Appraise an Aircraft and Plane Values - Certified Aircraft Appraisal
What is an Aircraft Appraisal?
An appraisal is an impartial opinion of the value of an aircraft, prepared by experts who know all the factors which make up the current behavior of the used aircraft market. It is an opinion of value based upon experience and repeated analysis of these factors. It is an opinion of value which can be substantiated and justified. It is an opinion of value made by a certified, recognized, professional aircraft appraiser.
Why is an Aircraft Appraisal Important?
An Aircraft Appraisal is a Valuable Tool for both potential buyers and sellers.
For Buyers - The appraisal acts as an impartial professional opinion as to the value of the particular aircraft they are planning to purchase. The appraisal can assist in expediting the sale of the aircraft because the buyer and seller know the fair market value and relative condition of the aircraft through the independent appraisal.
For Sellers - The appraisal offers the confidence of knowing the condition and the current fair market value of their aircraft. The appraisal is a great selling tool because it helps a potential buyer get a solid feel for the aircraft in the words of an objective evaluator.
A proper aircraft appraisal is even valuable to the banker involved in the sale.
It's been said that "An aircraft is worth what someone will pay for it." Therefore, when setting a selling price for something as valuable as an aircraft more factual advice than that given by a well-meaning friend is both a necessity and just common sense. Of course, this is just as important on the corporate level. Costly mistakes can be avoided through the use of a professional aircraft appraiser.
How does an aircraft appraisal work?
The professional aircraft appraiser must acquire all the facts about the aircraft in question. The appraiser thoroughly examines the aircraft log books, inspects the exterior and interior of the aircraft, and pays close attention to the present condition and the maintenance history of the aircraft.
What is the Purpose of an Appraisal?
To obtain a professional opinion of the present fair market value on an aircraft.
To obtain a professional opinion of the value on an aircraft to be renovated or modified.
An expert opinion of the value of an aircraft is useful as a prudent safeguard against excessive tax assessments, capital gains and other taxes. Appraisals are used to verify damage claims resulting from fire, hail, windstorms, accidents and other disasters. An appraisal may provide the basis for decision-making in the commitment of funds for acquisition. Provides persuasive independent evidence of the condition of an aircraft. Assist a prospective purchaser in obtaining financing or insurance. Assist the financial institutions by substantiating the nature and value of the aircraft as it relates to collateral. Assist the financial institution by supporting the loan portfolio for examination by the loan committee and/or bank examiner. Distinguishes sellers aircraft from others that may be listed for sale. It can reduce the time required to sell an aircraft by more than 50%.
Market Analysis:An estimate of value based on historical data. An accurate assessment of an aircraft’s fair market value.Certified Aircraft Appraisal and A certified airplane appraisal is a detailed and accurate assessment of an aircraft’s fair market value based on a comprehensive examination of the aircraft’s present physical condition and past flight history. The only true way to determine an aircraft's fair market value is to perform a certified appraisal examined in detail by a certified aircraft appraiser. The exterior will be inspected for damage, corrosion, loose or missing fasteners, paint condition, airframe condition, and tires condition. It will be checked for oil and fluid leaks around engine and landing gear. The interior of the aircraft will also be inspected with emphasis on the cockpit, passenger area, and baggage compartment. The condition of seats, carpets, head and side panels, glass, glare shield, etc. will be recorded. The appraisal will include a thorough search of logbooks and records for latest service bulletins, airworthiness directives (AD’s), damage history, completeness of the logbooks, maintenance history, etc. A detailed final report will be delivered to the client in a time frame agreed on between the aircraft appraiser and the client.
Market Value Analysis: A Market Analysis is a low cost method to estimate market value of an aircraft based on historical data and information provided by the client. The information provided is documented and researched to insure it is as accurate as possible without the appraiser actually visiting the aircraft. A comprehensive report will be generated and delivered to the client. A Market Analysis is suitable for establishing or negotiating a purchase price for an aircraft.
What is an Aircraft Appraisal?:It's been said that "An aircraft is worth what someone will pay for it." Therefore, when setting a selling price for something as valuable as an aircraft more factual advice than that given by a well-meaning friend is both a necessity and just common sense. Of course, this is just as important on the corporate level. Costly mistakes can be avoided through the use of a professional aircraft appraiser. Improper evaluations of aircraft by persons who are not qualified to make them, or by those who have their own agenda in pricing the subject aircraft, lead to trouble for unsuspecting buyers. High values are far more common than low values. No matter whether you are a buyer, seller, banker, or insurance company executive, you have a major stake in ensuring that the amount paid for the aircraft is reasonable.
For the Buyer - The appraisal is an impartial, professional opinion as to the value of the particular aircraft being purchased. But it is much more than that. It is a thorough description and inventory of the aircraft that verifies the major selling points for the buyer and financing entity. Further, the appraisal can assist in expediting the sale of the aircraft because the buyer and seller know the fair market value and relative condition of the aircraft through the independent appraisal. Information is knowledge, and that is what you get in a certified aircraft appraisal from a member of the National Aircraft Appraisers Association.
For the Seller - The appraisal offers the confidence of knowing the general condition and current fair market value of the aircraft being sold as seen through the eyes of an independent third party. The NAAA Certified Appraisal is a great selling tool because it gives a potential buyer a solid "feel" for the aircraft in the words of the objective evaluator. After reading the NAAA appraiser's report the potential buyer will have more confidence in the condition and appearance of that airplane than he would another airplane where all that is available is the owner's description.
For the Banker - The NAAA Certified Appraisal documents the value and general condition of the aircraft. The appraisal also supports the bank's collateral position in the aircraft loan by verifying that the aircraft is what it is said to be. Any Banker who does self-evaluations without any manner of verifying the collateral exists, or that the aircraft is equipped as represented, is putting his bank at risk for a major loss should the client default. There is absolutely no reason to accept a risk of that magnitude when there are NAAA appraisers throughout the United States and Canada who can detail the value and general condition of the aircraft for you.
What is the National Aircraft Appraisers Association (NAAA)?: NAAA provides a broad range of services to the aviation industry through its professional approach. to aircraft valuations. The NAAA is equipped to serve the lender, seller, or buyer needs through an extensive network of Certified Appraisers,a comprehensive data processing center and experienced Senior Appraisers.
What is the Purpose of an Appraisal?:
To obtain a professional opinion of the present fair market value on an aircraft.
To obtain a professional opinion of the value on an aircraft to be renovated or modified.
To obtain a professional opinion of the value of an aircraft as a prudent safeguard against excessive tax assessments, capital gains and other taxes.
To verify damage claims resulting from fire, hail, windstorms, accidents and other disasters.
To provide the basis for decision-making in the commitment of funds for aircraft acquisition.
To provides persuasive, independent evidence of the condition of an aircraft.
To assist a prospective purchaser in obtaining financing or insurance.
To assist a financial institution in substantiating the nature and value of the aircraft as it relates to collateral.
To assist a financial institution by supporting the loan portfolio for examination by the loan committee and/or bank examiner.
To distinguishes sellers aircraft from others that may be listed for sale. An NAAA Certified Aircraft Appraisal should reduce the time required to sell an aircraft by 50%.
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