meaning of yacht brokerage

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What Does A Yacht Broker Do?

By Robert Bowman | Posted On Jun 07, 2022 Updated On Dec 12, 2023

Whether you are in the market to purchase a boat or sell your yacht , choosing a professional, experienced yacht broker can not only alleviate stress during the process, but also save you time and money . A yacht broker, similar to a real estate agent, is someone who works on your behalf during the selling or buying process of a luxury boat, negotiating on your behalf, and ensures the entire transaction is completed smoothly. While a yacht broker might be thought of as the "middle man" in the transaction, a good agent will provide an exceptional amount of value throughout the experience.

Take a stroll around any major boat show and it becomes apparent that there are thousands of yacht brokers from all over the world, all with varying degrees of experience, distinctive areas of focus, and with uncertain levels of support from the brokerage firm they represent. United Yacht Sales has more than 250 yacht brokers on our team alone that are all over the world. So how do you pick the right one for you? And if you know a broker already, is he or she the right one for your specific situation? Choosing the wrong broker can result in missing out on the perfect boat or prolonging the sale of your current one, both devaluing the final sale price and costing you more in maintenance. Hiring a reputable, knowledgeable broker can make a world of difference in your experience and how successful your search for a buyer or seller becomes.

At United Yacht Sales, we will match you up with the perfect yacht broker near you that specializes in selling your type of vessel. We have a phenomenal sales record of nearly 8,000 sold vessels and a robust database to help you find the right boat or the right buyer quickly. If you want to be connected with a professional broker right now, please call our main office at 1-772-463-3131 and we will find the right fit for your boat.

We have compiled a list of 8 questions to ask when choosing a yacht broker:

1.) Ask The Broker For Examples Of Similar Boats They Have Sold And Referrals

(Seen above: Broker Mordy Miltz had a successful day fishing with one of his longtime customers.)

"I've found that I often become friends with my clients after working on multiple transactions with them," says Mordy Miltz , a broker with UYS in both Florida and the Northeast. "When you spend hours with a client, looking at boats, working with them on the best scenario, you develop a level of trust and understanding with each other. That client knows that I am going to put them first and work as hard as I can to make sure they have a positive experience."

"Whether a potential client is interested in buying or selling a sportfish or a motor yacht, I have a list of referrals I can give them," he continued.

Don't be shy about asking for a broker's history. A reputable broker that has experience with a lot of different clients will undoubtedly have some testimonials or referrals to provide.

2.) Is The Broker Affiliated With Any Professional Organizations Or Have a CPYB Certification?

There are several organizations that exist in the yachting industry that don't necessarily guarantee you a successful selling experience, but they do require a particular level of ethical adherence to be members. The Certified Professional Yacht Broker program, also known as the CPYB program, requires thorough training of the broker and sets a benchmark of ethical standards. "A Certified Professional Yacht Broker (CPYB) is recognized as having achieved the highest level of industry accreditation, available to qualified yacht sales professionals," says a mission statement on their website.

Other regional organizations in the industry offer similar training, ongoing education, code of ethics, and support system. The International Yacht Brokers Association ( IYBA ) has grown substantially in membership as brokers all over the country join to have access to their MLS system and online tools. The Yacht Brokers Association of America ( YBAA ) is similar in its standards and holds its members accountable. Ask your broker what professional organizations he or she belongs to!

3.) Ask Your Broker For a Market Analysis And Advertising Plan Before Signing An Agreement.

Is this asking price your broker suggested really in line with what boats are selling for in this market? Is the asking price set for a quick sale or to achieve the highest possible amount for you? How does the broker, and the brokerage firm that represents them, going to advertise your listing? These are all legitimate questions that can easily be answered at the beginning of the relationship by asking your yacht broker for a market analysis of your yacht and an advertising plan. Here are the things to look for:

Did your broker compare your boat against any recent sales in the marketplace?
When comparing your boat against other boats that previously sold, were there any major differences like engine power or equipment?
What current listings has the broker compared your boat against and are they "apples to apples"?
Did the broker check with anyone else in the organization that may have sold a similar boat recently?
Will the broker and their firm adequately market the vessel? Or is there plan to simply list on Yachtworld and send an email to other brokers?

4.) Will Your Broker Create A Professional Presentation For Your Yacht?

Yes, iPhones do take amazing pictures, but do you really want your yacht represented online to thousands of buyers with amateur photos? "Good professional photography of a yacht you are trying to sell is a must," says John Blumenthal , United Yacht Sales broker. "My clients deserve an excellent presentation of their boat through both images and video, so that potential buyers can see themselves cruising in it, enjoying their free time. Good video really paints the picture."

United Yacht Sales has a network of professional photographers and videographers all around the country that have vast experience working on yachts. We also have an excellent distribution method of getting those pictures and videos out to as many people as possible. For our sportfishing boat clients, for example, we heavily advertise with Sportfish Trader , which has become a leader in getting the latest listings out to potential clients.

5.) Will The Brokerage Firm Send Your Boat To Other Websites Owned By Competitors?

United Yacht Sales utilizes all three major industry MLS services to list your yacht in every place possible. All three of these MLS services can send your boat for sale to places like Yachtworld.com, SportfishTrader.com, BoatTrader.com, and others. But did you know that your broker can also opt-in to sending your boat to other competitor broker websites?

At UYS, we believe in getting the most visibility possible to your listing so we send all of our yachts for sale to our competitors so that they too might have a chance to find a buyer. Not everyone does this and is a good question to ask your potential broker.

6.) When It Comes Time To Close, Whether Buying Or Selling A Yacht, Does Your Broker Have a Support Team?

Nothing is worse when you have spent weeks looking for a boat or waiting on a buyer, the survey has completed, you're ready to close, and your broker drops the call on the paperwork. Or worse, there's a problem after closing and attorneys need to get involved. The United Yacht Sales closing team is one of the best in the industry with decades of experience. They've seen it all and they've dealt with it all. It's one of the benefits that our clients appreciate when it comes to selling or purchasing a boat. Whether it's a straight forward closing or a tricky offshore deal, our support team will ensure everything is clearly communicated to your broker and you.

We hope that you consider selecting a United Yacht Sales professional broker for your yacht purchase or selling needs. We pride ourselves on putting our clients first and continually work at educating our team, as well as staying up-to-date with the latest technology. Our marketing budget is 100% committed to assisting our clients with helping to sell their boats, not put towards new boats in inventory or trade-ins. We invite you to experience the benefits of working with a true professional yacht brokerage firm, where our efforts are entirely focused on your experience.

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Understanding the Role of a Yacht Broker

The world of yacht buying and selling can be complex and overwhelming, requiring expertise, market knowledge, and a keen understanding of the intricacies involved. This is where a yacht broker comes into the picture. A yacht broker is a specialised professional who acts as an intermediary between buyers and sellers, assisting them throughout the transaction process and ensuring a smooth and successful experience.

In this article, we will delve into the role of a yacht broker, exploring their functions, benefits, challenges, and limitations. Whether you are a buyer or a seller in the yacht market, understanding the role of a yacht broker is essential to making informed decisions as to whether they might be helpful to you in achieving your goals.

Qualifications & Regulation of the Yacht Broking Industry

In general, there are no specific educational requirements to enter the field of yacht brokerage and anyone can set themselves up as a broker. However, acquiring certain qualifications and certifications can enhance a yacht broker’s credibility, knowledge, and expertise.

Many yacht brokers choose to pursue professional certifications and memberships offered by industry organisations. For example, in the United States, the Yacht Brokers Association of America (YBAA) and the International Yacht Brokers Association (IYBA) offer certification programs that provide training, education, and professional development opportunities for yacht brokers. These certifications, such as the Certified Professional Yacht Broker (CPYB) designation, demonstrate a broker’s commitment to ethical conduct, professionalism, and industry knowledge. Training does not cover the global marketplace and differences arise between jusrisdictions.

Relevant experience in the marine industry, such as sailing, boating, or yacht management, is also useful. Strong knowledge of yachts, boat construction, navigation, and other related areas is valuable in understanding the intricacies of the industry and providing expert advice to clients.

Regulation of the yacht brokerage industry varies depending on the country or region. In some jurisdictions, there may be specific licensing requirements or regulations in place to ensure ethical conduct and consumer protection. For example, in the United States, individual states may have licensing requirements for yacht brokers, while in the United Kingdom, the industry is regulated by the British Marine Federation (BMF) .

Industry organisations and associations have codes of ethics and standards of practice that their members must adhere to. These codes and standards promote professionalism, integrity, and transparency within the yacht brokerage profession.

Functions of a Yacht Broker

What is the difference between a broker and a dealer.

While a yacht broker and a boat dealer may seem similar, there are key differences between the two. A yacht broker represents the interests of either the buyer or the seller throughout the transaction process. They provide valuable guidance, conduct market research, arrange showings, negotiate prices, and assist with the necessary paperwork. On the other hand, a boat dealer typically represents a specific brand or manufacturer and sells boats directly to consumers. Dealers often focus on new boat sales and may offer additional services such as boat servicing and maintenance.

The Broker’s Role in the Buying and Selling Process – Buyers Broker vs. Sellers Broker

Where employed, the yacht broker plays a vital role in ensuring a smooth and successful transaction.

A buyer’s broker exclusively represents the interests of the buyer, working diligently to find the most suitable yacht, negotiate the best deal, and guide the buyer through the purchasing process. If you are a buyer, a yacht broker will work closely with you to understand your preferences, requirements, and budget. They will leverage their extensive knowledge of the market to identify suitable yacht options, arrange showings, and guide you through the selection process. Once you’ve chosen a yacht, the broker will assist in negotiating the best price and favorable terms on your behalf, as well as handling the necessary paperwork and legal documentation.

On the other hand, a seller’s broker represents the seller, focusing on marketing the yacht effectively, attracting potential buyers, and negotiating favorable terms on behalf of the seller. If you are a seller, a yacht broker acts as your representative, aiming to secure the best possible deal for your yacht. They will conduct market research to determine a competitive asking price, create professional listings and marketing materials, and promote your yacht through various channels to attract potential buyers. Additionally, the broker will handle inquiries, qualify potential buyers, arrange showings, and negotiate with interested parties. Their goal is to facilitate a successful sale while minimizing your involvement and maximizing your proceeds.

In some cases, a yacht broker may act as a dual-agent, representing both the buyer and the seller in a transaction. However, it is essential to be aware that in dual agency situations, the broker must disclose this relationship to both parties and maintain transparency throughout the process.

What Exactly Does a Yacht Broker Do for a Buyer?

When you engage the services of a yacht broker as a buyer, you can expect them to fulfill several essential roles throughout the yacht purchasing process:

Assess the Client’s Needs and Preferences

A yacht broker will begin by thoroughly understanding your specific requirements, preferences, and budget. They will take the time to discuss your boating goals, desired features, and intended use of the yacht. This allows them to tailor their search and focus on finding yachts that align with your needs.

Conduct Market Research and Identify Suitable Yachts

With their extensive knowledge of the boating market, yacht brokers conduct comprehensive market research to identify suitable yacht options. They have access to a wide network of listings, both publicly available and exclusive, enabling them to present you with a range of yachts that meet your criteria.

Facilitate Yacht Showings and Surveys

Once potential yachts have been identified, the broker will coordinate yacht showings, providing you with the opportunity to view and assess the vessels of interest. They will accompany you during these visits, offering insights and answering any questions you may have. Although they can also arrange for a professional marine survey to ensure the vessel is in good condition, a buyer should remember that the surveyor he chooses works for him, the buyer, and is completely independent of the broker. It is best practice for the buyer to select the surveyor – the broker should be able to supply a full list of surveyors working in the area for you to choose from – and allow the broker to coordinate the arrangements for the pre-purchase survey itself.

Negotiate Prices and Terms

One of the key roles of a yacht broker is to negotiate on your behalf. They possess in-depth market knowledge and negotiation skills, allowing them to secure the best possible price and favorable terms for you. They will advocate for your interests throughout the negotiation process, ensuring you achieve the most advantageous outcome.

Assist with Paperwork and Legal Documentation

Yacht transactions involve a significant amount of paperwork and legal documentation. Your yacht broker will guide you through this process, ensuring that all necessary documents are completed accurately and efficiently. This includes contracts, registration, title transfer, and other relevant paperwork to finalise the purchase.

Provide Expert Advice and Guidance

A yacht broker is your trusted advisor throughout the buying process. They can provide valuable insights and expert advice, drawing on their extensive experience and knowledge of the boating industry. Whether it’s selecting the right yacht, evaluating pricing, or navigating complex legal aspects, your broker is there to support you every step of the way.

By performing these crucial tasks, a yacht broker acts as your advocate and partner, making the yacht buying process smoother, more efficient, and ultimately more rewarding. Their expertise and dedication help ensure that your yacht purchase aligns with your needs and preferences while providing peace of mind throughout the entire transaction.

What Does a Yacht Broker Do for a Seller?

When you enlist the services of a yacht broker as a seller, they take on various responsibilities to help you navigate the yacht selling process efficiently and effectively. Understanding the key tasks they perform on your behalf will highlight the value they bring to the table.

Prepare Sales Particulars and Photographs of the Vessel

A yacht broker will gather detailed information about your yacht, including its specifications, features, inventory and history. They will create compelling sales particulars highlighting the yacht’s strengths and appealing to potential buyers. Additionally, brokers will take high-quality photographs that showcase the vessel’s aesthetics and key selling points.

