Appraisals & Market Analysies

It is very common to confuse a market analysis with an appraisal. After all, what's the real difference? They both provide a number don't they? Of course they do, but a true appraisal is much more than just a number. When contracting for professional appraisal services, make sure you understand:

	What value points are being considered? If all the value points are not captured, then the result will be questionable. NAAA Reports look at over 75 value points.
	What database is being used and how often is it updated? Using data that does not reflect current market values impacts the outcome of the report as well.
	Who is performing the appraisal? The person performing the appraisal should be completely disconnected from the aircraft and the deal itself. Only then can they offer an unbiased opinion.
	Is the person actually examining the aircraft and it's records? If not, then they cannot fairly and accurately establish the aircraft's value points because they must rely on someone else's opinions and observations.

So what's the difference?

Market Analysis 1.PDF Normally, individuals use published guides to provide a market value. In this particular situation, this is all the bank received for an appraisal and they were fully prepared to initiate a loan based on this level of information. It was later determined that this particular aircraft had been completely destroyed.

Market Analysis 2.PDF This is an example of what many banks and individuals consider to be an appraisal. It provides little detail and there is no way to determine how the aircraft's value was calculated or what value points were considered.

Sample Appraisal.PDF This sample was taken from an actual appraisal performed by Plane Data, Inc. Compare this report to others and you will quickly see the differences between aircraft appraisals performed by Plane Data, Inc and Certified by the National Aircraft Appraisers Association and those performed by other individuals.

IF IT DOESN'T SAY "NAAA" ON THE REPORT - IT'S NOT AN APPRAISAL!

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