What do Brokers Charge?

[INA201]

For those of us that have used All American, Airmart, or other well respected brokerages how does it work? I’ve typically just advertised through TAP or Controller and gotten all the calls etc. Seems like a good buyer will find a good plane if you just list it but you have to coordinate everything yourself. Is there any advantage, like liability protection to using a  broker? How much do they charge? Just curious and thought it might be some good experience and knowledge sharing.  

[TWinter]

Usually 5-7% of the sale. They will post it in all the usual sites as well as their home page. They will help weed through the tire kickers and real prospects before you as the owner have to be notified or get involved. I was going to list myself and give it a try, but honestly I was really only wanting serious buyers. I think stats show a broker will usually move a plane within 90 days of being listed..usually much sooner. I just listed mine yesterday with a broker and he has already dealt with several calls with one serious looker. We are waiting to get logs scanned etc..I'm a busy person and for me it is worth the commission to not have to deal with people who are not serious. Just like listing your home for sale and hiring a real estate agent or for sale by owner.

 

-Tom

[RobertGary1]

I can only imaging the hassle of fielding phone calls at all hours of the day from non-serious buyers.

-Robert

[INA201]

Not a bad cost at 5-7%. I was thinking 10% or more considering all of the factors that come into play.  

[MB65E]

I’ve bought and sold a few helicopters, a few jets, and a few pistons all with out brokers. I’ve enjoyed getting to meet aviation people. That said, it’s a dance that most don’t like. As I’ve become more busy I’ve mentioned we’ll be using brokers in the future for work times. I’ve learned enough on my own that now I can say no to things I don’t have time for. 

On my own stuff, dealing with what I know now, I’d handle everything myself. Especially, if I had the time to deal with calls. Just create a nice PDF sheet and ping it to the folks that call. Most people respond well to emails and texts that take less time. With the market the way it is now, the aircraft speak for themselves. You shouldn’t need to do much work. Now days there are too many attorneys that bill for everything. I would have a nice PA written up already to avoid delays and BS. I haven’t seen too many brokers that earn what they keep. For example, The sellers broker on the last large aircraft purchase was on vacation during the closing call!! Really? They had the jet listed for less than a week days before I showed up, I was the first person to show up in person with an offer letter. The broker didn’t need to do much!

Hope that helps, 

-Matt

 

[rbridges]

I think brokers can give some sellers a realistic idea of what they're plane is worth, so it's not sitting on the market forever. 

[dlthig]

I talked to a guy a while back who was paying 9% to his broker.

[ArtVandelay]

I would assume the % depends on the price of the plane. Higher price planes being less.