Conduct Market Research and Agree on a Suitable Listing Price

Yacht brokers have a deep understanding of the market and current trends. They will conduct market research to determine a competitive and realistic listing price for your yacht. By analysing similar yachts currently on the market, recent sales data, and other market indicators, they can guide you in setting an appropriate price that attracts potential buyers.

Yacht brokers take on the task of coordinating yacht showings and inspections with potential buyers. They arrange viewings at mutually convenient times, ensuring that interested parties have the opportunity to see your yacht firsthand. During these showings, the broker will present the vessel professionally and answer any questions that arise. They will also coordinate the pre-purchase survey to assess the yacht’s condition.

As experienced negotiators, yacht brokers are skilled at representing your interests during price and terms discussions. They will handle the negotiation process on your behalf, aiming to secure the best possible price and favorable conditions for the sale. Their market knowledge and expertise in negotiating can be instrumental in achieving an optimal outcome.

Manage Transfer of Payments

The management of escrow for the seller is not always within the direct scope of responsibilities for a yacht broker, however, many have access to an Escrow account as part of their activities and do undertake this role. Escrow services, which involve holding funds or documents in a secure account until specified conditions are met, are otherwise handled by a third-party escrow agent or a trusted closing lawyer.

In the yacht selling process, the buyer and seller may mutually agree to use an escrow account to hold the funds until the completion of certain conditions, such as the satisfactory completion of documentation and transfer of title. This helps ensure a secure and transparent transaction for both parties.

Yacht sales involve a considerable amount of paperwork and legal documentation. Your yacht broker will guide you through this process, ensuring that all necessary documents are completed accurately and in compliance with relevant regulations. They will handle contracts, transfer of ownership, title documentation, and other paperwork required to finalize the sale, ensuring a smooth and efficient transaction.

A yacht broker is your trusted advisor throughout the yacht-selling process. They provide expert guidance and insights based on their industry knowledge and experience. From preparing your yacht for sale to evaluating offers and strategizing marketing efforts, they offer valuable advice to help you make informed decisions at every stage.

By taking on these responsibilities, a yacht broker acts as your representative and advocate, streamlining the selling process and maximizing your chances of a successful sale. Their expertise, market insights, and professional network contribute to a smoother transaction, allowing you to focus on other things while entrusting the sale of your yacht to their capable hands.

Checking a Vessel’s Title

A yacht broker’s role includes checking the clear title and identifying any liens or secured loans associated with the vessel; however, the extent of their investigation may vary.

Yacht brokers typically conduct a preliminary check on the boat’s title and documentation during the listing process when they request relevant documents from the seller, such as the vessel’s registration, ownership history, and any recorded liens or encumbrances. They may also utilise online resources or databases to gather information about the boat’s title status.

While yacht brokers strive to ensure the accuracy of the information provided, it’s important to note that they may not conduct a comprehensive title search like a specialised maritime attorney or title company would. Their primary focus is on assisting with the transaction and ensuring a smooth process for the buyer and seller.

A yacht broker should encourage buyers to conduct their due diligence and seek professional assistance when necessary to ensure a clear title and mitigate any potential risks associated with the purchase.

If a potential buyer is concerned about the boat’s title and wants a thorough examination, it is advisable for them to seek the assistance of a maritime attorney or a title company that specialises in vessel documentation. These professionals have the expertise and resources to conduct a detailed search, examining public records, lien databases, and other relevant sources to determine the boat’s title status and identify any potential issues.

How Are They Paid?

Yacht brokers are typically paid through a commission-based structure. When a successful sale is made, the broker receives a percentage of the final sale price as their compensation – this is typically 8% in the UK and 10% elsewhere in the world. The specific commission rate can vary depending on various factors, such as the size and value of the yacht, local market practices, and the agreement between the broker and the client.

This sum can be quite considerable, with a payday of $100,000 on the sale of a $1m vessel.

The commission rate is usually negotiated and agreed upon between the yacht broker and the boat owner (seller) before the listing is finalised. It is important for both parties to have a clear understanding of the commission structure and the associated terms.

In the case of a yacht sale, the seller is responsible for paying the commission to the broker. Upon the completion of the sale, the broker’s commission is deducted from the proceeds of the transaction. The remaining amount is then disbursed to the seller.

It’s worth noting that the commission is typically calculated based on the final sale price, including any additional costs or upgrades that may be negotiated as part of the sale; this may also be lower if adjustments to the price have been made following the pre-purchase survey. The commission serves as the primary source of income for yacht brokers and is designed to align their interests with achieving the highest possible sale price for the seller.

It is important for both buyers and sellers to clarify the commission structure and any additional fees with the yacht broker upfront to avoid any misunderstandings or surprises during the transaction process.

Benefits of Using a Yacht Broker

Advantages for yacht buyers.

Engaging the services of a yacht broker offers numerous advantages for buyers in the yacht purchasing process. The following are some key benefits to consider:

Access to a Wide Range of Yacht Options

Yacht brokers have an extensive network and access to a broad inventory of yachts, including both listed and unlisted vessels. This grants buyers the opportunity to explore a wide range of options that align with their preferences, requirements, and budget. Brokers can present you with a curated selection of yachts that match your specific criteria, saving you time and effort in your search.

Time and Effort Savings

Searching for the right yacht can be a time-consuming and demanding task. By leveraging their expertise, brokers narrow down the options based on your preferences, saving you the hassle of sifting through countless listings and facilitating a more efficient yacht search.

Negotiation Skills and Financial Savings

Brokers have an understanding of the market value and current pricing trends, allowing them to negotiate favorable terms on your behalf. Their negotiation skills can potentially lead to financial savings by securing a lower purchase price or favorable conditions, ensuring that you receive the best value for your investment.

Expert Knowledge and Guidance

Yacht brokers possess comprehensive knowledge of the boating industry, including various yacht models, brands, and market trends. Their expertise allows them to provide valuable insights and guidance throughout the buying process.

Assistance with Paperwork and Legal Processes

Yacht brokers are well-versed in the necessary paperwork, contracts, registrations, and other legal requirements. They can guide you through these processes, ensuring that all documents are accurately completed and submitted in a timely manner. Their familiarity with the legal aspects of yacht sales minimizes the risk of errors and provides peace of mind.

Benefits for Yacht Sellers

The following benefits highlight the value that a broker brings to the yacht-selling process:

Broader Exposure and Marketing Reach

Yacht brokers have access to a wide network of potential buyers, industry contacts, and marketing platforms. They employ marketing strategies to showcase your yacht to a larger audience. By leveraging their connections and utilising various advertising channels, brokers can enhance the visibility of your yacht, increasing the likelihood of finding interested and qualified buyers.

Professional Listing and Advertising Services

Yacht brokers provide professional listing services to present your yacht in the best possible light. They know how to highlight the key features, specifications, and unique selling points of your yacht through compelling descriptions and high-quality photographs. A professional presentation enhances the appeal of your yacht to potential buyers.

Pricing Advice and Market Expertise

Determining the optimal asking price for your yacht can be a complex task. Yacht brokers provide pricing advice based on current market conditions, recent sales data, and the specific attributes of your yacht. Their guidance ensures that your yacht is competitively priced, attracting potential buyers while maximizing your chances of achieving a sale.

Screening and Qualifying Potential Buyers

Yacht brokers take on the responsibility of screening potential buyers to ensure they are qualified and serious about the purchase and have the financial capability to complete the process. They have experience in discerning genuine buyers from casual inquiries, helping you avoid time-wasting or unreliable prospects.

Assistance with Negotiations and Closing the Sale

Yacht brokers use their expertise to secure the best possible price and favorable terms. They handle the back-and-forth negotiations, providing guidance and advice to protect your interests. Additionally, brokers assist in navigating the closing process, ensuring that all necessary paperwork and legal documentation are properly completed.

Qualities and Skills of an Effective Yacht Broker

To be an effective yacht broker, certain qualities and skills are essential for success in the industry. These attributes enable brokers to provide exceptional service and ensure a positive experience for both buyers and sellers.

Extensive knowledge of yachts and the yachting industry

Yacht brokers must possess comprehensive knowledge of different yacht types, brands, models, and their respective features. This includes understanding the technical aspects, performance capabilities, and maintenance requirements of various yachts. Staying updated with the latest industry and pricing trends , advancements, and regulations is crucial for providing accurate and up-to-date information to clients.

Strong communication and interpersonal skills

Effective communication is vital in building relationships with clients, understanding their needs, and articulating information clearly. Yacht brokers should be skilled communicators who can listen attentively, ask pertinent questions, and provide concise and relevant information. Interpersonal skills, including empathy, professionalism, and the ability to establish trust, are also essential for establishing rapport and fostering positive relationships with clients.

Excellent negotiation and sales abilities

Yacht brokers are responsible for negotiating prices, terms, and conditions on behalf of their clients. Possessing strong negotiation skills allows brokers to advocate for their clients’ interests effectively. A successful broker understands the dynamics of negotiation, employs persuasive techniques, and strives to achieve the best possible outcome for both parties involved. Additionally, having solid sales abilities helps brokers market yachts effectively, attract potential buyers, and close successful sales.

Attention to detail and organizational skills

Yacht transactions involve numerous details, documents, and deadlines. Yacht brokers must exhibit meticulous attention to detail to ensure accuracy in paperwork, contracts, and other essential documentation. They should possess strong organizational skills to manage multiple listings, client inquiries, and various aspects of the buying and selling process simultaneously. Being well-organized allows brokers to deliver a high level of service and ensure that nothing falls through the cracks during the transaction.

Trustworthiness and integrity

Trust is a fundamental aspect of the broker-client relationship. Yacht brokers must operate with the highest level of integrity and ethical standards. Clients rely on their brokers to act in their best interests, maintain confidentiality, and provide unbiased advice. Demonstrating trustworthiness and ethical conduct establishes long-term credibility and fosters strong relationships built on transparency and integrity.

By embodying these qualities and skills, an effective yacht broker can provide clients with exceptional service, professional guidance, and a positive experience throughout the yacht buying or selling process.

Challenges Faced by Yacht Brokers

The yachting industry is subject to market fluctuations influenced by economic conditions, global events, and trends. Yacht brokers need to adapt to these changes and stay updated on market dynamics to provide accurate advice and make informed decisions on behalf of their clients. They must navigate through both seller’s and buyer’s markets, adjusting strategies accordingly.

When supply is short, finding the exact yacht that meets all client requirements can be challenging, requiring extensive research, networking, and potentially longer search periods to identify suitable options.

Yacht brokers occasionally encounter demanding clients with high expectations or challenging personalities. Great brokers possess strong interpersonal skills and the ability to navigate difficult negotiations while maintaining professionalism and a focus on achieving mutually beneficial outcomes. They strive to manage client expectations, mediate conflicts and ensure a positive experience for all parties involved.

Yacht brokers typically earn their income through commissions based on the final sale price of a yacht. While this incentivises brokers to negotiate the highest possible sale price, it may also create potential conflicts of interest. Some buyers may be concerned that brokers could prioritise higher commissions over their best interests. It is important for clients to communicate their expectations and ensure transparency with their broker openly.

Finding the Best Yacht Broker for Your Needs

Not all brokers have equal expertise or experience; the yacht brokerage industry comprises professionals with varying levels of expertise and experience. Not all brokers possess the same depth of knowledge or extensive networks. It is essential for clients to carefully select a reputable and experienced yacht broker who understands their specific needs, has a strong track record, and can provide the desired level of service.

Word of mouth is the best recommendation.

Disadvantages of Using a Yacht Broker

While utilizing the services of a yacht broker offers numerous benefits, it is important to consider potential drawbacks and limitations associated with relying on a broker.

Commission Fees

Yacht brokers typically earn their income through a quite substantial commission based on the sale price of the yacht. This commission is a percentage of the final sale price and is paid by the seller. Buyers may find that this commission is factored into the overall price, potentially resulting in higher prices. Similarly, sellers should be aware that the commission reduces their net proceeds from the sale. It is important for both buyers and sellers to consider the financial implications and evaluate the value provided by the broker’s services.

Limited Control Over & Lack of Involvement in the Buying or Selling Process

Relying on a yacht broker means relinquishing some degree of control over the buying or selling process. Brokers are responsible for making decisions on behalf of their clients, such as negotiating terms and handling paperwork. While brokers strive to act in the best interests of their clients, there may be instances where clients would have preferred more involvement or different approaches. Clear communication and setting expectations can help address concerns regarding control and ensure a collaborative working relationship with the broker.

Potential Conflicts of Interest

As commission-based professionals, yacht brokers may face potential conflicts of interest. While brokers aim to prioritize their clients’ best interests, there is a possibility that their own financial gain could influence decision-making. Clients should openly communicate their expectations, including any specific concerns related to conflicts of interest, to ensure transparency and maintain trust throughout the process.

It is worth clarifying that while these potential drawbacks exist, they may not be applicable or significant in every situation. The value of a yacht broker’s services should be assessed based on individual circumstances, including the complexity of the transaction, personal expertise, time constraints, and comfort level with the yacht buying or selling process. Each buyer or seller must evaluate their specific needs to make an informed decision about whether to engage a yacht broker.

