Brokering a deal: How to sell your boat with a boat broker
Selling a boat can be a time-consuming and challenging process.
This is especially true if you don’t have experience in the marine industry. This is where a boat broker can be incredibly helpful. A broker can guide you through the entire process of selling your boat, from setting the right price to finding the right buyer.
Benefits of selling your boat through a broker
One of the primary benefits of selling your boat through a broker is that they have the knowledge and expertise to price your boat accurately. This is important because pricing your boat too high can deter potential buyers, while pricing it too low can leave you with a lower profit. A broker will consider various factors when pricing your boat, including its age, condition and market demand.
According to D’Albora Marine CEO Matt Walford, brokers can take the stress out of the process by providing a platform and commercial framework through which to sell your boat.
“They will also be able to devise the best strategy based on your objectives for the sale. An experienced broker will be able to provide added expertise that can be particularly valuable in more challenging or changing markets and in dealing with negotiations and specific situations,” he said.
Another benefit of using a boat broker is that they have an extensive network of contacts in the marine industry. This means they can reach a wider audience of potential buyers, increasing the chances of a successful sale. Brokers have access to online listing services, including the popular Trade a Boat channel, boating publications and other marketing channels to promote your boat.
Ryan Leigh-Smith, Director of Leigh-Smith Yachts, says that a good relationship and understanding of the selling process really helps.
“Leigh-Smith Yachts works on the three Ps. To get a result, the three need to work in unison. Pedigree, presentation and price. If all three are on the table, then the price will often exceed the seller’s expectations. If one is missing, then the market starts to devalue the asset,” he stated.
Ryan says there are tangible benefits associated with using a broker.
“Using a boat broker ensures factors like market saturation, leads qualified, secure trust accounts that are audited, process-driven systems that protect the buyer and sellers, independent arbitration in dispute and ultimately a confidant to the seller offering sound knowledge for enjoyable boating in a professional manner.”
Director of Leigh-Smith Yachts, Ryan Leigh-Smith
Steps involved in selling your boat through a broker
The first step in selling your boat through a broker is to find the right broker. Look for a broker who has experience selling boats similar to yours and has a good reputation in the industry. You can ask for referrals from other boat owners or do research online to find reputable brokers in your area. Matt from D’Albora advises meeting with your broker so they can conduct a proper appraisal. This also gives the seller the opportunity to evaluate the broker. “It’s important to ask them about their experience, similar sales they might have completed, how they will present the vessel, how they will promote the vessel, their fees and terms of engagement,” he suggested.
Once you've found a broker, they will inspect your boat to determine its condition and market value.
According to Matt, a boat in good condition with its maintenance in check will always sell faster and for a higher price. “It’s worth speaking to your yacht manager, mechanic and a broker to work out the key things to address prior to launching,” Matt advised.
It's important to be realistic about the price and trust your broker's advice. Remember, an overpriced boat can deter potential buyers and prolong the selling process.
Ryan asserts that it’s important to choose the right broker.
“Most brokers will sell a certain category. At LSY, we have experts across a wider range of boats, from small cruisers to the ultimate long-range superyachts, nationally and internationally,” he said.
After setting the price, the broker will create a listing for your boat and begin marketing it to potential buyers. They may use various channels to promote your boat, including online listings, boat shows and other marketing channels.
When a potential buyer expresses interest in your boat, the broker will schedule a showing or sea trial. This gives the buyer the opportunity to inspect the boat and see how it performs on the water. The broker will also handle negotiations with the buyer and ensure that all necessary paperwork is completed.
Once a deal is reached, the broker will prepare a sales agreement and manage the closing process. This includes transferring ownership, paying off any outstanding loans and delivering the boat to the new owner. The broker will also collect their commission, which is typically a percentage of the sale price.
Selling your boat through a broker can save you time and hassle while ensuring that you get the best possible price for your boat. A broker can provide valuable guidance and support throughout the entire selling process, from setting the right price to completing the sale.
THE NEXT STEP
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