Broker's place in aircraft purchase

[Kwozzy]

Is a broker neessary in an aircraft deal (purchase or sale)?  What do they do and what do they charge?

[jetdriven]

From my limited experience they represent the seller, offer the aircraft to the market with all the work, marketing, overhead,  and costs that implies, facilitates the transaction, and takes a comission from the sales price between 5-10%.  They are not necesary but given the high cost of aircraft ownership plus the value added by the broker's knowledge that can be worth every penny.  If they can move your aircraft 6 months sooner that's 6 months of ownership costs saved.

[flight2000]

No to the first question.

For the second question, in addition to what jerdriven already mentioned... brokers can field all of the phone calls from the tire kickers and get to laugh at all of the low ball offers that come in.... I had enough when I first put my aircraft on the market that I decided to use a broker if I ever have to sell again.  It was frustrating and a huge waste of my time to deal with the less-than-serious buyers out there.

Some also have fixed commissions that range from $1500 to $5000.  I prefer the fixed percentage because it gives the broker a bigger stake in getting a higher selling price, which would equal a higher commission for them.

Brian

edit: I forgot, brokers can also represent a buyer as well. Especially if you use one that is recognized by an owners association for whatever particular aircraft you're looking for. Not ideal since you are paying someone to do a job that can be done yourself with a little research on the type before looking.

[PTK]

Quote: Kwozzy

Is a broker neessary in an aircraft deal (purchase or sale)?  What do they do and what do they charge?

[GeorgePerry]

Brokers serve a purpose I suppose, but I've never used one and will never use one.  It ain't rocket surgery...Find a plane, get a pre-buy / title search done and make a resonable offer based on the information discovered.  Negotiate back and forth like adults and come to an agreement...or don't.  Middle man not required, unless like an earlier poster said, you don't want to field phone calls from tire kickers.  IMHO waisting a little time on the phone is well worth saving several thousand in dealer commissions.

[rbridges]

I bought my mooney from a guy that used a broker.  It was nice for him b/c he didn't have to deal directly with me.  Later in the process when he knew I was serious, he made himself available to answer questions and show me the plane.  It was nice for me b/c the broker knew exactly what to do, including title checks and registration paper work.

[Kwozzy]

Thank you all for your responses, I have never bought an air craft before and I really want to get right first time, your answers make the way clearer.