how much is a yacht broker commission

• Yachting for beginners
• Owning a yacht
• Motor Yachts
• Sailing Yacht
• Indian Ocean
• Mediterranean
• Buying or Selling a Yacht
• Yachting Events
• FAQ – Luxury Yacht Charter
• FAQ – Buying a Yacht
• FAQ – Sell your Yacht
• How Much Does It Cost To Charter A Luxury Yacht?
• All our Blog Post & News

Yacht Brokerage Fees: What You Should Know

Buying or selling a yacht is an expensive process. With higher value boats, a broker is almost always part of it. While you can sell a boat without a broker, unless it’s a small boat on a local cash deal, a broker increases your odds of getting a buyer and a better price.

But what does this cost you? And what are you getting for your money?

What does a yacht broker do, exactly?

Working on a percentage of selling price means that larger yachts have larger fees. While there is room for negotiation, most brokers are reluctant to discount commissions deeply because larger yachts take considerably more time and effort to sell. Brokers will incur more expenses, and it may take quite a while to realize those expenses in a fairly refined yacht market. It’s also harder to attract co-broker interest on discounted commissions.

For lower value boats, most brokers will have a minimum fee. Smaller, older boats still take time and expenses to sell, but much lower sale prices lead to smaller percentage based fees. A minimum ensures the broker doesn’t take a loss on the sale.

Read also: Yacht vs Superyacht vs Mega Yacht: which differences?

Special sales, marketing, and business considerations

The brokerage typically pays selling and marketing expenses, and they recoup those expenses from the brokerage fee. However, certain exceptional third party expenses may be charged to you at closing costs, for example, bank fees, documentation services, and any exceptional legal services from deal complications, such as undisclosed liens.

The listing broker should have a marketing plan, and will spend money to put together a professional sales package and listing. It’s not common, but if an owner makes requests for additional media shoots or special advertising and marketing beyond what the broker normally provides, there may be charges.

Exclusive vs. Open Listings

An exclusive listing gives one broker the right to sell your boat, but an open listing allows any broker to bring a buyer and make a commission. All brokers prefer exclusive listings, and those who take open listings may offer a different commission for an exclusive listing.

Exclusive listings usually work better for both sides, since brokers will spend money marketing and advertising an exclusive listing that they won’t for an open listing. And you may save a little on the commission and get your boat sold more quickly.

Broker Reputation

The best brokers rarely bend on their fees, because they don’t have to. With years of experience in the business, they know how to get deals done in an exclusive market, and they don’t need to induce new listings by discounting price.

Newer brokers or those with less experience or few listings may offer discounted fees to attract business. There’s nothing wrong with their services, and they may sell your yacht with no problem. But a lower commission also affects co-brokers, so other brokers may give your yacht a lower priority if it doesn’t pay as well.

When are brokerage fees paid?

While there isn’t any universal pricing structure for brokerage services, there are a few normal ranges that you can expect to pay for standard service. So look at all the closing paperwork, statements, and invoices carefully. Most brokers are honest, but like any business transaction, it pays to double check for mistakes or intentional up charges.

A sales commission fee is above 10%

Commissions of 10% are typical in buy/sell transactions and are sometimes lower. But it’s rare to see a sales commission over 10% unless it’s on a small boat with a minimum fee. If there are multiple brokers involved, they should split the commission, not add to it, unless you’re informed in advance.

A charter fee is over 20%

While charter fees typically run 15%, they may go as high as 20% if there are multiple brokers involved in a booking. Amounts over that should draw your concern.

Your bill is significantly more than the management contract specifies

The bottom line is what you have in writing. You should always have a written agreement for any brokerage service, and the fee and payment structure should be spelled out exactly. If you can’t match what you’re being charged with to what they agreed to in writing, then you have a problem.

Other sailors and yacht owners have experience with brokers and are usually happy to share the good and the bad. So ask your yachting friends and find out what they’ve been quoted and had to pay.

And don’t be shy about contacting multiple brokers for quotes on any service before you select one. An honest broker will be upfront with you about costs, and won’t try to hide anything or hesitate when pressed for specifics.

Fair fees ranges for yacht brokers

What differentiates a yacht from a superyacht or a mega yacht?

Chartering Requirements and Regulations: A Guide for Boat Owners

What are the Fastest Cruising Catamaran on the Market?

How Much Do Yacht Brokers Make? (Helpful Examples)

Yacht brokers can be a great help when you are looking to buy or sell a yacht.

It’s always nice to know exactly how much they typically make from the sale. This way you can (often) negotiate a better deal and make sure you are not being ripped off!

How Much Do Yacht Brokers Make? The base salary for a yacht broker is typically between $15,000-$30,000. On top of that, a yacht broker typically earns around 10% commission on the sale value depending on the size of the vessel.

Here are the salary and commissions yacht brokers typically make from a sale.

Table of Contents

How Much Do Yacht Brokers Make in Salary?

Depending on who they work for, a yacht broker might make a base salary and commissions on top of that.

If a company is paying a base salary, they are not likely to pay as high of a commission as you would get in a commission only position.

Yacht broker base salaries could range from around $15,000 to around $30,000.

This is not a large amount of money, which is why yacht brokers rely heavily on commission to make their money.

Oftentimes, yacht brokers do not get a base salary and will work solely on commission.

How Much Do Yacht Brokers Make in Commissions?

Because yacht brokers work mainly on commission, you will want to ensure that you have sales skills before you try to make a living as a yacht broker.

Like the real estate industry, yacht brokers usually get the commission paid to them by the seller involved in the transaction.

There are two ways that commission can be calculated, either using a net number or a percentage.

Net Commission Levels:

A net number is when the commission is a set number negotiated with a seller. This means that no matter the price received for the boat, the yacht broker will get paid the amount agreed upon.

There are some pros and cons to this method.

If you have a set commission then you know what you are making up front. This can be ideal if you like having security in your commission.

This also means that if the boat sells for less than you anticipated, your commission will still be what was originally agreed upon instead of decreasing with a low sale.

This also means that unfortunately if you sell the boat for higher than anticipated, your commission will not be increased to reflect the sale amount.

If you are the seller, the pros and cons of using a net commission are reversed. If you sell the boat for a lower amount, you will have to pay more in commission than you might have with a percentage, but if you sell the boat for more than anticipated you will profit more from the sale with a lower commission.

An example of a net yacht commission might be:

• If the yacht does sell for $500,000.00 you would make 10% on the sale.
• If the yacht sells for less, such as $450,000.00 you would make 11% commission.
• If the yacht sells for more, such as $550,000.00 you will only make 9% commission.

Percentage Commission Levels:

A percentage commission is where you get a certain percentage of the sales price of the yacht. This means that your commission will change based on how much you are able to get for the boat.

The downside to this is that your commission is based entirely on how well you do with the sale. If you do not sell the boat for as much as you anticipated, you will make less money.

However, if you end up selling the boat for more than anticipated you will make more.

The majority of yacht transactions use a percentage commission structure. The percentage is often agreed upon between the seller and the broker in advance.

The most common commission for a yacht broker is 10% of the sales price. This is not a number that is set in stone.

An example of a standard commission sale would be:

If you have a yacht that you would like to sell for $500,000 and you have agreed upon a 10% commission your profits could vary:

• If the yacht does sell for $500,000.00 you would make $50,000.00 on the sale.
• If the yacht sells for less, such as $450,000.00 you will only make $45,000.00 from the commission.
• If the yacht sells for more, such as $550,000.00 you would make $55,000.00 from the commission.

Some brokers may offer a lower commission option to bring in sales and stay competitive. These could be between 3%-5%.

One downfall to a lower commission is that it discourages brokers who might have potential buyers. This is because usually, the buying and selling broker split the commission. If a buying broker can show their clients a yacht that would get them a higher commission, they are more likely to do so.

Commission Splitting Levels:

Commissions are typically paid by the seller of the yacht. If the transaction involves two brokers, they often split the commission 50/50.

An example of a split commission could be:

If you have a yacht that you would like to sell for $500,000 and you have agreed upon a 10% commission and there are two brokers the transaction would vary.

• If the yacht does sell for $500,000.00 you and the other broker would make $25,000.00 on the sale.
• If the yacht sells for less, such as $450,000.00 you and the other broker would each make $22,500.00 from the commission.
• If the yacht sells for more, such as $550,000.00 you and the other broker would make $27,500.00 from the commission.

This means that the buyer does not pay commission to their agent and that it comes out of the commission paid to the selling agent.

If a deal is negotiated beforehand it is possible that the commission is split differently. Local brokers that work together often might have a deal set that splits commission 70/30 with 70% going to the selling broker.

You may also have to split commission if you work for a brokerage company or dealership. Brokerage companies or dealerships will likely only give you a percentage of the commission earned.

This amount can range from 30% to 70% of the collected brokerage amount. This number could be affected by base salary and other factors depending on what company you work for.

An example of a commission when working for a brokerage company or dealership might be:

If you have a yacht that you would like to sell for $500,000 and your contract states that you get 70% of the commission per yacht that you sell.

• If the yacht does sell for $500,000.00 the commission would be $50,000.00. You would get $35,000.00 and your company would get $15,000.00.
• If the yacht sells for less, such as $450,000.00 the commission would only be $45,000.00. You would get $31,500.00 and your company would get $13,500.00.
• If the yacht sells for more, such as $550,000.00 the commission would total $55,000.00. You would get $38,500.00 and your company would get $16,500.00.

Even though you make less commission, working for a company is a great way to start your client base. Most people would rather go to a trusted company or dealership than someone working out on their own.

How Do I Become a Yacht Broker?

If this job seems ideal for you, there are some steps that you need to take before you can become a yacht broker.

One way to become more attractive as a yacht broker is to get a degree in marketing or sales. This degree is not required, but a lot of companies will look at candidates who have a higher level of education and some knowledge in these fields.

You will also be more likely to get a job as a yacht broker if you have sales experience.

If you do not have sales experience you should look for entry-level positions that will put you through a training course.

If you cannot find a position in yacht sales, having experience selling other high ticket items, such as cars, will help to show future employers that you have a proven sales record.

In some states, you might be required to obtain a brokerage license. You might also be required to pass a background check before being able to obtain this license.

If you do not need a license, you might benefit from getting certified. Organizations such as Yacht Brokers Association of America can certify you after 3 years of experience. This will help raise your credibility to employers and potential customers.

Overall, with salary and commissions, as a yacht broker, you could make an average of $121,000 per year. This depends highly on location and type of yachts sold. Some yacht brokers even make closer to $300,000.00 per year.

Yacht brokers should be sales motivated and thrive in an unconditional work environment. They do not spend the majority of their time behind a desk. Being a yacht broker can be challenging and highly rewarding!

Click to share...

Brokerage Services and Fees: What You Need to Know When Choosing and Buying a Yacht

Buying a yacht is a significant investment that requires time and expertise. If you lack the knowledge and time, you may need a yacht broker to help you through the process. However, many people confuse the role of a yacht broker with that of a real estate broker. This article explores the role of a yacht broker and the fees associated with buying a yacht.

The Role of a Yacht Broker

Yacht brokers play a crucial role in yacht buying and selling transactions. They have the necessary knowledge and experience to guide clients through the process. Unlike real estate brokers, yacht brokers offer specialized services tailored to the unique needs of their clients. They help with yacht search, brand recommendation, market pricing analysis, condition checks, advertising, and transaction support.

Brokerage Fees

The commission paid to a yacht broker is typically around 10% of the transaction value. However, for yachts costing more than $10 million, the commission is not more than 10%. The commission is usually shared between the buyer’s representative and the seller’s representative on a 60/40 or 50/50 basis. The commission is specified in the agreement between the boat owner and the broker and is paid after the transaction is complete. This motivates the broker to invest in the sale, knowing that their reward depends on it.

