What is

an Appraisal?

An Appraisal is Different Things to Different People.

 

To the Buyer the appraisal is an impartial professional opinion as to the value of the particular aircraft they are planning to purchase. 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.

 

To the Seller the appraisal gives them the confidence of knowing the condition and the current fair market value of their aircraft.

 

To the Banker the appraisal documents the value, and condition of the aircraft. The appraisal also supports the bank's collateral position in the aircraft loan.

 

To the Insurance Groups it is important to have documents on file that provide the description of the condition of equipment of the aircraft at a specific point of time, ensuring that the aircraft is insured at proper levels.

 

To the Attorney and the Legal community the appraiser works to help establish the fair market value of aircraft involved in litigation - including identification of the diminished value associated with damage, past or current, and/or missing log books. (note - On-line or pricing guides simply cannot provide that service).

 

To Everyone an appraisal is an impartial, independent, and objective opinion of the value of an aircraft, prepared by experts considering 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 using the NAAA software.

 

To be impartial and correct, the Professional Aircraft Appraiser must acquire all the facts about the aircraft in question.

 

 

National Aircraft Appraisers Association Members Assure the Best Possible Information by Providing the Following Services: 

• Detailed examination of airframe, engines, props, instrumentation, avionics and all relative systems.

 

• Careful review of aircraft documentation including log books etc.

 

• Computer analysis of relevant data.

 

• Sealed Certificate of Appraisal with detailed computerized report submitted to client.

 

• 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.

 

• An appraisal provides persuasive independent evidence of the condition of an aircraft.

 

• It will assist a prospective purchaser in obtaining financing or insurance.

 

• It will assist the financial institutions by substantiating the nature and value of the aircraft as it relates to collateral.

 

• It will assist the financial institution by supporting the Loan Portfolio for examination by the Loan Committee and/or Bank Examiner.

 

• It distinguishes sellers aircraft from others that may be listed for sale.

 

• It should reduce the time required to sell an aircraft by 50%.

How much will the Aircraft Appraisal cost?

Fees will vary depending on the size of the aircraft and the length of time involved in completing analyses of all relevant data.

 

 

How long will it take to complete the report?

One must allow sufficient time for the appraiser to do a thorough job. The appraiser may spend a short time actually inspecting the aircraft, but will spend considerable time researching data. The Certificate of Appraisal and Inspection Data Sheet Analysis of the Appraisal is issued after the physical inspection of the aircraft has been completed.

 

 

Standards of Professional Practice and Conduct

The National Aircraft Appraisers has established rigid standards of professional practice and conduct to which every Association Member must adhere. It is essential to all parties receiving and relying upon appraisals that these standards be meticulously maintained.

 

 

Conclusion

The National Aircraft Appraisers Association provides a broad range of service to the Aviation Industry through its Professional Approach to Aircraft Valuations. Bankers, Insurers, Purchasers, Sellers, and owners immediately recognize the value of an Independent Aircraft Appraisal.

 

 

Need more information? Feel free to contact me personally by phone at (519) 822-2206 or through email by clicking here.

 

John Polonenko

AircraftAppraisers.ca

 

Click here to learn more about the appraisal process.

What is the Purpose of an Appraisal?