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Jake Huling here with aircraft sales advisor, I'd like to welcome you to the
second report in a new series called nine steps to successful sale or purchase of
your plane
In the last report we discussed the top complaints and frustrations
I heare from clients customers and new contacts
all the time about the industry we also talked about the industries reputation
its sad because it really doesn't have to be that way
I told you about my approach
and whi its different than probably what you have see out there
we also talked about commission rates
and whether or not you could expect a standard commission in the industry
and the benefits
and the disadvantages of both
using a broker and buying and selling a plane on you own
if you havent watched the first video in the series
i recommend you check it out first and I will put a link to it below the video
in this second video report I promised you we would go over
how the industry determins the fair market value of a plane of the plane
that you are looking to sell or buy
and what information you will need it
inorder to do that
there are four important sources of information
needed to get an accurate valuation of a plane
and determin it's value so let's take a closer look
The blue book appraisal
you've probably heard this one
this is like when you go to buy a car and the dealer has that blue book in his
back pocket
and never get a look at it well I'm going to tell you what it says
and how to use that information to your advantage
an appraisal should be unique to each aircraft
with each planes specific spec sheet information being used
we are going to cover the spec sheet
what should be on it and how to get that information
in one of the upcoming video reports in this series
the reason you want to have that information is because
you will end up with a more accurate appraisal
then one that uses
general information like year make and model
this information should include all upgrades
engine times
maintenance programs if any and airframe times that's another topic will also cover
in an upcoming report
and it's going to cover the value of extras
in both cost and desirability
two very different things
one is how much it costs to add a particular modification to a plane
and two is how popular it is and if it holds
its value
listen to this next part very carefully
a blue book appraisal will still only give you a general idea of the value of
a plane
what really matters
is what the market is doing
and the word of caution don't let anyone tell you a plane is or is not worth
any specific amount
based only on a blue book appraisal the numbers in an appraisal can be manipulated
or simply changed to show any ammount
that they'd like to show
This should only be one part of the information used to determine an accurate value of a plane
let's go over the different sources of information
that you'll need for that accurate evaluation
the monthly market report or monthly market overview
this is a reporter I put together
in response to a number of common questions I regularly receive and am
asked
uh... about the status of the overall market
so it covers several areas including the number of planes in the fleet how many are
for sale what the average asking prices are
it also takes a look
It also takes a look at what the trends are showing over the last 6 month period
Whether they are up or down in both total number of planes for sale, and the
average asking price
It also covers the average number of days
on the market before a plane sells, this one is important
to help you have accurate expectations
for the sale of your plane
This report is really designed to give you an overall look at what's happening in
the particular market that you're interested in. If you would like to take a look at one
of the reports, you can send me an email
with the plane that you are interested in.
. Now, I specialize in the King Air Market but I can get you a report on a different plane if requested
There is just no way I can cover every plane in existence and still
be effective
But I do help clients and customers all the time
who are for example
selling a different plane and moving up into the King Air,
or are selling a King Air and maybe moving into a Jet
so if you have a different plane
and your interest in taking a look at the reports
just let me know
let's take a quick look at what i call
buying paths
I also cover these in my Monthly Market Report
Buying paths are especially important when you're selling a plane. A buying path
will identify
who most commonly buys your particular type of plane, or more specifically,
what they usually upgrade from
this is valuable information because now rather than just
mass marking your plane
we've identified potential buyers who might actually be interested in seeing
your plane, and what you have to offer.
But let me get back to the purpose of this particular report, which is determining the
value of the plane. One mistake that's important to avoid, is trying to
determine the value of a plane, based on what's currently for sale in the market.
Listing prices are often times just what someone hopes to get for their
plane and not what they would actually take or ever get as an asking price.
And here's something you may not know
if you are selling did you know your competition is going to be
the year of your plane
one year above, and one year below? This is because of an overlap in
pricing between years. So the planes that are a year newer than yours, may have some
priced lower
and the years below your plane, may have some that stand out with
low time and nice features, that will compete with your plane
maybe even for a little less
and of course when you're buying
it's also a good idea to take look at the years above and below for
the very same reasons. Be careful with getting caught up on a year,
you might find a really good value if you expand the years of your search
recently sold plans
This one is of extra importance
these are actual sales that have taken place preferably within the last six months
You should find at least three planes that are as close to the same year, same total time,
and equipment as yours. These are real world sales and they should match up fairly closely with
your other estimates, if they don't something is off and that is a warning sign
Now this one can be a little higher or lower
than what your other estimates are showing, and should be used to
make final adjustments
to the asking price of your plane, or to any offer you intend to make
on a plane you'd like to buy
These reports combined will give you a complete overview of the market, and
allow you to determine an accurate value
of a plane
lastly commissions
I told you in this report we would go over commission rates
what they should and should not be
and what you could expect
but we are out of time. So a commercial for the next video report. Where we will
go over the different ways you can bring a plane to market
the margin differences between Wholesale and Retail
and what that means to you
How to go about the search for your next plane, and the different types of
buyers and sellers
And I will make sure to cover not only the commission rates,
what they should and should not be
And I'll to add to that
and go over the different types of percentage based commissions
has used the right one if you go that route
and how to get the most out of them
So that's the next report, thank you so much for joining me
on this second step in my newest series of reports called
nine Steps to a Successful Sale or Purchase of your plane. This is Jake Huling
with Aircraft Sales Advisor, I look forward to seeing you on the next one
where we will find out
if I can fit all of that into one report