Payment and Transaction Process

The payment process for buying a yacht involves two payments. The first payment, usually 10% of the vessel’s cost, is made at the time of purchase. The second payment, which is 90% of the vessel’s cost, is made when all the transaction documents are ready, and the boat is complete. The boat is then removed from the register (if it is a secondary market), and a Bill of Sale is issued. The Bill of Sale is the main document indicating ownership of the yacht, and it is used to register the yacht in the owner’s country or a charter company.

MOA Yacht Purchase Agreement

The MOA contract is the primary contract used in yacht purchases. This contract fully protects the buyer’s rights. It cannot be found or downloaded from the internet, but a broker can provide it upon request. It is essential to read the contract’s terms since it may contain clauses requiring payment of a commission, even if the yacht is not sold.

Brokerage Fees and Negotiation

Large brokerage firms have fixed rates, and negotiation is not usually possible. Small brokers may be more open to negotiation, but this rarely happens since the brokerage community frowns upon it. A drop in one broker’s percentage can lead to a general drop in the market percentage, which is not desirable. Regular clients may receive preferential terms, but becoming a regular client requires owning several yachts.

Choosing and buying a yacht can be an overwhelming task. Working with a yacht broker can simplify the process and ensure a smooth transaction. The brokerage fees are usually around 10% of the yacht’s cost, and they cover a wide range of services, including advertising, condition checks, and transaction support. Before signing any contracts, it is crucial to read and understand the terms, including any clauses requiring payment of a commission, regardless of whether the yacht is sold or not.

Related Posts

Tips for buying a yacht or boat: what to look for before you buy, setting sail: tips for future ship owners, yacht financing: overview of financing schemes in europe.

Type above and press Enter to search. Press Esc to cancel.

How Much Does a Boat Broker Charge? Understanding Brokerage Fees

Understanding Boat Brokerage Fees

When budgeting for the sale or purchase of a boat, it’s essential to consider the fees charged by boat brokers. These professionals facilitate transactions, providing expertise that can be invaluable, particularly in complex sales. Boat brokerage fees are predominantly commission-based, although different structures exist.

Commission-Based Fees : The industry standard commission is typically between 10-15% for new boats and 5-10% for used boats. This figure is calculated on the final sale price of the vessel. For instance, selling a used boat for $100,000 could result in a broker’s commission ranging from $5,000 to $10,000. Alternatively, the sale of a new boat at the same price might incur a commission of $10,000 to $15,000.

In certain scenarios, brokers may charge a reduced commission. Factors that can influence this include the type of the vessel, market conditions, or the broker’s assessment of the transaction complexity.

Flat Fees and Hourly Rates : Some brokers may opt for a flat fee structure instead of a traditional percentage commission, especially when services rendered do not directly correspond to the sales price. There are also cases where brokers charge by the hour , particularly for consultancy outside the scope of a straightforward sale.

It’s crucial to inquire about the fee structure early in the relationship with a broker to ensure transparency and avoid surprises. Moreover, contract terms should be examined carefully to understand any additional costs that may be part of the brokerage service.

Types of Boat Broker Services

In the realm of maritime transactions, boat brokers provide specialized services to both buyers and sellers, ranging from consultation to the handling of the entire sales process.

Buyer Representation

When a boat broker represents a buyer, they are responsible for assisting in the selection and purchase of a vessel. They typically earn a commission of around 2.5-3% of the boat’s purchase price. This service includes searching for boats, arranging viewings, and negotiating with sellers on behalf of the buyer.

Seller Representation

For sellers, a boat broker facilitates the sale by listing the boat, marketing it to potential buyers, and negotiating sale terms. The broker’s commission in this case is usually negotiated but is similarly set as a percentage of the sale price, which can vary depending on the broker agreement.

Full-Service Brokerage

Full-service brokers manage all aspects of the buying or selling process, which includes advertising, handling inquiries, conducting sea trials, and finalizing the negotiations. Some full-service boat brokers may charge more for their comprehensive services, handling everything from the initial listing to the closing of the sale.

Determining Factors for Brokerage Fees

When assessing how much a boat broker will charge, several factors come into play. These include the boat’s value, the broker’s commission rate, and various additional costs associated with the brokerage service.

Boat Value and Price

The value and asking price of the boat directly influence the broker’s fee. A higher-priced vessel often commands a larger absolute commission due to the increased effort and resources required to facilitate a sale.

Brokerage Commission Rates

Brokerage commission rates are not standard and can vary. Brokers typically take a commission ranging from 5% to 10% of the final sale price. For instance, sales of luxury yachts may incur a standard commission of about 10% . The broker’s expertise, reputation, and the services provided can affect this rate.

Additional Costs and Services

In addition to commission, brokers may charge for extra services, such as advertising, sea trials, and survey coordination. These are expenses beyond the basic commission fee , and clients should clarify these potential costs upfront.

Standard Commission Structures

When selling a boat, brokers typically operate under specific commission structures, which are instrumental in determining the cost of their services for sellers.

Percentage-Based Commissions

Boat brokers commonly charge a commission rate based on a percentage of the boat’s selling price. This percentage generally ranges from 10% to 12% . For example, selling a boat at $100,000 can result in a commission fee ranging from $10,000 to $12,000. It should be noted that for luxury yachts or higher-value vessels, the commission rate might be negotiable .

Flat Fee Commissions

In some instances, brokers may offer a flat fee commission structure. This means that the seller pays a predetermined fee regardless of the boat’s selling price. However, this structure is less common in the industry and is typically utilized for lower-cost vessels or services that are more straightforward or limited in scope.

Negotiating with Boat Brokers

When engaging a boat broker’s services , one should be aware that the broker’s fee is typically a percentage of the boat’s selling price . Fees range from a standard of 10% up to 15% for domestic boat sales. However, it is not uncommon for brokers to charge a lower commission of about 8-10% for more expensive vessels.

A buyer or seller needs to understand that broker fees are negotiable . It’s a matter of discussing terms with the broker and agreeing on a commission that reflects the service level expected. It’s best to negotiate this fee upfront before signing any contracts. In some scenarios, depending on the market climate or the unique circumstances of the boat sale, brokers may be willing to adjust their commission .

Here is a quick guide to help you during negotiations:

• Initial Contact : Establish your expectations and ask about standard rates.
• Service Level Agreement : Determine the range of services provided for the fee.
• Experience Level : Consider if the broker’s expertise justifies their rate.
• Volume Discount : If selling multiple boats, ask about a reduced commission rate.
• Closing Costs : Discuss if any additional fees might be involved in the sale process.

Remember, the broker’s fee includes market knowledge, advertising cost, negotiation expertise, and handling of paperwork, which can be highly beneficial for many boat owners. To become more informed about average rates and nuances, it is encouraged to read about how much boat brokers charge and the general working of boat brokerage . With the right approach, clients can ensure they receive fair service for a reasonable commission.

Brokers Vs. Dealerships: Fee Comparison

When purchasing a boat, individuals often consider whether to go through a boat broker or a dealership. Understanding the fee structures of each can help in making an informed decision.

Boat Brokers typically charge a commission for their service. This commission is a percentage of the boat’s selling price. On average, a broker’s commission ranges from 2.5% to 10% . A detailed examination at Boating Buddy reveals that for a $100,000 boat, a broker could charge between $2,500 to $10,000 depending on several factors including service level and negotiation.

Boat Dealerships , on the other hand, might not charge a direct commission. Instead, their revenue is often built into the price of the new or used boats they sell. A dealership may have a higher listing price for a boat compared to what one might find through a broker or a private sale, reflecting operational costs and profit margins. More information on this can be found at Boat Alert Blog .

It should be noted that buying through a broker generally offers a more personalized service which might skew towards the upper end of the commission scale. With dealerships, while the pricing can seem higher, they often include warranties and additional services that can be valuable to the buyer. A comparison at Premier Watersports provides insights into the individual benefits and includes potential added value from each option.

The Impact of Market Conditions on Broker Fees

In the boating industry, market conditions notably influence broker fees. Boat brokers manage the sale, leveraging market trends to set commissions.

Supply and Demand : When the market has a high demand for boats, brokers may see increased transactions, resulting in steadier or potentially higher fees. Conversely, a market flood with boats may drive competition, occasionally leading to lower commissions to attract sellers.

Economic Health : Economic prosperity leads to more disposable income and thus, higher boat sales and standard fees. In economic downturns, with sales slowing, brokers might adjust fees to sustain business.

Boat Type and Value : The yacht’s size and value affect commission rates. It is observed that brokers generally earn a higher percentage on lower-value boats, while sales of luxury yachts, particularly those with prices over $10 million, could cap commissions to stay competitive.

Geographical Variations : Broker fees can fluctuate based on location. Areas with affluent clientele and high yacht turnover might sustain higher fees due to the sophistication of services required.

Brokers must adapt to these conditions to maintain viability while ensuring that their services remain attractive to both buyers and sellers. These elements dictate the balance between fair compensation for brokers and market-driven pricing that reflects the current state of the boating market.

Calculating the Total Cost of Brokerage Services

When it comes to selling a boat , one of the primary costs a seller will incur is the commission for boat brokerage services. Typically, boat brokers charge a commission based on the final sale price of the boat. The standard rate tends to hover around 10% , but it can range between 8% to 10% , with some brokers charging slightly different rates based upon a variety of factors.

To calculate the total cost of brokerage services, sellers should consider the following elements:

• Sale Price of the Boat : The commission is usually a percentage of the final sale price.
• Broker’s Commission Rate : Confirm the rate the broker charges and whether it’s a flat percentage or a sliding scale.
• Additional Costs : Some brokers may include marketing or administration fees on top of the commission.

When estimating the expenses, a boat owner should use a straightforward calculation like this:

Broker’s Commission = Sale Price of Boat x Commission Rate

Total Cost of Brokerage Services = Broker’s Commission + Additional Fees

For a boat selling at $100,000 with a broker charging a 10% commission:

• Broker’s Commission : $100,000 x 10% = $10,000
• Additional Costs (if any): Varies; must be added to the commission
• Total Cost : This will be the commission plus any of these additional costs.

It’s important for sellers to discuss all potential costs upfront with their chosen broker. Some brokers may offer to waive their fee in special circumstances, though this is rare. Always ensure these details are clarified and agreed upon in a written contract before proceeding with the brokerage service.

Frequently Asked Questions

When it comes to boat brokerage, there are essential costs to consider. The fees can vary, and understanding what you might expect to pay or receive is crucial in the process of buying or selling a vessel.

What percentage do brokers generally take as a commission for selling a boat?

Brokers typically charge a commission of 10-12% of the final sales price for selling a boat. If a boat sells for $100,000, the seller could pay $10,000 to $12,000 in broker fees.

Are boat broker fees typically covered by the buyer or the seller?

The seller usually pays the boat broker fees , and they are deducted from the proceeds of the sale.

What is considered a standard commission rate for yacht brokers?

A standard commission rate for yacht brokers is often around 10 percent , but this can vary depending on factors such as the boat’s value and the broker’s policies.

Can negotiating a boat broker’s fee lower the overall cost, and how common is this practice?

Negotiating a boat broker’s fee is possible, and while not routine, some degree of negotiation may occur depending on the circumstances, such as the value of the boat and market conditions.

What financial advantages might one have when selling a boat with the help of a broker?

Selling a boat with a broker can ensure a fair asking price through access to sold boat data, potentially making the process quicker and more profitable.

