Frequently Asked Questions

In the United States, the traditional model of yacht brokerage commissions is typically structured around a percentage of the sale price of the yacht. This model has established itself as an "implied standard" within the industry, with commissions paid by the seller to the broker(s) who facilitated the transaction between the buyer and the seller.

The commission is typically paid at the closing of the sale, after the yacht has changed hands and funds have been transferred.

The commission is often split between two brokers: the listing broker, who represents the seller, and the selling broker, who represents the buyer. The commission rate can vary, but it typically ranges between 5% to 10% of the yacht's sale price, with the total commission being divided equally or in another agreed-upon proportion between the two brokers.

For example, if a yacht sells for $1 million and the agreed commission is 10%, the total commission would be $100,000, with each broker potentially receiving $50,000, assuming an even split. From there, each "side" has its own split between the salesperson and the brokerage firm they are affiliated with, oftentimes 50/50, so the two individuals each get to keep $25,000 of gross revenue.

In the traditional commission model, sellers pay the entire commission to their broker regardless of broker representation for a buyer. In the Current Yachts model, the buyer-side broker compensation is only due when a buyer-side broker is present in the transaction.

While the traditional model is based on the aforementioned 10% structure, commissions are not always fixed. The commission rate can be negotiable, especially for higher-value yachts or in a competitive market. Brokers may agree to a reduced commission rate to close a deal, particularly if the seller is offering a high-value yacht or if the broker is confident of making a quick sale. In some cases, a flat-rate commission may be agreed upon, particularly for smaller yachts or less expensive transactions, but percentage-based commissions remain the industry norm.

Similarly, higher price yachts often reflect a sliding scale of commissions that may look like this:

10% up to $10 million; 5% thereafter up to $20 million; and 2.5% thereafter for each subsequent $10 million in selling price.

In the traditional yacht brokerage model, the commission is typically paid by the seller of the yacht, although it is often factored into the overall sale price. This means that the buyer usually does not directly pay the commission, but it is included in the cost of the yacht.

In most cases, the seller agrees to pay the brokerage commission as part of the terms when they list their yacht for sale with a broker. This is a common industry practice typically outlined in the listing agreement between the seller and the broker. The broker, in turn, shares a portion of the commission with the buyer's broker (if there is one).

The buyer does not usually pay the broker's commission directly. However, the commission is built into the sale price of the yacht. For example, if the seller agrees to pay a 10% commission on a $1 million yacht, the $100,000 commission will often be factored into the asking price. In practice, the buyer may indirectly bear some of the commission costs, as it is common for yachts to be priced in a way that accounts for the brokerage fees.

Remember: While the buyer typically does not pay the commission directly, it is often factored into the overall price of the yacht. This model aligns with the broker's role in helping the seller sell their yacht and ensuring a successful transaction.

Consumers have long argued that the commission structure and actual representation of their interests lack transparency. Meanwhile, sellers have expressed frustration at a percentage model that yields high commission expenses and places the burden of both sides of the transaction on their shoulders.

What's more, even if a buyer is not represented by a broker, the listing broker facilitating the transaction usually pockets the entire commission – as much as 10% of the sale price of the yacht.

A note of caution: When buyers seek the assistance of a buying broker, unlike in the real estate industry, they do not sign a representation agreement formally making them a buyer agent. They are de-facto a sub-agent of the seller – which is not in the interest of the buyers.

As evidenced in the recent lawsuit surrounding real estate transactions and more recently, the yachting industry's class action controversy that sparked in early 2024, consumers are fed up and ready for a change. Are you?

Yacht brokers offer invaluable expertise in the boating industry, drawing on their deep knowledge of boat models, performance, and market value to match buyers with the right boat for their needs and lifestyle. Their extensive industry connections, including relationships with other brokers and access to exclusive listing systems, increase the likelihood of finding the perfect boat or buyer. Brokers also provide accurate valuations, ensuring boats are priced appropriately to attract serious buyers, preventing the risks of underpricing or overpricing.

In addition to these services, brokers manage efficient marketing efforts, promoting boats through advertising, online listings, and boat shows, while handling inquiries, qualifying potential buyers, and arranging showings. Their skilled negotiation abilities help facilitate smooth transactions, addressing issues creatively and preventing minor problems from derailing deals. Brokers also guide both parties through the complexities of the transaction, such as organizing showings and surveys, managing contingencies, and supporting you with the legal and regulatory steps of the sale. At Current Yachts, your broker will also offer support with financing and yacht insurance when necessary.

To safeguard both buyers and sellers, brokers ensure funds are held in a trust account, protecting against financial risks like outstanding loans. Their adherence to a professional Code of Ethics fosters a trustworthy and fair environment, reducing the risks typically associated with private transactions. Moreover, brokers prioritize building long-term relationships, offering ongoing support for future boating needs. Overall, brokers simplify the buying and selling process, creating a smoother, safer, and more successful experience for all parties involved.

At Current Yachts, you will enjoy the support and professional expertise of a full-service yacht broker for a sensible cost.

Selling a yacht independently ("for sale by owner") presents considerable challenges and risks. Owners are solely responsible for time-consuming and intricate tasks such as pricing, marketing, negotiation, trust account management, and documentation. This approach also carries the risk of undervaluing the vessel or failing to reach potential buyers due to limited marketing and networking capabilities. Navigating the complexities of legal and financial aspects, including contracts and taxes, without professional guidance can lead to costly errors and delays.

