( Duties & Sales Tax paid) Florida broker will assist with the sales taxes, county tax and dinghy taxes, or tax exemption if you are not a Florida resident.

Make sure that your yacht broker knows the product, understands the industry, and can advise on ALL components of the transaction. All boats are not created equal, so if you are not an expert on boat construction, propulsion, sails, mechanics and electronics, get yourself a good broker and appoint an independent surveyor. They will be your best allies in the yacht buying process.

Estelle Cockcroft

Join our community.

Get the latest on catamaran news, sailing events, buying and selling tips, community happenings, webinars & seminars, and much more!

2 thoughts on “Yacht Brokers: What Do They Do, Exactly and Why Do We Need Them?”

Hello………I’m looking for a buyer’s broker in Washington state to represent me in the purchase of a particular boat from it’s owner. Can you advise me?

Dorne Dibbs

Hi Dorne, we don’t have a broker in that area but our broker, Dave King lived there until recently. Perhaps he can help you? [email protected]

Leave a Comment Cancel Reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Recent Posts

How To Make The Best Use Of Your Time At A Boat Show

Boat shows are exciting, offering a unique chance to view a vast array of

Top 5 Reasons to Choose Catamaran Guru

When it comes to making your dream of yacht ownership a reality, Catamaran Guru

Top 10 Reasons to Sell (and Sail) Your Catamaran in Annapolis, MD

We have a new home in Annapolis! The office is located in Annapolis, Maryland

Top 10 Reasons to Sell (and Sail) Your Catamaran in Texas

Our Texas Office is located in the Watergate Marina Center in Clear Lake Shores,

For more than 30 years, we have been a part of the catamaran community and created Catamaran Guru™ to encourage and educate all the aspiring sailing out there. We understand the dream of traveling the world by catamaran and created a one-stop-shop to make that dream a reality for you.

• Stephen & Estelle
• Testimonials

Get Started

• Yacht Sales
• Used Yachts
• Charter Management
• Boat as Business Programs
• Seminars & Events

• Our Top Picks
• Liveaboard / Charter
• Center Console / Sportfish
• Sanlorenzo Superyachts
• Why List With Us

Yacht Brokers: What They Do and Why You Need One

What do yacht brokers do? In short, yacht brokers are the trusted experts you rely on when buying or selling yachts. Whether you need help finding the right vessel or navigating complex transactions, yacht brokers are there to make the process smooth and worry-free. Here’s a quick rundown of their key roles:

• Inspecting and Evaluating: They carefully assess the condition and value of yachts.
• Facilitating Sales: Brokers handle the marketing, showings, and negotiations.
• Managing Paperwork: They ensure all legal documents are properly completed.
• Securing Deals: Brokers execute final agreements and facilitate ownership transfers.

Understanding the importance of yacht brokers is crucial if you’re in the market to buy or sell a yacht. They serve as intermediaries between buyers and sellers, providing expertise and guidance throughout the process. For first-time buyers, this support means finding the right vessel within budget, while sellers benefit from strategic marketing and negotiation skills that can lead to successful transactions.

I’m Jason Whitaker, and with over 33 years of maritime industry experience, including yacht brokerage, I’ve learned what do yacht brokers do in the buying and selling process. This expertise helps me guide clients smoothly through the complexities of yacht transactions. Let’s dive deeper into yacht brokers and find the value they bring to the table.

What do yacht brokers do definitions: – how much do yacht brokers charge – how to get a yacht brokers license

What Do Yacht Brokers Do?

Yacht brokers play a vital role in the yacht buying and selling process. They offer their expertise to both buyers and sellers, ensuring smooth and successful transactions.

Understanding Yachting Needs: Yacht brokers start by understanding what you’re looking for. Whether it’s a sleek motor yacht or a classic sailing vessel, they help you define your preferences and needs.

Search Parameters and Yacht Viewings: Brokers use their industry connections and databases to find yachts that match your criteria. They arrange viewings, giving you a chance to explore options and make informed decisions.

Price Negotiations: Skilled in negotiation, brokers work to secure the best price for you. They understand market trends and leverage this knowledge to negotiate favorable terms.

Navigating the Legal Side: The yacht buying process involves complex legal documents . Brokers ensure everything is in order, from purchase agreements to insurance and registration.

After-Sale Services: Some brokers continue to support you even after the sale. They can assist with yacht management, maintenance, and charter marketing services, ensuring your investment is well cared for.

For Sellers

Price Discussion and Yacht Knowledge: Brokers help determine the right asking price for your yacht by assessing its condition and market value. They also suggest improvements to improve its appeal.

Marketing Process: A strong marketing strategy is crucial. Brokers create professional listings and advertise through various channels, including online platforms and yacht shows, to attract potential buyers.

Showing Yachts: Brokers handle the logistics of showing your yacht to interested buyers. They highlight its features and create a compelling narrative to engage prospects.

