Why use a yacht broker when buying a boat
It is important to fully understand a yacht broker's role, so their services can be fully utilised by you, the potential buyer.
If you are a buyer in the market to purchase a yacht or boat, you can have a professional broker do all the work at no cost to you.
Having a yacht broker represent you, the buyer, is much like a real estate agent representing the buyer for a home. The broker will have access and ability to represent you for any boat available through any brokerage. They can consult with you on all your boats of interest and represent you in all inquiries and transactions, and will facilitate every aspect of the sale including appointments, negotiations, survey, financing, closing and delivery.
A professional broker will listen to your wants and needs, including all specifics on what you are looking for. They will guide you in determining value, condition of vessel, and details of a particular boat to ensure it meets your criteria before taking the next step to view her.
Financing and pre-qualification
If you are planning on financing your vessel, sometimes it is best to be pre-qualified for your loan. This will allow you to judge what budget you have to work with and what flexibility you will have on any negotiations. Your broker can also assist you with finding a marine lender — you can shop online, use a credit union or an equity loan. We keep our own lender relationships for exactly this.
Making the offer
Your broker can assist in deciding what offer to make on your potential purchase. A realistic offer will increase the probability of paying a fair and reasonable price, with the necessary elements to protect your interest. The terms of the sale will be outlined in a purchase and sale agreement, with all obligations and specifics agreed on by the buyer and seller. A deposit is placed in escrow and the sale is usually subject to survey and sea trial.
Professional brokers are familiar with all the technical requirements by country, state or province — including purchase agreements, escrowed accounts to safeguard funds, deposit requirements, bills of sale, closing documents, registration, licensing, documentation, titling, sales tax payment, loan payoffs, security agreements, certificates of ownership, and any other fees or documents needed to close a sale.
Survey and sea trial
In most cases the buyer will obtain the services of a marine surveyor and request a sea trial. The buyer is responsible for the expense of the surveyor and the haulout of the boat for inspection. Your yacht broker is usually present for the survey and sea trial, and will assist in navigating through the marine survey findings that almost inevitably occur on all boats — putting them in proper context and problem solving for both buyer and seller. Most insurance companies and financial institutions will require a copy of the survey report.
Closing, and afterwards
Your yacht broker will collaborate between the buyer and seller on any negotiations to keep everything in check, so a favourable completion of the sale is satisfactory to both sides. The broker will use an escrow account to hold the funds collected and ensure any existing loan or impediments are paid off at closing. This safety net is very important to the buyer and seller, and its absence can be a serious risk to both parties in a private sale that does not involve a broker.
Your broker can be a true asset and a wealth of information, referring you to everything related to the marine industry including marinas, maintenance and repairs, boating courses, boat handling, captains, haulers, tips on navigation through local waters, and the best restaurants to dock and dine at with your new boat.
Lastly, when you are ready to move up to your next boat, you have an established relationship with someone who is familiar with every aspect of your boat and can represent her for sale in the best way possible.
We want to work with you. Please give us a call to discuss your boat search.