Imagine that you’re trying to buy an aircraft and you get an appraisal that looks great. Then, you acquire the aircraft and you realize the valuation was way too high. This is a huge problem, especially when planes can cost upwards of $700,000!
For most people, this would be enough to boil their blood. This is why it’s so important to understand your USPAP appraisal and why it matters in this process.
To avoid this, we’ve created a guide to USPAP appraisals so you don’t have to do the research on your own.
Let’s talk about what really matters in an aircraft appraisal.
The 5 Most Important Factors in a USPAP Appraisal
Remember: there are no actual rules regarding the value of aircraft. This means that anyone selling an aircraft can apply a price point to the craft regardless of what the actual value “should” be.
Because of this, it’s important to be highly aware in your judgment, so we’ve compiled some great tips here to help you do just that.
1. Your Purpose
Each USPAP appraisal is slightly different because the contents of the report depend on the purpose of the consumer. This makes knowing your purpose very important so you can convey this information to your appraiser.
Doing so will make sure that your appraisal report is as accurate as possible.
2. Your Appraiser
Much like your realtor, your doctor, and your lawyer, you only want the best people helping you, especially when your money is on the line.
Know who your appraiser is, what kind of business they do, and their overall reputation. They should be able to assist you in reading the aircraft’s history and evaluating risk factors – it could mean the difference between a successful and terrible USPAP appraisal.
3. An Understanding of the Aircraft
Like we stated above, it’s important for you and your appraiser to understand the aircraft and its history.
Depending on its environment, how much it’s been flown, and where it’s kept, there could be issues that are hidden even from initial inspections. Be wary of people who are too quick to close.
4. The Aircraft Logbook
The logbook is kind of like the roadmap to the aircraft. In a USPAP appraisal, this is one of the most important documents you can have at your disposal.
Use it as a diagnosis for the aircraft – was the owner proactive in fixing problems? Were there a lot of unfixed issues?
5. Taking Your Time
Finally, don’t rush the process.
You wouldn’t jump on a car just because you want a car – you should always evaluate accident history, features, and technical information that matters to how the car operates. The same is true of aircraft.
In your USPAP appraisal process, never rush to a conclusion before you know the full picture.
Now that you know what to look for in a USPAP appraisal, you might be asking, “Ok, where do I start?”
Check out our other blog posts – we offer trusted valuation guides to aircraft, like how the value of aircraft can fluctuate, so you can make the most educated decision with your money.