Central Agency at Swan Yacht Brokerage

Rate of broker's commission = 10% of sale price*

The registered owner of a yacht wishing to sell often prefers to route all procedures through a single brokerage house. In that case, owner and broker sign and exchange an appropriate contract by which the broker is appointed for an agreed minimum period. Swan Yacht Brokerage does not accept a minimum period of less than 12 months. Should the yacht not be sold within that minimum period, the owner may then elect to give the broker notice of cancellation, or he may decide to allow the appointment to continue. Market forces dictate that yachts may take a long time to sell and it is important for owner and broker to understand this at the outset. The owner will need patience; the broker will need stamina. A reasonable owner who sees that his broker has made strenuous efforts in exposing the yacht, is more than likely to desire a continuance of the arrangements. Naturally, owner and broker should, throughout the life of the Central Agency, communicate regularly and if the yacht is not attracting purchase interest, discuss and agree revisions to stimulate buyer activity. Reasons for non-sale include: overpricing (the most common), location, maintenance/condition or presentation of the yacht, etc.

Once the Central Agent is appointed, he should obtain from the owner as much useful material as may be available. This may include designer's plans, original building specifications, charter brochure, photographs, information regarding major refits/equipment replacements, existing survey reports, inventory, etc.

The Central Agent should then visit the yacht and inspect her in detail. We consider that he should take close notes of construction and equipment features, and photograph her comprehensively.

Once all appropriate material/information has been assembled, the Central Agent should construct accurate, interesting and informative sale particulars. As a result of visiting and assessing the yacht, he will now be in a position to give his client, the owner, considered professional opinion as to the level of asking price, and he may also make recommendations regarding aspects of presentation. On high value yachts, the owner is likely to require a glossy colour brochure to be produced, at his cost, and generally this will be orchestrated by the Central Agent. Yachts which have been operated in a charter role may already have a charter brochure and that could be suitable as a sale marketing tool.

Once sale particulars are printed, the Central Agent will circulate them to all his appropriate file enquiries. He will also arrange advertising. Policies regarding the costs of advertising vary between different brokerage houses. Swan Yacht Brokerage funds the cost of almost all its magazine advertising. Sometimes owners wish for their yacht to have additional - perhaps individual - advertisements and the cost of these is for the owner's account. All advertisements should mention the yacht's Central Agency status. This is an invitation for other brokerage houses to request information on the yacht when they have, or are likely to find, clients who may be interested to consider it for purchase.

The Central Agent should also place information about the client's yacht on his website, designating his Central Agent's status.

Some Central Agents, including Swan Yacht Brokerage, also produce a Central Agency Circulation List which is distributed on a regular basis to co-operating brokerage houses world-wide. By the terms of the Central Agency Contract, the agent will offer co-operation to other brokerage houses who, in his opinion, are qualified to make a sale. Inter-broker yacht selling is very much a "two-way-street", and brokerage houses tend to develop long-term respected relationships with their peers whose methods match their own. In the event of the sale of the yacht being created by a co-operating broker, the Central Agent will pay that broker a share of his commission. There is no additional cost to the owner.

* VAT may be applicable to broker's commission under certain circumstances.