Buyer's and Seller's can both take advantage of smart moves to help them get the most out of their aviation asset. The aircraft re-sale market is hot and forecast to stay that way for some time to come. High performance singles and many newer turbine aircraft are enjoying short sales cycles and are selling for close to asking price. The lining on the market is not all silver, however. Owners of piston twins, particularly those that are older and have not been updated, and owners of gas-guzzling turbojet aircraft are feeling the pinch of rapidly falling values. Regardless of the market you’re in, taking a few simple steps can make a big difference in the purchase or sales price. Some practical advice follows to make sure you’re getting the best deal possible.

For Seller's:

Tip #1: Price the Aircraft Appropriately

Folks, lesson #1 in aircraft upgrades is that few of them actually add value. Despite this, many owners try to get every penny out of an investment at sale only to be frustrated that no one is interested at that price. Just because you spent thousands on that green and pink velour interior doesn’t mean a potential buyer will place the same value on it. The simplest way to determine fair market value is to hire an unbiased appraiser. A qualified and objective appraiser — i.e.; not your broker — will be able to look at your airplane from an impartial point of view. Sure, this may cost a little money but the goal is to sell your airplane shortly after putting it on the market. That’s when the interest level for serious buyers is at its highest. Just like a house, an airplane that languishes on the market too long can develop a stigma and buyers will begin to think something is wrong with it. Take advantage of the time an appraiser spends at your aircraft by asking that person what they think needs to be done to make it more appealing to potential buyers.

Remember, every additional month the aircraft spends on the market is a month where you’re making payments and paying for salaries, insurance, hangar space and routine maintenance. Furthermore, some airplanes are a depreciating asset and waiting for a higher price six to twelve months down the road may not be the most prudent strategy.

Tip #2: Clean It Up

Would you show your house without vacuuming the carpet and dusting the furniture? Amazingly, the same people that answer “no way” to this will show their airplane in a dirty, cluttered hanger and fail to clean the interior and exterior of the aircraft. The appearance of your airplane is a direct reflection on your attention to detail. If you, the owner, can’t even keep your airplane clean, then what’s a buyer to assume regarding maintenance and upkeep?

Remove the spots off the carpet, seats, and headliner, remove oil and exhaust residue from the belly and engine cowlings, de-bug the leading edge surfaces, and wash and wax the aircraft with aviation approved products. In housing terms, equate this process to improving your curb appeal. If you don’t have time to do this yourself hire someone to do it for you. It will be money well spent.

Tip #3: Market the Aircraft Professionally

Before you discount this as a self-serving statement please read on. This is not saying that you should hire a broker or a dealer – only that to be successful in marketing your airplane you should treat the process with the respect it deserves. Slapping up a hand-written note and fuzzy Polaroid picture on the airport bulletin board doesn’t cut it anymore. An effective marketing campaign should include:

• A clear and easy to read specifications sheet.
• Multiple digital photographs of the exterior, interior, instrument panel, engine(s), landing gear, and log books.
• Print and Internet advertisements in aviation related outlets (there are many good paid and free Internet sites. Advertising in the local newspaper is typically one of the least effective ways to market an airplane.)
• The ability to talk about your aircraft without emotion. Buyers are turned off with stories about how your aircraft is “the best one on the market” or is “like new.” Be honest. Buyer’s appreciate this and are likely to spend more time investigating your aircraft if you appear sincere and candid.
• The willingness to commit the time and resources needed to enable the sale.

Brokers and dealers can provide many other valuable services and can provide you with tremendous time savings. However, not all brokers are created equal. Due diligence here is an absolute must. A poor broker can cost you more time and money than if you were to do things yourself and may even open you up to unwanted liability. For more information on how to look for a Broker or Dealer, please see our publication “Choosing an Aircraft Marketing Partner.”

For Buyer's:

Tip #4: Begin with the End in Mind

You may recognize this tip from Stephen R. Covey’s book, The Seven Habits of Highly Effective People. His advice is particularly appropriate for the prospective aircraft owner. Many folks jump in to aircraft ownership without an inkling of how they’re going to get out of it. The first thing you should ask yourself when buying an airplane is “Will I be able to sell it without losing a substantial part of my investment?”

Don’t expect to make money on an airplane. But that doesn’t mean you should accept huge losses either. A thorough needs and financial analysis is critical. If you go in to this process with an open mind, you are likely to find that the best aircraft for your situation is far different than you envisioned. Unfortunately, many people have a bad taste for aviation in their mouth following an unpleasant ownership experience. Many of these experiences began with the purchase of an airplane that was more ego centered than reality centered. It doesn’t take long for the “cool” factor to wear off in the face of exorbitant maintenance and operating costs.

Tip #5: Pay Little Attention to the Asking Price

Most sellers price their aircraft inappropriately and base their asking price on a variety of inaccurate guidelines. Ask the seller how he determined the asking price. Many will respond with, “I looked through the various sales publications,” “I used Blue Book,” or “I used AOPA’s free Vref service.” Trouble is, basing a sales price on other’s asking prices will most certainly result in a bloated figure. And price guides are notoriously misused (usually to the benefit of the seller or broker). For example, subtractions to value for deficiencies are rarely applied while piling on additions is the norm.

Just as for sellers, the best way for a buyer to determine the value of an aircraft is to commission a third-party appraisal. Such appraisals will not only determine current fair market value, they should also uncover details about the aircraft that the seller may not have disclosed. Of extreme benefit is that you will not have to spend significant time and money traveling across the country to look at an airplane that was woefully misrepresented.And if a seller refuses to have an appraiser look at the aircraft … run away!

Tip #6: Be Patient

No matter how much you think you need an airplane right now, you probably don’t. It’s easy to become enamored with a sleek looking airplane that is currently available. And if you’re using a buyer’s agent, the first question you should ask is “what does he have to gain if I buy this airplane?” Before jumping into the buying process establish some clear objectives. If a particular airplane meets these objectives then it is time to get more serious. But if that airplane is not priced appropriately, the owner is not willing to negotiate, or other issues arise, don’t assume that another qualified aircraft will not present itself. At any given time 10% to 20% of a particular aircraft make and model will be for sale. Take your time and wait for the right aircraft to emerge. You’re patience will be rewarded many times over for not indulging yourself with a less than ideal prospect.

Tip #7: Ask for Extras

Sellers who won’t budge on asking price may be willing to make other concessions. This is particularly true when dealing with a manufacturer on a new aircraft. What kinds of things can you ask for? Well, the list is literally limitless, but some of the more popular goodies that can be tossed in include spares (tires, wheels, maintenance inventory, etc.), upgraded avionics, specialty tools, pilot supplies (headsets, electronic flight bags), fuel, maintenance considerations, or even the use of loaner or charter aircraft for unexpected AOG (aircraft on ground) events. You may even be able to get the seller to sublease you his hangar space at a discounted rate.