AERONUVO's QUICK GUIDE TO

MARKETING AND SELLING

YOUR AIRCRAFT

How to Avoid Impediments and Boost

Your Results

AERONUVO, the Aircraft Appraisal and Valuation Company is committed to providing the very best appraisal reports available within the aviation industry. We focus on modern, quality, owner flown aircraft and have great expertise in piston aircraft. Our specialties include Aeronca, Aero Commander, American Champion (ACA), American General, Aviat Husky and Pitts, Beechcraft (Beech), Bellanca, Citabria, Cessna, Cirrus, CubCrafters (Cub Crafters), DAHER SOCATA, Diamond, Ercoupe, Glasair, Great Lakes, Grumman American, Lancair, Luscombe, Maule, Mooney, Piper, Rockwell Commander, Stinson and More. AERONUVO would like to share some of our knowledge and expertise to help you make your aircraft sale mission a success.

Preparing to Sell Your Aircraft

Surely you are hoping to get top dollar when you sell your aircraft. There are several simple things you can do prior to listing your plane that can increase your listing price and help you find serious and motivated buyers. Here are some of the important things that will set your aircraft apart: Keep great records. This may seem obvious, but it gets overlooked far too often. Aircraft logbooks, registration certificates, STCs and compliance records can have a significant impact on the sale price of an aircraft. This cannot be minimized. If all your logs are complete, in order, and easy-to-read, potential buyers will see this as a favorable indication that your aircraft is well maintained. Missing entries or messy, hard-to-decipher handwriting often prompts concerns about the care and condition of the plane. Organized logbooks greatly assist our aircraft appraiser in completing the assignment carefully and accurately. Before you put your aircraft on the market, review all the logbooks thoroughly so that you can discuss the history and condition with the buyer. You will find that aircraft with orderly and complete logbooks attract more competitive offers. AERONUVO, can digitally replicate your logbooks  for you. A detailed review of all available aircraft documents is one part of our available aircraft appraisal services.   Protect and polish. Aircraft that are kept clean and hangered when they aren’t being flown are easier to market for sale. And a good “spit shine” is probably the quickest way to make your plane a little prettier right before you show it off. People are attracted to shiny things, so washing and waxing your plane (with a silicone-free wax) before you take photos or show it to prospective buyers is important. You’ll eliminate any doubt about what’s under all the dust and dirt and help buyers see your aircraft at its best. In addition to having your aircraft occasionally washed and waxed, we recommend taking just a few minutes to preserve your paint after each flight, which will help preserve your aircraft’s over all value as well. Try using a wet cloth to wipe off the leading edges as soon as possible after you land. AERONUVO provides to you a comprehensive grading guide and criteria for aircraft exterior paint, used strictly by our appraisers. Having a clean windshield and side windows is not a matter of being a clean freak. A dirty or scratched up windshield can be a potential flight hazard, as it can significantly reduce forward visibility, particularly at certain sun angles. Getting the dust and grime off is important, and it has to be done properly to prevent scratching. Clean and clear windows do attract the notice of buyers. Remember, most aircraft windows are acrylic plastic (as opposed to "Lexan" or polycarbonate) and acrylic plastic is scratchable. Proper care involves preventing scratches that are preventable and properly taking care of those that are not. Onlt use chemicals and polishes specifically designed for your type of window. Installing a new windshield costs several hundred dollars or more – money that could be spent on more exciting things if you take good care of the windshield you have. You can keep your aircraft windshield and windows looking and performing like new by using the proper care products and techniques and by understanding a little about the material you are working with.  Restore and Replace. If your airplane interior has stains or tears, consider having them professionally cleaned or restored! While most aircraft buyers will accept a little wear on a used plane, many buyers will not tolerate as much as you might expect. Presenting your aircraft to the market with freshly cleaned carpets and restored interiors can make your plane more attractive to buyers who are willing to make an offer. AERONUVO provides to you a comprehensive grading guide and criteria for aircraft interiors, used strictly by our appraisers. Additionally, if you plan to complete an annual inspection before putting your aircraft on the market, you may want to contact an aircraft sales consultant, FBO, personal mechanic about any interior items that could be easily replaced during your upcoming inspection at a minimal cost. Depending on the specific aircraft you are selling, the level of wear and tear to your interior, and variances in the market for selling your plane, you might be able to achieve an attractive return on your investment by updating and replacing certain items. Clear it out. Aircraft buyers don’t want to see your clutter! Prior to photographing your aircraft or showing it to potential purchasers, you should remove any unsightly or personal items that will not be sold with the plane. There are numerous factors that make a significant difference when it comes to determining an aircraft’s current market value. Here are some of the most important factors to consider when pricing your aircraft for sale: Obtain a Certified Aircraft Appraisal. Did you know that presenting a high quality, detailed appraisal to a prospective buyer may arm you with information to steer negotiations in your favor? An appraisal from AERONUVO, provides to you an easily sent PDF document for you to email to you interested buyers. This same aircraft appraisal educates and brings confidence in determining the Fair Market Value (FMV) of your aircraft. The Internal Revenue Service (IRS) defines Fair Market Value (FMV) as the price that property (aircraft) would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.

