Rattner says his eight-year relationship with broker Kevin Merrigan, president of Northrop & Johnson in Ft. Lauderdale, has been financially beneficial. "A good broker will be much more knowledgeable than most boaters. He’ll see hundreds of boats each year, so he’ll have a better idea of the values out there," he says. Carney also uses Johnson as a litmus test for new boats. "He knows what I like in sailboats," Carney says. "He doesn’t BS. What he tells me, I can take to the bank."
Others employ a less exclusive approach. "We work with maybe 25 brokers we’ve come to trust," says Felix Sabates, owner of Trinity Yachts. "I use them as our eyes and ears and they forward new customers to us."
Jonathan Naylor, who has created a cottage industry in Ft. Lauderdale by refurbishing dowdy name-brand boats and reselling them for a healthy profit, only uses brokers. "I never deal with a customer directly," he says. "I’m happy to pay the yacht brokers their commissions. It saves much hassle."
| The shoals and reefs of
the global market for
luxury yachts and superyachts are best navigated with the aid of an
experienced broker. |
The commission is typically 10 percent of the yacht’s purchase price, with about 40 percent going to the listing broker and 60 percent to the selling broker (some brokerage houses still use a traditional 30/70 split)—incentive for both brokers to keep on top of the sales process.
Merrigan says owners should expect the yacht to sell within a year of listing it with a central broker. Typically, a broker’s commission pays for a marketing program that includes brokerage ads in national boating magazines, Web listings in multiple listing services, such as www.yachtcouncil.com, as well as brochure mailings to other brokers. Extra services could include displaying the yacht at boat shows and full-page magazine ads, though those costs are extra.
The bottom line, says Merrigan and every other broker interviewed, is staying smart on the price. "You need to match the price to meet the market," he insists. "If you give the boat an outrageous number, it could sit there for two or three years and follow the market downward. Then it gets a reputation."
Hazards to Navigation
Pricing is a sensitive subject, particularly in this softer market, says Bruce Schattenburg, managing director of the Sacks Group, a Ft. Lauderdale-based brokerage and charter firm. "Every owner takes pride of ownership in his boat," he says. "But he often has to get over the notion that the boat will sell at a premium. It can be painful to face reality, but we’re in a soft market." The ownership cost means it makes no sense to price a boat high, especially if it is not being used.
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