A good yacht broker can save you a LOT of time and effort in buying or selling a boat, but there can be a high price to pay in the form of commission on the selling price. In the end, whether to engage a yacht broker or not depends on your personal circumstances, preferences, and level of comfort with the yacht buying or selling process.

With such high sums at stake on a single transaction, it’s easy to see that lower-value vessels might have less attention than expensive ones; check the inventory of your local brokers and choose accordingly.

ABOUT THE AUTHOR

Sam Bartlett is an IIMS Surveyor, a Commercial Skipper of sailing boats, and a boat owner for over 30 years. She lives in St Martin in the Caribbean and provides yacht surveys, skippering and marine consultancy throughout the Caribbean.

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Boat Dealers vs. Yacht Brokers: What’s the Difference?

Are you looking to buy or sell a boat? Congratulations! Buying or selling a boat is an incredibly exciting time. However, it can also be confusing, especially if you’re a first-time buyer.

Working with a boat dealer or yacht broker can relieve those burdens and ensure the process goes smoothly. However, how are you supposed to know which option is right for you? While boat dealers and yacht brokers are both great options, they each cater to different sizes and types of boats.

Not sure which one your situation requires? Today’s blog post compares boat dealers vs. yacht brokers. Keep reading to learn which option is right for you!

Buying New Boats from a Boat Dealer

Boat dealers specialize in the sale of specific boat brands. Therefore, they’re ideal for people searching for a particular boat model from a particular maker. Additionally, boat dealers have ample knowledge of the brands they carry, so they can answer any in-depth questions you might have.

Boat dealers liaise between you (the buyer) and the boat’s manufacturer. If you’d like a new model that is equipped and powered to your preference, your boat dealer can help you obtain it. Additionally, they will take care of your future repair, upgrade, or replacement needs.

Find a Boat Dealer

Purchasing Tips:

Thinking a boat dealer might be the way to go? Here are some tips for purchasing a boat from a dealer:

Buy in the off-season : If you can wait until September through February to purchase, prices will be lower.
Check out a boat show : Boat show season is upon us! Consider visiting a boat show to meet with dealers and browse different types of boats.
Buy last year’s model : Dealers usually keep several models of the same boat in stock. If you opt for a slightly older model, you will pay significantly less for a similar boat.
Ask for a discount : If you’re ordering a custom boat from a dealer, ask them if they will pass their discount (of not having to inventory and finance it) on to you.
Educate yourself beforehand : Make sure to walk into a dealership prepared. Instead, research what kind of boat you want , what size/brand of engine you’d like, any upgrades you desire, and how much you’re willing to pay. Additionally, familiarize yourself with the questions to ask your boat dealer .
Don’t bet on bargaining : Boat dealers have slimmer margins than car dealers, so keep your bargaining within reason.

Buying Used Boats from a Yacht Broker

Yacht brokers represent either the buyer or the seller in the used boat market. They take on the responsibility of assessing fair value, advertising, managing sea trials, securing financing, and closing the deal. As a result, they earn a commission.

Because brokers have a deep knowledge of the boating marketplace, many buyers and sellers use them for used boat transactions. Brokers can facilitate the sale of any brand or type of boat (whereas dealers are only knowledgeable of the brands they work with).

If you’re selling through a broker, you’d be happy to hear that they often list their inventory nationally. Therefore, this means they attract a wide range of buyers. In addition, brokers help owners value their used boats, negotiate on the owner’s behalf, and process transaction paperwork when it is confusing.

If you’re buying through a yacht broker, they can help you find similar boats on the market and suggest comparable models. Additionally, they can arrange convenient and safe ways to test drive boats.

Yacht brokers are often used for larger vessels, as they simplify the complexity of those transactions. Yacht sales usually require surveys, documentation, and other things of that nature. But when you work with a broker, they take care of everything.

Purchasing and Selling Tips:

If you’re interested in purchasing from a yacht broker, here are some tips to keep in mind:

Stay loyal to one: Think of yacht brokers as lawyers or real estate agents. Once you find one, stick with them.
Ask about their resources : Used boats come with a whole set of challenges. Therefore, you want to ensure your broker has the resources to handle them (financing companies, insurance providers, services, etc.).
Don’t let a broker talk you out of a survey : This will never benefit you!
Let the broker negotiate : Yacht brokers are professional negotiators. Let them speak on your behalf, so your emotions stay out of the transaction.
Verify their communication skills : Strong communication and organizational skills are essential to any yacht broker.

Final Thoughts

So, are yacht brokers or boat dealers a better option for you? Regardless of your answer, the resources at Discover Boating can help. Our Buying Guide will help you find your dream vessel today.

Buying a Yacht: Motor Yacht Buyer's Guide

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Yacht Brokers: What Do They Do, Exactly and Why Do We Need Them?

Being represented by a professional brokerage house does not add a penny to the yacht purchase price for a buyer. The fee is totally paid for by the seller. Yes, the buyer’s broker is totally free to the buyer. So why not get your own broker to represent your interests when looking to buy a boat? You can have the listing broker represent both you and the seller but consider this: the listing broker’s job is to represent the seller and to get the highest possible price for the yacht, which is not necessarily your objective as the buyer.

That is why it’s best to have your own broker to represent your interests exclusively. When going into a purchase of this magnitude, yacht buyers need to know that they have a team of professionals that are acting entirely in their interests. Find a broker whom you feel comfortable with and trust and have him/her work for you. We have had buyers looking for as long as five years before actually buying (not typical, thankfully). But a good yacht broker will stick with you, educate you, and guide you through the process.

Choose a Yacht Broker Carefully

Before you choose your broker, make sure that you know what you want. Do your research and be realistic about your expectations. Decide what kind of boat will suit your needs, decide on a budget and make a list of the equipment and features on the boat that are most important to you. If you can, charter different boats to help you figure out more or less what is more important to you. For instance, will you give up a “walk around bed” to have a bigger cockpit or would you give up a big chart table to have more storage? These are extreme examples but unless you spend time on a boat, you cannot know what is important to you. Once you have a plan and a budget, it’s time to select your broker. Here are some things to consider:

Licensed & Bonded Broker

Requirements to become a broker is different in every state. Florida, because of the volume of yacht brokerage transactions, is one of the best jurisdictions in which to purchase a vessel. The laws are very favorable and very protective of the buyer. Here are some things that ensure buyers in Florida are protected:

To become a yacht broker in Florida, one has to do a two-year understudy period under a licensed and bonded broker as a Sales Associate before being able to apply for a Yacht and Ship Brokers License.
The brokers’ licenses are regulated by the state and require the broker to register with a bond ($25K errors and omissions) which is lodged with the state.
Brokers are required to renew the license every two years which ensures that the details on record are updated.
An escrow bank account is also required to be registered with the state and the details are updated at the time of license renewal.

So it’s important that your broker should be registered in the state where he/she operates for legal reasons.

Research the brokerage firm, i.e., their reputation in the industry. The biggest or most well-known brokerages are not always the best brokers. Smaller brokerages may be more personal than the very rigid structure of bigger corporations. Get testimonials from previous clients, interview your broker and make sure that they clearly understand your needs. Make sure that their specialty as a firm gels with what you are looking for. No point going to a dealer for 20ft Bayliner motor yachts when you are looking for a 50ft Bavaria Cruiser sail boat.

Yacht Broker Knowledge

The broker should be able to consult, advise, and educate the buyer on equipment or upgrades and help appoint vendors. Not only does he have to know the product/boat, but should also understand how to use the equipment and explain to a buyer how and why it is good to have certain equipment on board for your specific needs. For instance, a broker who has sailed/cruised and/or lived aboard will be better able to give the advice that a prospective cruiser needs. Weekenders or racers have totally different needs and the buyer should be aware of that.

Negotiating Skills

A good broker will know when to negotiate a little more aggressively and when to pull back. (A good deal is when both parties walk away happy). The seller’s bottom line is not always set in stone, even if they think so. Sellers always think their boats are worth more than it actually is but when you calculate holding costs like insurance, dockage, maintenance, haulout, etc., holding out for an extra $10,000 or $20,000 is not always the wisest decision. There are definite selling and buying seasons when boats will be cheaper i.e. phase-out season in the Caribbean when lots of boats go on sale from the charter fleets all at the same time. This would be the time to negotiate an incredible deal! Boats in certain regions will fetch better prices like boats in fresh water lakes. These boats typically have far less wear and tear because of the shorter seasons and the fresh water. Your broker should be aware of these market nuances.

Market Knowledge

There are currently about 80,000+ yachts listed for sale in the world. Most are in the major databases accessible also to the public, e.g., Yachtworld. However, some of the best deals are often not advertised, like bank repossessions, trade-ins, and boats that must be sold at any cost by a seller in a difficult situation. A professional broker knows where to find those “great deals” through his personal network. Brokers also have access to professional software and can compare and find the history of the real transactions on similar boats. This will give the buyer some perspective of what is out there and what to expect. We can provide photos, layouts, line drawings and spec sheets on any yacht in the world and therefore cut down on wasted trips to visit yachts that are misrepresented, unfortunately a common occurrence.

Yacht Buying Process and Logistics

The buyer’s broker is the person who ensures that all the components of the transaction are covered. The Buyer’s broker will perform the following duties:

Ensure that the Purchase and Sale agreement as well as all the related documents used to negotiate the purchase are well written and protect all the parties in the transaction.
Advise the buyer on the time line for acceptance closing etc. When doing a transaction like this the coordination, scheduling and time line is critical as follows:
Date of the sellers acceptance of offer
Scheduling the seller, buyer, brokers, surveyor and yard for haul out
Date of final acceptance
Date of closing with all related components – documentation, funding, insurance, transfer of possession etc.
Assist the buyer in arranging the survey, haul-outs and sea trials. We assist in the survey follow up and analyze the survey findings with the buyer. Those findings could further lower the purchase price in a second round of negotiation, a process known as “conditional acceptance”.
Advise the use of a documentation agent to obtain abstract of title and ensure that there are no liens or encumbrances and that the vessel is free and clear.
Advise on vessel insurance
Assist on vessel registration and flagging if it has been flagged offshore
Assist and advise if the boat needs to be moved from the place of acceptance to the buyers home port
Consult and advise the buyer on equipment or upgrades and help appoint vendors.
Remain a friend and valuable resource for the buyer after the transaction has closed and the buyer owns the yacht. A quick disappearance act after the check clears is not the desired result!

Specific to Florida

The broker will check if the boat can be legally sold in Florida ( Duties & Sales Tax paid) Florida broker will assist with the sales taxes, county tax and dinghy taxes, or tax exemption if you are not a Florida resident.

Make sure that your yacht broker knows the product, understands the industry, and can advise on ALL components of the transaction. All boats are not created equal, so if you are not an expert on boat construction, propulsion, sails, mechanics and electronics, get yourself a good broker and appoint an independent surveyor. They will be your best allies in the yacht buying process.

Estelle Cockcroft

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2 thoughts on “Yacht Brokers: What Do They Do, Exactly and Why Do We Need Them?”

Hello………I’m looking for a buyer’s broker in Washington state to represent me in the purchase of a particular boat from it’s owner. Can you advise me?

Dorne Dibbs

Hi Dorne, we don’t have a broker in that area but our broker, Dave King lived there until recently. Perhaps he can help you? [email protected]

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What A Yacht Broker Can Do For You

Especially when buying or selling a large boat, the right broker can reduce stress and make the transaction go smoothly and painlessly.

A broker can take the complications out of buying or selling your next boat. (Photo: Michael Vatalaro)

When BoatUS member David Issacson bought his first boat 26 years ago, he searched the newspaper classifieds in the morning (remember those?), located a couple of candidates before noon, and by 3 p.m. wrote the seller a check for $1,000 for a 17-foot boat he took fishing that day. "It was so simple then," he says. "Pretty much like buying a cheap used car. I don't even think I got a bill of sale. It was all done with a handshake." Now that he's retiring, he's looking for his fourth boat, which he says will be much bigger, probably in the 42- to 45-foot range. "I have no idea what it's going to take now. I've never had a boat that was documented or had a loan on it. I don't even think they have classifieds in the paper anymore, and I'm not sure what the process is these days."

Issacson is exactly the type of person who could benefit from using a boat broker. Boat brokers are similar to real-estate agents, but with important differences: They're far less regulated, and their commission is 10 percent rather than six percent. Unlike realtors who must take classes, sit for an exam, and be licensed in every state, only boat brokers in Florida and California have to be licensed and only California requires an exam. In most other states, anyone can call themselves a boat broker. And while all brokers have certain legal responsibilities to their clients, selecting one should be done carefully. Ask around at your marina or boatyard and get referrals from others who have used a broker before. Talk to two or three and get a feel for them, just as you would with a real estate agent. One way to increase your chances of finding the right broker is to look for a Certified Professional Yacht Broker (CPYB). These brokers are members of the Yacht Brokers Association of America (YBAA), have taken a comprehensive exam, have pledged to abide by a code of ethics, and will work with the BoatUS Dispute Mediation Program (see links in sidebar).

If You're Selling

There are several advantages to using a broker, the biggest of which is exposure. Plastering "For Sale" signs in yacht clubs and marinas can't equal the power of a broker's listing, especially with larger boats that have a smaller pool of buyers who may not even be in the same state. Brokers typically list boats through websites such as Yachtworld, which is easily searchable by anyone, anywhere in the world. Only brokers can list boats on the site, which functions much like the Multiple Listing Service for real estate agents.