Determining Price and Knowing Your

Market

The truth be told, knowing the real Fair Market Value (FMV) for your aircraft is a huge key to success when you’re selling your aircraft. If your aircraft is overpriced, you’ll miss out on great offers without knowing it. And if you price your aircraft under the current market, you could leave a lot of money on the table. The aircraft "for sale" market is in constant flux, and on occasion, specific markets have adjusted by tens of thousands of dollars in just a few weeks. While huge fluctuations are more the exception than the rule, don’t be shy about contacting  AERONUVO, the Aircraft Appraisal and Valuation Company to arrange an appointment to aquire the current market value for your specific aircraft. Aircraft condition. Has the aircraft been through any accidents? Is it always hangared? The condition of your aircraft can make a tremendous difference when it comes to the amount any potential buyer will pay. It’s obvious that an aircraft that is well- maintained will bring a better price than one with a damage history; but don’t be surprised when your “well-maintained” aircraft doesn’t bring the higher price you were expecting. Well-maintained is the standard that buyers expect, and they deduct from there for any issues. Perhaps you can expect a bit more than standard if you’ve consistently opted for premium maintenance at a manufacturer- approved service center; but don’t expect to have “added value” by simply keeping up-to-date with routine maintenance that was needed. Upcoming maintenance. If there’s any costly maintenance that will need to be scheduled in the next couple years, expect that to factor into your aircraft’s market value. For example, an upcoming parachute repack on a Cirrus aircraft or impending Airworthiness Directive will definitely affect the amount buyers will pay.

Marketing Your Aircraft

Marketing your airplane effectively is not as simple as placing a few digital photographs online with a list of avionics, then waiting for buyers to call with the perfect offer. Too many sellers try this approach, only to become extremely discouraged as things progress. True, they may receive a few a few phone calls, but serious buyers need a lot more than a handful of photos and a few bullet points to get excited about making a strong offer. Here are a few things you can do to attract buyers and give them the confidence they need to make a purchase decision.

Listing Your Airplane Online

The online marketplace is an excellent opportunity for sellers looking to get the word out about their aircraft. One simple way to determine the best places to advertise your plane online is to perform a quick search for the type of aircraft you are selling. For example, if you are selling a Cessna 172 Skyhawk, try searching “Cessna 172 Skyhawk for Sale” and then note the websites that come up in the top four or five results. These are the places that will likely attract the majority of buyers who are also looking for aircraft similar to yours. In most cases, it’s a waste of time and money to post your plane on a large aviation marketplace that comes up a lot lower in your search. Thorough documentation. If you want to build an aircraft listing that will drive better results, you’ll need to invest a little more time than you may have planned on spending. While it may be a tedious process, it is important that potential buyers have a complete set of information so that they can make an informed decision. Don’t expect buyers to call and ask you about a particular item they want in a plane. If they don’t find it in your listing, they will assume it isn’t included. Accessible logs. You may be surprised at how much of a difference it makes when all the logbooks for the airframe, engine, propeller, etc. are included with your listing in an easily accessible format. While many sellers skip this step, you won’t find many people interested in making you an offer before they have a chance to review the logbooks. Why not make it easy? Quality photos and media. There’s a popular saying that “a picture is worth a thousand words." The right pictures are worth thousands of dollars when it comes to selling aircraft. Have you thought about providing a high definition video tour of your aircraft? After working with lower quality photos and media, we know this investment has Return On Investment (ROI), as a better presentation attracts and impresses buyers and generate serious offers quickly. AERONUVO can provide video and photographic services when scheduled with an aircraft appraisal. Check out our services section on this web site.   Suffice it to say, there is a lot of opportunity lost by sellers who throw up the wrong photos.  

