Frequently Asked Questions About Aircraft Appraisals
FAQ's updated December 8, 2016
Do you also appraise piston aircraft?
Absolutely. We specialize in turbine aircraft appraisal, but our piston aircraft clients receive the same care, expertise, and service.
Although we will travel worldwide for an on-site turbine appraisal, it does not make sense to do so for a small piston aircraft as the travel expenses will cost more than the appraisal itself. In such cases, locating a well qualified appraiser who lives nearer to the aircraft is recommended. We can assist you in this search at no charge.
USPAP stands for Uniform Standard of Professional Appraisal Practice.
The United States Congress authorized the formation of USPAP in 1987
following the Savings and Loan Crisis. USPAP establishes the accepted
standards for all types of appraisals including Aircraft Appraisals.
Download a brochure on USPAP by clicking here.
Please realize that an appraiser does NOT set the value of an aircraft. The market sets the value. This is a simple but important concept. The professional appraiser combines a thorough understanding of the subject aircraft with a market study to produce a researched opinion of value.
We locate and use actual sales data of comparable aircraft whenever possible. Actual sales data is not found in a price-guide or database. It requires confidential discussions with the parties to the actual comparable sales. We have the professional relationships with the aircraft dealers, aircraft brokers, and financial institutions that makes these confidential discussions possible. Some appraisers bypass this important, time-consuming step and go straight to the price-guides and databases. What does your appraiser do? Be sure to ask.
Ultimately, data sources are simply valuation tools. As such, they are tools that can be used either correctly or incorrectly. Our decades of experience assures that these data sources will be correctly analyzed and utilized to produce an appraisal that will withstand the scrutiny of any courtroom challenge or bank audit.
Simply printing off a page from one of the "price-guide" services is neither an appraisal nor does it comply with USPAP. A Price Guide generates an average value based on a fleet-average aircraft with just a few small adjustments to correct from average condition. Furthermore, the data in the price-guides can lag the actual market by three to six months.
Sitting behind a keyboard hundreds or thousands of miles away from the subject aircraft and producing an appraisal without ever having seen the subject aircraft requires the appraiser to make many assumptions concerning the true condition of the aircraft. An on-site appraisal eliminates the need for such assumptions. It requires the independent, impartial, and objective expert appraiser to personally examine the subject aircraft and its logbooks. This assures an appraisal that more accurately reflects the true value of a particular aircraft.
It is interesting to note the different ways aircraft damage history is dealt with by Jet Appraisal Corporation compared with the price-guides and other services. Although damage history is always a very serious matter, it must be approached in a logical manner when performing an aircraft appraisal.
It is commonly accepted that if there are two identical aircraft being offered for sale, except that one has a history of damage, the aircraft with damage will command a lower price. The "diminution of value" is the difference between these two prices.
The amount of damage diminution depends on many factors including: the type of aircraft; the extent of the damage; the method of repair; the quality of repair; how the repair was signed-off in the logbooks; and the age of the damage. Additionally, the marketplace is less accepting of damage history on certain classes of aircraft. For example, the stigma of damage is far greater to a corporate jet than it is to a single-engine Cessna trainer aircraft.
The common method for dealing with damage history is to simply deduct a fixed percentage from the total aircraft value. However, when we perform an appraisal examination and discover damage history the loss of value is deducted only from the areas that are affected.
Consider the following hypothetical situation. Imagine two aircraft are identical in every way except that one has brand-new engines, and other has engines that need to be overhauled. Now suppose that a fuel truck damages the left wing on each aircraft. Using the common fixed-percentage methodology, the aircraft with brand-new engines will suffer a much larger decrease in value. This does not make sense. Our method deducts value from the airframe only and not from the brand-new (and unaffected) engines. The fundamental difference between the two methods is important. Our conservative approach more accurately reflects the true loss of value. Read an article on aircraft damage history written by Keith M. Bransky, ASA, NSCA, by clicking here.
This varies according to a number of factors. In general, larger turbine aircraft are more complex and require more time to examine and research. Additional factors include: the condition of the maintenance records; the aircraft's age; and the total flight hours. As a general rule, the on-site physical examination of a corporate jet or turboprop and its logbooks will normally require between 6 to 10 hours.
The fee for an Aircraft Appraisal is based on the class and type of aircraft. As mentioned above, larger turbine aircraft are more complex and require more time to appraise. Additional factors that can affect the appraisal fee include: the aircraft's age; the aircraft's total time; whether the aircraft ever had a foreign registration (requiring translation services); any other unique or extraordinary factors.
We offer only USPAP Compliant Aircraft Appraisals. USPAP compliance is required by most financial institutions and for all aircraft that are involved in litigation. Additionally, the IRS requires a USPAP Compliant Appraisal for donated aircraft. Please contact us to discuss your appraisal needs and to obtain a no-obligation quote.
Three words: "cut and paste." Yes, I've seen my writing out there also. The other aircraft appraisal websites change a word or two, rearrange the paragraphs, and then pass off my writings as their own. One online plagiarist even had the moxie to post an anecdote I had written years ago concerning an interesting Sabreliner 65 appraisal that I had performed. He told my story like it had happened to him! When I called him on it, the story immediately disappeared from his website (and about a year after that so did his appraisal business).
I wrote every word you see here. It has been that way since the first www.aircraftappraisal.com website was published in 1998. All material on this website is copyrighted.