Is it advisable to engage a broker for purchasing a boat, and what are the associated costs?

Engaging a broker for purchasing a boat is recommended for their expertise in the market and the buying process, with the costs generally factored into the purchase price, not incurring additional direct fees for the buyer.

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.

As an Amazon Associate, I earn from qualifying purchases.

Vanquish Boats

500 Lewis Drive Carolina Beach, NC

+1 910-707-3599

© Vanquish Boats

• Currency: USD | EUR

Who pays the commission amount to the broker, and how much is it?

The commission is paid by out of the yacht charter fee to the yacht charter broker.  Sometimes the yacht will give a discount on a week they want to sell or for repeat guests. Same with a broker.

They may offer a bit off their commission back to repeat clients or add in extras that the yacht does not cover. The commission rate is fairly standard throughout the industry. The yacht pays 15% to the broker on average, sometimes a bit more or less, depending on the week. It could be a bit more if you have a Travel Agent you work with as well as the Yacht Charter Broker.

Read more here

• Previous Post Will different Yacht Brokers have different prices for yachts?
• Next Post How do I reserve a yacht vacation?

Yacht Broker Salary: How Much Does a Yacht Broker Make?

In the wonderful and often luxurious world of yacht ownership, brokers have managed to make a handsome living off of the sales that happen within the industry. These guys facilitate the purchase and sale of yachts, helping with negotiations, inspections, and deliveries to ensure a successful transaction.

And because it’s really no secret how expensive a yacht can be, lots of people assume that yacht brokers make big bucks. But do they? If you’re curious whether you should dip your feet into the cut-throat yacht dealership industry, here’s a sneak peak of what you might own as yacht broker salary.

How Much Does a Yacht Broker Make on Average?

Remember that brokers make money depending on their sales. That is, the more they sell, the more they make. However market studies have found that most yacht brokers will make up to $120,000 a year , especially if they work with high end clients that deal with expensive yacht models.

But although it is possible to make over a hundred grand in a year, it’s not too common. The average salary for a yacht broker actually rests at just under $70,000 a year. That puts them at a weekly salary of about $1,300 to $1,400.

How Much Does a Yacht Broker Make on Commissions?

It’s not easy to find a yacht buyer or seller, and it’s even harder to go through the technicalities of the sale including negotiations. So by stepping in and taking responsibility for the nitty gritty, brokers earn a commission for doing the legwork while the seller enjoys the profits.

The commission percentage itself is not set in stone. Usually, the broker and the seller will decide the size of their cut before the sale happens. The typical commission will see the broker earning around 10% of the sale price . But again, it’s not all that simple.

For starters, there’s what they call ‘net commission’. This simply means that the broker will earn a fixed amount, regardless of whether negotiations change the price of the yacht. For instance, if they’re promised $20,000 in net commissions, they’ll earn exactly that whether or not the yacht sells for its original estimate.

This can be a good deal in case the yacht’s value decreases during appraisal and negotiations. However in the scenario that the yacht sells for more than the original estimate, the broker is left with a fixed commission that will not increase along with the sale price.

They also have the option to go with a percentage commission. As its name suggests, the percentage commission earns you a fixed percentage of the sale price. That is, a yacht that sells for $150,000 will provide the broker with the agreed percentage commission prior to making the sale.

If the seller agreed to a 10% commission, that earns the broker $15,000. In cases when it’s anticipated that the yacht might sell for more than the original estimate, this can be a good deal. But in the event that the watercraft sells for less than the estimate, the broker’s commission also takes a hit.

What are Split Commissions?

Remember that there are two kinds of brokers - the ones hired by the sellers, and the ones hired by the buyers. Obviously, this can complicate the whole commission picture since there are two brokers in the picture.

The listing broker is the guy who helps the seller find a buyer. The selling broker is the one who tries to look for a yacht for sale so his buyer can seal the deal. Most of the time, these guys will take part in a single deal. So what happens to their commission?

Simple -- they split it 50-50. So if the seller decides on a percentage commission at 10%, the brokers will not receive 10% each. Instead, they go halfsies on the 10% commission, which essentially means that they get 5% each.

When Do Yacht Brokers Get Paid?

Sellers don’t want to shell out their money on expensive commissions when they haven’t guaranteed a sale yet. So it’s only fitting that yacht brokers get paid only when the sale has been successfully completed. That means that the buyer should have paid the amount in full before any commission is tendered.

Keep in mind that the yacht industry is for high rollers only. So it’s really uncommon for buyers to take out a loan to pay for their yacht. Most of these buyers pay for their yachts out of their own pockets. That means sellers can get the full amount they expect within a few days or weeks of shaking hands on a deal.

How Much Do Yacht Charter Brokers Make?

There are people who own yachts or super yachts , but don’t really intend to use them for personal enjoyment. These individuals use their yacht as an investment, renting it out to private individuals or companies who want to charter their yacht with a crew .

A yacht charter broker is the guy who helps owners and renters find each other and strike a deal. Keep in mind though that this is a completely separate job from that of a yacht broker . But some brokerage companies will have brokers who perform both roles.

Most of the time, those who work as yacht charter brokers have the potential to earn more since they’re dealing with massive super yachts that can be rented out multiple times in a year, versus a single yacht sale that sort of closes any potential to earn again off of the same watercraft.

What Are the Highest Paying Cities for Yacht Brokers?

Needless to say, not all locations offer reasonable returns for yacht brokers. So if you were hoping to maximize the gains of your efforts, you might want to consider moving to one of these cities that pay the highest for yacht broker services:

• San Jose, California
• Oakland, California
• Tanaina, Arkansas
• Wasilla, Arkansas
• Hayward, California
• Jackson, Wyoming
• Norwalk, Connecticut
• Seattle, Washington
• Vallejo, California
• Concord, California

If money was no object and you don’t really mind leaving behind the life you know and love, then you might want to consider places like the French Riviera, the Greek Islands, or Costa Smeralda, Italy. These places have become exceedingly popular for their lively yachting industry that also makes a great place for a broker hoping to earn a pretty penny off of a sale.

Tips on Becoming a Yacht Broker

Maybe the potential for earning big bucks has you feeling keen on making that career change. But before you decide on actually becoming a yacht broker, there are a few things you might want to take into account to guarantee your success. Here are a few tips on becoming a yacht broker to increase your chances of snagging those sales:

If you’re not familiar with yachts already, now would be the perfect time to brush up on your knowledge. You would expect a car salesman to know what he’s talking about, down to the very last detail of each model and brand of car that he deals with. So the same goes for a yacht broker.

Read up on the different yacht models and brands, and try to find out what each of their selling points might be. If you can, try to see each boat in person to get a better feel of how it performs, and what it might lack that could affect the buyer’s decision.

Look for Certification

Not all states require certification or licenses for yacht brokers, but that doesn’t mean you shouldn’t get one. Those who have these certificates under their belt are in a better position to earn bigger bucks since sellers and buyers feel more comfortable dealing with someone who knows the ropes -- and has the paperwork to prove it.

The Certified Professional Yacht Broker certification isn’t required in any state, but provides aspiring yacht brokers a wealth of knowledge that they can use to provide polished professional assistance to those who might need their services.

Work with Another Broker

Most of those who wiggle their way into the industry first work as an apprentice for another yacht broker. Hanging around someone who has the contacts and the experience should put you at an advantage of learning the ins and outs much faster and more efficiently.

In fact, most people might have to work with another broker for several years before being able to stand on their own two feet. This can also be especially helpful for those who might not have any experience in sales, since the exposure provides much needed understanding on the specifics of negotiations and persuasion.

Get Ready with Your Sales Talk

A yacht broker salary can definitely lure in anyone looking to earn big bucks. But more than just the pay, simply working with the sale of such luxurious watercrafts can make you feel like you’re living the high life alongside those celebrities and public figures that you work for.

No doubt, the yacht broker life can be pretty opulent. And while there might be a bit of a struggle at the start, there’s a whole lot of potential for those who play their cards right and learn what they can from the veterans in the business.

Related Posts

Do Yachts Have Air Conditioning? (Yacht AC Types)

The 10 Best Sailing Movies of All Time

3 Best Watermakers for Sailboats (Reviews & Buying Guide)

How Long Does It Take to Learn to Sail a Yacht? (How to sail)

Service Locator

• Angler Endorsement
• Boat Towing Coverage
• Mechanical Breakdown
• Insurance Requirements in Mexico
• Agreed Hull Value
• Actual Cash Value
• Liability Only
• Insurance Payment Options
• Claims Information
• Towing Service Agreement
• Membership Plans
• Boat Show Tickets
• BoatUS Boats For Sale
• Membership Payment Options
• Consumer Affairs
• Boat Documentation Requirements
• Installation Instructions
• Shipping & Handling Information
• Contact Boat Lettering
• End User Agreement
• Frequently Asked Questions
• Vessel Documentation
• BoatUS Foundation
• Government Affairs
• Powercruisers
• Buying & Selling Advice
• Maintenance
• Tow Vehicles
• Make & Create
• Makeovers & Refitting
• Accessories
• Electronics
• Skills, Tips, Tools
• Spring Preparation
• Winterization
• Boaters’ Rights
• Environment & Clean Water
• Boat Safety
• Navigational Hazards
• Personal Safety
• Batteries & Onboard Power
• Motors, Engines, Propulsion
• Books & Movies
• Communication & Etiquette
• Contests & Sweepstakes
• Colleges & Tech Schools
• Food, Drink, Entertainment
• New To Boating
• Travel & Destinations
• Watersports
• Anchors & Anchoring
• Boat Handling
• ← Boats & Tow Vehicles

What A Yacht Broker Can Do For You

Advertisement

Especially when buying or selling a large boat, the right broker can reduce stress and make the transaction go smoothly and painlessly.

A broker can take the complications out of buying or selling your next boat. (Photo: Michael Vatalaro)

When BoatUS member David Issacson bought his first boat 26 years ago, he searched the newspaper classifieds in the morning (remember those?), located a couple of candidates before noon, and by 3 p.m. wrote the seller a check for $1,000 for a 17-foot boat he took fishing that day. "It was so simple then," he says. "Pretty much like buying a cheap used car. I don't even think I got a bill of sale. It was all done with a handshake." Now that he's retiring, he's looking for his fourth boat, which he says will be much bigger, probably in the 42- to 45-foot range. "I have no idea what it's going to take now. I've never had a boat that was documented or had a loan on it. I don't even think they have classifieds in the paper anymore, and I'm not sure what the process is these days."

Issacson is exactly the type of person who could benefit from using a boat broker. Boat brokers are similar to real-estate agents, but with important differences: They're far less regulated, and their commission is 10 percent rather than six percent. Unlike realtors who must take classes, sit for an exam, and be licensed in every state, only boat brokers in Florida and California have to be licensed and only California requires an exam. In most other states, anyone can call themselves a boat broker. And while all brokers have certain legal responsibilities to their clients, selecting one should be done carefully. Ask around at your marina or boatyard and get referrals from others who have used a broker before. Talk to two or three and get a feel for them, just as you would with a real estate agent. One way to increase your chances of finding the right broker is to look for a Certified Professional Yacht Broker (CPYB). These brokers are members of the Yacht Brokers Association of America (YBAA), have taken a comprehensive exam, have pledged to abide by a code of ethics, and will work with the BoatUS Dispute Mediation Program (see links in sidebar).

If You're Selling

There are several advantages to using a broker, the biggest of which is exposure. Plastering "For Sale" signs in yacht clubs and marinas can't equal the power of a broker's listing, especially with larger boats that have a smaller pool of buyers who may not even be in the same state. Brokers typically list boats through websites such as Yachtworld, which is easily searchable by anyone, anywhere in the world. Only brokers can list boats on the site, which functions much like the Multiple Listing Service for real estate agents.

