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Proud Members of the Florida Yacht Brokers Association



Proud Members of the Florida Yacht Brokers Association

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By Barbara Tierney
FYBA President 2000

When first presented with the question "WHY USE A BROKER", my knee-jerk response was "Of course you'd use a broker who knows the industry. Florida Brokers are licensed and must abide by rules that protect your interest". But that doesn't really tell you the story of the "Added Value". I started jotting down notes and decided to show you step by step the life of a good broker. I'll let you be the judge of whether you have the time and desire to learn everything that we do everyday and take for granted.

When you're ready to shop, here are a few of the items that we stay on top of daily.

1. Finding the Boat

  • Know the yachts available on the market
  • Continually previewing yachts as they come on to the market
  • Know the yachts available that are not actively on the market
  • Attend continuing education classes and seminars regarding yacht sales and the law.
  • Real value of those those yachts available -
  • Market indices and trends
  • History of the yachts
  • Resale values
  • Motivation of the seller
  • Provide referrals for insurance
  • Potential for trades
  • Provide referrals for financing

2. Making the Offer

  • Purchase agreement with necessary elements to protect your interest
  • Secure deposit in escrow account in accordance with state law requirements.
  • Industry knowledge to reference surveyors and yards to perform on your behalf.
  • Keep you apprised on tax issues, VAT, or duties that may apply to a particular vessel.

3. During the Survey

  • Knowledge of specific items to look for with various builders.
  • Experience with various items that may come up on survey, whereas your broker can help estimate time and cost of correcting.
  • Knowing where to obtain accurate quotes for items that are unfamiliar.
  • Translating pages of written reports into easily understood language for the Accept or Reject paperwork.
  • Inventory of items on board to confirm agreement between both parties.

4. Closing Paperwork

  • Daily coordination of all the players involved in a closing. Office staff; finance companies; insurance agents; selling agents; documentation companies; attorneys; offshore corporations; customs brokers; captains and overseeing any repair work being done prior to closing, etc.
  • Paperwork. There are 23 forms needed at a closing (27 for foreign flagged vessels). These forms can have a very specific order whereas execution of a particular form may be necessary to trigger off the next sequence of events.
  • Escrow your funds for transfer to seller pending final confirmation of all paperwork being in order.
5. After sale follow up:
  • A good broker will help coordinate any work to be done after the closing.
  • Refer crew to hiring for the yacht.
  • Assist in arranging new dockage.
  • Follow up with documentation company as the yacht is transferred to new ownership.
  • Offer assistance in any way possible to ensure continued enjoyment of the vessel. And always available to answer new questions as they come up.
At some point. you're going to want to sell that vessel. And once again that's where the broker enters. We have a saying in the industry..."If it was that easy, everyone would be doing it..." It's not that easy to sell a yacht. It takes time, commitment and a great deal of money.

6. Preparing to sell the boat:

  • Pricing the yacht.
  • Knowing who your competitors are and where you fit into the market.
  • Advising of any improvements that should be made to compete within today's market.

7. Preparing materials
  • Specifications
  • Marketing materials
  • Print media
  • Electronic media

8. Brokerage open houses
9. Arrange showings
10. Provide marketing materials to corresponding brokers
11. Continual updates on price changes, location changes, and sales status
12. Display in shows
13. Ad placement in magazines
14. Internet placement
15. Multiple listing placement
16. Responding and following up on inquiries
17. Qualifying inquiries
18. More advertising, more boat shows. more follow-up
19. Upon a successful offer to purchase - repeat all of items 2-5 above.

These are all specific points that we live. breath, and take for granted. I haven't touched on the intangible benefits. The most notable intangible is within the art of negotiating the deal. A good broker provides you with one of the best negotiating tools you will ever have, "I'll have to discuss that with my client and we'll get back to you." The element of time and the insulation from an immediate answer is one of the single biggest leverage factors that you can bring into any deal.

There are other intangibles that are not as obvious.

The commission doesn't change. Peace of mind at no extra charge. That commission remains the same whether it's being split two ways or ten ways. It doesn't cost a penny more to have a broker representing your interests. And to the buyer, who talks to every broker so they can be sure that they're dealing directly with the listing broker (who by the way works for the seller as well), I would ask you, "Would you use your wife's lawyer?"

And here's one more intangible that you can't put a price on. After 20 years of selling yachts, I've found many valued friendships with clients that started when they bought their first boat. We talk frequently and sometimes not even about boats. I've helped clients with everything from forwarding their mail while they're cruising to helping them find pieces of artwork for their homes. Just as every person is different, so is each client-broker relationship. Each client is important and a good broker will value that friendship. A good buyer will find a broker that he or she is comfortable with and whom you have confidence in.

Florida Yacht Brokers Association

P.O. Box 460044
Ft. Lauderdale, FL 33346, USA

Tel (954) 522-9270
Fax (954) 764-0697
Email fyba@fyba.org


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