Here's How A Broker Can Help

If you're the seller, a broker will:.

Advertise your boat. Brokers should list your boat on Yachtworld and advertise in other places where appropriate. Find out what their marketing plan is and get it in writing.
Price your boat realistically. Brokers have access to recent sale prices and know a good starting point.
Prescreen responses to advertising. This will avoid most tire kickers.
Show your boat to prospective buyers. This will save you from wasting time with buyers who don't show up.
Communicate all offers from potential buyers to you.
Negotiate the selling price. This is where brokers can really earn their money.
Draw up sales agreements and accept deposits. Many brokers can do this electronically over computers, tablets, and even smartphones.
Arrange for sea trials and schedule surveys.
Coordinate closing.
Transfer funds to you. Now you can start shopping for your next boat.

Correctly pricing a boat is critical to getting it sold, and an experienced broker has a very good idea of what a boat will sell for and can price it accordingly. Brokers typically have access to what similar boats have sold for in the local area and they'll prepare a listing based on the kind of boat and type of buyers expected. They'll take photos, write an enticing description, and recommend things to improve the look and marketability of your boat. Brokers can also help you navigate some of the more confusing aspects of selling such as corporate ownership, loan payoffs, bills of sale, and other documents needed for transferring ownership. Aside from listing and advertising the boat, their most important job is helping move the process along once a buyer is found. Brokers can also help a buyer obtain financing and assist with changing the USCG documentation. While the 10-percent commission is usually not negotiable, brokers will sometimes discount it for a sale that might be falling apart because of a survey report or other defects found on a boat. The different listing contracts used by brokers can be confusing, but they're not complicated once you understand the two main types, a central agency agreement and an open listing agreement.

A central agency agreement (sometimes called an exclusive listing) means you've hired a specific broker to sell your boat. With this type of agreement, the broker typically lists your boat on Yachtworld and — this is important — is obligated to sell it through a co-brokerage arrangement. Co-brokerage means that if another broker finds a buyer for your boat, your broker agrees to split the commission with him. This incentive to help each other is why about 70 percent of all brokerage sales are co-brokered. Keep in mind, though, with this type of agreement, even if you bring in the seller or end up donating your boat, you'll still be liable for the broker's commission. The majority of brokerage sales are central agency agreements.

An open listing agreement means you've given more than one broker the right to sell your boat and you also retain the right to sell it on your own. The disadvantage is that because no broker is guaranteed at least a part of the commission, it's not very likely any of them will spend the money to list your boat on Yachtworld or pay for other advertising. There can also be confused communications between multiple brokers and potential buyers. On the other hand, a hungry broker may be more motivated to bring you a buyer because he would get the entire commission. With this type of agreement, if you find your own buyer, you don't owe anyone a commission. For either type, don't be pressured into signing for a longer term than you're comfortable with. Six months is typical, but don't be afraid to ask for less, though a broker typically needs at least a couple of months to generate interest. Usually, you can walk away from any contract after giving 30 days notice. Most agreements automatically renew, so give notice before that if you want to cancel. No matter what kind of listing, ask for biweekly progress reports.

Selling It Yourself

For Sale By Ow ner (FSBO) certainly sounds attractive. Not only do you pocket 10 percent more than if you used a broker, but you're in charge of the whole process. Selling it yourself has drawbacks, however. You won't be able to get the same kind of national exposure a broker can, and you'll be responsible for keeping the boat in top condition and available for showing. And, because most boat shopping occurs on weekends, expect to be tied down during your time off. Finally, like many others, you may simply dislike negotiating. But if you want to save some serious money, BoatUS can help. Our thousands of online classified listings are viewable by anyone, anywhere in the world, and we offer an escrow service that takes the anxiety out of the financial part of the transaction. We also offer members full documentation service, boat financing, comprehensive insurance, and on-water and roadside towing coverage.

If You're Buying

While owners may find the process of selling to be an anxious one, buyers are looking for their next dream boat and are likely to be enjoying looking around, trying to find the perfect fit. But buyers tend to get apprehensive once it comes to plunking down hard cash. This is where a broker can make the process less stressful. Brokers should have a separate bank account for holding deposits and there should be wording in the contract specifying what the sale is contingent upon as well as how and when the money will be returned if the sale falls through.

It's important to remember that the broker in a typical sale is getting paid by and working only for the seller, not the buyer. A broker will try to get the highest possible price (that's what his commission is paid from) and will try to sell his client's boat even if it's not necessarily the best deal for you. You're on your own with negotiations and paperwork advice. You can, however, enter into an agreement with a broker through a buyer's broker arrangement. A buyer's broker will represent you, not the seller. Once they know what you're looking for, they can scour their sources and suggest likely boats for you to view, assist in negotiating a price, and help with the paperwork. Typically, a buyer's broker gets a commission split from the seller's broker so there's no cost to you, but read the agreement before signing.

When it's time to seriously consider a boat, it will need to be hauled out and surveyed — something that's usually paid for by the buyer, though as with anything in a sale, that's negotiable. Never use a surveyor recommended by the broker or seller; it's critical to hire an independent, qualified surveyor (see links, below) who has no stake in the outcome. Not only will the survey uncover needed repairs and deficiencies, it will also establish a fair market value, all of which can be used for negotiations. It will almost certainly be needed for financing and insurance as well.

Useful Links

Finding a Certified Professional Yacht Broker
Find a Marine Surveyor
BoatUS USCG Documentation Service
BoatUS Financing
BoatUS Insurance
Find out if a Florida Broker is licensed

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Charles Fort is BoatUS Magazine's West Coast Editor. He often writes local news items for BoatUS Magazine's Waypoints column and contributes to Reports, in-depth tech features in every issue written to help readers avoid accidental damage to their boats. He is a member of the National Association of Marine Surveyors, he's on ABYC tech committees, and has a 100-ton U.S. Coast Guard license. He lives in California.

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What is a Yacht Broker and Why You Should Consider Using One?

Buying or selling a yacht is much like buying or selling a home. After all, a yacht is home for the few weeks every year in which an owner is cruising on it. And just as most people would use a real estate broker to buy or sell their home, many opt to work with a yacht broker to buy or sell their yacht--or a share of a yacht.

What is a yacht Broker?

A yacht broker is a yachting expert who represents a buyer and/or seller in the sale of a recreational yacht. These experts uphold industry standards of skill, competence and character in service to their clients; they follow an established code of ethics, must be members of a recognized yacht broker trade association, and take part in continuing education throughout their career.

Why are yacht brokers beneficial?

As yachting experts, yacht brokers know how to translate your unique wants, needs and lifestyle into a yachting experience fit just for you – from knowing the right size and style of yacht, to amenities, crew size, cruising location and more.

Yacht brokers also offer insider access to the yachting world. Their expert network is your expert network. If you need to make updates on your yacht before selling it, they’ll know which service providers in the area can do it best. If you want to sell a share of your yacht, they’ll know who to sell it to. If you have a specific yacht you want to buy, they’ll know where and how to find it.

Plus, when it comes to negotiating a deal, yacht brokers are your secret weapon. They negotiate yacht sales on a daily basis and have all the strategies and experience you need to get the deal you want.

Yacht Brokers and Yacht Co-Ownership

Helping someone buy or sell a yacht is a feat in and of itself. But helping someone buy or sell a share of a yacht adds a level of complexity to the process and therefore requires a unique skillset. Not only is the yacht broker tasked with finding the right seller or buyer for a yacht, but they must also find the right co-owners for you to share it with. This takes time, commitment, know-how, and the right resources – all of which our Shared Ownership Specialists can offer.

AvYachts is the expert in yacht share brokerage. Whether you’re looking to sell a share of your yacht to a like-minded partner, or you want to buy a share of a yacht, our dedicated team of yacht brokers and veteran matchmakers is here to guide you every step of the way. Let us match you with just the right yacht, just the right partners and just the right ownership structure for you. Yacht to the fullest without the full costs of ownership.

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What Do Yacht Brokers Do? 8 Things To Expect (Selling & buying)

From buying to selling boats and enjoying life on the high seas, the exciting life of a yacht broker seems like a dream to many.

What exactly is involved in their job?

This article will highlight some of the key responsibilities of a yacht broker.

Table of Contents

The 8 Main Functions Of Yacht Brokers

A yacht broker helps to make sure that everything goes smoothly behind the scenes of buying and selling a yacht.

They do a lot to help to make sure the stress of buying or selling a yacht is less stressful and can help to speed the process up.

1) Looking at the Boat

Whether the client is purchasing a boat or selling one, the yacht broker will first need to view the vessel.

This is in order to get a good idea of the condition of the yacht. He or she will need to appraise the condition of the boat.

Another responsibility is to talk to the crew about the maintenance schedule. The yacht broker will also need to look at the ship’s papers. Having all of the right certificates in order and documents is crucial to sealing the deal.

2) Appraising the Boat

The yacht broker will also want to talk to his industry contacts to get an idea for how much the yacht is sold for.

The yacht broker has the important job of saving the seller or buyer time and pain when it comes to selling a boat.

A yacht broker can help with assessing the boat and surveying it to make sure it is in premium condition. They will attend the survey with you, or for you, if you are not able to. The broker will act as the intermediary during the process of the sale.

3) Filling Out The Paperwork

The yacht broker’s job is to make sure that the paperwork gets done. This includes collating the documents for the actual closing of the sale, preparing technical specifications, to making sure the yacht has all of the appropriate certificates.

They will also guide the yacht owner through aspects such as loan payoffs, corporate ownership, bills of sale, and similar documents.

4) Briefing The Parties Involved

A yacht broker will need to direct clients to the best possible marine lawyer for their specific yacht.

The yacht broker may need to help encourage the deal to keep pushing through.

5) Marketing

Marketing is an essential part of the yacht broker profession, especially when they are representing the seller of a yacht.

In the past, a yacht broker operated out of a big office building, and people would walk by and visit because they were considering purchasing a yacht.

Now, in the era of the internet, people from all over the world have access to a yacht broker and their services.

The yacht broker may make use of advertising such as banner ads or videos. Marketing yachts effectively makes use of the internet, so a yacht broker may make posts on social media, classifieds, or their personal website to sell a yacht or find one.

Some yacht brokers might make a video walk-through of the yacht and explain the features to potential clients. Others will have a professional website that acts as a point of contact.

6) Duties While Selling

As stated above, the broker will list the yacht on Yachtworld and other appropriate outlets. They also have the responsibility of pricing the yacht reasonably. Brokers will have access to recent sales, and they know how much they should go for based on recent sales prices.

When they receive responses to the yacht adds, they will prescreen responses so as to find those that are most likely to lead to a sale.

A yacht broker will also have the duty of showing the boat to people who are interested in buying it. They’ll give them the tour, and be sure that the boat is in pristine condition.

The yacht broker will also answer any questions that the buyers have.

Another responsibility they have is to communicate negotiations with the yacht owner. They will also handle the pricing of the yacht , which is where they might get their earnings from.

Finding the right price is a big part of getting the boat sold.

Part of their job would be to take pictures of the boat and to write a description of it that entices buyers.

7) Securing the Sale

Guy doing an inspection of a tiny house on wheels

When a price is agreed upon, the yacht broker will draw up the sales agreements and will also accept deposits.

Modern technology allows them to do this electronically with smartphones, tablets, and computers.

A yacht broker will secure sea trials where the potential buyer will take it for a test drive on the water as well as schedule surveys.

After the sale is made, they will transfer the funds to the yacht owner.

A yacht broker can assist a buyer in getting financing for the yacht.

8) Duties After the Sale

The broker’s job doesn’t stop after the boat is sold.

They can also assist in docking, boat detailing, and refining it to meet the buyer’s needs.

Their industry connections can help a lot in this process after the boat is sold, and helps to make boat ownership a rewarding experience.

Types of Agreements With Yacht Brokers

Some yacht brokers take a 10% commission on the sale of the boat and might bring it down in order to secure a sale on a boat. There are different types of agreements.

A central agency agreement, or an exclusive listing, means that a seller has hired a specific broker to sell their boat.

The broker may then list it on Yachtworld or a similar site. They then enter a co-brokerage agreement. Co-brokerage is when another broker finds a buyer for the yacht, and the original broker splits the commission with them.

Almost 70% of all yacht sales are done in this way because of this incentive. In this agreement, even if an owner brings in a buyer or donates the boat, they are still liable to pay the broker commission.

Most of the yacht sales are completed with a central agency agreement.

Another type of sale is the open listing agreement. In this setup, the owner can bring in more than one broker for the sale.

The owner also retains the right to sell the yacht on their own.

A disadvantage to this type is because they are not guaranteed commission, they might not spend money that is necessary to advertise the boat. It also might result in communication errors among more than one broker and prospective buyers.

However, on the other hand, a motivated broker might be more likely to bring in a sale because then they would be guaranteed the entire commission. The typical length of the agreement is around six months.

Yacht Broker Duties If You Are Buying

Brokers help to ease buyer’s anxiety when putting down large amounts of cash for a luxury yacht.

They might set up a separate bank account for the transaction and the necessary deposits.

The contract will specify what the contingencies of the sale are, and also how much or how the money will be returned if the sale does not go through.

For the buyer, the yacht broker will have the advice they need to find the right boat at the right price. They’ll be able to open doors and find opportunities that benefit both parties and create a win-win situation.

