Selling Your Boat: Broker, Private Sale, Consignment or Dealer Trade-In

Whatever route you choose, start with a number backed by evidence: recent comparable listings, the J.D. Power and BUC values, and an honest condition adjustment (our valuation guide walks through it). BoatUS notes that in a stable market, asking prices typically run about 6% to 10% above what boats actually sell for. A broker or a valuation survey can help when comps are scarce.

• Broker: BoatUS describes 10% of the selling price as the traditional commission, sometimes negotiable, with minimum fees that can run from about $2,500 to $7,000 to cover marketing. In return you get marketing reach, access to sold-price data, buyer screening and a managed closing.
• Private sale: no commission, but you pay for ads, answer every call, show the boat, run the trial, and handle the money and paperwork yourself.
• Consignment: a fee or percentage set by the dealer; terms vary widely, so get them in writing. Works well for small trailer boats a broker may not want.
• Trade-in: BoatUS explains the offer will be below market value because the dealer has to store, finance and resell the boat at a profit. In exchange, you get a firm number right now, and a dealer that regularly takes trades may be able to work around a loan you still owe. Ask whether your state taxes only the difference between the new boat and the trade.

A rough rule: the bigger and more valuable the boat, the more a broker earns its fee. For a small, easy-to-show trailer boat near home, a private sale often makes sense.

Discover Boating suggests choosing a broker who is a member of the Yacht Brokers Association of America or a Certified Professional Yacht Broker. Some states license brokers. In Florida, for example, a person who sells yachts over 32 feet for others must hold a state license (owners selling their own yacht are exempt), deposits must be kept in a trust account at a Florida financial institution, and the broker must give both sides an itemized closing statement. The Florida act also makes it a felony for a broker to intentionally skip the trust account, which tells you how seriously deposits are treated. California licenses yacht brokers and salespersons through State Parks' Division of Boating and Waterways, which says it regulates them and reports broker violations to the public; the California DMV notes that some licensed brokers are also authorized as vessel agents who can collect registration fees and use tax for the buyer. In a licensing state, check the license before you sign. Ask for references and look at how the broker's current listings are photographed and described.

Before you sign, make sure you understand:

• Type: an exclusive (central) listing with one broker, or an open listing with several
• Term: how long it lasts and how you can cancel
• Commission: the percentage, any minimum fee, and how it's split if another broker brings the buyer
• If you find the buyer yourself: whether you still owe a commission
• Costs: who pays for advertising, cleaning, haul-outs, and slip fees if the boat moves to the broker's dock
• Insurance: keep your own policy in force until closing, and ask the broker about their coverage for showings

Get a written consignment agreement that states the minimum price, the fee, how long the dealer holds the boat, storage or lot fees, who insures it on the lot, and how fast you're paid after a sale. Keep the title in your possession until the dealer's payment to you has cleared, then sign it over. Photograph the boat, engine hours and included gear on drop-off day.

Write an honest ad with plenty of clear photos, the engine hours, recent work and any known problems. List the trailer and gear that come with it. Screen callers on the phone first, show the boat by appointment, and keep a written "known issues" sheet to hand to serious buyers. Our sale-prep guide covers detailing and fixing the small stuff.

BoatUS lists the classic warning signs:

• A "buyer" who asks questions already answered in the ad and never wants to see the boat
• An offer to pay by cashier's check, with a "mover" or "shipper" picking the boat up after the check is cashed
• A check for more than the price, with a request to wire back the difference
• A buyer who insists on their own escrow or shipping company
• Messages from a different email address each time

Fake checks can look real and be accepted at first, then be reversed days or weeks later. The FTC's advice is simple: don't accept a check for more than the selling price, and never wire or forward money from a deposited check to anyone. Ask your bank how long until funds are truly final. Our scams guide covers what to do if you've already been targeted.

Only take a buyer out after you have a signed purchase agreement and deposit, or at least a serious, screened buyer you've met. The seller (or a captain the seller hires) runs the boat. BoatUS's survey guide points out that the buyer and the buyer's broker shouldn't drive the boat, especially leaving or returning to the dock, because of liability; a few minutes at the helm in open water is a courtesy, not a test drive. Have the boat fueled, batteries charged, and safety gear current and aboard.

The buyer chooses and pays the surveyor, and the surveyor works for the buyer, not you. Your job is access: an uncluttered boat with every compartment, the bilge, batteries and wiring reachable, and safety gear current. A standard pre-purchase survey usually includes an in-water inspection, a short haul-out and a trial run, so book the yard early. Agree in writing who pays for the haul-out. If the survey turns up problems, expect a renegotiation request; decide in advance what you'll accept.

With a broker, the deposit goes into the broker's escrow or trust account. In a private sale, use an escrow or closing service that you choose and verify yourself, or complete the deal at the buyer's bank where you can see funds issued. The purchase agreement should say how much the deposit is, who holds it, and when it's refundable (our purchase agreement guide covers the details).

• If you have a loan, get a payoff letter and have the lender release the lien at closing.
• Sign the title (and trailer title) and a bill of sale with the date, price, HIN, engine serial numbers and the buyer's name. For a documented boat, the buyer applies to the NVDC with the bill of sale.
• Hand over keys, manuals, spare parts and records only once funds are final.
• Agree in writing which equipment stays, so personal electronics and gear don't cause an argument.

Tell the state you sold the boat. In Texas, for example, the seller must notify TPWD within 20 days of a transfer, and TPWD suggests going to the office with the buyer, because the title stays in your name until the new title is processed. Cancel or transfer your insurance after closing (not before), end the slip or storage contract, and keep copies of everything.