Click for Seacoast Click for Burger Click for Lurssen Click for Walker Click for Abeking

Brokerage Fees to Company?

Discussion in 'Licensing & Education' started by Tom Brown, May 2, 2015.

You need to be registered and signed in to view this content.
  1. Tom Brown

    Tom Brown New Member

    Joined:
    May 2, 2015
    Messages:
    1
    Location:
    florida
    I am interested in becoming a yacht broker in Florida. To get the salesperson license (for two years before the brokerage license - this is the required process in Florida), I need to have an employing broker. I found a few companies interested in helping me get my license and then I would work as part of their company. If I work with a brokerage company in Florida, what percent of the commission should I expect them to take?
  2. Capt J

    Capt J Senior Member

    Joined:
    Jul 11, 2005
    Messages:
    12,070
    Location:
    Fort Lauderdale
    Usually about half. Typically if you have a 10% commission to sell a boat. The listing brokerage house gets 4% and the buyers brokerage house gets 6%, then the salesman gets 1/2 of that and the house 1/2 of that.
  3. K1W1

    K1W1 Senior Member

    Joined:
    Sep 30, 2005
    Messages:
    7,390
    Location:
    My Office
    Wouldn't it make more sense to ask these companies what sort of deal they will offer you than asking the world?
  4. RER

    RER Senior Member

    Joined:
    Jan 20, 2009
    Messages:
    1,270
    Location:
    Newport Beach CA
    Florida and California require yacht brokers and their sales persons to be licensed in order to sell used boats. Most if not all other states do not. And some new boat sales do not require a license to sell.

    Salespersons starting out in the business must apply for their license through a brokerage. Capt J's post is basically the standard however the commission split also depends on whether you are the central agent for that listing among other things.

    Once established a good performer can possibly make a better deal - maybe an extra point. When you change brokerages they contact the state and have your license transferred.
  5. NYCAP123

    NYCAP123 Senior Member

    Joined:
    Mar 14, 2008
    Messages:
    9,166
    Location:
    Long Island, NY
    When you apply for a job you should know as much about the business as possibly, certainly the pay range. This is a good place to get general knowledge as Capt J showed.
  6. Capt J

    Capt J Senior Member

    Joined:
    Jul 11, 2005
    Messages:
    12,070
    Location:
    Fort Lauderdale
    Here in Florida you do not need a license to sell new boats. However, many new boat dealers also take in trades and sell them and therefore the salesman selling the used boat trades usually needs to be licensed I believe.
  7. GhostriderIII

    GhostriderIII Senior Member

    Joined:
    May 8, 2015
    Messages:
    349
    Location:
    Newfoundland
    Never heard it put that way. As far as I know, my broker moved from FL to SC - because of these laws.
  8. olderboater

    olderboater Senior Member

    Joined:
    Sep 2, 2013
    Messages:
    5,651
    Location:
    Fort Lauderdale
    He moved rather than get licensed properly? That's absurd, if that was his real reason unless he'd previously done something that prevented him from being licensed.
  9. NYCAP123

    NYCAP123 Senior Member

    Joined:
    Mar 14, 2008
    Messages:
    9,166
    Location:
    Long Island, NY
    That makes him scary. I wouldn't use him.
  10. GhostriderIII

    GhostriderIII Senior Member

    Joined:
    May 8, 2015
    Messages:
    349
    Location:
    Newfoundland
    Really? He negotiated the last two commercial deals for us - saving 3% on broker fees that we would have had to pay in Florida.
  11. olderboater

    olderboater Senior Member

    Joined:
    Sep 2, 2013
    Messages:
    5,651
    Location:
    Fort Lauderdale
    If he cut you a break on commission that's his right. If he sold you a boat in Florida without a Florida broker's license he's a lawbreaker. Generally brokers fees are the same in Florida as they are in any other state. The industry standards are the same.

    If he left Florida over a licensing requirement, that's ludicrous. I suspect he left because he didn't want to work under or for a licensed broker. He wanted to freelance completely on his own. So are you going to buy your next house from an unlicensed real estate seller? Boats that this site is about cost more than average houses. Read about the cases nationwide of brokers taking money and never paying the old owner for the boat, of major broker scandals, of people left holding the bag. I'm personally proud to be in one of only two states that requires licensing for boat brokers and salespeople.

    I will say, many people have gone over the years to unlicensed doctors as well. Just not my recommendation.
  12. Capt J

    Capt J Senior Member

    Joined:
    Jul 11, 2005
    Messages:
    12,070
    Location:
    Fort Lauderdale
    Guys, let's get back to the OP's normal thread "Brokerage fees to company"
  13. Danvilletim

    Danvilletim Senior Member

    Joined:
    Oct 30, 2011
    Messages:
    549
    Location:
    isleton, ca
    How does brokerage commission change on 2-3 million plus boats? How about ten million? Does the 10% fall down typical to what's seen in real estate?
  14. Capt J

    Capt J Senior Member

    Joined:
    Jul 11, 2005
    Messages:
    12,070
    Location:
    Fort Lauderdale
    It usually stays the same but can fall if negotiated. Problem is, if you cut the commission it can also cut exposure. Generally there is always a sellers broker and a buyers broker involved 80% of the time. If the buyers broker is showing clients yachts and can show him 3 yachts, 2 of them pay 10% commision and the 3rd pays 8%, he might not even bother showing the 8%. Also there's a lot more expense involved in more expensive yachts for the buyers broker as he might be flying from the U.S. to Europe (for example), get a hotel, etc. to show a larger yacht to his buyer, then fly back 2 or 3 more times for the seatrial, the closing, etc.
  15. olderboater

    olderboater Senior Member

    Joined:
    Sep 2, 2013
    Messages:
    5,651
    Location:
    Fort Lauderdale
    It's just like houses in that respect. The time and effort and cost involved in selling more expensive houses or boats is much greater. In addition to the costs Capt J points out the luxury yacht brokers may have their own web sites to support, be placing it on additional sites that cost, make far more extensive photos and make videos and even virtual tours. Even the simplest of costs go up. They meet a potential buyer and take them to lunch or dinner at an expensive restaurant. We have a good friend who is a Sotheby's realtor. She has her own support staff. The more expensive the house or boat, the more effort and longer it will generally take to sell.
  16. NYCAP123

    NYCAP123 Senior Member

    Joined:
    Mar 14, 2008
    Messages:
    9,166
    Location:
    Long Island, NY
    Also, don't forget the cost of showing the vessel, i.e. taking a day or two away from the office, air fare and car service to wherever in the world it's located, hotel............. Depending on the market, many larger boats may languish on ton the market (and require showing) for a year or two or more, and be shown dozens of times. I've noticed that many real estates today won't show you anything until you've been pre-approved for financing. I imagine it's much the same for large vessels.
  17. SeaEric

    SeaEric YF Historian

    Joined:
    Jan 28, 2007
    Messages:
    1,309
    Location:
    Easton, Md./Ft. Lauderdale
    The Florida Yacht and Ship license application involves fingerprints, an FBI background check and a substantial bond. If you don't qualify, you don't get the license.