Who is the National Aircraft Appraisers Association?
The National Aircraft Appraisers Association (NAAA) is the Trade Association for professional aircraft appraisers. Since 1980 the NAAA has been the Certification entity and has established the standards and Code of Ethics for professional aircraft appraisers in the United States and abroad. You are invited to view a short slide show presentation by visiting their website.
Why is an NAAA certified appraisal important?
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, lender, 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?
For the Buyer – The appraisal is an impartial, professional opinion as to the value of the particular aircraft being purchased. But it is much more than that. It is a thorough description and inventory of the aircraft that verifies the major selling points for the buyer and financing entity. Further, the appraisal can assist in expediting the sale of the aircraft because the buyer and seller know the fair market value and relative condition of the aircraft through the independent appraisal. Information is knowledge, and that is what you get in a certified aircraft appraisal from a member of the National Aircraft Appraisers Association.
For the Seller – The appraisal offers the confidence of knowing the general condition and current fair market value of the aircraft being sold as seen through the eyes of an independent third party. The NAAA Certified Appraisal is a great selling tool because it gives a potential buyer a solid “feel” for the aircraft in the words of the objective evaluator. After reading the NAAA appraiser’s report the potential buyer will have more confidence in the condition and appearance of that airplane than he would another airplane where all that is available is the owner’s description.
For the Lender – The NAAA Certified Appraisal documents the value and general condition of the aircraft. The appraisal also supports the bank’s collateral position in the aircraft loan by verifying that the aircraft is what it is said to be. Any Banker who does self-evaluations without any manner of verifying the collateral exists, or that the aircraft is equipped as represented, is putting his institution at risk for a major loss should the client default. There is absolutely no reason to accept a risk of that magnitude when there are NAAA appraisers throughout the United States and Canada who can detail the value and general condition of the aircraft for you.
What do I receive from an NAAA certified aircraft appraisal?
An NAAA Certified Aircraft Appraisal is an impartial opinion of the value of an aircraft, prepared by experts who know all the factors which make up the current behavior of the used aircraft market. It is an opinion of value based upon experience and repeated analysis of these factors. It is an opinion of value which can be substantiated and justified. It is an opinion of value made by a certified, recognized, professional aircraft appraiser.
A professional aircraft appraiser must acquire all the facts about the aircraft in question. The appraiser thoroughly examines the aircraft log books, inspects the exterior and interior surfaces of the aircraft, and pays close attention to the general condition as well as the maintenance history of the aircraft. Utilizing the National Aircraft Appraisers Association’s extensive computer based system enables the appraiser to give accurate and prompt aircraft appraisals.
- A detailed examination of airframe, engines, props, instrumentation, avionics and all relative systems.
- A careful review of aircraft documentation, log books, and associated records.
- A computer analysis of relevant value data.
- A sealed Certificate of Appraisal and the detailed computerized report submitted to the client.
What is the purpose and objective of an aircraft appraisal?
- To obtain a professional opinion of the present fair 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 provide persuasive, independent evidence of the 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 NAAA Certified Aircraft Appraisal should reduce the time required to sell an aircraft by 50%.
How much will an NAAA certified aircraft appraisal cost?
Simply put, the more complex the aircraft, the more time required to conduct a thorough and accurate appraisal. Fees will vary depending on the type of aircraft, its year, make and model, location, and the length of time involved in completing the analysis of all relevant data. The difference in cost is directly related to the time spent examining the aircraft and matching the visual inspection to the maintenance logbooks.
How much time should an appraiser have to complete the report?
The client must allow sufficient time for the appraiser to do a thorough job. The appraiser may spend a short time actually inspecting the aircraft, but will spend considerably more time researching the data.
What are the NAAA standards of Professional Practice and Conduct?
The National Aircraft Appraisers Association has established rigid standards of professional practice and conduct to which every Association Member must adhere. It is essential to all parties receiving and relying upon appraisals that these standards be meticulously maintained. You may review the ethics rules that our appraisers work under by clicking here: plane-values.com/