Appraisals

About Appraisals

A Few Things You Should Know

An appraisal is simply an opinion of value written with knowledge, expertise and credibility. Developing an appraisal is intricate and not just looking up book values and sales records. An improper or unqualified evaluation of an aircraft can lead trouble for principles involved.

High values are more common than lower ones. Whether you're a buyer, seller, banker or insurance company, you've got a major stake in ensuring the amount paid for an aircraft is correct and reasonable. This is known only through an independent and objective third-party examination of both the aircraft and its records.

PAAO Certified Appraisal

A report provided by an PAAO Certified Aircraft Appraiser assists in moving forward the sale of your aircraft as both you and the buyer will have facts on its condition and current market value. This offers a potential buyer a solid "feel" for the aircraft from the knowledgeable and objective viewpoint of a trained appraiser.

After reading the "Certified Appraisal," the buyer will have more confidence in the condition and appearance of the airplane than another where only the owner's description is provided.

This is a big plus, for the seller who finds a confident buyer is in a better position to close the deal.

When a report written by an PAAO Certified Aircraft Appraiser is presented for financing, the banker will find that it supports the bank's collateral position in the aircraft loan by verifying the aircraft is what it is said to be. In the past, too many bankers who have done self-evaluations without any manner of verifying the collateral exists, or that the aircraft is equipped as represented, wound up putting their bank at risk for a major loss had their client defaulted.

Certified Appraisals A Few Things You Should Know

An appraisal is simply an opinion of value written with knowledge, expertise, and credibility. Developing an appraisal is intricate and not just looking up book values, sales, and records. A Certified Appraisal promotes confidence. An improper or unqualified evaluation of an aircraft can lead to trouble for unsuspecting buyers, sellers, financiers, and insurance professionals.

High values are more common than lower ones. Whether you're a buyer, seller, banker or insurance company, you've got a major stake in ensuring the amount paid for an aircraft is correct and reasonable. This is known only through an independent and objective third-party examination of both the aircraft and its records.

pexels-pixabay-433283

PAAO Certified Appraisal

An PAAO Certified Aircraft Appraiser will write a report that will assist in expediting the sale of the aircraft because the buyer and seller know the market value and relative condition of the aircraft through the independent appraisal. Information is powerful and essential, and that is what you get in a aircraft appraisal written by a member of the Professional Aircraft Appraisal Organization.

A report written by an PAAO member is a great selling tool because it gives a potential buyer a solid "feel" for the aircraft in the words of the objective appraiser. After reading the appraiser's report, the potential buyer will have more confidence in the condition and appearance of the airplane than he would another airplane where all that is available is the owner's description. For the seller, it will support his asking price and his negotiating position in the sale of his aircraft. It will also establish a realistic starting price for the aircraft for the current market conditions.

When a report written by an PAAO Certified Aircraft Appraiser is presented to a banker for financing, the banker will find that it supports the bank's collateral position in the aircraft loan by verifying that the aircraft is what it is said to be. In the past, too many bankers who have done self-evaluations without any manner of verifying the collateral exists, or that the aircraft is equipped as represented, wound up putting their bank at risk for a major loss had their client defaulted. A Certified Appraisal performed by a PAAO aircraft appraiser will go far to alleviate the risks of an upside down loan by establishing a realistic value of the aircraft as well as verifying its condition.

A report written by an PAAO Certified Aircraft Appraiser is an impartial opinion of the value of an aircraft, prepared by experts who know all the factors that 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.

pexels-tomas-anunziata-3876430

A 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 surfaces of the aircraft, and pays close attention to the general condition as well as the maintenance history of the aircraft. One of the tools the appraiser uses is the Professional Aircraft Appraisal Organization’s extensive computer based system that assists the appraiser in producing accurate and prompt aircraft appraisals.

An Appraisal Written By An PAAO Member Provides You With:

  • Visual Examination of aircraft, engines, props, instruments, avionics and relative systems.
  • Careful review of aircraft documentation, log books, and associated records.
  • Computer assisted analysis of relevant value data
  • Detailed computerized report.