Why use a yacht broker?
9 Reasons to use a Yacht Broker.
To understand the value of a broker, you need to understand the process required to buy a yacht:
1 - Review of Needs
Landing on the right yacht for you is impossible without understanding what you need. Simply put, variables from size, speed, space, propulsion, style, fuel efficiency and more, can all affect your Needs. The right yacht broker will help you choose the yacht style to match your boating desires. You’ll want to choose a yacht broker with expert knowledge in your yachting area: overnighting, day boating, fishing, go fast, etc.
2 - Yacht Search
With most yacht databases at the consumer’s fingertips, today’s technology makes it simpler than ever to search for boats. This is good and bad. You’ve got available yachts at your fingertips, but filtering through everything can be time consuming and confusing. Your time is valuable, and a skilled broker can evaluate the market quickly with and without the MLS. Your broker may know off-market opportunities you’d never see via one or many online databases.
3 - Showings
Once you find a few options, setting up showings is your next natural step. This can range from seeing a few local boats back to back to flying to multiple destinations. Your broker will contact listing brokers and make the most convenient arrangements based on your schedule. For larger, more exclusive purchases, making effective travel arrangements falls on the broker and/or brokerage team. Again, your time is valuable, and your broker can effectively plan your showings per your schedule.
4 - Asset Valuation and Offers
Now we get into the technical process. Your broker will personally survey the options and provide valuable feedback related to market value and possible offers. Good brokers have relationships with other brokers and can discuss recent sales, true value and market trends to find the best offer for current supply/demand.
5 - Negotiation
Self-explanatory. Have the right person to effectively achieve the best price. Whether your broker is a shark negotiator, a market-insider, tied in with brands, or all-of-the-above, the right representation will get you the right deal.
6 - Survey and Sea Trial
There are two elements to any survey: logistics and analysis. Your broker will arrange logistics for your survey (surveyor scheduling, haul out, sea trial dates, etc) while also providing their expert knowledge throughout the entire process. Depending the yacht you’re purchasing, you may use one or multiple surveyors. Your broker will know who to use, how to best apply their skills, and how to fuse all the reports together into one cohesive understanding of the boat you’re buying.
7 - Acceptance
Review of survey reports yields two decisions: Buy or walk? Buy at current value or request survey credits? This is where a broker’s knowledge comes most in handy.
8 - Closing
Utilize your broker’s knowledge to decide how and where to register your vessel, which impacts your tax liability, mooring location, and use frequency, to name a few. Your broker will organize closing documents, make sure you are signing approved documents, and protect your funds via their escrow account. Don’t take their escrow for granted; you’ll want your money protected throughout the entire process.
9 - Delivery and Beyond
This stage of the process is broker-dependent. A good broker will stay in touch and make sure your boating experience is meeting or exceeding your expectations. They can connect you to good vendors, suggest best practices for ownership, and much more.
About the Author
Reed Nicol is a licensed yacht broker with experience in all corners of the marine industry. He’s worked as an executive and sales director in yacht manufacturing and distribution, has started and managed commercial charter operations, and managed notable refits. Read more about Reed’s marine journey, his love of helping 1st time boaters and his entrepreneurial spirit here.
Reed Nicol [Licensed FL Yacht Broker #11926]
201-264-6356 | Reed@RNMarine.com
