Understanding the Brokerage Process
A comprehensive guide to selling your yacht through Current Yachts
The Brokerage Process
The yacht sales process follows a similar path whether sold privately or through a broker. It begins when a seller decides to list their vessel for sale. In a private sale (For Sale By Owner), the seller handles all aspects themselves, while with a broker, they have professional representation throughout the process.
When two brokers are involved in a transaction, this situation is called co-brokerage. Though rarely discussed, co-brokerage is your choice when listing your boat.
Learn more about co-brokerage.
Listing & Showings
Once the boat is listed, interested buyers will inquire about the vessel. They typically ask detailed questions about the boat's condition, maintenance history, and specifications. If interested after initial discussions, buyers will arrange to view the vessel. For brokered sales, the broker coordinates showings and accompanies potential buyers, while private sellers must handle showings themselves.
Purchase and Sale Agreement
When a buyer wants to move forward, they present a written offer, typically through a Purchase and Sale Agreement (PSA). This agreement includes the proposed purchase price and terms, usually with an expiration date of 2-3 days. The agreement is normally contingent upon a satisfactory survey, trial run, and mechanical inspection. If the buyer plans to finance the purchase, a financing contingency is also included.
Deposit and Financing
Upon reaching an agreement on price and terms, the buyer provides a deposit, usually 10% of the purchase price, which is held in escrow by a third party or the buyer's broker. The buyer then has a specified period (typically 2-4 weeks) to complete inspections. During this time, they select and hire a surveyor, arrange for a haul-out if needed, and coordinate a trial run. For financed purchases, the buyer also begins their loan application process, if not already started.
Survey
The survey day involves a thorough inspection of the vessel, including a trial run. The surveyor produces a detailed report of findings, which the buyer may use to either accept the vessel as-is, reject it, or request repairs or price adjustments based on discovered issues. Prior required disclosures are used to mitigate any surprises.
Acceptance or Rejection of the Vessel
Once the buyer accepts the vessel, the transaction moves toward closing. The seller may need to complete agreed-upon repairs, while the buyer finalizes financing and insurance arrangements. A documentation agent or maritime attorney handles the vessel's documentation transfer and final closing paperwork. The entire process from accepted offer to closing typically takes 10-14 days after vessel acceptance.
Throughout this process, the main difference between private and brokered sales is the level of support and expertise available. Brokers handle the complex documentation, coordinate with various parties, manage the escrow process, and guide both parties through potential challenges. Private sellers must manage all these aspects themselves or hire individual professionals as needed.
Why list your boat with a broker
Selling a boat with a broker offers numerous advantages, including access to industry expertise, accurate boat valuations, and extensive marketing reach. Your Current Yachts broker will use their network to connect with serious buyers, ensuring your boat is priced correctly and receives maximum exposure across multiple platforms. Their negotiation skills help secure favorable deals, while they handle paperwork, logistics, and financial arrangements, making the process smoother.
Brokers also provide escrow protection, ensuring secure transactions. With our professional guidance and ethical standards, your Current Yachts broker will reduce your risks, simplify the selling process, and increase the likelihood of a successful sale.