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Broker Talk – Selling Your Boat

Broker Talk – Selling Your Boat

January 5, 2022

By Andy Kancachian

Interview with Luke Pickford of Horizon Shores Boat Sales

WHAT ARE THE PROS OF USING A BOAT BROKER TO SELL YOUR BOAT RATHER THAN LISTING THE BOAT YOURSELF?

A: Someone else does all the hard work for you! A boat broker is an expert in the field and will manage the whole process. A boat broker will know the market, what you can feasibly get for your boat, will deal with the public and all enquiries, and do all the marketing and advertising. All final decisions are made by you, the vendor, while the boat broker does all the nitty gritty work for you.

WHAT SERVICES DOES A BOAT BROKER OFFER WHEN SELLING YOUR BOAT?

A: A boat broker can offer a broad range of services. Generally, a boat broker will manage all the marketing of your boat, which involves photographing the vessel, creating a detailed eye-catching ad and managing it across numerous sales platforms, such as local publications and online search.

A broker will then respond to all potential buyer enquiries, conduct viewings and inspections on the vessel, and assist the potential buyer in organising mechanical inspections and survey reports.

So, a boat broker not only works directly for you, the vendor, but also assists the potential buyer in their due diligence as far as surveys, mechanical inspections, finance and insurance, making the whole process/ operation seamless at both ends.

HOW MUCH DOES IT COST TO USE A BOAT BROKER WHEN SELLING?

A: Industry standard commissions payable to the boat broker are a percentage of the sale price.

Industry standard is $3,000 on boats $30,000 or less, and usually 10% on boats $30,000-$100,000. The percentage of commission decreases as the sale price of the boat increases, with a minimum of 5.5% plus GST for $1million-plus boats.

HOW CAN YOU MAKE YOUR BOAT MORE ATTRACTIVE FOR SALE?

A: Have the boat cleaned, polished, detailed, and looking its best. Re-do the antifoul and buff the hull gelcoat, if they are due be done. Ensure your boat is in good mechanical order with all mechanical receipts for work carried out. Having a good mechanical history and current survey report is very attractive to a potential buyer. As brokers, we will assist you in spending only necessary money to get the best possible outcome, on a benefit vs cost basis.

WHAT DOCUMENTATION IS REQUIRED FOR A BOAT TO CHANGE HANDS IN A SALE?

A: You, the vendor, will be required to complete and sign an Authority To Sell document with your broker, giving the broker authority to act on your behalf.

A Recreational Ship Registration Transfer Application is also required. This is a Queensland Government-required form for the transfer of registration from the vendor to the new buyer/owner.

An Offer to Purchase is required to be completed by the potential buyer and then signed off by the vendor. This form will specify the offer amount, any special conditions with regard to the sale, such as being subject to a satisfactory mechanical inspection or survey, or finance.

WHEN IS THE BEST TIME OF THE YEAR TO SELL YOUR BOAT?

A: Any day ending in ‘y’. Anytime really. Right now, leading up to summer is our busiest time and the months before Easter are also very active. Having said that, the best boating weather is in fact in winter.

WHAT CAN THE SELLER DO TO HELP THE BROKER WITH THE PROCESS OF SALE?

A: Have the boat presentable and in good condition. Provide as much information and detail about the boat as possible to your broker so they can answer any questions from potential buyers straight away. The more information provided, the quicker a broker can get that information to potential buyers.

Have the boat located at the brokerage office to make viewings and inspections easier, as someone just walking by may see your boat and enquire then and there! In fact, this is our main recommendation. We estimate it will increase the chances of a successful sale, and in a timely manner, by at least 80%.

Be open to feedback and be ready to negotiate. Be realistic.

Give brokers the freedom to do their job and trust in their ability.

Whether you are looking to buy that dream boat, upgrade or just looking for something different, the Team at Horizon Shores Boat Sales, are there to assist and guide you through the process. www.hsbs.com.au

 

 

Published in print January-March 2022

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