When selling or purchasing a private jet, the appraisal process is the point at which an independent party is brought in to estimate the true value of the aircraft. Most banks and lending institutions now require a certified appraisal before proceeding with a loan, and most insurance companies will insist on an appraisal before issuing a policy for the aircraft.
Certified appraisal = peace of mind
Uncertainty about the appraisal process may be a source of worry. In fact, the due diligence reduces the risk that the buyer will pay more for the plane than it’s actually worth. The appraisal also prevents the seller from setting the asking price too low.
The appraisal examines all aspects of the aircraft to set a fair value. The age of the aircraft, as well as the interior and exterior condition, are factors. The appraiser inspects the avionics, airframe, and other components. An inspection will also reveal unreported damage or gaps in recordkeeping or log books, all of which can negatively affect the value of the plane.
The impartial opinion
The National Aircraft Appraisers Association (NAAA) is an independent body that conducts the certified inspections required by most lenders and insurers. An NAAA appraisal includes the physical inspection and further refines the estimate by using sophisticated software that compares the aircraft against recent sales of similar planes.
Involving an NAAA certified appraiser from the beginning of the process will ensure the inspection is accurate, objective, and meets the standards of all parties. Whether you’re buying or selling, this is no time to skimp on costs. Determining the true market value of the aircraft will pay dividends down the road.