Dear Catamaran Enthusiasts,
When purchasing a catamaran, it’s natural to consider using a buyer's broker. However, my experiences with commission-based brokers have shown me that this traditional approach can sometimes hinder rather than help the process. Here’s why I chose a different path and how it can benefit you.
The Problem with Commission-Based Brokerage
In any commission-based model, the broker's primary incentive is to close deals quickly and at the highest possible price. This can create a conflict of interest where the broker's goals do not align with yours. My first encounter with this issue was in real estate when I realized that the listing broker had little interest in my deal, favoring his own clients where he wouldn’t have to split the commission with my friend, who was also my buyer's broker. The result? I found myself sweating through negotiations, unsure if I was getting the best service or if the listing broker was negotiating with someone else at the same time for a full commission. Fortunately, it turned out well, and I purchased a lovely family home within walking distance of the beach in New Zealand that we still own today. However, I swore I wouldn’t use a buyer's broker next time.
This concern carried over when I began searching for a catamaran. Despite multiple brokers vying for my business as buyer's brokers, I chose to bypass them and deal directly with listing brokers. But hang on—what is a buyer's broker? A buyer's broker is a real estate or yacht broker who represents the interests of the buyer in a transaction. Their role is to help the buyer find, evaluate, and negotiate the purchase of a property or vessel, typically earning a commission paid by the seller or through a shared fee arrangement with the seller's broker. Their primary responsibility is to advocate for the buyer, ensuring they get the best possible deal, although their commission-based compensation can sometimes create conflicts of interest and reduce the number of purchasing options available to their client.
By eliminating the middleman, I discovered "Coco," a Leopard 48 catamaran in Tahiti, which I purchased for a great price. This approach ensured that the transaction was straightforward, with no conflicting interests to cloud the process.
A New Approach to Catamaran Shopping
Later, I took a job working as a yacht broker with a company that also had an educational arm, which seemed more focused on client care—a philosophy I thought matched my own. However, I soon witnessed firsthand the drawbacks of the traditional buyer's broker model. Clients often missed out on excellent boats because listing brokers didn’t want to share commissions. Even worse, some brokers didn’t respond to inquiries at all if they knew they had to split the fee. When I suggested a different structure to my employer, focusing on client needs rather than commissions, my ideas were dismissed.
This experience led me to launch my own firm, Catamaran Mentor, where I work for my clients on an hourly rate. This model eliminates any conflict of interest, allowing me to focus solely on what’s best for you. I’m not driven by the size of the deal or the speed at which it closes. Instead, I guide you through a comprehensive process to find the perfect catamaran, whether it’s a hot listing, a private sale, or an off-market opportunity.
Why I Don’t List Boats for Sale
A key aspect of my approach is that I don’t list boats for sale, despite being asked to. Listing boats would create a conflict of interest, as it would pressure me to prioritize the seller's needs over yours. By not listing boats, I can ensure that my sole focus remains on finding the best possible catamaran for you, free from any external pressure to close a sale. This commitment to avoiding conflicts of interest is at the heart of how I operate, ensuring that your needs always come first.
The Importance of Access and Flexibility
In the yacht industry, listings are often circulated to a broker’s own client list before being advertised publicly, as brokers aim to secure sales without sharing commissions. This means that clients using buyer's brokers are often left with a diminished pool of options, prolonging their search for the right catamaran. Additionally, traditional brokers shy away from private sales because they don’t earn commissions from them. My approach, on the other hand, ensures that every option is on the table, including those that might be overlooked by a commission-driven broker.
By working on an hourly rate, I’m able to offer more flexible services. Whether you need help with inspections, negotiations, or simply want advice, I’m here to provide unbiased support tailored to your needs. This transparency builds trust and ensures that you’re making informed decisions every step of the way.
Florida Brokers: A Balanced Perspective
Let’s do some balanced reporting and consider a few potential positives of using a buyer's broker. When shopping for catamarans myself, I traveled to Florida to explore options and get a feel for the size and type of catamaran I wanted to purchase. This is what many buyers do, but it often results in burnt-out Florida brokers who have spent time and energy showing catamarans, only for the buyer to purchase elsewhere or never buy at all. As a result, Florida brokers often have little interest in showing you boats unless you’re submitting a contract or genuinely seem ready to buy.
Florida is also a large place, and catamarans are stored by owners at significant distances from one another, making it challenging for listing brokers to show multiple boats without considerable travel time. Therefore, it’s understandable that a Florida broker might try to sign you up as a buyer's broker client to increase their chances of earning something in exchange for showing you around catamarans in Florida. This might be worth considering if you’re certain about purchasing in the Florida market, as walking on catamarans during the early stages of shopping is very helpful, albeit demanding on a broker’s time and energy.
Educating and Empowering You
My goal is to educate and empower you throughout the buying process. I take the time to explain market trends, teach you how to evaluate boats, and offer insights that you might not get from a traditional broker. This not only helps you find the right catamaran but also equips you with the knowledge to make confident decisions. The result is a purchase that truly aligns with your needs, without the pressure of a sales commission influencing the outcome.
Ready to Navigate Your Catamaran Buying Journey with Confidence?
As the yacht buying industry evolves, more buyers are turning to models like mine that prioritize client satisfaction over commissions. This approach represents the future of catamaran buying, where trust, transparency, and tailored service are paramount. Whether you’re a first-time buyer or a seasoned sailor, this model adapts to your needs, providing reliable support in any market condition.
Find out more about my mentoring process here: Catamaran Mentor Flyer
Let’s connect! Schedule a brief, complimentary discovery call to discuss your catamaran goals and learn how I can help you find a great one.
Regards
Peter Rollo MBA
WhatsApp text or calls +64 21 222 6944
https://www.trawlerforum.com/threads/disadvantage-of-buyers-broker.56029/
A week or two after writing this blog, I saw a real estate friend venting on Facebook about an unprofessional agent. He explained that he was helping a buyer view and assess a property when, suddenly, the listing agent disappeared and stopped responding. Frustrated, my friend called out the agent's behavior as unprofessional.
I had a hunch about what had happened. I suspected the listing agent didn’t want to share commissions with him as the buyer’s agent. So, I sent him a private message asking, “Was the issue that the listing agent didn’t want to split the commission with you?” His reply: “Yes, exactly.”
This is just another example of a deal falling apart because of the buyer's broker. In…