FAQ: What Questions Should You Ask Before Hiring an Appraiser?
- Are you insured? If so with whom?
- What is your general appraisal and educational background?
- What specific experience do you have with the kind of property I wish to have appraised?
- Are you a member of a professional appraisal society? Does that society teach, test, and accredit?
- Do you hold a special designation issued by an appraisal society?
- Is that designation based on successfully completing written examinations?
- How long ago did you take the examinations?
- What continuing education have you undertaken to keep up-to-date in the field?
- Has the appraisal society you belong to adopted a mandatory reaccreditation program to ensure that your education and knowledge are current?
- What do you charge for your services, and how do you base your fee?
- Are you required by your appraisal society to adhere to the Uniform Standards of Professional Appraisal Practice (USPAP)?
What Is an Appraisal and Who Requires One?
- The Banker requires an accredited appraisal to document the value and condition of the aircraft. The appraisal also supports the banks collateral position in the aircraft loan.
- The Seller requires an accredited appraisal to provide them the confidence of knowing the current fair market value of their aircraft.
- The Buyer requires an accredited aircraft appraisal as an impartial and unbiased, independent professional opinion as to the value of the particular aircraft they are planning to purchase. Further, the appraisal can assist in expediting the sale of the aircraft because the buyer and seller know the market value and relative condition of the aircraft through the independent professional appraisal.
The Purpose Of an Appraisal
- To obtain a professional independent valuation of the current market value of an aircraft/asset
- To obtain a professional independent valuation of an aircraft to be upgraded
- A professional opinion of the value of an aircraft is useful as a prudent safeguard against excessive Tax Assessments, Capital Gains and other taxes
- Appraisals are used to verify damage claims resulting from fire, hail, windstorms, moving/non-moving incidents, and other natural/manmade disaster
- An appraisal may provide the basis for decision-making in the commitment of funds for acquisition/sale
- Provides documented independent evidence of the condition of an aircraft or aviation asset
- Helps verify the selling or purchase price of an aircraft
- Assist a prospective purchaser in obtaining financing/leasing or insurance
- Assist the financial institutions by substantiating the current/future market values of the aircraft as it relates to collateral
- Assist the financial institution by supporting the loan portfolio for examination by the Loan Committee and/or Bank Examiner
- Establish value to be used by IRS for charitable contributions/donations