They work as an advocate on behalf of the buyer and will be priceless when it comes to negotiating and securing a sale.

Know The Role Of The Broker

In most sales, the broker is a worker for the seller and not the buyer.

This is an important part to remember. Their job is to get the highest price possible to satisfy the buyer and to make money. It is possible for a buyer to enter into an agreement with a broker with a buyer’s broker agreement.

A buyer’s broker represents the buyer, not the person selling the boat.

When they know what type of yacht the buyer is looking for, they will search for it through their contacts and resources available to them. They will assist in finding the right boat for the buyer’s needs and budget as well as assist in the necessary paperwork.

A buyer’s broker will typically get a split in commission from the seller’s broker.

There may be no cost to the buyer for using a buyer’s broker, but be sure to read the details of the agreement before signing.

A yacht broker has priceless industry knowledge that will assist in the buying and selling of yachts. A trustworthy broker will help save buyers and sellers time and money when they are making the purchase. They’ll pool the talents and resources of a team of brokers to support the transaction go quickly and smoothly.

Finding the right yacht broker with experience and integrity will make a big difference in the process. A yacht purchase is a significant investment, and teaming with the right people helps to ensure that the investment is the right one.

They understand the market and all of the nuances involved in buying and selling.

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Buying and Selling Boats
Using A Yacht Broker Or Selling Privately

Using a Yacht Broker or Selling Privately

Just as buying a home involves a large financial investment, buying and selling a yacht requires a professional service, making the sale as smooth as possible.

Here's a simple guide to help you choose between using a yacht broker or buying or selling your boat privately.

Buying a boat

Choosing your boat.

Professional yacht brokers have access to an extensive database of boats, and may also have the ability to find boats that are not yet on the market. This saves you valuable search time allowing you to make the perfect choice. A Broker can also assist in the selection process by helping you clearly define your requirements and provide the information needed to consider each yacht.

You would probably expect to pay less when buying a boat from a private seller and possibly have more scope to negotiate price. Most private sellers will welcome questions about the vessel they are selling and it’s important to remember you may have to contact them in the future, so maintaining a good relationship with them is a good idea. Private sellers can often provide an added knowledge of the history of a boat and for this reason many buyers prefer a personal sale.

Once you are satisfied with the private seller you will need to negotiate an acceptable price and arrange to make payment for the boat. This is usually carried out by bankers draft or a cash payment can be made. Occasionally the seller may be happy to accept another method of payment.

Yacht brokers are able to help in the negotiation of the sale, including price, financing, terms and often the provision of repairs and furnishings or equipment. They often provide local information on different yacht services, such as engine repair, dockage and inspection services. An experienced and professional yacht broker will advise the buyer throughout the process of assessing the chosen yacht. Part of the broker service is to recommend the extent of the survey to be used in the inspection and help to identify the best individuals to conduct the surveys.

Plain Sailing

A Yacht Broker can assist in making sure that the title to the yacht is clear, title meaning ownership of the yacht. If the yacht is a foreign flagged yacht, set up as a corporation or existing under any number of other special circumstances, the services of a professional yacht broker will become even more valuable and will result in a smooth sale.

If you choose you buy your boat from a private seller, once the sale is complete it is recommended that a buyer’s contract is arranged to protect both parties. This will act as your purchase receipt and will prove that you are the new owner of the boat.

Selling a Boat

Advertising.

Selling your boat privately is a relatively easy experience. Websites such as www.theyachtmarket.com will aid you in your advertising and most websites do not charge commission for the services.

A yacht broker will know when and where to advertise your yacht to the public. Over 75% of yacht transactions are cooperative sales through other yacht brokers. Through worldwide Multiple Listing Services and other marketing networks, a broker has the tools to maximize exposure to your yacht.

Getting it right

During the selling process, a Yacht Broker can advise you on what is happening in the marketplace including price, financing and terms. These are key factors in getting your yacht sold at the best price, quickly and with minimum hassle.

For the private seller it is important to research every aspect of the selling process. The best time to sell a boat will be at the start of summer when the demand is high and equally the best time to buy will be off-season.

A Yacht Broker can help close the sale of your yacht. Between the initial sales agreement and closing, problems may arise. For example, unexpected repairs are required or a query in the title is discovered. The paperwork can be overwhelming for some sellers. A yacht broker is the best person to help you resolve these issues and finally sell your yacht.

When you sell a boat privately, an added advantage will be the extras that come with it. A boat cover, depth finder, marine radio, life jackets, speed control, water skis, anchor, emergency flares, life raft and the all important trailer can make the purchase more attractive to the buyer and assist in gaining a better price for the boat.

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THE PRINCESS PASSPORT
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Navigating The Yacht Brokerage Market

By Kim Kavin
January 5, 2022

The pandemic caused a rush on a lot of things: toilet paper, cleaning supplies, n95 masks. And when the masses came for the boats, the brokerage market took off. “People realized that boating and yachting was one of the really great things that you could get out and do and be safe with your family and friends away from crowds and all the restrictions,” says broker Michael C. Galati with Galati Yacht Sales. “It took a few months, but by the third quarter of 2020, sales had picked up quite a bit. By the end of the year, all of the inventory that was desirable was sold. Brokerage and new boats—anything late model or new that was priced competitively—all of those boats were sold. Then the calendar turned into 2021, and we started to experience a shortage.”

That continuing shortage is the reason why, as you walk the boat-show docks this fall, they look a bit like the picked-over supermarket shelves from early 2020. Fewer brokerage boats are for sale than usual across all market segments, from center-consoles to sport-fishermen to superyachts.

HMY Yachts, one of the largest brokerage companies in the United States, usually brings 35 brokerage boats to the Fort Lauderdale International Boat Show in Florida. This year, less than two months before the show, the company was hoping to have 25. Worth Avenue Yachts, which specializes in yachts 80 feet and larger, booked 12 slips for the show. It had four boats to put in those slips as of September and expected two of them to sell before the gates opened.

Tim Derrico, director of sales at HMY, says the current state of the brokerage market is forcing would-be buyers to shop in ways that can feel just as shocking as what all of America experienced during the pandemic’s early supply-chain disruptions: “You better be quick on the draw. If you hesitate, somebody else will step in and buy it. If you wait a day or two, forget it.”

The New Normal

Get used to the current market conditions, experts say, because things may not equalize anytime soon.

The shortage is a result of numerous factors, starting with the type of people who led the recent boat-buying craze. Yes, there were longtime boaters in the mix, but a lot of the buyers were new to boating, including an unusual number of people so stunned by skyrocketing prices for homes on land that they turned their attention from the waterfront to waterborne.

“We normally would’ve seen people buy condos or houses, but all they can get right now is a shanty on the water,” says Jimmy Rogers, a broker with OneWater Yacht Group. “In the boat market, if they can find it, they can get a nice 60-foot boat. I think the craziness in the real estate market is driving the craziness in the boat market.”

At the same time, longtime boaters who normally would have put their rides on the market to trade up decided instead to hold pat.

“You have people who went to their boats because it’s safe,” says Westport Yachts sales broker Alex Rogers. “They could control what happened there to the point that they had their crew sit on the boat and not leave, and had things brought to the boat. In the Bahamas, they’d have seaplanes fly in with food—just crazy stuff. And that has continued.”

And longtime boaters couldn’t trade their boats for newer models because of jams in the new-boat supply chain as well. Brokers and dealers say sales closing now on new boats are for 2023 or 2024 deliveries. Some superyachts are being ordered for delivery in 2026.

The backup is so intense, Galati says, that brokerage buyers are now looking to sign deals for existing boats, with a handover whenever the owners become ready to sell them.

“We call them ‘future availables,’” he says. “Say the owner has signed a contract to buy a new boat and trade it in. Well, he’s not going to give up that boat until his new boat is ready, but we can sign the contract now for the sale later.”

Dizzying Speed

The result of all these pressures is that when boats do come up for sale, they’re finding buyers incredibly quickly, often even faster than the brokers can make the listings available. Brokers advising clients to move ultra-fast these days really mean it.

“Right now, our best advice seems like a sales pitch, but it isn’t,” says Chuck Cashman, chief revenue officer at MarineMax. “When we say that boat is going to sell overnight, it’s actually happening.”

Prices are only slightly up—buyers haven’t lost their fiscal minds—but the new currency of value is the knowledge that a boat is about to go on the market, so you can make an offer before anyone else even knows it’s available.

“I just listed a 1990 36-foot Sabreline Fast Trawler in the Florida Keys, and in two days, I had three offers,” says Curtis Stokes, president of Curtis Stokes & Associates. “We put it under contract for full asking price, and the seller cut off the bidding. Normally, that would have taken six months.”

Do you think that sounds fast?

“We just sold a Garlington sport-fish the other day. I think we sold it in 20 minutes,” says Jon Burkard, president of Allied Marine. “That’s an exaggeration, but definitely within a couple days. The rise in demand has actually been breathtaking.”

In years past, it would take six to eight months to sell a motoryacht big enough to require a crew, says Brian Tansey, co-founder of Worth Avenue Yachts. “We had a brand-new boat that was a 100-footer,” he says, “and in 60 days, it was gone.”

How To Get In

Trying to buy a boat in this type of market can be challenging. And part of the problem is not the actual marketplace but the way so many of us now think about how to shop.

Back in the olden days—before social media and online boat listings—the way you found a great brokerage boat was by working with a knowledgeable broker. You’d look through classified ads in a magazine like this one, call a broker and ask about a listing that tickled your toes, and pick his brain about what other boats he knew about that might suit your needs. That broker, in turn, was using every one of his personal relationships to learn not only about boats for sale now but also about boats that might be coming up for sale soon. Having a broker who was “in the know” was an indispensable asset.

Then came the World Wide Web. Nowadays, buyers are using the internet to learn about boats coming onto the market for sale and then clicking to buy them.

“The broker’s participation in a boat deal went down to nil,” Alex Rogers says. “All they did was the paperwork, to the point that Yachtworld now has a make-an-offer button where you don’t even need a broker.”

That type of shopping strategy—which permeates modern society for all kinds of products—is the last thing a buyer should be embracing in the brokerage market right now. Instead, experts say, what’s often required in order to learn about—and make a successful offer on—a brokerage boat these days is having a relationship with a connected broker who can get you into the mix on a deal before the boat even hits other people’s computer screens.

“There’s no question about it. If you want a brokerage boat, you need to associate yourself with a salesperson from a large firm that handles multiple brands and has lots of inventory,” Derrico says. “Unless you’re dealing with somebody that’s in the know, that sells a lot of those boats, you’re never going to hear about it. A small-time broker that works out of his car? Forget about it.”

Not every yacht broker has those kinds of deep relationships, Alex Rogers adds, meaning that buyers would be wise to interview potential brokers about not just their current sales listings but also their connections. A broker should be able to explain, in this market, how he intends to help you find a boat that will suit your needs.

“The new brokers who just came into the business can’t do that,” he says. “All they have is the internet.”

Cashman also suggests that clients ask brokers to explain their sales from the past six months. “We’re at a historic level of business. Show me your results,” he says. “Make sure you’re dealing with somebody that has a track record of getting things finished.”

Be Ready To Pounce

Another thing buyers can do to increase their chances of success is having all their paperwork in order. If you’re going to need a loan to pay for the boat, then get preapproval from the bank. Most brokers won’t even bother making an offer right now that’s contingent on securing financing.

Insurance also needs to be considered well before you know which boat you want to buy.

“Insurance has changed our business in the past two years almost as much as COVID,” says broker Jeff Stanley at Gilman Yachts. “There’s so much business that the insurance underwriters have tightened who they want to insure. They’ve raised the bar.”

A buyer who has never owned a boat, or only owned smaller boats, and who doesn’t want to pay $75,000 a year for a captain on a 60-footer he’s looking to buy? Slim to no chance of getting insured. An experienced boater who thinks the insurance company will follow the normal pattern of waiting for a survey to determine a boat’s value? Think again.

“I just did a deal on a 2006 65 Marquis,” Stanley says, “and the insurance underwriter was telling the buyer what the boat was worth before there had even been a survey or an offer.”

Jorge Pecci, the CEO of SafeWaters Underwriting Managers, says insurers absolutely look at more than the boat itself. To determine risk, they consider the boat, who will be driving it and where it will cruise.

“This includes years of experience in general and on similar boats in the intended navigation waters, as well as what kind of training the operator had,” Pecci says. “US Coast Guard licenses are preferred.”

As with finding a top-notch sales broker, finding a top-notch insurance broker can also help.

“Avoid using generalists,” Pecci says. “When dealing with a brokered boat, you want a specialist, someone that understands boats. He or she will ask the appropriate questions to obtain a competitive outcome when looking for insurance on your behalf.”

Be Flexible

Many buyers—given that the market has been in this state for the better part of a year—have learned that insisting on a specific model, features and build year is probably not the best approach. Flexible thinking, brokers say, is a better tactic.

“People are calling us that don’t necessarily want what everybody else wants, and maybe they’re willing to be less particular than they would’ve been, so we can find something that suits their needs,” Burkard says. “Enough of the clients know that stuff just isn’t out there, so they’re thinking of other ways to go boating. They change their plan. Maybe they wanted a sport-fisherman and they move to a big center-console for a while. Or maybe they adjust and get a motoryacht.”

