Before selling your airplane, do you know what it’s worth? Without an aircraft valuation, you could sell yourself short by offering it at a price below its actual value.
Even if you think you’re getting a fair offer on the plane, an appraisal can confirm it. An expert valuation helps aircraft owners avoid the mistake of selling a plane at a loss.
What should you know about aircraft valuation services? Here are four critical insights!
1. Valuations Are Impartial
An aircraft valuation is a third-party impartial assessment of your plane’s value. When selling planes, having a verified report to justify aircraft values helps buyers trust that your asking price is accurate.
Valuation services don’t skew a plane’s value higher or lower depending on the seller or buyer. They use aircraft valuation software to deliver a non-biased, honest value for an aircraft to support pricing negotiations.
2. They Include Historical Values
Has your plane increased in value over time? Comparing current values to historical values helps you understand the best aircraft fair market value. Historical values also help you negotiate with buyers and consider various offers compared to the fair market value.
A thorough valuation includes the historical values to help buyers and sellers understand a sale price that reflects the current market. Some valuations might also include projected future value for the aircraft. For more information about appraisals, visit vref.com.
3. They Can Consider Maintenance Records
Have you kept up with maintenance and repairs for your plane? Aircraft valuation methodology includes a review of maintenance and repair records for your aircraft.
Potential buyers want to see that a plane receives routine and required inspections and service. They also want to know if an aircraft sustained any significant damage and review the repairs that took place to fix the damage.
Keeping good service records helps your valuation professional incorporate maintenance history when preparing an accurate appraisal report for your plane.
4. Fees Vary
Depending on your aircraft and the type of appraisal you need, fees for valuation services vary. Some valuations don’t include a physical inspection of the aircraft. Other valuations do a deeper dive with a full inspection and review of maintenance records.
When researching the best valuation service provider and considering your needs, make sure you understand the type of report you need. To sell an aircraft, many buyers want a comprehensive valuation, including an inspection and maintenance records for the plane.
If investing in planes to generate income from renting the aircraft for private or commercial use, a financial valuation based on records (without an inspection) can be appropriate. This type of assessment is often less expensive.
Choose an Aircraft Valuation Before a Sale
Don’t skip the aircraft valuation before closing the sale of your plane. Negotiate more effectively and make sure you don’t leave money on the table. An accurate, third-party report delivers the information you need to understand the value of your plane.
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