Appraisal Process
Appraisal Process

The Anatomy of an Appraisal

An 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.

The professional aircraft appraiser must acquire all the facts about the aircraft in question. The appraiser thoroughly examines the aircraft log books, inspects the exterior and interior of the aircraft, and pays closer attention to the present condition and the maintenance history of the aircraft. Utilizing the National Aircraft Appraisers Association’s extensive computer system enables the appraiser to give accurate and prompt aircraft appraisals.

What is the Purpose of an Appraisal?

  • To obtain a professional opinion of the present fair market value of an aircraft.
  • To obtain a professional opinion of the value of 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.
  • Provides persuasive, independent evidence of the condition of an aircraft.
  • Assists a prospective purchaser in obtaining financing or insurance.
  • Assists the financial institutions by supporting the loan portfolio for examination by the loan committee and/or bank examiner. USPAP compliant appraisals will assure the bank examiner that the loan or loan portfolio is properly, and correctly funded.
  • Distinguishes seller’s aircraft from others that may be listed for sale. Should reduce time to sell aircraft by 50%.

How Much Will the Aircraft Appraisal Cost?

Fees will vary depending on the size of the aircraft and length of time involved in completing analysis of all relevant data. USPAP compliant appraisals will be at a premium to the standard NAAA appraisal.

How Much Time Should an Appraiser Have to Complete the Report?

One must allow sufficient time for the appraiser to do a thorough job. The appraiser may spend a short time inspecting the aircraft, but will spend considerable time researching data. The Certificate of Appraisal and Inspection Data Sheet Analysis of the aircraft will be issued once all of this process has been carefully completed.

Standards of Professional Practice and Conduct

The National Aircraft Appraisers Association 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. Aircraft Appraisers International adheres to USPAP.

Conclusion

Aircraft Appraisers International provides a broad range of services to the aviation industry through its professional approach to aircraft valuations. Bankers, insurers, purchasers, sellers, and owners immediately recognize the value of an Aircraft Appraisers International independent aircraft appraisal.

See how comprehensive our aircraft appraisals are by clicking on the NAAA appraisal example link below.
Appraisal Example PDF