Power and Motor Yacht: 5 Questions To Ask When Choosing a Yacht Broker
Whether you are purchasing your first yacht or selling your fifth, going through the process of surveying, working with other competing agents, and closing the deal can be daunting to even the most experienced boaters. That is why most people turn to an expert yacht broker for guidance on market conditions, negotiating the deal on their behalf, and managing the final paperwork. The staff at Power and Motor Yacht magazine are experts when it comes to reviewing yachts and the yachting industry, which is why they came to HMY Yacht Sales to find out what the average boater needs to know about selecting the right yacht broker to represent them.
Question #1 : Is the yacht broker represented by a reputable firm?
Jeff Johnson, Regional Sales Manager for HMY, believes that "working with a reputable brokerage firm is one of the most important things a buyer or seller can do." A long-standing, reputable brokerage firm that works hard on your behalf earns your business not just for one transaction, but all future transactions as well. Most of HMY's clients have been with our firm for years or are referrals from existing clients. As yacht sales professional Steve Barcsansky says about the importance of hiring a reputable firm, "Fly-By-Night companies don't work. They don't work one, because of reputation, and two, honesty...(our customers) know they are protected."
Question #2 : What are the advantages of using a broker for selling or buying a yacht?
There is a lot of preparation and due diligence that must take place in several aspects of the buying or selling process. If you are purchasing a yacht, a HMY Yacht Sales Professional will listen to your needs, examine the market and the inventory, and recommend specific boats that fit your criteria. Expect your hand to be held the entire way through the process so that you will feel confident in your purchase. Selling a yacht with a broker is important as well to make sure your boat sells quickly and retains its value through negotiations. Reputable brokerage firms also have highly-trained sales closing assistants who ensure that all paperwork is completed correctly and filed appropriately. Yacht sales professional Harley Henning gives some insight into the inner-workings of the HMY team, "We'll have a weekly sales meeting......there might be a broker that says 'Oh I have a client looking for a yacht like that' and (our clients) boat may not have even hit the internet yet. We do a lot of business that way."
Question #3 : How knowledgeable is the broker in your specific market?
It is critical that the yacht broker you select has vast market knowledge necessary to deliver the results that you are desiring. A professional yacht broker has dedicated his or her life to knowing and understand the intricacies of the industry and market. HMY prides itself on having yacht sales professionals with an average of 20 years in the business. It is important that the information we are conveying to our clients is accurate so that we maintain our integrity and build future relationships. HMY Yachts has been a family owned business in South Florida for over 36 years. There is no better yacht sales expert to price, market, and sell your yacht.
Question #4 : When selling your yacht, what kind of marketing should you expect your broker to handle?
If no one sees your yacht, chances are it won't get sold. All brokerage firms have the ability to put your yacht on the MLS system, but not all brokerage firms have the technology, expertise, and budget to advertise effectively. HMY Yachts has arguably the best and most comprehensive marketing strategy in the industry. HMY is always the very first brokerage advertiser in publications like Marlin, Yachting, Power and Motor Yacht, among others because of the dominant presence. Our mobile-responsive website and digital marketing strategy is finely tuned to provide the maximum amount of targeted traffic while offering the easiest experience to find the vessel that fits your needs. We employ tactics like email campaigns, direct mail campaigns, search engine marketing, social media marketing, online chat, and so much more. And of course we have the highest quality photography and videography of anyone in the industry.
Question #5 : What goes into a typical commission?
The standard in the yacht industry is a 10% commission that is paid for by the seller, however this can vary between brokerage firms depending on the level of service and expertise of that firm. Typically when a brokerage firm has discounted their commission rate it means that they have nothing more to offer than a discount. The sales commission covers a multitude of services include the marketing costs of advertising the vessel, hiring a professional photographer and videographer, the closing process paperwork, and everything else that goes into making sure the transaction is quick and successful. If the broker firm you are looking at has a lower commission structure, it's important to ask why.