Top 4 things to know before getting your aircraft appraised

Shedding light on aircraft appraisers

Appraiser credentials are, by far, the most common source of confusion in our industry. Here are the facts you need to know before approaching an “expert” for an appraisal:

1. There are ZERO consumer protections.

Most consumers are familiar with the appraisers from real property transactions, where there are a slew of regulatory consumer protections in place. Outside of real property appraisers, anyone can call themselves an appraiser of something - aircraft, art, surfboards, anything. This creates an environment for confusion, because it forces the end-user of appraisal services to determine the underlying credibility of the appraiser. Fortunately, there are organizations (which I will describe later) that accredit appraisers to perform aircraft appraisals. If you are not using an accredited appraiser you are at high risk of receiving a unreliable report.

2. Dealmakers May Not Be Impartial

Any number of aircraft dealers/brokers will provide you with a written appraisal. These parties are not inherently impartial since they are vying to be a member of the transaction and are concerned with either selling you on a number than makes you happy, or one that gets you to engage them as a broker. Accredited appraisers are held to ethical standards and must disclose any previous, current or prospective interest in the property. Maintaining impartiality is one of the key ethical requirements of an appraiser and an added layer of security with your valuation.

3. Someone Must Enforce Ethics & Best Practices

Appraisers who are accredited by a professional organization must uphold the standards of that organization or they will lose their credential. This is important. Non-accredited “appraisers” are not required to conform with any regulations or practices, nor is there a channel to report and remove unethical appraisers. Flight Level’s appraisers are both accredited with the ASA which strictly enforces compliance with the USPAP development/reporting guidelines, society ethics/practices and requires a minimum of 24 hours of continuing education in the appraiser’s field each year.

4. There are three organizations that accredit appraisers

While there are other organizations that claim to offer credentials the 3 that are professionally recognized are the: American Society of Appraisers (ASA), International Society of Transport Aircraft Trading (ISTAT), and the newly formed (2018) Professional Aircraft Appraisal Organization (PAAO). There are not any other organizations in the United States that provide education, testing, and credentials to aircraft appraisers. We will be comparing these organizations further in our next article.

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Next time you or your lender are in need of an appraisal, seek out an appraiser who is impartial, conforms to a standard for ethical conduct and is accredited by an appraisal organization. Of course, if you have further questions or concerns about appraisals, Flight Level’s team of ASA accredited appraisers is here to help.

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Author:

Cameron Tipton, ASA

co-founder/accredited senior appraiser

Flight level partners

The 6 Strangest Business Aircraft Ever Built

Beechcraft Starship

The Beechcraft Starship was introduced to the market in 1983 and was destined to be an innovator, featuring the first glass cockpit in any business aircraft and an exceptionally “unique” design. There are 5 remaining Starships in the US that still hold FAA registration.

Piaggio Avanti

The Piaggio Avanti was introduced in 1990 with a similar design to the Beechcraft Starship. The Italian-built aircraft bears the nickname, “Catfish of the skies” because of its unique canard design. The Avanti has made a name for itself by offering jet speeds and superior onboard comfort at the operating cost of a turboprop. The Avanti is still alive-and-well, it is in its third design iteration dubbed “EVO” and can be picked up for $7.5 million USD new.

Rutan Boomerang

The Rutan Boomerang was built to reduce the adverse effects associated with losing one of the two engines on a twin-engine aircraft. The design results are interesting to say the least. The design never left the FAA certification process and only 1 aircraft was ever built.

AdamJet A700

Adam Aircraft Industries (AAI) first flew the A700 twin-jet in 2003 as a counterpart to the A500 twin-engine piston developed around the same time. Ultimately, the development of both aircraft met their ultimate fate after the economic crisis of 2008 leading to the bankruptcy of Adam Aircraft.

Edgley Optica

The first flight of the Edgley Optica was in 1979 and it was designed as a low-cost alternative to the helicopter for observational work. The UK built aircraft is powered by a lycoming flat 6 cylinder that drives a ducted fan behind the cockpit. 22 aircraft were delivered by Edgley and there is now hope that production will begin again in 2019.

Gee Bee R-2 Super Sportster 

The Gee Bee is by far the oldest of the bunch (and not exactly a business aircraft), it was produced in 1932 as a racing aircraft identical to the original Gee Bee R-1. The aircraft had a reputation for being incredibly difficult to control and was inherently dangerous. The R-2 and R-1 were pieced together after a crash of the R-1. The aircraft was eventually sold to a private owner who added larger fuel tanks making the aircraft impossible to control, he crashed after takeoff and was killed - it was never rebuilt.