WHY HIRE A BUYER’S BROKER WHEN PURCHASING A NEW OR USED BOAT?
Distinguished boat brokers in South Florida understand “all things boats” and can save a client potential headaches they may not recognize on the front end. Key brokers understand market risks, liabilities, how to leverage resources, implementation, and how to navigate various economic climates.
If you interview hard on the front end for a buyer’s broker, you can manage easy on the back end as you go through the boat buying process. A reputable broker sees the value in representing you for the “right” boat so they can rely on the repeat and referral business to fuel their future income.
Remember, a buyer’s broker can represent a client for both new and used vessels. It’s very easy to dismiss the need for new purchase representation. However, there are many value-added benefits we will uncover in the story to follow.
A PULSE ON THE MARKET
Reputable yacht brokers are well connected in the industry and understand the cyclical nature of economic and seasonal impacts on the boating industry. Plus, they spend hours a week connecting with industry peers across the state and sometimes outside the region discussing their brand experiences, trends, and resources for their clients. Click here to read more – NMG Yacht Sales: Your Trusted Partner in Marine Sales & Service
South Florida is the US boating capital where yacht brokers attend the Ft. Lauderdale, Palm Beach, Miami, and Stuart boat shows each year. During these shows, there are multiple after hours “marine industry sponsored events” run by the International Yacht Brokers Association, large companies as a recruiting tool, and by businesses establishing their brand. Before, during and after the events, top brokers are connecting with peers and discussing their results and opinions of varying topics from current market conditions to which boat manufacturers are producing strong products. Many times, they will share stories about the strength of a boat model and it’s performance, how it’s translated to an owner’s benefit, and the ability to resell these models. This can have a huge impact on a buyer’s decision if they are well informed prior to buying a new boat.
A BROKER’S KNOWLEDGE & EXPERIENCE CAN IMPACT THE BOAT YOU BUY AND WHY
The boat buying process should be a fun and memorable experience. However, there are some key watchouts that must be considered when buying a vessel to protect your wallet and overall experience in boating with your family and friends.
New Boat Purchase Watchouts:
- Understanding the different brand and model categories:
- Hull manufacturing methods and reputation
- Seaworthy vs. calm water utility
- Strong value vs. rapid depreciation
- Complexity vs. simplicity to maintain mechanical systems
- Premium vs. discount/generic internal systems
- Adequate vs. inadequate power
- Accessories and widgets, referred to checkboxes on the build sheet can drastically increase the cost of the vessel without positively impacting the re-sale value. An experienced broker can guide you through options and weigh-out “nice to have options, true comfort features, and transferable value to the future buyer.”
- Post sale expenses and potential frustrations:
- 20-hour engine service costs money and will require the owner or captain to schedule and transport the vessel boat back and forth to the service center. Plus, the boat will be out of commission for a few days.
- It’s inevitable that in the 1st year of a boat’s life, there will be systems and accessories on the boat that will fail or require replacement. The argument of the selling dealership is its warranty. However, what you forget is the time and frustration factor associated with these issues can grow.
- Understanding if the dealership is effectively honoring the warranty post-sale or feeding you a bologna sandwich. A tenured buyer’s broker will stick with you post sale to be on standby as a consultant and to assist as needed.
Used Boat Purchase Watchouts:
- Does the mechanical space and bilge tell the story of vessel’s historical maintenance and service? Access our previous article: Boaters Resources
- In correlation to the age of the vessel, what’s the age of varying systems and equipment such as batteries, pumps, AC, different actuators, refrigeration, gyro stabilizers, etc. Can you take the age of this equipment and determine how that affects the sales price?
- How the year of the vessel vs. engine hours vs. genset hours correlate relative to the asking price and the market.
- Leveraging reputable survey companies and mechanics to ensure you are not fed a report that is in favor of the seller.
HOW A SEASONED BROKER CAN SAVE YOU TIME & MONEY
The internet and well-designed phone apps have provided a marketplace that’s at the fingertips of the public. A buyer can spend hours exploring various layouts and gain an understanding of the markets. Then, they can reach out to the private seller or brokerage and set up a showing. In theory, this should be a great experience, and you hope for a high level of integrity from the sellers side every time. However, just like what we see in the entertainment industry, the facade does not always match reality. For busy yacht brokers, a week does not go by without coming across photo shopped images in a manner that disguises what they may not want you to see.
By working with a buyer’s broker, they can set you up with automatic emails alerting you of new and updated listing for your review. Plus, you can text or email links of boats you find appealing for discussion.
So, how can an experienced broker save you time and money?
- Vet out boats that interest the buyer. Listing broker conversations with buying brokers generally take on a different dialogue versus a listing broker to private buyer. Remember, they talk boats 5-7 days a week. A buyer’s broker will ask a series of questions to identify the true condition, form a baseline where the price needs to be if the boat is in top condition, and then set some expectations to create leverage.
- If a boat is not in top condition with new systems, pumps, batteries, etc…. An experienced buyer’s broker can pick apart a boat when negotiating with the goal of driving down the price. Then, have a sidebar conversation with the buyer to define easy vs. complex vs. not necessary repairs and how to gain a buyer incentivizing price reduction that is more significant than the repairs.
- If you work with a buyer’s broker who’s company owns a service business such as boundlessym.com, they can provide estimates while the boat is under contract to ensure the buyer has transparency of what repairs will cost.
- Once the vessel closes, a buying broker can ask a liaison or facilitator of the repairs on behalf of the client in a timely fashion. A private buyer may be challenged to get repairs done in a timely or cost-effective manner.
NMG Yachts Sales
At NMG Yacht Sales, it’s our mission to ensure our clients benefit from working with a professional broker, with extensive experience in their desired boat size and class category. Just like in any business, a seasoned boat/yacht broker builds their personal brand on being a value add with a foundation of integrity, reliability, and being a one phone call away resource for their clients.
