UK-based Genus Marine – Europe’s leading marina berth broker – has issued a stark warning to berth buyers about the proliferation of bogus operators in the marine real estate market and the potential cost of doing business with them
“It seems that the recent downturn in land-based real estate sales has had an unexpected impact in the marine berth market,” explains John Brewster, Director of Genus Marine & Leisure. “Displaced real estate agents from the once lucrative second home and holiday rental markets have had their commissions decimated and are looking for greener pastures – some of them have ended-up in the comparatively upbeat marine berth market.”
“Most of these ‘pirate agents’ have set up business websites by taking unauthorised copies of sales and rental listings from the websites of bona fide brokers. Some bogus operators have even posed as potential buyers to get access to owners’ details, only to contact the owners direct; thus inflating the sale price with their own hefty commission. This means that some berth buyers are being ripped-off simply by not contacting the authorised agent.”
As well as giving rise to an apt nickname for the perpetrators, this piracy has also lead to some very unscrupulous dealings in the market. “This is something that we want to highlight so that boat owners everywhere can make an informed choice and prevent becoming the victim of an inflated price with a totally unnecessary commission,” adds John Brewster.
“It’s not just fly-by-night operations and one-man-bands that are dabbling in the practice, we have spotted some high-profile real estate agents with upmarket waterside offices doing the same thing,” warns Brewster. “One large, established real estate agent approached us earlier this year to share our respective marine properties. Despite turning the offer down, the company has copied our listings and is marketing them on its own website without our authority.”
“In 25 years of doing business, this is the first time that we have seen this kind of dishonest activity make the leap from land-based real estate agents into the berth broking sector.” Unfortunately, the action of these pirate brokers, although illegitimate, is not illegal. The berth broking business relies on a strong relationship of trust between owners and potential buyers and some people are being misled.”
“In the same way that you wouldn’t buy a car from lots of different middlemen, we recommend that berth buyers should always trace the berth back to the original authorised broker. If you aren’t talking to us direct, you’re not buying direct,” concluded Brewster.