Aircraft Appraisals
There are two different types of aircraft appraisals. One type is what is known as an informal appraisal.
Informal appraisal:
This type of appraisal can be conducted by an aircraft broker, an aircraft dealer, a lender, or other experienced individual. The purpose of the informal appraisal is to give the aircraft owner the appraiser's "best guess" as to how much the aircraft would be worth in today's market.
A formal appraisal can only be conducted by a certified aircraft appraiser. The National Aircraft Appraisers Association (NAAA) is the organization responsible for the training and certification of aircraft appraisers.
Certified Appraisal:
A certified appraisal requires the gathering of lots of data, pictures of the aircraft, and an in-person visual inspection of the aircraft by the appraiser. NAAA appraisers use a special template to evaluate all aspects of an aircraft including damage history, upgraded equipment, status of time limited components, etc. NAAA also maintains a database on various makes and models of aircraft sold over the years, so they can track the trend of an aircraft value up or down.
Often a lender will require a certified appraisal before financing an aircraft purchase or an insurance company will require a certified appraisal before insuring a particular aircraft for more than current market value for make and model. Sometimes prospective aircraft buyers will want to see a current certified aircraft appraisal before making an offer on an aircraft.
Steve Rossiter is an NAAA Certified Senior Aircraft Appraiser. He can be contacted by phone at (406) 529-1601 or by email at Steve@AmericanAircraftTraders.com.