finders fees and related

[brob]

is there an industry/hobby standard fee for putting a buyer and seller in touch with one another? does it generally work on a flat fee of say $100 or a percentage of the purchase price? i know it must vary on the collectability or value of the vehicle but i am talking specifically of the more desirable cars like say a copo camaro, shelby mustang or 60s big block vette. is it also normal to get a fee from both the buyer and seller or just one of the parties?

[MotownMadman]

A typical broker fee is around 5%, which can be from buyer, seller, or split between the two. A reputable broker does assume a degree of responsibility however as to the car being as advertised, such as verifing the car to be genuine, correct componants, etc. With the prices of these cars reaching that of real estate, the broker assumes similar liability as that of a real estate agent. Be aware of a broker who only has interest in making a profit and not being concerned with the satisfaction of both the buyer and seller. There are good and bad agents out there, just as in any business. Best to use someone who can offer up references of previous satisfied clients, and someone who has a vast amount of knowledge of the cars that are being bought/sold.
Thanks,
Motown /ubbthreads/images/graemlins/beers.gif

[sYc]

Some times it is done for the love of the hobby (free) and not for money. I know of several folks, including the sYc, the Supercar Workshop (Brian and Joe), the Yenko Deuce Registry (Marlin), that have helped someone find/purchase that special supercar for nothing. /ubbthreads/images/graemlins/beers.gif Beers excluded /ubbthreads/images/graemlins/grin.gif

Case in point is this month's feature car. Two weeks before before SCR5, the sYc was asked to speard the word that the car was for sale. At SCR5, we told the current owner, who then purchased the car. /ubbthreads/images/graemlins/biggthumpup.gif

[Don_Lightfoot]

I've been able to hook up a few buyers and sellers over the years and really just do it for the love of the hobby.

There was an instance several years ago where I noticed a "wanted" ad from a guy in New Jersey looking for a 70 GTO Judge Convertible. I was into Goats at that time and a fellow GTO Club member in Toronto was thinking about selling his which was done to the nines (it was that sharp Green/Turquoise color). So I contactd the proposed buyer and he literally jumped through the phone line with excitement. He said "I'll get you a nice finders fee if the deal is done". The contact information was relayed and when I called him about two weeks later he said "Bought the car and it's now in my garage". I congratulated him and jokingly asked "So, where's my finders fee?". I wasn't really serious but he did ask for my address, etc. Never did get anything. No big deal, happy to help out some fellow enthusiasts.

[Stefano]

Some people even earn a living ; locating ,Buying, selling, brokering, inspecting, restoring and appraising,ect. special interest vehicles and have been doing so long before the internet even existed.

I certainly have never charged anyone for referring them to my CPA, attorney, doctor,mechanic,restoration shop or even to my favorite Mortician/Mortuary.

For those of you are fortunate enough to work Pro-Bono and invest your time and put your Capital at risk, you will find many people who I am certain will be more than happy to use your services.

[MotownMadman]

Stefano,
As you stated so well, I would certainly enjoy the opportunity to do this type of work for free, unfortunatly I am not fortunate enough to work for free. In some cases on a high ticket item I have put in 60 to 80 hours on bringing buyer and seller together, after doing vehicle inspections, research, photo shoots, restoration cost anaylsis, travel expenses, phone and marketing expenses, liability in the event of incorrect car or componants, as well as placing my reputation on the line with every transaction. I have done a great deal of Pro Bono work among friends or the simple reference from buyer to seller or reverse if the parties to the transaction wish to do all the footwork themselves. I know that I would not purchase a 100 to 200 thousand dollar home without the services of a real estate agent for my own protection, and many people feel the same way about classic cars. Also, many collectors prefer to remain in the background for reasons of the whole world not knowing what they collect or the dollar amounts paid, as well as some not having the ability to find a qualified buyer in a timely manner. Some brokers have spent a lifetime doing research and gathering knowledge on these cars long before there was a great deal of interest in collecting them. Some people who have general basic knowledge of the industry prefer to act in a cautious manner by utilizing a expert in the field before risking any substancial amount of funds. Having a expert in the field to utilize is just another form of insurance, and also can provide all the time consuming footwork for the buyer/seller who may be too busy so the opportunity cost is too high not to use an agent/broker. I certainly dont go knocking on doors like a vacuum cleaner salesman, I have enough work backing up that sometimes it gets to the point that I am turning people away who are contacting me. In the event that I have to turn down prospective work I do refer that person to another capable person to conduct the transaction. Some individuals love the opportunity to do the footwork themselves, while others dont have time and would rather hire someone. Just one more instance of the beauty of freedom of choice.
Thanks,
Motown /ubbthreads/images/graemlins/beers.gif