Conversely, utilizing a yacht broker offers significant benefits. Brokers provide industry knowledge, accurate valuations, and broad marketing reach through their networks, connecting sellers with qualified buyers and ensuring optimal pricing and exposure. Their negotiation expertise helps achieve favorable terms, while they manage paperwork, logistics, and financial transactions, streamlining the selling process. Furthermore, brokers offer deposit protection for secure transactions. By providing professional guidance and adhering to ethical standards, a competent broker mitigates risks, simplifies the sale, and increases the probability of a successful outcome.

The listing broker is responsible for marketing the yacht, negotiating the sale, and handling the paperwork and logistics related to the transaction. This broker often invests in advertising, professional photography, and showcasing the yacht at boat shows or other events if applicable to attract potential buyers.

The listing broker also works to secure a buyer by networking, facilitating showings, and guiding the seller through the sale process.

The buyer's broker – also referred to as the selling broker or buyer's agent – represents the buyer, helping them find the right yacht, arranging showings, and negotiating the terms of the sale. In reality, representation agreements are rarely signed between a broker and a buyer. At Current Yachts, we identify them as buyer-side brokers, since they are in fact sub-agents of the listing broker.

While most buyer-side brokers have no fiduciary duties to the buyer, reputable brokers will choose to serve their buyer's interest ethically, advising them on the technical aspects of the yacht, ensuring that the purchase process proceeds smoothly, and liaising with the listing broker to finalize the deal. Depending on where their buyer is in their research, the buyer-side broker may play an important role in accompanying their client in choosing the right boat.

Oftentimes, buyers browsing boats for sale will contact a broker not knowing with certainty who the listing agent is. Depending on the website, they may be engaging with the listing broker or a co-broker looking to represent the buyer in the purchase.

The listing broker is motivated to see the vessel sold, and will prioritize the interests of their seller over a potential buyer's interests, since their fiduciary responsibility lies with the sellers.

Keep this in mind when deciding to work directly with a listing broker as an unrepresented buyer, or choose to identify a buyer-side agent. They are often instrumental in getting the best deal and in addressing any concerns identified during a survey.

A buyer is called "unrepresented" when they opt out of a broker representing their interest in the transaction. When a buyer presents an offer to a yacht listed with Current Yachts, the seller will save the buyer side commission and may choose to pass along the savings to the buyer as they deem appropriate.

While sensibly priced, the Current Yachts model is not a discount brokerage approach. Instead, we offer full-service brokerage with a proven track record and expertise in the yachting industry. The team at Current Yachts prides itself on delivering results for our clients while protecting the seller's equity. It's that simple.

When you choose Current Yachts, you'll find:

• Yacht brokers who provide specialized knowledge and expertise that are critical for both buyers and sellers. This includes understanding the technical aspects of the vessel, from engine specifications to sail performance, as well as transaction specifics like documentation and registration, marine surveys, and yacht financing.

• An international team well-versed at handling complex negotiations, contracts, inspections, and logistics. This expertise often ensures that buyers avoid costly mistakes, and sellers achieve the best possible sale price.

• Top-notch marketing: yachts require significant marketing efforts to reach the right audience. With our service-based approach, you'll tap into professional photography, virtual tours, premium advertising online and at targeted events.

• A network of marine professionals and potential buyers worldwide, thanks to decades of relationship building in the yachting industry and luxury goods market.

With our approach, yacht sellers only pay for the services they require, and we keep our Selling Expense as low as possible to protect their equity.

Instead of paying for up to 10% in brokerage commission with a traditional brokerage house, Current Yachts offers "a la carte" listing services, so you'll only pay for the services you choose, as well as a Selling Expense due at closing.

The Selling Expense is your largest expense when selling your yacht with Current Yachts. It is deducted from the proceeds of your sale at closing to compensate your broker for their time, knowledge, and expertise, as well as the tools and resources employed to sell your yacht.

We have developed a sensible Selling Expense schedule for yacht sellers: create your account to access our Seller Calculator and determine your Selling Expense. This cost is set at the time you list with Current Yachts and will not fluctuate afterwards – even as the selling price of your vessel may change.

While a traditional yacht brokerage commission is often excessive in proportion to the sale price, we've found that our Selling Expense compensates our brokers fairly for the extensive services they provide – expertise, marketing, negotiation, and risk management – while saving our sellers money!

We believe it is a seller's choice to offer their vessel for co-brokerage. For this reason, we make sure our clients understand what co-brokerage is and how it works.

Keep in mind that the absence of a buyer-side commission is likely to steer other brokers away from showing your vessel. As Current Yachts grows, we intend to disrupt the traditional commission structure towards a more service-based compensation which will be uncomfortable to legacy brokerages.

We generally recommend opening your listing to co-brokerage and offering a commission of 4% to remain competitive while the market processes the disruption that Current Yachts is bringing to the yachting industry.

As a buyer, if you find that the broker representing your interests is keeping you away from a boat listing that appears to be a good match for your search criteria – but may not fit within the traditional framework of a high commission – this may be a red flag. Ask yourself if your interests are second to your broker's income.

No, a member of Current Yachts can expect premium brokerage services from a Licensed and Bonded Employing Yacht Brokerage Firm. The only difference is you will save a lot of money – and pay for some listing services of your choosing before your boat sells.

See how the Current Yachts model stacks up against traditional commissions.

You may certainly list your yacht with Current Yachts no matter where you reside or what region the boat is located. Local taxes, fees, VAT, duties may apply to your specific region. Your Current Yachts broker will expertly help you navigate the local specifics to your region.