Here's How A Broker Can Help

If you're the seller, a broker will:.

• Advertise your boat. Brokers should list your boat on Yachtworld and advertise in other places where appropriate. Find out what their marketing plan is and get it in writing.
• Price your boat realistically. Brokers have access to recent sale prices and know a good starting point.
• Prescreen responses to advertising. This will avoid most tire kickers.
• Show your boat to prospective buyers. This will save you from wasting time with buyers who don't show up.
• Communicate all offers from potential buyers to you.
• Negotiate the selling price. This is where brokers can really earn their money.
• Draw up sales agreements and accept deposits. Many brokers can do this electronically over computers, tablets, and even smartphones.
• Arrange for sea trials and schedule surveys.
• Coordinate closing.
• Transfer funds to you. Now you can start shopping for your next boat.

Correctly pricing a boat is critical to getting it sold, and an experienced broker has a very good idea of what a boat will sell for and can price it accordingly. Brokers typically have access to what similar boats have sold for in the local area and they'll prepare a listing based on the kind of boat and type of buyers expected. They'll take photos, write an enticing description, and recommend things to improve the look and marketability of your boat. Brokers can also help you navigate some of the more confusing aspects of selling such as corporate ownership, loan payoffs, bills of sale, and other documents needed for transferring ownership. Aside from listing and advertising the boat, their most important job is helping move the process along once a buyer is found. Brokers can also help a buyer obtain financing and assist with changing the USCG documentation. While the 10-percent commission is usually not negotiable, brokers will sometimes discount it for a sale that might be falling apart because of a survey report or other defects found on a boat. The different listing contracts used by brokers can be confusing, but they're not complicated once you understand the two main types, a central agency agreement and an open listing agreement.

A central agency agreement (sometimes called an exclusive listing) means you've hired a specific broker to sell your boat. With this type of agreement, the broker typically lists your boat on Yachtworld and — this is important — is obligated to sell it through a co-brokerage arrangement. Co-brokerage means that if another broker finds a buyer for your boat, your broker agrees to split the commission with him. This incentive to help each other is why about 70 percent of all brokerage sales are co-brokered. Keep in mind, though, with this type of agreement, even if you bring in the seller or end up donating your boat, you'll still be liable for the broker's commission. The majority of brokerage sales are central agency agreements.

An open listing agreement means you've given more than one broker the right to sell your boat and you also retain the right to sell it on your own. The disadvantage is that because no broker is guaranteed at least a part of the commission, it's not very likely any of them will spend the money to list your boat on Yachtworld or pay for other advertising. There can also be confused communications between multiple brokers and potential buyers. On the other hand, a hungry broker may be more motivated to bring you a buyer because he would get the entire commission. With this type of agreement, if you find your own buyer, you don't owe anyone a commission. For either type, don't be pressured into signing for a longer term than you're comfortable with. Six months is typical, but don't be afraid to ask for less, though a broker typically needs at least a couple of months to generate interest. Usually, you can walk away from any contract after giving 30 days notice. Most agreements automatically renew, so give notice before that if you want to cancel. No matter what kind of listing, ask for biweekly progress reports.

Selling It Yourself

For Sale By Ow ner (FSBO) certainly sounds attractive. Not only do you pocket 10 percent more than if you used a broker, but you're in charge of the whole process. Selling it yourself has drawbacks, however. You won't be able to get the same kind of national exposure a broker can, and you'll be responsible for keeping the boat in top condition and available for showing. And, because most boat shopping occurs on weekends, expect to be tied down during your time off. Finally, like many others, you may simply dislike negotiating. But if you want to save some serious money, BoatUS can help. Our thousands of online classified listings are viewable by anyone, anywhere in the world, and we offer an escrow service that takes the anxiety out of the financial part of the transaction. We also offer members full documentation service, boat financing, comprehensive insurance, and on-water and roadside towing coverage.

If You're Buying

While owners may find the process of selling to be an anxious one, buyers are looking for their next dream boat and are likely to be enjoying looking around, trying to find the perfect fit. But buyers tend to get apprehensive once it comes to plunking down hard cash. This is where a broker can make the process less stressful. Brokers should have a separate bank account for holding deposits and there should be wording in the contract specifying what the sale is contingent upon as well as how and when the money will be returned if the sale falls through.

It's important to remember that the broker in a typical sale is getting paid by and working only for the seller, not the buyer. A broker will try to get the highest possible price (that's what his commission is paid from) and will try to sell his client's boat even if it's not necessarily the best deal for you. You're on your own with negotiations and paperwork advice. You can, however, enter into an agreement with a broker through a buyer's broker arrangement. A buyer's broker will represent you, not the seller. Once they know what you're looking for, they can scour their sources and suggest likely boats for you to view, assist in negotiating a price, and help with the paperwork. Typically, a buyer's broker gets a commission split from the seller's broker so there's no cost to you, but read the agreement before signing.

When it's time to seriously consider a boat, it will need to be hauled out and surveyed — something that's usually paid for by the buyer, though as with anything in a sale, that's negotiable. Never use a surveyor recommended by the broker or seller; it's critical to hire an independent, qualified surveyor (see links, below) who has no stake in the outcome. Not only will the survey uncover needed repairs and deficiencies, it will also establish a fair market value, all of which can be used for negotiations. It will almost certainly be needed for financing and insurance as well.

Useful Links

• Finding a Certified Professional Yacht Broker
• Find a Marine Surveyor
• BoatUS USCG Documentation Service
• BoatUS Financing
• BoatUS Insurance
• Find out if a Florida Broker is licensed

Related Articles

The truth about ceramic coatings for boats.

Our editor investigates the marketing claims of consumer-grade ceramic coatings.

Fine-Tune Your Side Scan Fishfinder

Take your side-scanning fishfinder off auto mode, and you’ll be spotting your prey from afar in no time

DIY Boat Foam Decking

Closed-cell foam flooring helps make boating more comfortable. Here’s how to install it on your vessel

Click to explore related articles

Charles Fort

Contributing Editor, BoatUS Magazine

Charles Fort is BoatUS Magazine's West Coast Editor. He often writes local news items for BoatUS Magazine's Waypoints column and contributes to Reports, in-depth tech features in every issue written to help readers avoid accidental damage to their boats. He is a member of the National Association of Marine Surveyors, he's on ABYC tech committees, and has a 100-ton U.S. Coast Guard license. He lives in California.

BoatUS Magazine Is A Benefit Of BoatUS Membership

Membership Benefits Include:

Subscription to the print version of BoatUS Magazine

4% back on purchases from West Marine stores or online at WestMarine.com

Discounts on fuel, transient slips, repairs and more at over 1,200 businesses

Deals on cruises, charters, car rentals, hotel stays and more…

All for only $25/year!

We use cookies to enhance your visit to our website and to improve your experience. By continuing to use our website, you’re agreeing to our cookie policy.

Frequently asked questions Yacht Brokerage

Advertising strategies for yachts, how to determine the asking price, why exclusively use a brokerage house to list a yacht for sale, sea trial and survey - how they work, what is involved in the administration of selling a yacht, how to make an offer on a yacht , what does a yacht broker do, what is a broker's involvement in after-sales, how do brokers deal with enquires, what is a broker's role to a yacht buyer.

Most brokerage houses have a standard outline plan of how a yacht is to be advertised in the most appropriate media. A broker�s objective is to devise a strategy with the best chances of reaching the most qualified audience for each yacht category. Common methods are e-marketing, online listing access for public viewing, yacht shows, print media, using in-house databases of clients, brokers and representatives all combined with professional "knowhow".

To ensure an appropriate sale, it is essential to ask a fair price. A broker can help establish fair-market value for the yacht through access to actual sold yacht data that is not available to the public.

Yacht broker�s work hard to generate interest and enquires for their yacht listings. They also protect and promote the principles of their clients. Most brokers sign a "Central Agency Agreement" with the owner/seller, providing a secure arrangement between all parties. Brokers will also work co-operatively with most other brokers on a co-brokerage basis. Yacht brokers charge a commission when the yacht is sold, and the commission amount would have been set in writing in the Central Agency Agreement. If another broker brings a buyer to the table on a co-brokerage arrangement, the total commission will normally be shared between the brokers.

A buyer of a pre-owned yacht will usually request a sea trial and the services of a marine surveyor. Buyers pay for the surveys and for hauling the yacht out of the water for inspection. The Broker will usually attend the sea trial and marine survey with their buyer to help determine how to properly address any yacht survey issues and put the problems in context. Part of this includes; estimating time and cost of rectifying and where to obtain accurate quotes for items that are unfamiliar. The Insurance Company will usually require a copy of the survey.

Brokers are familiar with all the paperwork requirements from the initial Offer to Purchase and Bill of Sale to licensing and registration; to paying tax, certificates of ownership, security agreements, and other documents needed to complete a sale. They also understand maritime and admiralty laws for the type of yachts they represent, as well as agency contracts, listing agreements, closing statements, deposit requirements and escrowed accounts to safeguard funds.

Brokers will help their buyer decide on a realistic figure to offer which will increase the chances of buying a yacht for a fair and reasonable price, and together with the necessary elements to protect interests. Once this is done, the broker will prepare a "Letter of Intent or Letter of Offer" ready for the buyer to sign. This document will display the terms of the sale including obligations that you and the seller have agreed to, and when these obligations will be fulfilled. The buyer should then make a good-faith deposit on the yacht, usually placed in escrow, and subject to sea trial and survey.

Most yacht brokers work in a similar way to estate agents. They are representatives consulted to find and purchase yachts, as well as appointed to list, represent, and sell yachts. Traditionally, the seller pays the commissions that a yacht broker earns, yet brokers have a duty to both buyer and seller in every transaction.

Once a yacht is purchased the broker will guide their client through the next stages such as; finding a berth, yacht maintenance, repair specialists, yacht handling, seamanship, sourcing yacht crew, charter management and all other after-sale fundamentals to complete the service package.

A professional broker will listen closely to your requirements and will help you determine if the yacht you are considering is the right yacht, at the best value. Brokers can objectively tell you about the condition of the yacht before you decide whether or not to spend your time inspecting it. They will source and compare similar yachts on (and off) the market, the history of the yacht, how long it has been on the market, and the motivation of the seller. Anyone can look up asking prices on yachts, but it takes a professional broker to have an intimate knowledge of current market conditions, a familiarity of similar yachts, and information on recent sale prices and time on the market through industry resources not available to the public.

Pre-owned yachts are either a "central agency listing" of a yacht broker, or a trade-in from a new yacht dealer. If you are interested in a broker's listing or a trade-in, the listing broker or dealer is likely to know the yacht inside and out. They have been selected by the owner/seller to exclusively represent this yacht and all enquiries must go through this yacht broker or yacht dealer. If you are not already working with a yacht broker, and if you find a yacht on the market of interest, you should contact the listing broker directly. However a more rewarding option might be to select a yacht broker of your own, and consult with that broker about all of your yachts of interest, and let that broker represent you in your enquiries and transactions.

Understanding the Role of a Yacht Broker

The world of yacht buying and selling can be complex and overwhelming, requiring expertise, market knowledge, and a keen understanding of the intricacies involved. This is where a yacht broker comes into the picture.  A yacht broker is a specialised professional who acts as an intermediary between buyers and sellers, assisting them throughout the transaction process and ensuring a smooth and successful experience. 

