What is the purpose of an appraisal?
A Certified Aircraft 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.
What a Certified Appraisal is not, is a number pulled from a book or internet tool. Don’t be fooled into believing that you can get an accurate value for an aircraft by using a price guide. Sure, you can get a ballpark idea as to the value of an aircraft by using a book value, but you are using assumptions that if wrong, could cause a significant deviation from the true value of the aircraft.
A Certified Aircraft Appraisal will help you to avoid using a "ballpark" value, and will remove all doubt as to the true and accurate value of the appraised aircraft. An accurate value is important for a number of reasons:
- 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. The Certified Appraisal is a valuable tool for the Buyer to use in determining a fair offering price based on all installed equipment and modifications. In addition, the appraised value will take into account the presence of any past or present damage, and the value will be adjusted accordingly. The Certified Appraisal Report will give the Buyer confidence that he is getting the right aircraft for his situation, and is paying a fair price.
- 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 Certified Appraisal Report 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 appraiser's report, a potential buyer will have more confidence that the condition and appearance of the aircraft is as represented, and not just the Sellers biased opinion.
- For the Banker - A Certified Appraisal clearly documents the general condition of the aircraft, and the bank can weigh these facts against the remaining exposure time in the loan, or against the required return provisions laid out in a lease agreement. The appraisal also supports the bank's collateral position at a given point in time by providing the current Fair Market Value and Orderly Liquidation Value. A Banker who performs self-evaluations without any manner of verifying the condition of the collateral, or that the aircraft is equipped as represented, is putting his bank at risk for a major loss should the client default. Why take on a risk of this magnitude when you can send Air Appraisal Company to conduct a thorough evaluation that will put you at ease?
- For the Attorney - Air Appraisal Company’s Certified Appraisals are professional, thorough, and are backed using factual information gathered during a physical, on-site examination of the subject aircraft. Normally, our reports are thorough enough to speak for themselves, however we are always willing to testify as to the accuracy of the report in a court of law should it become necessary.
A Certified Aircraft Appraisal provides the reader with:
- A detailed examination of airframe, engines, props, instrumentation, avionics, installed modifications, and all relative systems.
- A careful review of aircraft documentation, log books, and associated records.
- A market comparable analysis of recent sales and current listings of like make/model aircraft.
- A Certificate of Appraisal and the detailed Certified Appraisal Report submitted to the client via email in .pdf format, or as a hard copy if required.