Others are shopping in creative ways. Galati and Tansey say they’re selling boats after virtual tours on FaceTime or Zoom. To beat the crowds of buyers, the broker goes to the boat, loops in his client on a video call, and has a surveyor on standby. “We’ve had clients buy boats without actually touching the boat,” Tansey says. “We did that with a 56-meter [184-footer]. They did not see the boat until it landed in the United States.”

Stokes is encouraging clients to go to boat shows, but also to leave time to visit boats beyond the show docks.

“My advice to people going to boat shows is: Go. Enjoy the atmosphere, and look at all the parts and supplies, but hire a buyer broker to represent you well in advance, to scout out what boats are for sale in the general area of the boat show. You can look at boats that are for sale by owner or listed but not in the show, and then go the show for a day.”

Cashman also is urging clients not to wait until the shows to make an offer.

“I believe the premium, properly priced boats are going to be under pressure before the show,” he says. “That doesn’t mean there won’t be a good deal at the show…but if I was in the market to buy a boat, I would try to do it before the show. Get it off the market.”

Most of all, yacht brokers say, be patient. Nobody knows what will happen next. People who were new to boating in 2020 may sell in 2022, having had a taste of operating costs or deciding they want a different ride. People who fear an economic downturn may sell boats to get cash on hand. All of that could bring more boats into the market.

The one thing everyone agrees on is that, eventually, the market will change.

“This is not going to keep going forever,” Derrico says. “I’ve never seen an upcycle last this long. At some point in time, it’s going to stabilize.”

Broker Jimmy Rogers at OneWater Yacht Group says sellers are reluctant even to list boats until they find something new. “It’s just more buyers than there are sellers and not a lot of inventory out there. It’s a more challenging environment, and it may be getting more challenging.”

A Long Line

Sales broker Michael C. Galati of Galati Yacht Sales says his firm developed a yacht-shopping tool on its website to help would-be buyers receive the most up-to-date, publicly available information the moment it comes online. So far, according to the company, more than 3,000 would-be boat buyers have signed up. “It’s like Zillow,” he says. “You put in your parameters, and when that hits the market or there’s a price drop, you get notified with an email. Anyone can sign up.”

Brand Demand

Tim Derrico at HMY Yachts says there is such pent-up demand right now for certain boat brands that listings sometimes don’t even make it online. “Being the biggest Viking dealer and the biggest Princess dealer,” he says, “if we come up with a late-model Princess or Viking, we can usually sell it with a couple of phone calls.”

This Is Different

Broker Curtis Stokes says previous buying sprees don’t compare to what’s happening now: “In 2007, just before the recession, it was a phenomenal year for sales but…there was more inventory; people could get into a boatyard and fix it. Now, I sense a lot of frustration among new buyers. They want to get on a boat and go, or update it, and they’re struggling to find the inventory. When they do find it, getting upgrades done and getting supplies or repairs is also hard. For someone brand-new to boating, it’s been a little frustrating.”

It’s Everywhere

The brokerage inventory crunch extends beyond the United States, says Alex Rogers of Westport Yachts: “A lot of the brokers I’ve spoken to over the summer have customers in tow. They put together a list of boats stateside and [in] the Med, they book the ticket to fly to the Med, and before they get on the plane, half the boats have sold. It’s in a matter of days.”

Don’t Overpay

Often in a sellers’ market, brokerage boats will be listed at sky-high prices that bear no resemblance to actual value. That’s not happening now, brokers say, so don’t overpay—no matter how many times you hear that the market is red-hot. “After sellers have heard this enough times, they think their boat is worth a lot more,” says Jeff Stanley at Gilman Yachts. “I don’t think it is. I just think it sells more quickly than it would have a few years ago.”

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Frequently asked questions Yacht Brokerage

Advertising strategies for yachts, how to determine the asking price, why exclusively use a brokerage house to list a yacht for sale, sea trial and survey - how they work, what is involved in the administration of selling a yacht, how to make an offer on a yacht , what does a yacht broker do, what is a broker's involvement in after-sales, how do brokers deal with enquires, what is a broker's role to a yacht buyer.

Most brokerage houses have a standard outline plan of how a yacht is to be advertised in the most appropriate media. A broker�s objective is to devise a strategy with the best chances of reaching the most qualified audience for each yacht category. Common methods are e-marketing, online listing access for public viewing, yacht shows, print media, using in-house databases of clients, brokers and representatives all combined with professional "knowhow".

To ensure an appropriate sale, it is essential to ask a fair price. A broker can help establish fair-market value for the yacht through access to actual sold yacht data that is not available to the public.

Yacht broker�s work hard to generate interest and enquires for their yacht listings. They also protect and promote the principles of their clients. Most brokers sign a "Central Agency Agreement" with the owner/seller, providing a secure arrangement between all parties. Brokers will also work co-operatively with most other brokers on a co-brokerage basis. Yacht brokers charge a commission when the yacht is sold, and the commission amount would have been set in writing in the Central Agency Agreement. If another broker brings a buyer to the table on a co-brokerage arrangement, the total commission will normally be shared between the brokers.

A buyer of a pre-owned yacht will usually request a sea trial and the services of a marine surveyor. Buyers pay for the surveys and for hauling the yacht out of the water for inspection. The Broker will usually attend the sea trial and marine survey with their buyer to help determine how to properly address any yacht survey issues and put the problems in context. Part of this includes; estimating time and cost of rectifying and where to obtain accurate quotes for items that are unfamiliar. The Insurance Company will usually require a copy of the survey.

Brokers are familiar with all the paperwork requirements from the initial Offer to Purchase and Bill of Sale to licensing and registration; to paying tax, certificates of ownership, security agreements, and other documents needed to complete a sale. They also understand maritime and admiralty laws for the type of yachts they represent, as well as agency contracts, listing agreements, closing statements, deposit requirements and escrowed accounts to safeguard funds.

Brokers will help their buyer decide on a realistic figure to offer which will increase the chances of buying a yacht for a fair and reasonable price, and together with the necessary elements to protect interests. Once this is done, the broker will prepare a "Letter of Intent or Letter of Offer" ready for the buyer to sign. This document will display the terms of the sale including obligations that you and the seller have agreed to, and when these obligations will be fulfilled. The buyer should then make a good-faith deposit on the yacht, usually placed in escrow, and subject to sea trial and survey.

Most yacht brokers work in a similar way to estate agents. They are representatives consulted to find and purchase yachts, as well as appointed to list, represent, and sell yachts. Traditionally, the seller pays the commissions that a yacht broker earns, yet brokers have a duty to both buyer and seller in every transaction.

Once a yacht is purchased the broker will guide their client through the next stages such as; finding a berth, yacht maintenance, repair specialists, yacht handling, seamanship, sourcing yacht crew, charter management and all other after-sale fundamentals to complete the service package.

A professional broker will listen closely to your requirements and will help you determine if the yacht you are considering is the right yacht, at the best value. Brokers can objectively tell you about the condition of the yacht before you decide whether or not to spend your time inspecting it. They will source and compare similar yachts on (and off) the market, the history of the yacht, how long it has been on the market, and the motivation of the seller. Anyone can look up asking prices on yachts, but it takes a professional broker to have an intimate knowledge of current market conditions, a familiarity of similar yachts, and information on recent sale prices and time on the market through industry resources not available to the public.

Pre-owned yachts are either a "central agency listing" of a yacht broker, or a trade-in from a new yacht dealer. If you are interested in a broker's listing or a trade-in, the listing broker or dealer is likely to know the yacht inside and out. They have been selected by the owner/seller to exclusively represent this yacht and all enquiries must go through this yacht broker or yacht dealer. If you are not already working with a yacht broker, and if you find a yacht on the market of interest, you should contact the listing broker directly. However a more rewarding option might be to select a yacht broker of your own, and consult with that broker about all of your yachts of interest, and let that broker represent you in your enquiries and transactions.

(954) 633-4878
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Compass Articles

December 5, 2023

Yacht Brokerage Accreditation and Certifications: What They Mean for You

When charting a course through the waters of yacht brokerage, the endorsements of accreditation and certifications are akin to the seals of seaworthiness on a vessel. They provide assurance that the ship – or in this case, the brokerage firm, such as Fly Yachts – meets stringent industry standards. For the discerning yacht buyer or seller, understanding what these accreditations signify can illuminate the caliber of service and expertise they should expect. Let’s delve into the significance of these credentials and what they portend for your yachting journey.

The Mark of Professionalism

Accreditation from esteemed organizations is not merely ornamental; it is the banner of a brokerage’s commitment to professionalism and quality.

Industry Recognition

Accredited brokerages have been recognized by industry leaders for upholding high standards in ethics, knowledge, and service.
This recognition is a telltale sign for clients that a brokerage is committed to maintaining the best practices within the yachting industry.

Assurance of Quality

With accreditations, clients can rest assured that the brokerage adheres to a tried-and-true protocol of operation.
Fly Yachts, for instance, takes pride in its accreditations, knowing they affirm the trust placed in them by their clients.

Accreditation and the Buying/Selling Process

The imprimatur of certifications influences each phase of the yacht transaction, from initial listing to the final handshake.

Informed Assistance

Accredited brokerages are well-versed in market trends and yacht valuations, providing informed assistance to clients.
When Fly Yachts displays its certifications, it signals to clients that they are receiving advice built upon a foundation of recognized industry expertise.

Smoother Transactions

Accredited firms use standardized procedures that have been refined over time to ensure smoother, more efficient transactions.
Certifications mandate a methodical approach to contracts, finances, and negotiations, simplifying complex processes for clients.

Continued Education and Expertise

One of the intrinsic values of working with an accredited brokerage is the guaranteed level of ongoing education and expertise.

Commitment to Learning

Brokerages that boast certifications are committed to continuous learning and staying abreast of the latest trends and regulations.
A brokerage like Fly Yachts leverages this education to provide incisive market analysis and strategic guidance tailored for its clients.

Expertise in Action

The experts at certified brokerages aren’t just trained in theory; they put their knowledge into practice daily.
Clients benefit from this expertise, which reflects in the nuanced advice and sharp negotiation skills employed on their behalf.

The Security of Standards

Brokerages that have earned their badges of accreditation operate within the security of industry-imposed standards.

Ethical Operations

Adherence to ethical standards is not optional for certified brokerages – it is integral to their operations.
Clients engaging with firms like Fly Yachts can do so with the confidence that ethical considerations are at the forefront.

Accountability

Accreditations bring a level of accountability, holding brokerages responsible for the service they provide.
This ensures that the actions of the brokerage remain client-focused and dedicated to delivering the best outcomes.

Choosing an Accredited Yacht Brokerage

Opting for a brokerage with the right credentials is not unlike choosing a ship for its seaworthiness.

Research the Accreditations

Investigate the credentials held by prospective brokerages and understand what they mean within the industry.
Recognize the difference between local, national, and international accreditations, and consider which align with your yachting goals.

Assessing Certified Brokers

Engage with brokerages about their certifications; this is often an excellent gauge of their pride and understanding of their own expertise.
Observing Fly Yachts and similar firms showcase their accreditations can be indicative of the level of service they are poised to provide.

Fly Yachts: A Standard-Bearer of Excellence

Accreditation and certifications are the landmarks of trustworthiness in the yacht brokerage industry. Fly Yachts weaves these credentials into the very fabric of their business, assuring clients that they benefit from a service that is both competent and honorable. As you navigate the market for a brokerage partner, consider these endorsements as your compass, leading you to an engagement where peace of mind is as assured as the horizon is broad.

Fly Yachts’ Frequently Asked Questions

What types of accreditation and certifications exist for yacht brokerages.

Yacht brokerages may be accredited by industry associations like the International Yacht Brokers Association (IYBA) or hold certifications such as Certified Professional Yacht Broker (CPYB) for their agents.

How do yacht brokerage certifications benefit me as a client?

Certifications ensure that the brokerage and its agents adhere to industry standards, possess up-to-date knowledge, and are committed to ethical practices, all benefiting the client through professional service.

Are certified yacht brokers more knowledgeable than non-certified ones?

Certified brokers have been recognized for meeting specific educational and industry experience standards, which often translates to a higher level of knowledge and expertise in their field.

Is an accredited brokerage likely to offer better service?

An accredited brokerage demonstrates a commitment to excellence and is often more reliable due to adherence to strict industry standards, enhancing the level of service provided to you.

What is the significance of a yacht brokerage being a member of professional organizations?

Membership in professional organizations indicates a brokerage’s dedication to the industry, providing them with resources and networks that can greatly benefit their clientele.

Do certifications affect the legal aspects of a yacht transaction?

Certifications may impact legal aspects by ensuring the brokerage staff is knowledgeable about the latest regulations, laws, and contractual requirements, which can result in smoother and more secure transactions.

How is yacht brokerage accreditation and certification maintained?

Accreditation and certification are maintained through ongoing professional development, adherence to industry best practices, and by meeting renewal requirements set by the accrediting bodies.

Can a brokerage’s credentials influence the re-sale value of my yacht?

A prestigious brokerage’s credentials can enhance the perception of your yacht’s listing, potentially influencing its marketability and resale value positively.

Should accreditation and certification be decisive factors when choosing a brokerage?

While not the only factors, accreditation and certification are important indicators of a brokerage’s professionalism and reliability and should be considered when choosing a brokerage.

How can I verify the accreditation and certifications claimed by a yacht brokerage?

