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What Can An NYBA Broker Do For The Buyer?


Northwest Yacht Brokers Association image Help Define The Requirements. Most importantly, a professional broker will listen to what a customer needs, wants and dreams about in a boat. Many buyers, understandably, don't know exactly what kind of boat they want when they first begin shopping. The broker will listen to a customer's plans for the intended use of a boat, help establish a realistic price range and, from there, begin searching for the right boat.

Offer A Network Of Listings. Most brokers are active in a network of listings that covers Puget Sound and beyond, whether it's an MLS system, out-of-state contacts or cooperative working arrangements with other area brokers. Buyers want maximum access to available boats, which a good broker should be able to provide through his or her network of listings.

Cooperate With Other Brokers. An important aspect of finding the right boat for a customer is a broker's network of contacts with whom he or she has a cooperative working arrangements. It broadens the range of available boats, and allows the customer to choose one broker with whom he or she feels comfortable without eliminating the right boat that may be listed and located elsewhere.

Locate And Show. Using the listing services, his peer contacts and his knowledge of the current market, a broker will conduct a search for suitable boats to show, whether they are on the broker's dock or elsewhere. The broker will then make viewing arrangements so the customer may see the most appropriate boats, thereby saving the customer time and effort.

Make Strategic Offer. A professional broker, with his or her intimate knowledge of the current market conditions, the length of time the boat has been on the market and a familiarity of similar boats, can help a client craft a realistic offer that increases the chances of buying the boat for a fair and reasonable price.

Facilitate Negotiations. Too often, a transaction is nixed over a $500 item rather than a $5,000 difference in price. First, a broker can help the buyer and seller reach an agreement on selling price, and then he or she can keep the small obstacles from becoming insurmountable problems. In cases where the buyer and seller disagree, the broker can use his position as a middleman to instill trust and reason to both parties to allow negotiations to continue.

Once an offer is accepted, the broker can ease the process of finalizing a transaction. This includes:

Safeguard Funds. The customer's 10 percent earnest money deposit, based on the offer price, is safeguarded in an escrow account. All licensed brokerages are required by state law to maintain such an account, protecting a buyer's investment with the deposit of all money into this protected fund where it does not co-mingle with the brokerage's operating capital.

Help Arrange Financing. A broker will know which lending institutions are the most active and competitive in marine financing. The broker's experience and professional contacts should help him steer customers towards the best possible deal.

Assist In Arranging A Survey. A broker should provide a customer with a list of recommended marine surveyors, from which a buyer can then choose a surveyor to represent him in accurately assessing the condition of the boat. The broker should also have current knowledge of boatyards at which a survey may be conducted.

Organize A Sea Trial. More than a joy ride or a mere formality, this is when the buyer discovers how a boat performs. A broker should be able to assist the buyer in making a realistic assessment of the strengths and weaknesses in the performance of a particular boat.

Promote Ethics. Every broker should either be or work for a licensed brokerage or dealership. All members of the Northwest Yacht Brokers Association have also pledged to uphold a Code of Ethics. The broker's position as a middleman between buyer and seller places substantial ethical responsibility on him to ensure that both parties are treated honestly and fairly. If at any time the buyer believes he or she has been treated otherwise, that person may file a formal grievance with the NYBA's Ethics Committee and its non-binding mediation process.

Prepare Paperwork. To complete a transaction, the maze of paperwork can often be daunting to the buyer - from the initial Offer to Purchase to licensing and registration; to documentation and titling; to paying state sales tax and the federal user's fee; and all the way on to the final closing of the deal. A good broker will assist in making sure all aspects of a deal are properly completed.

Troubleshoot. With every potential transaction, there are a host of problems that can develop, whether it's a boat that needs yard work to establishing a clear title. A good broker will have the experience to assist the buyer in ensuring that problems stay small, and the knowledge on how best to resolve them to everyone's satisfaction.



What Can An NYBA Broker Do For The Seller?