Representing Interests: Throughout the sale, brokers act as your advocate. They manage negotiations, handle offers and counteroffers, and ensure your interests are protected.

Yacht brokers serve as trusted partners in the buying and selling journey. They bring expertise, industry knowledge, and negotiation skills to the table, making the process less daunting and more efficient for everyone involved.

The Benefits of Using a Yacht Broker

Market knowledge.

Navigating Market Nuances: Yacht brokers possess an in-depth understanding of the yacht market’s complexities. With over 80,000 yachts listed for sale globally, knowing where to look is crucial. Brokers have access to major databases like Yachtworld and can tap into their personal networks to find hidden deals, such as bank repossessions or trade-ins, that aren’t publicly advertised.

Seasonal Trends and Regional Differences: Timing can be everything when buying or selling a yacht. For example, during the phase-out season in the Caribbean, many charter fleets offload yachts, presenting a prime opportunity for buyers. Conversely, yachts in freshwater regions often fetch higher prices due to less wear and tear. A knowledgeable broker will guide you through these seasonal and regional trends to maximize your investment.

Negotiation Skills

Aggressive Negotiation Tactics: A skilled yacht broker knows when to push for a better deal and when to hold back. Their goal is to ensure both parties leave the table satisfied. They understand that a seller’s bottom line isn’t fixed and can leverage factors like holding costs—insurance, dockage, maintenance—to negotiate favorable terms.

Understanding Holding Costs and Buying Seasons: Holding out for an extra $10,000 might not be worth the ongoing expenses. Brokers help sellers see the bigger picture, making them more open to reasonable offers. They also know the best times to buy or sell, ensuring clients get the most value.

Stress Reduction and Smooth Transactions

Expert Guidance: Buying or selling a yacht is a complex process. With their expertise, brokers reduce stress by handling everything from paperwork to negotiations. They ensure that all legal documents are in order and that the transaction proceeds smoothly.

Facilitating Smooth Transactions: Brokers coordinate every aspect of the sale, from initial listings to finalizing contracts. Their experience and resources streamline the process, making it less daunting for both buyers and sellers.

How Yacht Brokers Get Paid

When it comes to understanding how yacht brokers get paid , it’s pretty straightforward. Yacht brokers operate on a commission-based system, which means they earn their income by taking a percentage of the yacht’s selling price. This commission is usually paid by the seller, so there’s no direct cost to the buyer. This setup allows buyers to benefit from a broker’s expertise without having to pay out of pocket.

Standard Commission Rate : In the yacht brokerage industry, the standard commission rate is typically around 10% of the sale price. This figure is consistent across many sales, from modest boats to luxury superyachts. For example, if a yacht sells for $1 million, the broker would earn a $100,000 commission.

This commission is split between the seller’s broker and the buyer’s broker if both parties have representation. The division of this fee incentivizes brokers to work collaboratively, ensuring that both the buyer and seller achieve their desired outcomes.

No Cost to Buyer: Buyers can take comfort in knowing that they don’t have to pay the broker directly. Instead, the seller covers the broker’s fee. This arrangement allows buyers to focus on finding the perfect yacht without worrying about additional brokerage costs.

Seller Pays the Commission: The responsibility for paying the broker lies with the seller. This payment structure is similar to real estate transactions, where the property seller pays the agent’s commission. Sellers benefit from the broker’s services, which include pricing strategy, marketing, and negotiation, to ensure their yacht sells at the best possible price.

Yacht brokers offer a valuable service by facilitating the smooth transaction of yacht sales, and their commission-based pay ensures they are motivated to secure the best deal for their clients. This system aligns the interests of brokers with those of their clients, creating a win-win situation for everyone involved.

The Yacht Buying Process

Navigating the yacht buying process can feel overwhelming, but a yacht broker simplifies it into manageable steps. Here’s how they guide you through this exciting journey.

Purchase and Sale Agreement

The first step involves crafting a comprehensive purchase and sale agreement . This document outlines the terms of the sale, protecting both buyer and seller. A skilled broker ensures that this agreement is clear, fair, and legally sound, covering every aspect from price to delivery conditions.

Timeline Management

Timing is crucial in yacht transactions. Your broker will manage the entire timeline, ensuring each step occurs smoothly. This includes scheduling key dates such as the seller’s acceptance of the offer, final acceptance, and closing. Timeline management ensures no steps are missed, keeping the process stress-free.

Survey and Sea Trials

A yacht isn’t just a purchase—it’s an investment. Brokers arrange for a survey and sea trials to assess the yacht’s condition. This involves a thorough inspection of the vessel and a test run on the water. Findings from these assessments can lead to price negotiations, ensuring you’re getting value for your money.

Documentation

Proper documentation is critical. Your broker handles the paperwork, from the title transfer to registration. They ensure every document is completed accurately, adhering to all legal requirements. This meticulous attention to detail prevents future complications.