Verify a brokerage’s claims by checking the relevant accrediting organizations’ websites, asking for proof of certification, or inquiring about their credentials and professional standing within industry circles.

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By Editorial Team 26 January 2023

A yacht broker is an industry expert who knows everything there is to know about luxury yacht charters . With access to the entire fleet of yachts available worldwide, they have stepped on board some of the most luxurious superyachts, met with crew and sampled gourmet cuisine so that when it comes to planning your yacht charter; they get it right first time, every time.

In this article:

Why use a yacht broker?

Reasons to book through a yacht broker:, how to find one you can trust, helping you find the right yacht charter broker, professional associations for yacht brokers, how much will a yacht broker cost.

Once you have decided you would like to book a superyacht charter, have a handful of yachts in mind, an idea of what type of charter you’re looking for and who you would like to join you, it’s time to start planning your yacht charter vacation.

Although it is optional to use a charter broker, no matter how much you know, or think you know about chartering a yacht, a charter broker always knows more.

An experienced broker will also have established relationships with a wide number of yachts, Captains and Owners, understand marine law jurisdictions, can explain the intricate terminology of yacht charter contracts and has in-depth knowledge of popular yachting destinations and their respective optimum charter seasons.

There are many reasons to use a charter broker, and in an ever-evolving industry there is nothing like the knowledge of an expert to guide you through the process of booking your luxury holiday or corporate yacht charter according to your needs.

Whether you’re planning a luxury yacht charter vacation for the first, second or umpteenth time it is always important to use the knowledge and support of a yacht broker.

First-hand experience of superyachts and luxury destinations
Knowledge and expertise of the necessary legalities (contracts, escrow accounts)
Unbiased advice
Someone to research and ask questions (even awkward ones) on your behalf
Protection in the unlikely event anything should go awry, a yacht broker can provide a buffer between you and the yacht owner

Making sure your next dream charter is being handled by the right broker is no easy feat. In the same way it is important to find a charter yacht that best suits your personality and taste, it is essential your yacht broker can appeal to the same senses.

Not all brokers speak all languages, not all brokers are experienced in each and every yacht on the market, not all brokers have first hand knowledge of every single cruising destination and their points of interest and not all brokers are available to organise your charter at once.

Shop around for a broker who you feel most comfortable with, someone with whom you can voice your honest opinion when it comes to planning exactly what you want.

A couple shakes hands with a professional man

An expert team is on hand to offer you the necessary customer support to accompany you throughout the process. They can coordinate the planning of your charter and present a carefully handpicked selection of the most relevant brokers most suited to your needs.

Furthermore, an expert team can bring an additional level of customer service, objectivity, trust, safety and transparency to the process that is especially relevant for newcomers not yet accustomed to the organisation of a yacht charter

The superyacht enterprise has evolved tremendously over the decades, which prompted industry brokers to set up a professional organisation to promote the highest ethical and technical standards in the yachting industry, meaning owners and charterers alike can benefit from safeguards incorporated within their charter agreements and be assured they are being represented by experienced professionals.

The professional organisations listed below, commonly referred to by their acronyms, each acknowledge experienced charter brokers and only allow members who are reputable industry experts to join.

IYBA - International Yacht Brokers Association

CYBA - Charter Yacht Brokers Association

MYBA - Worldwide Yachting Association

HYBA - Hellenic Yacht Brokers Association

AYCA - American Yacht Charter Association

For the majority of these organisations it is mandatory for brokers to hold Personal Indemnity Insurance and meet a rigorous set of requirements, including attendance at a variety of seminars and yacht shows in order to maintain their knowledge of the market.

Line of in-water yachts at the Monaco yacht show

It is also possible for a broker to be a member of more than one association, and if you are unsure which group a broker is part of do not hesitate to ask outright.

Absolutely nothing.

All of these services are at no extra cost to you, as all commissions paid to brokers are included in the package — in other words, whether you decide to make use of our partners’ service, contact a broker or prepare your charter yourself makes no difference to the price tag attached to it.

Find your perfect yacht charter broker using our broker enquiries form and we will match you with the top candidates that best suits your needs.

If you are intested in viewing yachts to discuss with your broker, browse our extensive luxury charter fleet featuring over 3,000 yachts.

For further helpful information on booking and chartering a luxury yacht, read our comprehensive advice guides .

Featured Luxury Yachts for Charter

This is a small selection of the global luxury yacht charter fleet, with 3568 motor yachts, sail yachts, explorer yachts and catamarans to choose from including superyachts and megayachts, the world is your oyster. Why search for your ideal yacht charter vacation anywhere else?

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What is a Charter Brokerage?

A yacht charter brokerage is a company that charters out and manages charter yachts on behalf of the yacht owner, the principal charterer – or in some cases, both parties.

Yet not all charter brokerages are created equal. Some charter brokerages only operate regionally and have small client databases, while others concentrate only on charter listings – meaning that yacht owners will have to switch to a separate brokerage if you later choose to sell your yacht or have it professionally managed. Always protect yourself by using a respected charter brokerage which is the member of professionally regulated charter bodies such as MYBA , FYBA or CYBA .

For this reason, a global, full-service yacht brokerage like Worth Avenue Yachts is the ideal charter brokerage to use for your charter needs. Their expertise, professional integrity, and wide network ensure that you not only have an extensive pool of charter yachts or charter clients to choose from, but that your interests are always protected.

Chartering Out a Yacht Through a Charter Brokerage

If you’re looking to charter out a yacht for your next vacation or corporate event, you will almost certainly need to go through a charter brokerage to do so. Charter brokerages provide legally binding contracts that protect your interests, they communicate with the owner on your behalf, and are the point of contact with the yacht’s captain – ensuring that everything goes wonderfully during your charter.

A charter brokerage sits down with you to establish what your charter preferences are – from basic details like how many guests you’ll bring and where you’d like to go, down to which specific amenities and water-toys you want on-board and what kind of yacht interiors you like.

They will then provide you with a shortlist of charter yachts in the charter destination you’ve chosen, providing information about the yacht and crew. Worth Avenue Yachts pride themselves on knowing a great deal about the yachts and crew in their charter fleet, using this experience to match charter clients to their perfect yacht.

Once you’ve decided on a charter yacht, Worth Avenue Yachts will provide a charter contract, carefully explaining all the things that are included in the charter, and any extra costs on top of the charter fee. Less trustworthy charter brokers may lure you in with a ‘great deal’ but not explain the extra costs, leaving you with an unexpected bill at the end of your charter. This is why it’s so terribly important to choose the right charter brokerage who explain everything clearly upfront.

The charter brokerage will also organize the Advance Provisioning Allowance, requiring a deposit from you which they will then wire to the yacht’s captain to pay for provisioning, fuel, and any advance berth bookings necessary.

The charter broker will collaborate with the yacht captain to create a bespoke charter itinerary that suits your preferences. They will also provide you with a preference sheet, which you can fill out to let the yacht’s crew know about your food and drink preferences, your music, activity and entertainment needs, as well as preferred service styles if you wish.

Once the charter begins, the charter brokerage stays in contact with the yacht, and is always on hand to answer your queries and manage any special requests to make your charter exceed your expectations.

Chartering Out Your Yacht With a Charter Brokerage

If you’re looking to charter out your yacht, the Worth Avenue charter brokerage team will market your yacht across their networks and marketing channels, from targeting their global VIP client list with direct marketing campaigns to well as placing advertisements in yachting magazines and listing your yacht in respected charter databases.

They’ll also advise you on whether your yacht meets the necessary commercial regulations for charter, what kind of weekly rate your yacht can expect to charter out for, and how you can make your yacht even more attractive to the charter market.

A great yacht charter brokerage will work ceaselessly to secure as many charters for your yacht as possible, while also leaving breaks in the schedule in accordance with your wishes. Whether you want to charter your yacht out heavily or lightly is entirely up to you!

Once they have secured charter clients for your yacht, the charter brokerage then takes care of the contracts and legalities, ensuring your yacht is protected and operating within charter and maritime regulations at all times. With a top charter brokerage on your side, you have complete peace of mind during the whole process- in fact, all you need to do is sit back and wait for the charter fee to land in your account! The charter brokerage will do the rest.

The charter brokerage is on hand throughout the charter to ensure that the guests enjoy their time on-board, thereby increasing the reputation of your charter yacht and securing return charters.

With a leading yacht charter brokerage looking after the charter side of things, you’ll be free to simply relax and enjoy your yacht, while the charters offset some of the running costs. Whether you’re looking to charter a yacht or to charter out your own beloved yacht, Worth Avenue Yachts are the right charter brokerage to put your trust in.

Home buyers and sellers to be spared standard broker commissions under $418 million settlement

The National Association of Realtors has agreed to a landmark settlement that would eliminate real estate brokers' long-standing commissions, commonly of up to 6% of the purchase price.

Instead, home buyers and sellers would be able to negotiate fees with their agents upfront. If the $418 million legal agreement is approved by a federal court, consumer advocates predict the ranks of real estate agents will thin, further driving down commission prices.

"For years, anti-competitive rules in the real estate industry have financially harmed millions," said Benjamin Brown, managing partner at the Cohen Milstein law firm and one of the settlement's negotiators. "This settlement bring sweeping reforms that will help countless American families."

The NAR acknowledged the pending settlement in a statement Friday and denied any wrongdoing.

"NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers," said Nykia Wright, interim CEO of NAR, whose previous chief stepped down late last year amid fallout from a federal lawsuit.

"It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals," Wright said in the statement.

Currently, a home seller is essentially locked into paying a brokerage fee for listing their property on a multiple listing service, or MLS — usually 5% or 6% depending on their geographic area. Upon selling, half of the fee goes to a listing agent representing the seller, while the buyer's agent gets the other half.

The practice — which has become standard in the real estate industry in recent decades — led to accusations that some buyers' agents were steering prospects toward more expensive homes. In October, a federal jury found the NAR and some major brokerages liable for colluding to inflate commission fees, ordering the trade group to pay a historic $1.78 billion in damages .

"It's a bribe," Doug Miller, an attorney and longtime consumer advocate in the real estate industry, said of the commission-splitting arrangements. "You're paying someone to negotiate against you. There's no good reason for sellers to pay buyer-brokers."

If the settlement is approved, brokerage commissions would be stripped from MLS sites and opened up to negotiation with sellers, among a series of other changes. Homebuyers, too, would be able to negotiate fees more easily if they choose to sign up with a broker — though experts say the new arrangement may incentivize more buyers to forgo brokers entirely.

The new brokerage-fee changes would begin to take effect within months of the settlement's approval. A preliminary hearing to approve the deal is slated to take place in the coming weeks.

CORRECTION (March 15, 2024, 2:27 p.m. ET): A previous version of this article misstated when a federal jury found the NAR and some major brokerages liable for colluding to inflate commission fees. It was in October, not November.

Rob Wile is a breaking business news reporter for NBC News Digital.

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What Does This Big Settlement About Broker Commissions Mean for New York?

The National Association of Realtors has reached a $418 million settlement over agent commissions, The Wall Street Journal reported on Friday. As part of the settlement, the powerful trade group has agreed to eliminate its rules on sales commissions, meaning that the 6 percent commission, the decadeslong standard for anyone selling a home in this country — is no more. Industry types all seem to agree that this will likely have far-reaching implications for the real-estate industry and homeowners — the New York Times writes that housing experts expect it “could trigger one of the most significant jolts in the U.S. housing market in 100 years.” But what, exactly, can we expect?

So what’s this lawsuit about Realtor commissions all about?

In October, a federal jury ruled that the National Association of Realtors had conspired to artificially inflate commissions and ordered the powerful trade group to pay damages of $1.8 billion. The ruling was the result of an anti-trust suit brought by a group of Missouri home sellers in 2019, which argued that the industrywide practice of requiring the seller to pay both the seller’s and buyer’s agent commissions, and other practices that resulted in a nationwide standard of 5 to 6 percent, which is much higher than in many other countries, violated anti-trust laws.

While NAR initially vowed to appeal the ruling, the group has undergone internal tumult with a sexual-harassment scandal and a series of leaders departing in quick succession. There were other compelling reasons to settle: Because the case involved anti-trust violations, the plaintiffs could have been eligible for triple damages of $5.4 billion, the Times reported . And separate litigation in Chicago expected to go to trial this year could have threatened a damages award of more than $40 billion, according to The Wall Street Journal .

In addition to the suit against NAR, there are more than a dozen copycat class-action suits against the country’s largest brokerages. Some have settled their suits — Anywhere Real Estate, which includes the Corcoran Group, Sotheby’s International Real Estate, Coldwell Banker, and Century 21, paid $83.5 million in September. Others, notably Warren Buffett’s HomeServices of America, have not .

What does the NAR settlement mean for sellers and buyers?

The most immediate impact is expected to be a drop in commissions — economists who spoke with the Times estimated that they could fall by 30 percent — as a result of home sellers being able to more easily negotiate fees with their agents. And buyers, who must now pay their own agents, may elect to forgo one altogether, or opt for pared-down services, like having an agent prepare an offer and a contract, while conducting home searches, inspections, and other parts of the sales process alone. Whether that’s a good thing or a bad thing is debatable: While sites like Zillow and Redfin have made it easier to find homes, brokers argue that buyers benefit from representation, and if they must pay agents out of their own pockets, many will opt not to use one — to their detriment.