Northwest Yacht Brokers Association image
Advise On A Fair-market Value. To ensure the timely sale of a boat, it is essential for it to be listed with a fair asking price. A broker can help establish fair-market value for the boat, usually with a margin for the typical offer-counteroffer of negotiations, through his or her experience in the recent sale of similar boats, general market trends, and a honest evaluation of the boat's condition. The broker's network of available listings allows him or her to compare the asking price of comparable boats in the local market. Most buyers will know when a boat is overpriced, and a good broker should be able to steer the seller through this potential pitfall.

Complete The Listing. A broker will help the seller compile the necessary documentation and outline the boat's inventory in a way that highlights its most attractive features. At this point, the broker can identify possible problems and offer solutions to these problems. It is worth noting here that many sellers believe that to gain maximum exposure they should enter into Open Listing Agreements with many different brokers. Almost without exception, the exact opposite is true. A broker will be reluctant to advertise, promote or co-broker an Open Listing. A seller should choose his broker carefully, but then stick to one agent by entering into a Central Listing Agreement.

Offer A Network Of Contacts. Most brokers are active in networks that cover Puget Sound and beyond, whether it's an MLS system, out-of-state contacts or cooperative working arrangements with other area brokers. The broker's network of contacts with whom he or she co-brokers is critical to finding the right buyer for a boat. Co-brokering greatly enhances the field of available buyers. It also allows the seller to choose one broker with whom he or she feels comfortable while still allowing maximum exposure. Maximum exposure to potential buyers is, after all, what a seller most wants from a broker.

Outline An Advertising Strategy. A professional broker will be able to outline a plan of how a boat is to be advertised in the most appropriate media. The best means to promote a Bayliner 21 is vastly different than the strategy for a Swan 55. Through a solid advertising and promotional plan, the broker can help the seller obtain the best chances of reaching the most interested and qualified audience. In addition, with a Central Listing Agreement, most brokers will share information with other brokers, further increasing the prospects of finding the right buyer.

Respond And Show. By knowing the seller's conditions for a sale, the broker can qualify responses for a realistic appraisal of whether or not the contact will lead to a potential sale. When showing the boat, the broker will be able to point out its strengths and enhance its best features. Similarly, a good broker will offer possible solutions to problems. By dealing with the buyer honestly, the broker will do more to make a buyer comfortable with the boat than if he or she were to resort to presenting half-truths and high-pressure sales tactics in an attempt to hide a boat's weaknesses.

Facilitate Negotiations. Too often, a transaction is nixed over a $500 item rather than a $5,000 difference in price. First, a broker can help the buyer and seller reach an agreement on selling price, and then he or she can keep the small obstacles from becoming insurmountable problems. In cases where the buyer and seller disagree, the broker can use his position as a middleman to help restore reason to give the negotiations a chance to continue.

Once an offer is accepted, the broker can ease the process to finalize a transaction. This includes:

Safeguard Funds. All licensed brokerages are required by state law to maintain an escrow account, in which the 10 percent earnest money from the buyer is deposited. This protects the seller's investment by ensuring that all money stays separate from the brokerage's operating capital.

Promote Ethics. Every broker should either be or work for a licensed brokerage or dealership. All members of the Northwest Yacht Brokers Association have also pledged to uphold a Code of Ethics. The broker's position between buyer and seller places substantial ethical responsibility on him or her to ensure that both parties are treated honestly and fairly. If at any time the seller believes he or she has been treated otherwise, that person may file a grievance with the NYBA's Ethics Committee and its non-binding mediation process.

Prepare Paperwork. To complete a transaction, the maze of paperwork can often be intimidating to the seller. A good broker will assist in making sure all aspects of a deal are properly completed, from having all necessary documentation available, to the professional preparation of all required forms, to paying off an existing loan and on to the completion of the transaction at the time of closing.

Troubleshoot. With every potential transaction, there are a host of problems that can develop. A good broker will have the experience to assist the seller in ensuring that problems stay small, and the knowledge on how best to resolve them to everyone's satisfaction.


Northwest Yacht Brokers Association

901 Fairview Ave-Suite A-190
Seattle, WA 98109, USA

Tel (206) 748-0012
Fax (206) 748-0161
Email info@nwyachtbrokers.com

http://yachtworld.com/northwestyachtbrokersassociation


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