When purchasing an aircraft, you want to be sure you’re getting a fair or current market price. You’d also like to be confident that the seller is being candid about their valuation; you don’t want to find out after the fact that you could have paid far less than the aircraft was worth. NAFA member H. Lee Rohde III, President and CEO of Essex Aviation, explains.
In the private aircraft acquisitions market, aircraft appraisers can assist with the validation on a seller’s or broker’s asking price, providing appraisals based on pricing guide analysis and guidance from the Professional Aircraft Appraisal Organization (PAAO). It’s their job to determine the fair market value of an aircraft for brokers and owners alike, ensuring transparency during the sales process.
What Is an Aircraft Appraisal?
An aircraft appraisal is an impartial assessment of an aircraft’s current market value, as determined through a valuation process conducted by a certified appraiser. A majority of aircraft appraisers are accredited by the American Society of Appraisers (ASA) and trained to evaluate all the elements that may affect an aircraft’s value. Following consultation with an appraiser, the seller can then generate a fair and accurate retail price.
This article was originally published by Essex Aviation on June 26, 2023.
