The Good and Bad of an Aircraft Blue Book Appraisal. Step 2 of 9

Whats the value of my plane?

Determining the Value of your plane:

Hello, Jake Huling here with Aircraft Sales Advisor. I’d like to welcome you to the second report in a new series called, 9 Steps to a Successful Sale or Purchase of Your Plane.

In the last report we discussed the top complaints and frustrations that I hear from clients, customers, and new contacts all the time about the industry. We also talked about the industry's reputation and why that is sad because it really doesn't have to be that way. I told you about my approach, and why it’s different than what you've probably seen out there. 

We also talked about commission rates and whether or not you could expect a standard commission in the industry. And the benefits and disadvantages of both using a broker and buying and selling a plane yourself.

Video #1 Covers the Aircraft Brokers reputation and the top complaints from aircraft buyers and sellers.

In this second report I promised you we would go over how the industry determines the fair market value of a plane that you are looking to sell or buy, and what information you will need in order to do that. There are four important sources of information needed to get an accurate valuation of a plane and determine its value. So let’s take a closer look.

Blue Book Appraisal:

You've probably heard of this one. This like when you go to buy a car, and the dealer has that Blue Book in his back pocket that you never get to look at it. Well I am going to tell you what it says, and how to use that information to your advantage. 

The Top Complaints about Aircraft Brokers. Step 1 of 9

The truth about selling your plane.


Nine Successful Steps to Sell Your Plane
Hello, Jake Huling here with Aircraft Sales Advisor. I’d like to welcome you to the first in a new series of short reports that I am calling, Nine Steps to a Successful Sale of Purchase of Your Plane.

My reports, quite simply, are designed to give you what you need, when you need it, and without the hassle of contacting a broker. In these reports I am going to give you advice and information, a lot of which the industry doesn't want you to know, and how to use that information to navigate your way to a successful sale or purchase of you plane. 

I like to keep my reports short as possible so let’s get right down to business.

You can see more of my reports on Selling and Buying Jet and Turboprop Aircraft here.

Complaints:

To start out, I’d like to talk about the top complaints and frustrations I hear from my clients, customers, and new contacts pretty regularly. To make matters worse, these complaints seem to be the same whether folks are selling or buying.

• The number one complaint and frustration I hear is that
  

Aircraft Sales and the Pre-Purchase Inspection

The purchase or sale of a used aircraft will include a pre-purchase inspection, but what exactly is that and what should you expect? 

After your aircraft is marketed, you will eventually be presented with various offers from people wishing to purchase the plane. Accepting the offer is only the beginning of the sale of the aircraft. Basically, an offer to purchase is a theoretical offer. The buyer basically says that if the aircraft is everything you have represented it to be, then he or she would be interested in purchasing it for x amount of dollars. The pre-purchase inspection is how we separate the theoretical from the actual.

To undergo a pre-purchase inspection, the aircraft is moved to a service facility that is mutually agreeable to both buyer and seller.  Generally this will be a manufacturer’s approved repair facility as they will have the necessary knowledge and experience to perform a competent review of the plane. And that’s really all this particular inspection is, a review of the aircraft.

Aircraft Selling Strategies

As we get started with 2013, it may be time to take a serious look at selling your existing aircraft. The economy has certainly taken a beating the last few years but we’re starting to see the signs of a turnaround in the aviation industry. Turboprops, long the work horses of the aviation community, are the last to quit flying when times get tough and the first to get back to work when the economy starts to recover. We’ve seen an increase in turbo prop sales in December of 2012 and so far in 2013, and that indicator, among others we watch, tells us the market is starting to recover. Which means the time to sell your aircraft, either to change to a different aircraft that better suits your needs or to sell it outright, is now. Here then, are our top aircraft selling strategies to help sell your aircraft while the selling is good.

Price is the very best strategy for selling your aircraft. It is absolutely imperative that your aircraft be priced properly. Too high, and it will languish on the market as other similar aircraft are sold. Too low, and you risk leaving money on the table, as the saying goes. The right price is NOT the cheapest price and it’s important to remember that when pricing your aircraft. Some buyers are looking for only the cheapest airplane but those buyers are going to get exactly what they are looking for: a cheap airplane. No, most buyers want to get the most aircraft for their money and if that means spending more to get more, they are willing to do so. If your aircraft has unique options or features that command a premium, then that needs to be reflected in the price. How best to determine the price? The good folks at Aircraft Blue Book spend a lot of time and energy figuring that out for you and a Blue Book evaluation is an excellent place to start. Armed with that evaluation, a good market survey, to see and understand exactly what your aircraft’s market is doing at the actual time of selling, will enable you to adjust the price to ensure your aircraft is the next to sell. A good aircraft broker will be able to provide you both an evaluation and a market survey as part of your listing agreement when you contract with them to sell it.

Maintenance condition is the next area to focus on.

Aircraft Sales and the Importance of Photography

A very important part of and successfully selling your aircraft is good aircraft photography. As the saying goes, there is only one chance for a first impression and it is amazing how many times sellers ignore the first impression they are making with their photographs.  Aircraft sales is a competitive market and when a prospective buyer is browsing the internet and looking at dozens of aircraft pictures, it is easy for all the planes to kind of blend together in their sameness. It’s vitally important that your aircraft stand out and the best way to do that is with a great picture.

First, go to the trouble of detailing the aircraft. You’re trying to get the buyer to imagine him or herself in the plane and how exciting it would be to own it and no one is excited about bugs splattered all over the leading edges and exhaust soot all over the back. A clean aircraft looks well cared for and that will only enhance the sale. Second, take the aircraft out of the hanger. It can sometimes be troublesome to find a line tech with a tug and the inclination to pull the aircraft out of the hanger, only to put it back in an hour later, but the positive effect of bright sunlight can’t be overstated.