A1Aviation Philosophy of Appraisal
At A1Aviation, we specialize in the appraisal of aircraft. It is the backbone of our business and provides the justification for all of the aviation asset valuation services we provide. Whether we act on your behalf as Buyer’s Agent, Expert Witness or Damage Assessment Valuator, we do so based on an accurate, current opinion of value.
A NAAA appraisal provides detailed information about an aircraft’s current market value to clients. This unbiased opinion of value is essential for many reasons, such as:
- Supporting expert testimony during litigation where the value or condition of an aircraft is in dispute
- Ensuring a buyer’s taxable assessment is correct
- Substantiating insurance claims made for damages after an accident, fire or storm
- Providing a bank an accurate, up-to-date value of the aircraft for financing or repossession
All NAAA appraisals from A1Aviation include the following:
- An onsite, physical, inspection of the airframe, engines, propellers, instrumentation and avionics
- A thorough evaluation of the aircraft’s logs and associated documentation
- Computer research and analysis using proprietary software and databases
- A detailed, comprehensively written report containing comments, photographs and appraisal computation, in two formats, spiral bound and digitized
*Note: An appraisal inspection is not a mechanical inspection. It is a value inspection. For a pre-purchase inspection or another mechanical inspection please contact a licensed A&P mechanic who is familiar with the aircraft make and model.
NAAA Appraisal Process
The excerpt below is directly from the NAAA website, and it details how their appraisals are classified.
What is an NAAA Aircraft Appraisal?
Appraisal – The act or process of developing an opinion of value; an opinion of value.
Value – An opinion in monetary terms of the worth of real or personal property (not necessarily the same as price or cost).
Price – The amount asked, offered, or paid for a property.*
An appraisal is an opinion of value. It is written by a person who has the knowledge, expertise and credibility to determine the value of the subject aircraft. The process of developing an appraisal is intricate. It is not, as most people assume, the act of looking up a value in a book or in a computer program. Improper evaluations of aircraft by persons who are not qualified to make them, or by those who have their own agenda in pricing the subject aircraft, lead to trouble for unsuspecting buyers. High values are far more common than low values. No matter whether you are a buyer, seller, banker, or insurance company executive, you have a major stake in ensuring that the amount paid for the aircraft is reasonable. And how do you know what is reasonable unless an independent, objective, third party examines the aircraft and its records to verify that it is what is expected?
Why do you need an aircraft appraisal written by a member of the National Aircraft Appraisers Association?
- To obtain a professional opinion of the present market value on an aircraft.
- To obtain a professional opinion of the value on an aircraft to be renovated or modified.
- To obtain a professional opinion of the value of an aircraft as a prudent safeguard against excessive tax assessments, capital gains and other taxes.
- To verify damage claims resulting from fire, hail, windstorms, accidents and other disasters.
- To provide the basis for decision-making in the commitment of funds for aircraft acquisition.
- To provides persuasive, independent evidence of the general condition of an aircraft.
- To assist a prospective purchaser in obtaining financing or insurance.
- To assist a financial institution in substantiating the nature and value of the aircraft as it relates to collateral.
- To assist a financial institution by supporting the loan portfolio for examination by the loan committee and/or bank examiner.
- To distinguish sellers aircraft from others that may be listed for sale. An appraisal written by an NAAA Certified Aircraft Appraiser should reduce the time required to sell an aircraft.