Open Listing at Swan Yacht Brokerage

Our commission rate:
For yachts based in the UK = 8%*
For yachts based outside the UK = 10%*

An owner may prefer to directly appoint more than one agency. These agencies will compete against each other to achieve a sale. The "first past the post" who is successful is paid the sale commission and the others earn nothing. In these situations the appointed agents will commonly report purchase prospects' names to the owner, who should register them accordingly. Sometimes a purchase prospect's name may be reported virtually simultaneously by two brokers and a wise owner will advise each of them and leave the potential buyer to choose who he deals through.

Although in Open Listing an owner is free to appoint as many agents as he wishes, he would be wise to limit such appointments to two or three. We have seen the same photographs of a yacht being used by eight brokerage houses in a single magazine issue and that is not the way for a yacht's sale to be promoted.

An owner should designate a gross commission-inclusive asking price at which all brokers are required to operate. Under no circumstances should an owner advise multiple brokers of his nett price aspiration and invite the brokers to calculate a gross asking price.

In Open Listing, an owner retains the right to sell his yacht privately. If the owner expects his various agents to commit their time and money to the sale promotion of his yacht in competition with others, then it is reasonable for all, and that includes the owner himself, to play on a level field. When discussing the sale of his yacht with a prospective purchaser coming to him directly and allegedly not via a broker, the owner should ask the same price as his brokers. The same applies to any advertising which the owner may elect to place. It is human nature, of course, that once the brokers see that their client is engaging in direct advertising, very possibly in the same magazine as themselves, they will be disinclined to continue serious marketing efforts. Sadly, it is by no means unknown for a potential purchaser to obtain yacht information from a broker and then to seek out the owner, claiming to have heard about his yacht "on the grapevine". Upon receipt of such an enquiry, a wise and honest owner should contact all his open listing brokers and check out the situation before he considers embarking upon any direct viewing arrangements/negotiation.

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