In this article, we will delve into the role of a yacht broker, exploring their functions, benefits, challenges, and limitations. Whether you are a buyer or a seller in the yacht market, understanding the role of a yacht broker is essential to making informed decisions as to whether they might be helpful to you in achieving your goals.

Qualifications & Regulation of the Yacht Broking Industry

In general, there are no specific educational requirements to enter the field of yacht brokerage and anyone can set themselves up as a broker. However, acquiring certain qualifications and certifications can enhance a yacht broker’s credibility, knowledge, and expertise.

Many yacht brokers choose to pursue professional certifications and memberships offered by industry organisations. For example, in the United States, the Yacht Brokers Association of America (YBAA) and the International Yacht Brokers Association (IYBA) offer certification programs that provide training, education, and professional development opportunities for yacht brokers. These certifications, such as the Certified Professional Yacht Broker (CPYB) designation, demonstrate a broker’s commitment to ethical conduct, professionalism, and industry knowledge. Training does not cover the global marketplace and differences arise between jusrisdictions.

Relevant experience in the marine industry, such as sailing, boating, or yacht management, is also useful. Strong knowledge of yachts, boat construction, navigation, and other related areas is valuable in understanding the intricacies of the industry and providing expert advice to clients.

Regulation of the yacht brokerage industry varies depending on the country or region. In some jurisdictions, there may be specific licensing requirements or regulations in place to ensure ethical conduct and consumer protection. For example, in the United States, individual states may have licensing requirements for yacht brokers, while in the United Kingdom, the industry is regulated by the British Marine Federation (BMF) .

Industry organisations and associations have codes of ethics and standards of practice that their members must adhere to. These codes and standards promote professionalism, integrity, and transparency within the yacht brokerage profession.

Functions of a Yacht Broker

What is the difference between a broker and a dealer.

While a yacht broker and a boat dealer may seem similar, there are key differences between the two. A yacht broker represents the interests of either the buyer or the seller throughout the transaction process. They provide valuable guidance, conduct market research, arrange showings, negotiate prices, and assist with the necessary paperwork. On the other hand, a boat dealer typically represents a specific brand or manufacturer and sells boats directly to consumers. Dealers often focus on new boat sales and may offer additional services such as boat servicing and maintenance.

The Broker’s Role in the Buying and Selling Process – Buyers Broker vs. Sellers Broker

Where employed, the yacht broker plays a vital role in ensuring a smooth and successful transaction. 

A buyer’s broker exclusively represents the interests of the buyer, working diligently to find the most suitable yacht, negotiate the best deal, and guide the buyer through the purchasing process. If you are a buyer, a yacht broker will work closely with you to understand your preferences, requirements, and budget. They will leverage their extensive knowledge of the market to identify suitable yacht options, arrange showings, and guide you through the selection process. Once you’ve chosen a yacht, the broker will assist in negotiating the best price and favorable terms on your behalf, as well as handling the necessary paperwork and legal documentation.

On the other hand, a seller’s broker represents the seller, focusing on marketing the yacht effectively, attracting potential buyers, and negotiating favorable terms on behalf of the seller. If you are a seller, a yacht broker acts as your representative, aiming to secure the best possible deal for your yacht. They will conduct market research to determine a competitive asking price, create professional listings and marketing materials, and promote your yacht through various channels to attract potential buyers. Additionally, the broker will handle inquiries, qualify potential buyers, arrange showings, and negotiate with interested parties. Their goal is to facilitate a successful sale while minimizing your involvement and maximizing your proceeds.

In some cases, a yacht broker may act as a dual-agent, representing both the buyer and the seller in a transaction. However, it is essential to be aware that in dual agency situations, the broker must disclose this relationship to both parties and maintain transparency throughout the process.

What Exactly Does a Yacht Broker Do for a Buyer?

When you engage the services of a yacht broker as a buyer, you can expect them to fulfill several essential roles throughout the yacht purchasing process:

Assess the Client’s Needs and Preferences

A yacht broker will begin by thoroughly understanding your specific requirements, preferences, and budget. They will take the time to discuss your boating goals, desired features, and intended use of the yacht. This allows them to tailor their search and focus on finding yachts that align with your needs.

Conduct Market Research and Identify Suitable Yachts

With their extensive knowledge of the boating market, yacht brokers conduct comprehensive market research to identify suitable yacht options. They have access to a wide network of listings, both publicly available and exclusive, enabling them to present you with a range of yachts that meet your criteria.

Facilitate Yacht Showings and Surveys

Once potential yachts have been identified, the broker will coordinate yacht showings, providing you with the opportunity to view and assess the vessels of interest. They will accompany you during these visits, offering insights and answering any questions you may have. Although they can also arrange for a professional marine survey to ensure the vessel is in good condition, a buyer should remember that the surveyor he chooses works for him, the buyer, and is completely independent of the broker. It is best practice for the buyer to select the surveyor – the broker should be able to supply a full list of surveyors working in the area for you to choose from – and allow the broker to coordinate the arrangements for the pre-purchase survey itself.

Negotiate Prices and Terms

One of the key roles of a yacht broker is to negotiate on your behalf. They possess in-depth market knowledge and negotiation skills, allowing them to secure the best possible price and favorable terms for you. They will advocate for your interests throughout the negotiation process, ensuring you achieve the most advantageous outcome.

Assist with Paperwork and Legal Documentation

Yacht transactions involve a significant amount of paperwork and legal documentation. Your yacht broker will guide you through this process, ensuring that all necessary documents are completed accurately and efficiently. This includes contracts, registration, title transfer, and other relevant paperwork to finalise the purchase.

Provide Expert Advice and Guidance

A yacht broker is your trusted advisor throughout the buying process. They can provide valuable insights and expert advice, drawing on their extensive experience and knowledge of the boating industry. Whether it’s selecting the right yacht, evaluating pricing, or navigating complex legal aspects, your broker is there to support you every step of the way.

By performing these crucial tasks, a yacht broker acts as your advocate and partner, making the yacht buying process smoother, more efficient, and ultimately more rewarding. Their expertise and dedication help ensure that your yacht purchase aligns with your needs and preferences while providing peace of mind throughout the entire transaction.

What Does a Yacht Broker Do for a Seller?

When you enlist the services of a yacht broker as a seller, they take on various responsibilities to help you navigate the yacht selling process efficiently and effectively. Understanding the key tasks they perform on your behalf will highlight the value they bring to the table.

Prepare Sales Particulars and Photographs of the Vessel

A yacht broker will gather detailed information about your yacht, including its specifications, features, inventory and history. They will create compelling sales particulars highlighting the yacht’s strengths and appealing to potential buyers. Additionally, brokers will take high-quality photographs that showcase the vessel’s aesthetics and key selling points.

Conduct Market Research and Agree on a Suitable Listing Price

Yacht brokers have a deep understanding of the market and current trends. They will conduct market research to determine a competitive and realistic listing price for your yacht. By analysing similar yachts currently on the market, recent sales data, and other market indicators, they can guide you in setting an appropriate price that attracts potential buyers.

Yacht brokers take on the task of coordinating yacht showings and inspections with potential buyers. They arrange viewings at mutually convenient times, ensuring that interested parties have the opportunity to see your yacht firsthand. During these showings, the broker will present the vessel professionally and answer any questions that arise. They will also coordinate the pre-purchase survey to assess the yacht’s condition.

As experienced negotiators, yacht brokers are skilled at representing your interests during price and terms discussions. They will handle the negotiation process on your behalf, aiming to secure the best possible price and favorable conditions for the sale. Their market knowledge and expertise in negotiating can be instrumental in achieving an optimal outcome.

Manage Transfer of Payments

The management of escrow for the seller is not always within the direct scope of responsibilities for a yacht broker, however, many have access to an Escrow account as part of their activities and do undertake this role. Escrow services, which involve holding funds or documents in a secure account until specified conditions are met, are otherwise handled by a third-party escrow agent or a trusted closing lawyer.

In the yacht selling process, the buyer and seller may mutually agree to use an escrow account to hold the funds until the completion of certain conditions, such as the satisfactory completion of documentation and transfer of title. This helps ensure a secure and transparent transaction for both parties.

Yacht sales involve a considerable amount of paperwork and legal documentation. Your yacht broker will guide you through this process, ensuring that all necessary documents are completed accurately and in compliance with relevant regulations. They will handle contracts, transfer of ownership, title documentation, and other paperwork required to finalize the sale, ensuring a smooth and efficient transaction.

A yacht broker is your trusted advisor throughout the yacht-selling process. They provide expert guidance and insights based on their industry knowledge and experience. From preparing your yacht for sale to evaluating offers and strategizing marketing efforts, they offer valuable advice to help you make informed decisions at every stage.

By taking on these responsibilities, a yacht broker acts as your representative and advocate, streamlining the selling process and maximizing your chances of a successful sale. Their expertise, market insights, and professional network contribute to a smoother transaction, allowing you to focus on other things while entrusting the sale of your yacht to their capable hands.

Checking a Vessel’s Title

A yacht broker’s role includes checking the clear title and identifying any liens or secured loans associated with the vessel; however, the extent of their investigation may vary.

Yacht brokers typically conduct a preliminary check on the boat’s title and documentation during the listing process when they request relevant documents from the seller, such as the vessel’s registration, ownership history, and any recorded liens or encumbrances. They may also utilise online resources or databases to gather information about the boat’s title status.

While yacht brokers strive to ensure the accuracy of the information provided, it’s important to note that they may not conduct a comprehensive title search like a specialised maritime attorney or title company would. Their primary focus is on assisting with the transaction and ensuring a smooth process for the buyer and seller.

A yacht broker should encourage buyers to conduct their due diligence and seek professional assistance when necessary to ensure a clear title and mitigate any potential risks associated with the purchase.

If a potential buyer is concerned about the boat’s title and wants a thorough examination, it is advisable for them to seek the assistance of a maritime attorney or a title company that specialises in vessel documentation. These professionals have the expertise and resources to conduct a detailed search, examining public records, lien databases, and other relevant sources to determine the boat’s title status and identify any potential issues.

How Are They Paid?

Yacht brokers are typically paid through a commission-based structure. When a successful sale is made, the broker receives a percentage of the final sale price as their compensation – this is typically 8% in the UK and 10% elsewhere in the world.  The specific commission rate can vary depending on various factors, such as the size and value of the yacht, local market practices, and the agreement between the broker and the client.

This sum can be quite considerable, with a payday of $100,000 on the sale of a $1m vessel.

The commission rate is usually negotiated and agreed upon between the yacht broker and the boat owner (seller) before the listing is finalised. It is important for both parties to have a clear understanding of the commission structure and the associated terms.

In the case of a yacht sale, the seller is responsible for paying the commission to the broker. Upon the completion of the sale, the broker’s commission is deducted from the proceeds of the transaction. The remaining amount is then disbursed to the seller.

It’s worth noting that the commission is typically calculated based on the final sale price, including any additional costs or upgrades that may be negotiated as part of the sale; this may also be lower if adjustments to the price have been made following the pre-purchase survey.  The commission serves as the primary source of income for yacht brokers and is designed to align their interests with achieving the highest possible sale price for the seller.

It is important for both buyers and sellers to clarify the commission structure and any additional fees with the yacht broker upfront to avoid any misunderstandings or surprises during the transaction process. 

Benefits of Using a Yacht Broker

Advantages for yacht buyers.

Engaging the services of a yacht broker offers numerous advantages for buyers in the yacht purchasing process. The following are some key benefits to consider:

Access to a Wide Range of Yacht Options

Yacht brokers have an extensive network and access to a broad inventory of yachts, including both listed and unlisted vessels. This grants buyers the opportunity to explore a wide range of options that align with their preferences, requirements, and budget. Brokers can present you with a curated selection of yachts that match your specific criteria, saving you time and effort in your search.

