Whether you are thinking of buying or selling, or perhaps insuring an aircraft, you have to understand that these are among the most complex, as well as among the most valuable assets in the world. So, knowing the true market value is of utmost importance, meaning that you cannot just come up with a random number and be done with it. Quite on the contrary, you need to be much more careful than that.
Of course, when you want to be careful, that means that you will have to, well, work with professionals. To put things simply, what you have to do is use great aircraft valuation services to your advantage, and thus get professional and unbiased estimates of what an aircraft is actually worth in today’s market. I suppose that you have already heard of this option, and that you understand the importance of it, at least to a certain extent.
The thing is, though, while you may have heard of it, you may not be entirely sure about what these services are and what they entail. And then, you may also not be that sure about how to get good ones for yourself. And, well, those are the two important questions that we will answer for you below, so keep on reading to get a better idea about all of this right now.
What Are Aircraft Valuation Services?
Unsurprisingly, we are going to begin with the most basic question here. What exactly are aircraft valuation services in the first place? Well, to cut right to the chase, we are talking about professional assessments that determine the fair market value of an aircraft. Typically, these are performed by certified aviation appraisers that use industry standard methods, and, of course, data.
The core idea behind these services is to answer one simple question. How much is the specific aircraft worth at the moment? So, a proper valuation has to be independent and unbiased, as well as based on market data and technical analysis, and, of course, supported by documentation and methodology.
Read more about some methods: https://www.sciencedirect.com/science/article/pii/S2352146525007756
Why do these services matter so much, though? Well, for one thing, if you are buying or selling an aircraft, the valuation process will ensure that you are not overpaying as the buyer, or underselling as the seller. In short, it provides the much needed transparency and confidence during the actual negotiation process.
Then, banks and leasing companies will require these valuations in order to assess risk and define the loan terms in case you need financing for the aircraft. Furthermore, insurance providers use the valuations in order to decide on the appropriate coverage and premiums. And, of course, valuations will help you calculate asset value, depreciations, and tax obligations, while the certified appraisals are also often used in some legal cases, such as damage claims or asset division.
How to Get Good Ones?
Okay, now that you understand what aircraft valuation services are, and just how important and essential they are when it comes to aviation ownership and business, you have a different question on your mind. That is the question of how you can actually get good services for yourself. Read more about the importance of doing this before buying, for example.
As you could have guessed it already, the main thing to do here is, well, find and hire the right professionals to provide you with the services you need. So, this is your main focus and your main task in this process. Start, therefore, by making a list of potential ones, searching for them online or getting recommendations from some people you know.
Once you have made the list, you will be ready to start digging a bit deeper for details. Start with checking for accreditation, because you undeniably want to choose those appraisers that are accredited by recognized and trusted organizations. This will show that they follow strict technical and ethical standards, as well as that they undergo strict training.
Moving on, once you have confirmed that the potential candidates are properly accredited, you should proceed towards checking their experience. When you visit Holstein Aviation, for example, or other similar companies, you will realize that you can most likely find the information you need about this on their official sites. What you are looking for, of course, is proven aviation expertise, experience with your specific aircraft type, as well as a strong track record on the actual market.
Apart from all of that, you will have to understand the scope of work that will be done by particular pros, as well as check if they are ready to clearly explain their methodology and be transparent about everything. And then, consider the turnaround time and the costs as well, while always keeping the quality of work your top priority.
