An aircraft appraisal is similar to any other collateral appraisal process. Appraisals are a good way to protect you, as well as the lender, from overpaying for your collateral. If you’ve ever bought a house, you likely had the house appraised before formally completing the buying process.
For aircraft, the idea is the same. Purchasing an aircraft can be costly, with even a small plane purchase running upwards of a quarter of a million dollars. When spending such an amount, you want to be sure your aircraft is valued properly.
Determining the value of a plane is important for a number of reasons, but what exactly goes into aircraft appraisals? In this article, we’ll explore all the need-to-know about appraisals. Let’s take off with…
What Do Aircraft Appraisals Entail?
Appraisals are typically completed by a certified aircraft appraiser. The appraiser is looking for a number of things during an appraisal such as:
- Interior and exterior plane condition
- Installed avionics
- Equipment upgrades
- Flight hours and landings
- Age of aircraft
The purpose of an aircraft appraisal report is to provide a number of confirmations to both the lender and the buyer of the plane. The appraisal is a way to obtain a professional, impartial opinion on the current market value of an aircraft. It also verifies any prior damage claims and maintenance history.
When it comes to aircraft appraisal cost, the price will vary depending on the time it takes to complete the report, as well as what level of appraisal is being completed.
When it comes to the appraisal itself, there are three types of appraisals available:
- Desktop appraisal
- Physical or on-site appraisal
- Pricing digest
The most in-depth option is the physical appraisal route. This is where the appraiser will be able to get on-site to inspect the airplane itself. A benefit to having an on-site appraisal completed is the speed with which you can buy or sell. An updated appraisal will signal to buyers, sellers, and financial institutions alike that the value claim of an aircraft has been professionally verified.
Aircraft appraisal services like those offered by the appraisers with vref.com are able to properly determine the current market value of an aircraft through combined expertise of all three levels.
What to Avoid
When it comes to getting your aircraft appraised, the last thing you want is an improper valuation. When looking to make an aircraft appraisal appointment, it is smart to avoid organizations that are not accredited or recognized. To avoid receiving an unreliable or improper appraisal, be sure to look for the following:
- Membership and certification requirements of the business or individual
- The industry standards and ethics are recognized and adhered to
- Confirm what professional training an appraiser has gone through
- Which databases and publications the business utilizes
A Smooth Landing
Proper aircraft appraisals are the first step toward making sure an aircraft transaction goes smoothly. The accompanying detailed reports will also ensure a safe takeoff and landing for years to come!
If you found the information presented above helpful, be sure to explore the rest of our blog for more helpful content.