Time and Effort Savings

Searching for the right yacht can be a time-consuming and demanding task. By leveraging their expertise, brokers narrow down the options based on your preferences, saving you the hassle of sifting through countless listings and facilitating a more efficient yacht search.

Negotiation Skills and Financial Savings

Brokers have an understanding of the market value and current pricing trends, allowing them to negotiate favorable terms on your behalf. Their negotiation skills can potentially lead to financial savings by securing a lower purchase price or favorable conditions, ensuring that you receive the best value for your investment.

Expert Knowledge and Guidance

Yacht brokers possess comprehensive knowledge of the boating industry, including various yacht models, brands, and market trends. Their expertise allows them to provide valuable insights and guidance throughout the buying process. 

Assistance with Paperwork and Legal Processes

Yacht brokers are well-versed in the necessary paperwork, contracts, registrations, and other legal requirements. They can guide you through these processes, ensuring that all documents are accurately completed and submitted in a timely manner. Their familiarity with the legal aspects of yacht sales minimizes the risk of errors and provides peace of mind.

Benefits for Yacht Sellers

The following benefits highlight the value that a broker brings to the yacht-selling process:

Broader Exposure and Marketing Reach

Yacht brokers have access to a wide network of potential buyers, industry contacts, and marketing platforms. They employ marketing strategies to showcase your yacht to a larger audience. By leveraging their connections and utilising various advertising channels, brokers can enhance the visibility of your yacht, increasing the likelihood of finding interested and qualified buyers.

Professional Listing and Advertising Services

Yacht brokers provide professional listing services to present your yacht in the best possible light. They know how to highlight the key features, specifications, and unique selling points of your yacht through compelling descriptions and high-quality photographs. A professional presentation enhances the appeal of your yacht to potential buyers.

Pricing Advice and Market Expertise

Determining the optimal asking price for your yacht can be a complex task. Yacht brokers provide pricing advice based on current market conditions, recent sales data, and the specific attributes of your yacht. Their guidance ensures that your yacht is competitively priced, attracting potential buyers while maximizing your chances of achieving a sale.

Screening and Qualifying Potential Buyers

Yacht brokers take on the responsibility of screening potential buyers to ensure they are qualified and serious about the purchase and have the financial capability to complete the process. They have experience in discerning genuine buyers from casual inquiries, helping you avoid time-wasting or unreliable prospects.

Assistance with Negotiations and Closing the Sale

Yacht brokers use their expertise to secure the best possible price and favorable terms. They handle the back-and-forth negotiations, providing guidance and advice to protect your interests. Additionally, brokers assist in navigating the closing process, ensuring that all necessary paperwork and legal documentation are properly completed.

Qualities and Skills of an Effective Yacht Broker

To be an effective yacht broker, certain qualities and skills are essential for success in the industry. These attributes enable brokers to provide exceptional service and ensure a positive experience for both buyers and sellers. 

Extensive knowledge of yachts and the yachting industry

Yacht brokers must possess comprehensive knowledge of different yacht types, brands, models, and their respective features. This includes understanding the technical aspects, performance capabilities, and maintenance requirements of various yachts. Staying updated with the latest industry and pricing trends , advancements, and regulations is crucial for providing accurate and up-to-date information to clients.

Strong communication and interpersonal skills

Effective communication is vital in building relationships with clients, understanding their needs, and articulating information clearly. Yacht brokers should be skilled communicators who can listen attentively, ask pertinent questions, and provide concise and relevant information. Interpersonal skills, including empathy, professionalism, and the ability to establish trust, are also essential for establishing rapport and fostering positive relationships with clients.

Excellent negotiation and sales abilities

Yacht brokers are responsible for negotiating prices, terms, and conditions on behalf of their clients. Possessing strong negotiation skills allows brokers to advocate for their clients’ interests effectively. A successful broker understands the dynamics of negotiation, employs persuasive techniques, and strives to achieve the best possible outcome for both parties involved. Additionally, having solid sales abilities helps brokers market yachts effectively, attract potential buyers, and close successful sales.

Attention to detail and organizational skills

Yacht transactions involve numerous details, documents, and deadlines. Yacht brokers must exhibit meticulous attention to detail to ensure accuracy in paperwork, contracts, and other essential documentation. They should possess strong organizational skills to manage multiple listings, client inquiries, and various aspects of the buying and selling process simultaneously. Being well-organized allows brokers to deliver a high level of service and ensure that nothing falls through the cracks during the transaction.

Trustworthiness and integrity

Trust is a fundamental aspect of the broker-client relationship. Yacht brokers must operate with the highest level of integrity and ethical standards. Clients rely on their brokers to act in their best interests, maintain confidentiality, and provide unbiased advice. Demonstrating trustworthiness and ethical conduct establishes long-term credibility and fosters strong relationships built on transparency and integrity.

By embodying these qualities and skills, an effective yacht broker can provide clients with exceptional service, professional guidance, and a positive experience throughout the yacht buying or selling process. 

Challenges Faced by Yacht Brokers

The yachting industry is subject to market fluctuations influenced by economic conditions, global events, and trends. Yacht brokers need to adapt to these changes and stay updated on market dynamics to provide accurate advice and make informed decisions on behalf of their clients. They must navigate through both seller’s and buyer’s markets, adjusting strategies accordingly.

When supply is short, finding the exact yacht that meets all client requirements can be challenging, requiring extensive research, networking, and potentially longer search periods to identify suitable options.

Yacht brokers occasionally encounter demanding clients with high expectations or challenging personalities. Great brokers possess strong interpersonal skills and the ability to navigate difficult negotiations while maintaining professionalism and a focus on achieving mutually beneficial outcomes. They strive to manage client expectations, mediate conflicts and ensure a positive experience for all parties involved.

Yacht brokers typically earn their income through commissions based on the final sale price of a yacht. While this incentivises brokers to negotiate the highest possible sale price, it may also create potential conflicts of interest. Some buyers may be concerned that brokers could prioritise higher commissions over their best interests. It is important for clients to communicate their expectations and ensure transparency with their broker openly.

Finding the Best Yacht Broker for Your Needs

Not all brokers have equal expertise or experience; the yacht brokerage industry comprises professionals with varying levels of expertise and experience. Not all brokers possess the same depth of knowledge or extensive networks. It is essential for clients to carefully select a reputable and experienced yacht broker who understands their specific needs, has a strong track record, and can provide the desired level of service.

Word of mouth is the best recommendation.

Disadvantages of Using a Yacht Broker

While utilizing the services of a yacht broker offers numerous benefits, it is important to consider potential drawbacks and limitations associated with relying on a broker. 

Commission Fees

Yacht brokers typically earn their income through a quite substantial commission based on the sale price of the yacht. This commission is a percentage of the final sale price and is paid by the seller. Buyers may find that this commission is factored into the overall price, potentially resulting in higher prices. Similarly, sellers should be aware that the commission reduces their net proceeds from the sale. It is important for both buyers and sellers to consider the financial implications and evaluate the value provided by the broker’s services.

Limited Control Over & Lack of Involvement in the Buying or Selling Process

Relying on a yacht broker means relinquishing some degree of control over the buying or selling process. Brokers are responsible for making decisions on behalf of their clients, such as negotiating terms and handling paperwork. While brokers strive to act in the best interests of their clients, there may be instances where clients would have preferred more involvement or different approaches. Clear communication and setting expectations can help address concerns regarding control and ensure a collaborative working relationship with the broker.

Potential Conflicts of Interest

As commission-based professionals, yacht brokers may face potential conflicts of interest. While brokers aim to prioritize their clients’ best interests, there is a possibility that their own financial gain could influence decision-making. Clients should openly communicate their expectations, including any specific concerns related to conflicts of interest, to ensure transparency and maintain trust throughout the process.

It is worth clarifying that while these potential drawbacks exist, they may not be applicable or significant in every situation. The value of a yacht broker’s services should be assessed based on individual circumstances, including the complexity of the transaction, personal expertise, time constraints, and comfort level with the yacht buying or selling process. Each buyer or seller must evaluate their specific needs to make an informed decision about whether to engage a yacht broker.

A good yacht broker can save you a LOT of time and effort in buying or selling a boat, but there can be a high price to pay in the form of commission on the selling price. In the end, whether to engage a yacht broker or not depends on your personal circumstances, preferences, and level of comfort with the yacht buying or selling process.

With such high sums at stake on a single transaction, it’s easy to see that lower-value vessels might have less attention than expensive ones; check the inventory of your local brokers and choose accordingly.

ABOUT THE AUTHOR

Sam Bartlett is an IIMS Surveyor, a Commercial Skipper of sailing boats, and a boat owner for over 30 years. She lives in St Martin in the Caribbean and provides yacht surveys, skippering and marine consultancy throughout the Caribbean.

1 thought on “Understanding the Role of a Yacht Broker”

• Pingback: Buying a Hurricane Damaged Boat

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Buying a Boat

Boat Ownership

Selling Your Boat

Sailing Holidays

Yacht Surveys

Professional Skippering

Consultancy

Phone: +590 690 688855

SIRET: 881 391 445 00015

Address: 75 Rue de Sandy Ground Marigot St Martin 97150 French West Indies

© 2021 Capitaine Sam

Privacy Policy | Terms Of Service

How much commission does a yacht broker make?

Table of Contents

Yacht brokers play a crucial role in the boating industry, assisting both buyers and sellers in the transaction of luxury yachts. One of the most common questions among those aspiring to become yacht brokers or those looking to engage their services is: How much commission does a yacht broker make? Let’s dive into this question and explore the factors that influence a yacht broker’s commission.

1. What is a yacht broker?

A yacht broker is a professional who acts as an intermediary between buyers and sellers of yachts, facilitating the purchase, sale, or charter of these vessels.

2. What determines a yacht broker’s commission?

The primary factor that determines a yacht broker’s commission is the final selling price of the yacht. Typically, the commission is a percentage of the final sale price, and this rate can vary.

3. How much is the typical commission rate?

While the commission rate can differ, it is customary for yacht brokers to receive a 10% commission on the final sale price of a yacht. However, this rate can be negotiable and may vary depending on various factors.

4. Are there cases where the commission rate deviates from 10%?

Yes, there are instances where the commission rate may deviate from the standard 10%. Factors like the type, size, and value of the yacht, market conditions, and the relationship between the broker and client can influence the commission rate.

5. Can the commission rate change within the same transaction?

In some cases, there may be a tiered commission structure in place. For example, the commission rate might be 10% on the first portion of the sale price and 5% on any amount exceeding that. This arrangement incentivizes brokers to strive for higher sale prices.

6. Who pays the commission?

Traditionally, the seller pays the commission to both the listing broker (representing the seller) and the selling broker (representing the buyer). This practice ensures that the buyer’s broker is incentivized to find the best yacht available in the market.

7. Does the buyer have any financial obligations towards the broker?

As a buyer, you do not directly pay the broker’s commission. However, indirectly, the commission is factored into the yacht’s selling price, which is eventually borne by the buyer.

8. Are there any additional fees that the buyer should be aware of?

Apart from the commission, buyers must consider other expenses such as taxes, registration fees, survey costs, and any required repairs or modifications to the yacht.

9. Are all yacht brokers equally skilled?

Yacht brokers, like professionals in any industry, have varying degrees of experience and expertise. It is essential to research and find a qualified broker who has a solid track record in the yacht market.

