Why You Should Consider Having The Right Aircraft Valuation
If you are a stakeholder in the aviation industry, it is about time that you went for a proper aircraft valuation, in case you have not done so. Company that is providing an insurance policy for your airplane will insist on receiving independent appraisal on your aircraft before the cover can be issued.
In case you are selling your plane, you need to hire a aircraft valuation firm in order to determine its worth. The same applies when you need to do a refinancing of a loan. The importance of the valuation company cannot therefore be ignored.
Upon finalizing the plane valuation exercise, the specialist will give a documentary report. Supporting reasons as to why a particular was arrived at must be provided in the document. That report can be used as an evidence of the true value to any interested party that would include a lender, seller or a buyer.
You should always hire an aircraft valuation specialist who has the requisite certification from the authorities concerned. You will have the guarantee that the report that you hold is not biased and can be relied upon as an authority in the industry.
From the buyer’s perspective, the acquisition of an aircraft valuation is essential for a variety of reasons. Among these is when he is planning to arrange an insurance cover. If you are planning to add to your current fleet, it is necessary to obtain an appraisal so that you are in a better position when making the offer. In most cases a seller will be asking for a price that is way above the real value.
Since interest rates can experience a drop, you may find it wise to refinance a loan that you have taken out on your plane. The lender will need to determine how much the plane is worth before he can process a fresh loan. By carrying out a valuation you will be smarter when it comes to taking a cover or when a sale transaction is happening.
It is not recommended to try to find out the value of your aircraft through tools available on the internet. The only sure way of knowing the true value is through an official appraisal. A lot of various factors have to be considered before an appraisal can be provided.
The cost consideration of the appraisal exercise will determine the valuer you will settle for. In determining the cost of the exercise certain factors will come into play. These factors will include the type of the plane, the reason why the appraisal is being done and your location. When choosing an appraiser, it is important to go for a reputable one.