Let’s begin with the most compelling benefit: It is absolutely FREE to the buyer.
Being represented by a professional brokerage house does not add a penny to a yacht purchase price, since the brokers’ commission is entirely paid by the seller. Therefore, it is completely cost-free to the yacht buyer.
We, at Sailonline, are licensed and bonded yacht brokers. We have a huge network and experience to assist charter boat buyers locating the exact right boat for them. We have done hundreds of transactions, representing buyers worldwide. We locate the yachts to choose from, narrow the numbers to 2 or 3 boats, negotiate the best price, organize the survey and are on site for it, follow up with the surveyor's recommendations until final satisfaction of the buyers; we then do all the closing work. Then, we stay with the buyer - at this stage he/she has usually become a friend - and keep assisting for life. And for free (yes, you read that right).
Now, here are the details of what the Buyer gets for that “price”.
A broker will help a Buyer find the best deals without wasting time and money.
As of this writing, there are over 80,000+ yachts listed for sale in the world. Most are in the major databases, visible by everyone with an Internet connection. However, the very best deals are often not advertised. They are in the “hip pockets” of brokers. Some are bank repossessions, some are trade-ins that must be “blown out”, and some are boats that must be sold almost at any cost by a seller in a difficult situation. A professional broker knows every place to look to find those gems and will use his personal network to find them for the buyer.
Our specialized computer software programs and databases can identify and print complete lists of all the boats available of one type, as well as the history of the real transactions on similar boats. This helps the Buyer to see and understand the “big picture”. We can also provide photos, layouts, line drawings and spec sheets on any yacht in the world. Many yacht buyers waste their time by traveling to visit yachts that are vastly misrepresented, which is unfortunately common. This especially occurs when dealing with some offshore or even some unprofessional brokerages. A broker will get the real facts first.
The seller's broker will volunteer information to the buyer’s broker that he/she would never divulge to a private individual.
A broker talking to another broker will know how to “cut the chase” and eliminate the salesmanship “noise” and potential rosy descriptions. The seller's broker will often advise the buyer's broker of previous offers that were turned down. That happens because the 2 brokers work together to make the transaction happen.
The Buyer’s broker advises on the best possible starting point for an offering price
A buyer's broker will know how to drive the buying price much lower than it would be if a private individual was conducting the transaction.
The Buyer’s broker protects his client’s money and...emotions!
Once an offer has been accepted, we, with our bonded and insured Escrow Account, receive the buyer’s 10% deposit, and we represent and guarantee its validity to the seller’s agent. This is a very important safety net for the buyer as opposed to sending money directly to the seller or his/her agent. Additionally, the buyer, if he/she chooses so, may remain anonymous, behind the shield of the broker acting as an agent. Incidentally, this also leave the buyer's emotions out of the equation, which is a very goood idea.
The Buyer’s broker provides complete logistic assistance
- The brokerage house’s organization helps hire surveyors, and arranges haul-outs and sea trials. We assist in the survey follow up, and analyze the survey findings for/with the buyer. Most often, we know how to utilize those findings to lower the purchase price even further, in a second round of negotiation, a process known as “Conditional acceptance”.
- We perform lien searches, customs duty paperwork, sales tax return preparation, assist with the domestic or offshore registration and we coordinate the closing paperwork (see below). Did you know that there are 23 forms needed at closing (27 for foreign flag vessels)? These forms have a specific order of execution and each step must be performed in the correct order. All parties to the transaction are kept informed and free of stress.
- We also assist in financing and insurance for the yacht, if needed by the Buyer.
- We, as Buyer’s broker, assume all the closing administration. Our Escrow Account will receive the Buyer’s final payment, and we assume the exchange of funds with the seller’s agent only after all the yacht documentation, title, liens, bank mortgage, flag status, tax status etc. have been verified and cleared by our Documentation Agents.
That is another reason why brokers, acting as guarantors of the transaction, are so important. Let’s suppose that you, reader, buy a boat. Would you feel comfortable sending a large amount of money to another broker (even in the USA) without being 100% sure that the boat documentation, title and liens are clear, and without professional representation at your side? Most probably not, in the same way you would not close on a real estate property without your attorney.
And remember: Licensed Brokers like us are bonded, insured and subject to FBI background checks. And in the State of Florida, we are bound to a very stringent Code of Ethics, the violation of which could lead to a loss of Brokerage License.
- We also assist the Buyer in tax issues (although we strongly recommend to the Buyer to obtain professional advice from a Tax Advisor) and re-flagging the vessel if need be.
Placement in charter fleets
Lastly, we are equipped to provide assistance in placing yachts in charter fleets that suit the exact Buyer’s needs, thanks to a team of veteran specialists who know the charter industry inside out.
And, again, all those invaluable services are completely COST FREE to the buyer.