Insurance and Registration

Brokers advise on suitable insurance options to protect your investment. They also assist with the yacht’s registration , whether it’s staying local or being flagged offshore. This guidance ensures compliance with all necessary regulations.

Specific to Florida

Florida is a popular hub for yacht transactions, with specific regulations to consider.

Legal Requirements : Florida law requires brokers to be licensed and bonded, offering buyers additional protection.

Sales Taxes : Brokers help steer Florida’s tax landscape, including potential exemptions for non-residents. They ensure all taxes, including county and dinghy taxes, are properly addressed.

Broker Licensing : Florida mandates a two-year apprenticeship for brokers, ensuring they are well-trained and knowledgeable.

Escrow Accounts : Brokers manage financial transactions through state-regulated escrow accounts, adding a layer of security to your purchase.

In summary, a yacht broker not only simplifies the yacht buying process but also ensures that every detail is handled with expertise. From legal requirements to financial transactions, they provide the guidance necessary for a smooth and successful yacht purchase.

Frequently Asked Questions about Yacht Brokers

How do yacht brokers get paid.

Yacht brokers earn their income through commissions. The beauty of this setup is that the seller pays the commission , not the buyer. This means that as a buyer, you get the expertise and services of a yacht broker without any additional cost. Typically, the commission is a percentage of the yacht’s final sale price, and it’s split between the brokers representing both the buyer and the seller. This commission-based model ensures that brokers are motivated to secure the best possible deal for their clients.

Is using a boat broker worth it?

Absolutely! Using a yacht broker is like having a knowledgeable guide on your side. They offer realistic offers and ensure that you pay a fair price for the yacht. Brokers are experts in protecting their clients’ interests, whether you’re buying or selling. They know the market inside out and have the negotiation skills to get you the best deal. This expertise can be invaluable, especially in a complex market where prices can fluctuate based on numerous factors.

Who pays a yacht broker?

As mentioned earlier, the seller pays the broker’s commission. This arrangement is beneficial for buyers because it allows them to access expert advice and services without any direct cost. The seller’s payment to the broker is typically a pre-agreed percentage of the yacht’s sale price, ensuring that the broker is incentivized to close the deal. This commission-based structure is standard in the industry and helps maintain a fair and balanced transaction process.

At WS Yacht Brokers , we pride ourselves on offering a personalized service that truly sets us apart. Whether you’re buying or selling a yacht, our team is dedicated to ensuring your experience is smooth and satisfying.

We understand that the yachting world can be complex, which is why our expert market assessments are invaluable. Our team of passionate staff members doesn’t just work with yachts—they live and breathe them. This passion translates into exceptional customer satisfaction, as we go above and beyond to meet your needs and exceed your expectations.

Our brokers are not only knowledgeable but also genuinely excited to share their expertise with you. This enthusiasm is contagious, making the buying or selling process not just a transaction, but a memorable journey. From the first meeting to the final handshake, we’re here to support you every step of the way.

If you’re ready to start on your yachting trip, look no further than WS Yacht Brokers. With our commitment to excellence and a team that truly cares, your dream yacht is just a click away.

Find your perfect yacht with WS Yacht Brokers today!

Happy to help

" * " indicates required fields

• Dynamic Boats

Hanover 255

Hanover 265, hanover 300, hanover 305, hanover 347, hanover 355, hanover 375, hanover 377, hanover 387, hanover 415, hanover 475, seawell 240bb, seawell 290cc, seawell 290xl, seawell 345xl, dynamic boats d250df, dynamic boats d305v, dynamic boats d305df, dynamic boats 53’ cat freya, 1980 custom fishing vessel, 1983 custom larson boathouse, 1980 commercial troller, 1958 stephens brothers 42 north star, 2017 sea hunt 25′, 2024 custom boathouse, 1996 admiral marine 71 shaken knot stirred, 2018 beneteau monte carlo 4 grateful, 1940 custom boat house, 1998 bayliner 3587 motoryacht, 1970 custom boathouse, 1969 grand banks 36 sandpiper, 2007 bayliner 325 miss b. haven, 1976 grand banks 50 europa shangri-la, 2022 sunsation 34 ccx the gambler, 2019 seasport voyager 3000 poor sport, 2005 regal commodore 4260 kava, 2004 meridian 459 motoryacht dancing bare, 1977 ocean alexander marine 40′ tri cabin trawler, 2016 regal 28 express, 1982 capital gulf 32, 2022 kingfisher 2725 weekender, 2018 grady-white express 370, 2018 grady-white 37′ cornholio, 2005 regal 44′, 2024 hanover yachts 30′, 1970 cal 43, 2005 hallberg-rassy 40, 1991 carver 28 command bridge pickle, 2020 mastercraft xt-23.

Your Cart is Empty