10. Can a yacht broker represent both the buyer and the seller?

Yes, a yacht broker can act as a dual agent, representing both the buyer and the seller in a transaction. However, the broker must disclose this dual agency to both parties and provide fair and equal representation to each.

11. Do brokers only work with luxury yachts?

While many yacht brokers specialize in luxury yachts, there are brokers who handle smaller boats and vessels as well. It’s advisable to find a broker who has expertise with the specific type of yacht you are interested in.

12. How can I become a yacht broker?

To become a yacht broker, you typically need to obtain the necessary licenses and certifications. Additionally, gaining industry experience and building connections is valuable for success in this profession. Research the requirements in your region and consider apprenticeships or training programs to kickstart your career.

In conclusion, the commission earned by a yacht broker is generally a percentage of the final selling price, typically ranging around 10%. However, various factors can influence the commission rate, such as the size, type, and value of the yacht, market conditions, and negotiation between the parties involved. It is recommended to consult with multiple brokers and clarify the commission structure before entering into a yacht transaction.

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

• Yachts Crazy by Jennifer
• May 7, 2020

How Much Does It Cost To Hire A Yacht Broker?

Updated: May 13, 2020

Hiring a yacht broker can actually save you time and money. They are excellent at negotiations and can help you find the best deal.

Yacht Broker Commissions

Yacht Brokers get a commission when selling a boat. The standard commission is 10% of the final selling price. However, their commission becomes negotiable for yachts that sell at higher prices. Yacht broker services are no cost to buyers.

A yacht broker who represents a buyer will try to match that buyer to one of his or her exclusive listings because they will receive a 10% commission from the seller. If the broker does not have a listing that is desirable or suitable for the buyer, the broker will look for yachts that are available for co-brokerage. This means that the listing broker is willing to split his commission with the buyer's broker.

How Do Brokers Save You Money?

Yacht brokers provide a number of services. They:

Negotiate the best deal, saving you money upfront and later.

Search for your ideal vessel saving you time.

Take care of the paperwork necessary to close the deal

Prepare and show your listing

Organize repairs, surveys, mooring, cleaning, and other services

Bring buyers and sellers to the table by enlisting their agency network'

Have access to advertising sites and materials not available to the public.

Know how to get the best deals on financing and taxes

Plus much more

Yacht brokers ensure that you sell your boat faster, putting that much needed money back into your pocket right when you need it most. If buying, they make sure your experience is fun and exciting and completed in a timely manner. Just in time for that special occasion.

Recent Posts

Voted Best Yacht Broker Miami Beach Florida

How I went Yachts Crazy ...

14 Fun activities while boating ...

Hondros College

Average Starting Salary for Real Estate Agents in Ohio

June 18, 2024 | allie gellner - hondros college contributor.

When considering a new career, the first step is determining whether the industry aligns with your interests and skills. If you’ve already decided that real estate is the right industry for you, it’s time to get started! However, a key question for anyone contemplating a career change is, “What is the average starting salary for real estate agents in Ohio?”

Salaries in real estate are unique because agents typically earn negotiable commissions rather than a fixed salary. This structure appeals to many, as it offers the potential for unlimited income. Commission sales are particularly attractive to those who have previously worked hard without significant financial reward. However, this also makes it challenging to predict an average starting salary. So, let’s explore the entry-level real estate agent salary in Ohio.

Key Takeaways: Entry-Level Real Estate Agent Salary in Ohio

• The average salary for real estate agents with 1 to 3 years of experience is $39,100.
• A real estate agent’s income depends on various factors, including location, expertise, brokerage commission split, and market conditions.
• The entry-level real estate agent salary can be maximized by following best practices.

Overall Expectations for Real Estate Starting Salaries

Starting salaries in real estate can differ significantly based on numerous factors, such as whether you work full-time or part-time, your geographic location, your specialization (residential, commercial, luxury, etc.), the company or brokerage you join, and your particular role. After all, only some people in real estate work as commissioned salespeople. You might instead find a position as an appraiser, a property manager, or within a real estate development firm.

Let’s take an in-depth look at the factors that influence the income of beginning real estate agents.

Average Starting Salaries for Real Estate Agents in Ohio

The average starting salary for real estate agents in Ohio with 1 to 3 years of experience is $39,100, according to the 2023-2024 Ohio Real Estate Salary Guide . Find out more interesting statistics, such as how income changes with the number of hours worked, by downloading this free report .

Factors Influencing Real Estate Agent Salaries

Here are some factors influencing an agent’s starting salary.

1. Location

A real estate agent’s commission is usually tied to the property’s sale price. So, agents in Cincinnati’s Terrace Park tend to make more per transaction than those working in areas with lower real estate prices. However, location is not the only factor affecting a first-year agent’s income. Agents who sell many residential properties or focus on the commercial market can succeed regardless of location.

2. Experience and expertise

As you look through the income report, you’ll see that real estate agents with 11-25 years of experience report significantly higher incomes than those just starting. This is expected since experienced agents generally have a more extensive network and client base, making it easier for them to find leads.

Additionally, agents specializing in investment and commercial properties report higher earnings than those in other niches. This doesn’t necessarily mean that new agents in Ohio should avoid residential real estate. However, honing in on a specific niche could be a strategy to increase income.

3. Brokerage agreement and commission structures

Another critical factor in determining your first-year earnings as a real estate agent is your agreement with your brokerage. New agents often must give a more significant portion of their commission to the brokerage in exchange for training and resources. This percentage typically decreases as agents gain independence.

4. Market conditions

Lastly, market conditions also impact an entry-level real estate agent’s salary. Interest rates, housing inventory, global events, and home prices can affect earnings. Similar to most industries, real estate goes through ups and downs.

However, postponing obtaining your real estate license until the market is perfect is not advisable. It’s better to build your brand and network so you are prepared to take advantage when the market heats up in your area.

FAQ: How much do real estate agents make per sale?

Real estate agents don’t have a fixed commission rate, as it’s always negotiable. Traditionally, both buyers and sellers agents have earned between 2% and 3% of the property’s sale price, which is then shared with their brokerages. Alternatively, some real estate agents charge a flat fee for their services rather than basing their income on the sale price.

Strategies for Maximizing Earning Potential Your First Year

If you are starting your real estate license courses or have already passed your licensing exam, do yourself a favor and sign up to receive Hondros College’s Real Estate Career Starter Kit . Our kit contains actionable strategies to maximize your earning potential immediately.

Here are a few of the topics our starter kit covers:

Building a Strong Online Presence: Establishing a professional online presence is easier said than done. However, we’ll teach you how to leverage your existing contacts, which is a great way to get started in the industry.

Networking Effectively: Networking not only helps you connect with potential clients, but it’s also essential to establish connections with other agents and industry professionals, leading to referrals and business opportunities.

Targeting Niche Markets: While there’s undoubtedly high-income potential in residential real estate, you may focus on luxury, investment, or commercial properties.

Focusing on Education and Training: Hondros College offers the classes you need to get licensed, renew your license, and upgrade your license. We also offer courses that help you grow your business. Hondros College provides in-person, livestream, and at-your-own-pace online real estate license courses . We have helped hundreds of thousands of agents from all over the region.

Contact a career advisor today to learn more about how Hondros College can help you get your real estate license and earn more than the average starting salary for a real estate agent.

Launch Your Career

Select your education program

Select your state, select your course, have a question call us at 1-888-hondros or chat with us. we’re here to help, you are now leaving hondros.com.

Receive instant access to our FREE Blueprint to Becoming A Real Estate Agent eBook.

Receive instant access to our FREE Blueprint to Becoming A Real Estate Appraiser eBook.

[gravityform id=”62″ title=”false” description=”false” ajax=”true”]

[gravityform id=”61″ title=”false” description=”false” ajax=”true”]

[gravityform id=”64″ title=”false” description=”false” ajax=”true”]

Receive instant access to our FREE Blueprint to Becoming a Mortgage Loan Officer eBook.

• WEATHER ALERT Heat Advisory Full Story
• WEATHER ALERT Excessive Heat Watch Full Story

24 people charged in money laundering scheme involving Mexico's Sinaloa cartel, prosecutors say

A five-year investigation by U.S. officials has uncovered a complex partnership between one of Mexico's most notorious drug cartels and Chinese underground banking groups in the U.S. that laundered money from the sale of fentanyl, cocaine and other drugs, federal prosecutors said Tuesday.

Associates of the powerful Sinaloa Cartel conspired with the Chinese groups to cover up more than $50 million in drug profits, much of which was processed in the Los Angeles area, the prosecutors said in a news release.

Two dozen people have been charged. Chinese and Mexican law enforcement helped arrest fugitives who fled the United States after they were initially charged last year.

"This investigation shows that the Sinaloa Cartel has entered into a new criminal partnership with Chinese nationals who launder money for the cartels," Drug Enforcement Administration official Anne Milgram said at a news conference.

The lead defendant is Edgar Joel Martinez-Reyes, 45, of East Los Angeles, who prosecutors said had managed couriers who picked up drug cash in the Los Angeles area. Martinez-Reyes partnered with the leader of the Chinese money launderers, and traveled with him to Mexico to negotiate contracts with the cartel, authorities said.

Martinez-Reyes' attorney did not immediately respond to an email and call seeking comment.

Prosecutors said the scheme relied on the huge demand for U.S. currency from wealthy Chinese nationals, who are prohibited by their government's capital flight restrictions from transferring more than $50,000 per year out of China.

According to the authorities, a person in China would move money into the seller's Chinese bank account and receive the dollar equivalent in the U.S. for use in purchasing real estate, luxury items, and paying tuition. They said cryptocurrency transactions were also used to move the drug money, adding the funds in China are used to buy such goods such as chemicals for making fentanyl and methamphetamine that are then sent to the drug cartels in Mexico.

The Chinese money brokers charged a much smaller percentage commission fee than traditional money launderers and provided overall cheaper methods than previous ways of moving money, such as smuggling truckloads of cash across the U.S.-Mexico border or going through banks and businesses, according to the officials.

"When I talk about a cycle of destruction, the drugs being sold here in the United States are then being used to fund precursor chemicals which will be used to make even more drugs that are sent into our country," Estrada said.

Federal law enforcement has worked closely with the Ministry of Public Security in China since the meeting last November between President Joe Biden and Chinese leader Xi Jinping in Woodside, California, according to Estrada.

At least 22 of the 24 defendants have been arrested, Estrada said. Their charges include one count of conspiracy to aid and abet the distribution of cocaine and methamphetamine, one count of conspiracy to launder monetary instruments, and one count of conspiracy to operate an unlicensed money-transmitting business.

Most of those in custody will be arraigned in the U.S. District Court in Los Angeles in the coming weeks, the news release said.

Authorities said law enforcement also seized about $5 million in drugs, including just over 300 pounds (135 kilograms) of cocaine and 92 pounds (41 kilograms) of methamphetamine as well as other drugs and several firearms.

Related Topics

• MONEY LAUNDERING
• DEPARTMENT OF JUSTICE
• ILLEGAL DRUGS
• U.S. & WORLD

Top Stories

Suburban liquor store employee killed during robbery ID'd: authorities

• 29 minutes ago

2 girls on WaveRunner killed in crash with boat in Antioch

• 8 minutes ago

Chicago violence victims' families promote summer of peace

• 34 minutes ago

Owners visit business as huge blaze destroys West Town pallet yard

Man charged in NW Side sexual assault: CPD

• 2 hours ago

Rapper Remy Ma's son arrested for murder

Parents should let go of guilt over screens, an expert explains

• 37 minutes ago

Man shot during West Side robbery: Chicago police

About E*TRADE

• Overall Rating
• Pros and Cons
• How to Invest

How E*TRADE Compares

• Why You Should Trust Us

E*TRADE Review 2024

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

E*TRADE is for active investors interested in low-cost stock, ETF , and options trading. The online brokerage's managed and automated portfolios, called E*TRADE Core Portfolios, may also be a good choice for passive investors. A disadvantage, however, is that infrequent options traders will pay more for options contracts.