There is a widespread hope that a reduction in commissions, which are baked into sales prices, may cause home prices to fall, but that remains to be seen.

What does the NAR settlement mean for real-estate agents?

Besides less money, at least for some, it’s widely believed that it will lead to a winnowing of the industry — The Wall Street Journal reports that the shake-up could drive out hundreds of thousands of agents.

The settlement will also have implications for Multiple Listings Services across the country, the dominant way that agents outside New York City list their properties. (In New York, the Real Estate Board of New York, REBNY, which is not affiliated with NAR, has its own real-estate listings service.) Previously, getting a listing in the MLS — a necessity of selling in many markets — required joining NAR and following its rules. If that’s no longer necessary, “you’re going to see innovation,” says Jason Haber, a Compass agent who recently launched an alternative broker-trade group, the American Real Estate Association.

It’s hard to say this early on. Some have likened the fallout to the demise of travel agents and the rise of online booking sites like Expedia and Kayak. One thing is certain, though: Expect more tech start-ups to try to get a piece of the action. We’ve already had emails from several. What remains to be seen is whether the increased competition will actually lead to lower prices or improve buyers’ and sellers’ experiences.

What does this mean for New Yorkers?

New York agents aren’t part of NAR, so while the settlement doesn’t directly impact things here, the consequences are expected to reverberate throughout the industry. Many of the brokerages operating in the city have already reached separate settlements over agent commissions, and in January REBNY implemented new rules prohibiting listing brokers from paying buyers’ agents.

Does this mean renters don’t have to pay brokers anymore?

No, the changes only apply to seller and buyer commissions. Renters still have to pay commissions, which once averaged 12 percent but have increasingly crept up to 15 percent and, in some cases, much more. Last year, City Councilmember Chi Ossé introduced a bill that would require whoever hires the rental broker — in most cases, the landlord — to pay the fee. It didn’t pass, but a few weeks ago, Ossé reintroduced it .

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Real estate lawsuit settlement upends decadeslong policies that helped set agent commissions

FILE - A sale sign stands outside a home in Wyndmoor, Pa., Wednesday, June 22, 2022. The National Association of Realtors has agreed on Friday, March 15, 2024, to pay $418 million and change its rules to settle lawsuits claiming homeowners have been unfairly forced to pay artificially inflated agent commissions when they sold their home. (AP Photo/Matt Rourke, File)

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A powerful real estate trade group has agreed to do away with policies that for decades helped set agent commissions, moving to resolve lawsuits that claim the rules have forced people to pay artificially inflated costs to sell their homes.

Under the terms of the agreement announced Friday, the National Association of Realtors also agreed to pay $418 million to help compensate home sellers across the U.S.

Home sellers behind multiple lawsuits against the NAR and several major brokerages argued that the trade group’s rules governing homes listed for sale on its affiliated Multiple Listing Services unfairly propped up agent commissions. The rules also incentivized agents representing buyers to avoid showing their clients listings where the seller’s broker was offering a lower commission to the buyer’s agent, they argued.

As part of the settlement, the NAR agreed to no longer require a broker advertising a home for sale on MLS to offer any upfront compensation to a buyer’s agent. The rule change leaves it open for individual home sellers to negotiate such offers with a buyer’s agent outside of the MLS platforms, though the home seller’s broker has to disclose any such compensation arrangements.

FILE - A home under construction marked as "SOLD" at a development in Eagleville, Pa., is shown on Friday, April 28, 2023. The United States is slogging through a housing affordability crisis that was decades in the making. The shortage pours cold water on President Joe Biden's assurances that the U.S. economy is strong and underscores the degree to which Republican presidential candidate, former President Donald Trump, has largely overlooked the issue. (AP Photo/Matt Rourke, File)

The trade group also agreed to require agents or others working with a homebuyer to enter into a written agreement with them. That is meant to ensure homebuyers know going in what their agent will charge them for their services.

The rule changes, which are set to go into effect in mid-July, represent a major change to the way real estate agents have operated going back to the 1990s, and could lead to homebuyers and sellers negotiating lower agent commissions.

Currently, agents working with a buyer and seller typically split a commission of around 5% to 6% that’s paid by the seller. This practice essentially became customary as home listings included built-in offers of “cooperative compensation” between agents on both sides of the transaction.

But the rule changes the NAR agreed to as part of the settlement could give home sellers and buyers more impetus to negotiate lower agent commissions.

“It may take some time for the changes to impact the marketplace, but our hope and expectation is that this will put a downward pressure on the cost of hiring a real estate broker,” said Robby Braun, an attorney in a federal lawsuit brought in 2019 in Chicago on behalf of millions of home sellers.

Analysts with Keefe, Bruyette & Woods also anticipate that the NAR rule changes will lead to lower agent commissions and could persuade some homebuyers to skip using an agent altogether.

“In our view, the combination of mandated buyer representation agreements and the prohibition of blanket compensation offers made by listing agents and sellers should result in significant price competition for buyer agent commissions,” the analysts wrote in a research note Friday.

While setting the stage for homebuyers to negotiate a more competitive price for their agent’s services, the rule changes mean home shoppers will have to factor in how to cover their agent’s compensation.

Homebuyers could still ask a prospective home seller for a concession that includes money to help cover the buyer’s agent compensation. However, a home seller with multiple offers, for example, could refuse such a request, or opt to go with a bid from a different buyer who isn’t asking for such a concession.

“The real solution is for the industry to work to remove regulatory barriers that make it difficult for buyers to include this compensation in their mortgages,” said Stephen Brobeck, senior fellow at the Consumer Federation of America.

The NAR faced multiple lawsuits over the way agent commissions are set. In late October, a federal jury in Missouri found that the NAR and several large real estate brokerages conspired to require that home sellers pay homebuyers’ agent commissions in violation of federal antitrust law.

The jury ordered the defendants to pay almost $1.8 billion in damages — and potentially more than $5 billion if the court ended up awarding the plaintiffs treble damages.

The settlement, if approved by the court, resolves that and similar suits faced by the NAR. It covers over one million of the NAR’s members, its affiliated Multiple Listing Services and all brokerages with a NAR member as a principal that had a residential transaction volume in 2022 of $2 billion or less.

“Ultimately, continuing to litigate would have hurt members and their small businesses,” Nykia Wright, NAR’s interim CEO , said in a statement. “While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances.”

The settlement does not include real estate agents affiliated with HomeServices of America and its related companies.

Last month, Keller Williams Realty, one of the nation’s largest real estate brokerages, agreed to pay $70 million and change some of of its agent guidelines to settle agent commission lawsuits.

Two other large real estate brokerages agreed to similar settlement terms last year. In their respective pacts, Anywhere Real Estate Inc. agreed to pay $83.5 million, while Re/Max agreed to pay $55 million.

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Trump unable to post $450M bond in New York fraud case, his lawyers say

Andrea Bernstein

Former President Donald Trump speaks during a "Get Out The Vote" rally at the Forum River Center in Rome, Ga., on March 9. Bloomberg via Getty Images hide caption

Lawyers for former president and presumptive GOP nominee Donald Trump say coming up with the bond on roughly half a billion dollars while he appeals his New York fraud judgment is a "practical impossibility."

Trump's lawyers say they've approached 30 companies through four brokers and none will accept his real estate holdings as a guarantee on the bond for $454 million and argue the judgment is unconstitutionally high. They filed an affidavit from an insurance broker saying it is "not possible" to find a bond that big. The broker was an expert witness for Trump during the trial.

Trump's Trials

Trump owes about half a billion dollars in legal penalties — how will he pay for it.

Donald Trump appeals $454 million judgment in New York civil fraud case

The trial judge already noted in his decision that this broker was a "close personal friend" of Trump's and had a financial interest in the outcome. A decision could come from the appeals court later this week.

Trump is on the hook for "persistently lying about the value of his assets" in a case brought by New York Attorney General Letitia James in 2022. Trump is seeking a reprieve from an appellate court to keep New York from seizing assets.

Donald Trump

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4 Ways a Settlement Could Change the Housing Industry

The influential National Association of Realtors agreed to make several changes to its policies to settle class-action lawsuits brought by home sellers who say they were forced to pay inflated commissions to real estate agents.

That National Association of Realtors building in Chicago.

By Debra Kamin

In the early hours of Friday morning, the National Association of Realtors agreed to a global settlement deal that would resolve several lawsuits against the trade group.

A group of Missouri home sellers sued N.A.R. over their policies on agent compensation, arguing that a N.A.R. rule requiring home sellers to pay commissions to their agents and the agents of their buyers led to inflated fees and price fixing. The lawsuit also called into a question another rule requiring agents to list homes on N.A.R.-affiliated databases in order to sell them. In October, a jury agreed that both practices were anticompetitive, and a judge ordered damages of at least $1.8 billion.

More than a dozen copycat cases, all accusing N.A.R. of stifling competition and violating antitrust laws, have followed.

With the settlement agreement, N.A.R. will pay $418 million in damages , but more important, it has agreed to rewrite a number of rules that have long been central to the U.S. housing industry. Here’s how things stand to change, pending court approval.

Home prices will drop.

In the United States, most agents specify a commission of 5 or 6 percent, paid by the seller. That means that someone with a $1 million home should expect to spend up to $60,000 on real estate commissions alone, with $30,000 going to his agent and $30,000 going to the agent who brings a buyer. Even for a home that costs $400,000 — close to the current median for homes across the United States — sellers are still paying around $24,000 in commissions, a cost that is baked into the final sales price of the home.

With the settlement agreement, sellers’ agents will no longer be required to make offers of commission to buyers’ agents, a practice called decoupling. This will save homeowners billions.

“Decoupling will allow commissions to be removed and negotiated down, lowering both housing prices and overall consumer costs,” said Steve Brobeck, the retired executive director of the Consumer Federation of America. Mr. Brobeck said that Americans spend about $100 billion a year in real estate commissions, and with the settlement, that number is expected to dip by at least $20 billion and up to $50 billion.

Since commissions are tacked onto the price of a home, “Over time, both sellers and buyers will force rates down through negotiation and comparison shopping in a more price-transparent marketplace,” he said.

The 6 percent commission will cease to be the norm.

The lawsuits argued that N.A.R., and brokerages that required their agents to be members of N.A.R., had set rules that led to an industrywide standard commission of 5 or 6 percent — one of the highest rates in the world. Without that guaranteed rate, agents will now most likely be forced to lower their commissions to compete for business.

“U.S. commissions are unlikely to decline to the 1 or 2 percent rate level in England, where only one agent and an attorney are usually involved in a home sale. But they certainly will decline substantially, and commissions will also increasingly reflect the competence and efforts of agents on sales,” Mr. Brobeck said in an email.

Steering — the practice of agents directing buyers to more expensive houses — will be less common.

Most of the databases where homes are listed for sale in the United States are restricted to dues-paying members who belong to N.A.R., a dominance that has led to antitrust allegations against N.A.R.

One N.A.R. rule demands that a listing agent, when posting a home on the database, clearly state the amount of compensation that a buying agent will receive should they bring a buyer. This is a practice that critics say has long led to “steering,” in which buyers’ agents direct their clients to pricier homes in a bid to collect a bigger commission check.

Under the settlement, any fields displaying broker compensation will be eliminated entirely, which will help damper the practice.

About one million real estate agents could leave the profession.

The number of real estate agents swelled during the pandemic, when mortgage rates plummeted and the housing market boomed. In 2020 and 2021, more than 156,000 people got their real estate licenses, and membership in the National Association of Realtors hit a peak of 1.6 million members in 2022.

A lot of that growth was predicated on the idea of easy money.

But now a lot of those agents are struggling, and a reduction in commission rates will only increase the pain. Half of the agents in the country sold one house — or no house s at all — last year. With the industry now staring down a massive overhaul, veteran agents predict their less experienced peers will leave the field all together.

Some analysts predict a mass departure. One widely cited report from investment banking firm Keefe, Bruyette & Woods projects 1 million agents leaving the field as shared commissions vanish.

“Veteran agents have built strong relationships, established reputations and extensive networks. Newer real estate agents may struggle,” said Jen McDonald, who leads LPT Realty in Reno, Nev., and has spent 24 years in the industry. “Without established reputations or strong clients bases, they are going to find it challenging to retain clients or attract new ones.”

Debra Kamin reports on real estate, covering what it means to buy, sell and own a home in America today. More about Debra Kamin

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COMMENTS

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A yacht broker is a specialist who serves yacht or boat sellers and/or buyers as a representative for the sale or purchase of a yacht or boat.
What is a Yacht Broker?
A yacht broker is someone who helps you buy or sell your boat, not only sourcing possible yachts or buyers, but also negotiating prices, marketing yachts for sale, drawing up legal documents, and giving you expert industry advice.
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Yacht Brokers work like real estate agents. They are agents whom people consult to find and purchase a boat, and whom people hire to list, represent, and sell boats for them. Traditionally, the seller pays the commissions that a yacht broker earns - not the buyer, yet brokers have a duty to both buyer and seller in every transaction.
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A yacht broker's responsibilities include: Market intelligence. They have a record of which boats have sold, and at what price, and how long it took to sell. Visiting your yacht to determine its value in accordance with the current market. Valuing similar boats that can compete with your yacht to get a better understanding of competitors.
The 6% commission on buying or selling a home is gone after ...
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