Business Insider's personal finance team compared E*TRADE to the best investing apps and found it to be an industry leader. In fact, we named it the best investing app overall.

The brokerage provides three free trading platforms: Power E*TRADE, E*TRADE Web, and E*TRADE Pro.

$0 ($500 Core Portfolios)

0% (0.30% Core Portfolios)

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No commissions on US-listed stocks, options, and exchange-traded funds
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Wide selection of investments available for most accounts
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Thousands of no-load, no-transaction-fee mutual funds available
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive mobile and online offerings for digital investors and traders
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 support and live chat
• con icon Two crossed lines that form an 'X'. Need at least $500 for automated investment management
• con icon Two crossed lines that form an 'X'. Infrequent traders pay more for options contracts

E*TRADE is a great fit for frequent traders interested in low-cost stock, ETF, and options trading. The brokerage also offers a robust mobile app for Apple and Android devices, and it supports less active investors through its managed and automated portfolio offerings.

E*TRADE is an online brokerage, now part of Morgan Stanley, offering various account and investment options geared mainly for hands-on investors and small businesses. Passive investors can also benefit from E*TRADE's automated Core portfolios, as it is one of the best robo-advisors for mobile.

The brokerage has no account minimum and provides commission-free trades on US-listed stocks, ETFs, and mutual funds. But you can also trade bonds, CDs, IPOs , and futures. If you're new to investing, E*TRADE has a plethora of interactive charts, over 100+ technical studies, market trackers, and beginner-focused guides.

You'll get access to commission-free trading on E*TRADE, as well as paper trading, a portfolio analyzer, and a rebalancing tool. E*TRADE also allows margin trading , which comes with its own array of margin calculators and analyzer tools. But it doesn't offer tax-loss harvesting features.

Is E*TRADE Right for You?

E*TRADE for beginners and experienced traders provides online brokerage, retirement, and investing services for all kinds of investors. E*TRADE offers IRAs, individual brokerage accounts , small-business retirement accounts, managed investment accounts, and automated portfolios.

E*TRADE's Core portfolios (aka the brokerage's robo-advisor ) are best for long-term, passive investors with a time horizon of at least one year. The brokerage is a great choice for mutual funds, offering more than 6,000 transaction fee-free funds.

But you'll need at least $500 for robo-advice, and its 0.3% robo-advisory fee isn't as competitive as similar platforms. Moreover, you can't trade cryptocurrencies

E*TRADE: Overall Rating

E*TRADE Pros and Cons

You can't invest in crypto directly with E*TRADE, but you can invest in crypto-linked stocks and ETFs .   

Is E*TRADE Trustworthy?

We consider Better Business Bureau ratings when assigning "ethics" ratings, and the BBB has given E*TRADE an F in trustworthiness, the lowest possible score. 

However, the bureau also says on its website that its ratings don't guarantee a company's performance or reliability.

On February 1, 2024, a lawsuit filed on behalf of Sergey Burmin and Kereneth W. Luke alleged that E*TRADE and parent company Morgan Stanley underpaid interest rates on cash holdings in users' retirement accounts as much as 500 times under the federal funds rates. This could create a conflict of interest between account holders and the bank. This case is still pending, and E*TRADE and Morgan Stanley have not responded to these allegations. 

The Financial Industry Regulatory Authority (FINRA) alleged that E*TRADE did not have adequate safeguards to prevent manipulative trading on stocks and futures from December 2016 to 2021. In 2022, E*TRADE agreed to pay FINRA $350,000 to settle the claims . 

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low minimum
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low-cost socially responsible and smart beta ETFs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy user interface
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Compatible with multiple brokerage and retirement accounts
• con icon Two crossed lines that form an 'X'. Relatively high management fee
• con icon Two crossed lines that form an 'X'. No option to work with human advisor unless you have at least $25,000 (Blend Portfolios)
• con icon Two crossed lines that form an 'X'. No tax-loss harvesting
• Promotion: Get up to $3,500 when you open a new brokerage account by October 31, 2022.

Ways to Invest with E*TRADE

Self-directed brokerage accounts .

With an E*TRADE self-directed brokerage account, you can trade without any account minimums or commissions on stocks , ETFs, and options. E*TRADE provides three free trading platforms: Power E*TRADE, E*TRADE Web, and E*TRADE Pro.

You'll also have access to a wide selection of mutual funds, futures, bonds , IPOs, and certificates of deposit (CDs). E*TRADE offers roughly 6,000 mutual funds.

E*TRADE also gives minors investing access through its custodial brokerage accounts. Parents or designated custodians can manage these accounts, and they come with $0 commissions, tax advantages, and investment education tools. 

Core Portfolio Automated Accounts

If you're a passive investor or fan of automated advice (aka using a robo-advisor), E*TRADE's Core Portfolios could be right for you. Though more expensive than the standard brokerage accounts, these accounts provide personalized and automated portfolio management. 

You'll need at least $500 to set up the account and pay an asset-based annual fee of 0.30%.  The Core Portfolios account draws from the combination of automated technology and oversight from E*TRADE experts.

The E*TRADE Core Portfolios account uses one type of investment: ETFs. The brokerage uses asset classes that strive to generate high returns over the long haul (usually a minimum of three years), and it gives you the option of socially responsible ETFs or smart beta ETFs (smart beta ETFs are funds that aim to outperform the stock market).

In addition, E*TRADE says it selects ETFs by analyzing things like historical performance, liquidity, tracking error, and expenses. For instance, E*TRADE automated investing offers specialized portfolios for goals such as wealth-building, retirement-saving, or buying a home.

As for account type eligibility, individual, joint, and custodial brokerage accounts qualify for Core Portfolios. Rollover, traditional, Roth, and SEP IRAs are also eligible. You can adjust your risk tolerance — and add or remove specific investing focuses — at any time.

Retirement Savings Accounts

E*TRADE also provides retirement savings accounts for its users. You can take advantage of several IRAs , or even roll over your 401(k) or employer-sponsored retirement plan. E*TRADE also offers the option to open retirement accounts online, by phone, or by mail. 

Its retirement accounts include the following: rollover IRAs , Roth IRAs, traditional IRAs, beneficiary IRAs, E*TRADE Complete IRAs, and IRAs for Minors. 

An E*TRADE Complete IRA is a retirement account for investors older than 59 1/2. You must have an existing E*TRADE IRA to open a Complete IRA. Plus, you can make penalty-free withdrawals at any time. 

Coverdell ESA

The E*TRADE ESA allows you to set aside funds for your child for kindergarten through graduate school. You can make annual contributions of up to $2,000 with the account and use federal tax-free withdrawals on qualified education expenses.  You can sign up for this account if your income is below $110,000 (for single filers) or $220,000 (for joint filers).

E*TRADE also gives minors investing access through its custodial brokerage accounts. Parents or designated custodians can manage these accounts, and they come with $0 commissions, tax advantages, plus additional E*TRADE investment options and tools. 

E*TRADE Client Base

E*TRADE's services are available to active and passive investors , registered investment advisors (RIAs), stock plan participants, and stock plan administrators. 

When it comes to RIAs, E*TRADE serves these professionals two ways — through Liberty, its custodial platform, and the E*TRADE Advisor Network. The Liberty platform allows advisors to manage clients' accounts, and the E*TRADE Advisor network uses referrals to connect independent advisors with prospective clients.

Investment Options

With E*TRADE, you can invest in US-listed stocks, bonds, mutual funds, ETFs, options, futures, IPOs, and CDs. There are commission-free trades on stocks, ETFs, and options. Also, a majority of mutual fund trades have no trading fees. 

E*TRADE Fees

An E*TRADE self-directed brokerage account, including retirement account options, doesn't require any account minimum to start investing. However, E*TRADE Core Portfolios require a $500 minimum to open an account. 

Bond trades will cost you $1 per online secondary trade, and E*TRADE charges up to $0.65 per options contract ($0.50 if you make 30 trades per quarter). Futures contracts are $1.50 per contract.

Core Portfolios have a flat annual advisory fee of 0.30%. 

Core Portfolios Account Setup and User Interface

The account setup process is pretty simple with Core Portfolios. E*TRADE asks you a series of questions about your goals and preferences, and its algorithm creates a personalized ETF portfolio that aligns with your risk tolerance.

The first question — which asks about your investing goals — gives you three options: simply build wealth, save for retirement, or target a specific goal (you can adjust your goals, investment timeline, or risk level at any time). Core Portfolios then asks how much you plan to invest initially.

To learn more about your risk level, E*TRADE provides a graph showing the hypothetical returns of a $100,000 investment.

As indicated above, the best-case one-year returns for a $100,000 initial investment would be roughly $124,000.

E*TRADE — Frequently Asked Questions (FAQs)

E*TRADE is an online brokerage offering financial and investment services suitable for beginner and experienced investors. Trade multiple asset classes in retirement, custodial, and automated brokerage accounts equipped with advanced charting tools and expert-curated investment strategies. 

E*TRADE differentiates itself from other online brokerages by offering unique investment funds and providing account holders with access to extensive market research, analysis tools, and competitive pricing, Not only does E*TRADE's robust investment tools make it appealing to experienced traders, but its user-friendly interface makes it an attractive option for beginners. 

A regular E*TRADE brokerage account has no minimum requirement and 0% trading fees, but Core Portfolios requires a $500 minimum deposit with a 0.30% annual management fee. There are no commission fees for online US-listed stocks, ETFs, mutual funds, and options. Additional fees are applied to options, bonds, and futures trades.

E*TRADE suits beginner investors because of its user-friendly interface, low fees, simplified trading strategies, and commission-free trading. Educational resources for investors at E*TRADE include access to helpful learning tools like guides, webinars, and videos on investing basics and market trends. 

E*TRADE offers advanced trading tools for experienced investors, like charting and analysis tools to mitigate portfolio risk, customizable chain views, custom scanners, paper trading, and technical pattern recognition. 

E*TRADE vs. TD Ameritrade

Both E*TRADE and TD Ameritrade are suitable for all types of investors since each brokerage offers a wide selection of self-directed brokerage accounts, managed accounts, IRAs, and other wealth-building products.

However, TD Ameritrade no longer offers its managed accounts to new customers after it was acquired by Schwab. but E*TRADE still allows new clients to sign up for its Core Portfolios automated account. If you open a TD Ameritrade account, you'll have to set up an automated account through Charles Schwab.

TD Ameritrade review

E*TRADE vs. Betterment

Betterment could be an even better (and less expensive) option if you're solely set on automated advice. Not only does its digital plan have a $0 minimum requirement and 0.25% fee, but it also offers socially responsible portfolios, crypto portfolios, and multiple other options. 

E*TRADE caters to more types of investors, though, since it gives you a wider range of account options and investment types. You'll be limited to automated investing with Betterment. 

Betterment review

Why You Should Trust Us: How We Reviewed E*TRADE

We examined E*TRADE investing app using Personal Finance Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 0 and 5. 

Investing platforms offer multiple assets, trading tools, fees, and other resources. Some investing platforms are better for more advanced or active investors, while others may better suit beginner and passive investors. E*TRADE was evaluated with a focus on how it performed in each category.

• Credit cards
• Investing apps
• Retirement savings
• Cryptocurrency
• The stock market
• Retail investing

• Main content