The Aircraft Sales Process

Once your plane is advertised online, the process of fielding phone calls and emails, talking to buyers about your aircraft, educating them about the market, negotiating price and terms for offers, and handling all the paperwork begins. This part of the selling process can be very intimidating at times, especially for those who aren’t prepared for it. Here are the keys to success during the aircraft sales process: Market knowledge. As we discussed earlier, knowing the market for your aircraft is a huge key to success. If the individual talking to buyers about your plane isn’t already immersed in the market, it will be difficult for them to take the lead during the sales process and help you land on a deal that will maximize your opportunity. Aircraft markets can change rapidly at times, so it is imperative that you have the right expertise in place to help protect your interests, educate buyers, evaluate offers, and negotiate pricing and terms. Aircraft knowledge. Not only does the individual representing your plane need to know all about your aircraft, they also need to be highly knowledgeable about the other planes that buyers will be considering as they weigh their options. It’s extremely common for buyers to evaluate several different makes and models before arriving at a purchase decision. If your knowledge doesn’t extend far enough, you’ll lose trust and influence with many of the individuals inquiring about your plane. Having the knowledge to discuss options and educate prospects about more than just your plane will open up your pool of potential buyers tremendously, facilitating higher offers and better success in negotiations. Prompt response times. Many sellers begin the process of selling their plane on their own, only to realize that the sales process can easily turn into a full-time job. Buyers typically expect near-instant responses, and many buyers will move on to other options if you make them wait too long. If this is your selling plan, arm yourself with a file of high quality digital images, a clearing to understand list of equipment and upgrades installed and your AERONUVO aircraft appraisal document. Our appraisal in the hands of your buyer, may assist them in quickly securing financing with their lender. Dedicated follow-up. If responding to all the inquiries isn’t challenging enough, you should also provide regular follow up with those who have inquired previously so that your aircraft remains top-of-mind when they are finally ready to make their decision. At Performance Aircraft, we often find that the buyers who make the best offers are the ones we have contacted more than a few times. Persistence is huge! We track every call and email in a Customer Relationship Management software so that we know exactly where we left things with each buyer. This way, we can follow up regularly and keep the discussion moving forward with dozens of potential buyers all at once. The right negotiation mindset. Negotiations are by nature laden with emotion. So often, people fear negotiations because they don’t know how the other will act, what strategy they have, and what the competitors are offering. As the aircraft owner, it’s only natural to react emotionally when buyers scrutinize your plane and throw out lowball offers. But going into the negotiation with the right mindset.

Aircraft Title and Escrow Services

It can be tempting to try and save a few dollars when it comes to using professional title and escrow services, but the risk is rarely worth the potential reward. Title and Escrow companies protect the mutual interests of both the buyer and seller, while providing certain oversights for the overall sales transaction. They handle things like clearing titles and helping you make sure you have completed and filed the right paperwork for all of transfer of ownership documents. Deposits and funding all are handled by an unbiased third party, which can provide both you and the buyer with convenience and confidence throughout your transaction. These services will create the optimal conditions for a successful transaction that will be carried out smoothly, resulting in a win-win collaboration. Having an experienced third party in place to handle negotiations on your behalf can keep everyone working together collaboratively and result in a much better deal. Understanding the paperwork. There are quite a number of federal regulations that apply to selling an aircraft, and it’s important to follow all the paperwork steps correctly so that the whole sales process runs smoothly. The AOPA warns that “there are countless cases where individuals selling an aircraft were unaware of certain important procedures and subsequently got tied up in a legal hairball.” If you’re not familiar with all the steps, don’t just try to wing it. Talk to someone who knows the process. They can walk you through each step and even help you make sure you’re not missing anything. Many aircraft owners are more than a little wary when it comes to dealing with brokers. And rightfully so—there are many differences in the quality and quantity of services brokers provide. At times, it can be difficult to see how much value a particular broker has added to your transaction. Regardless of your situation, if you’re selling an aircraft, you will likely end up dealing with brokers. Here are some best practices to follow, whether you are looking to hire brokerage services or simply responding to aircraft dealers who might inquire about your plane. Establishing trust. Paramount to every successful business transaction is trust. Both you and the broker need to establish a level of trust on which to base your relationship and create an effective collaboration. If you can’t trust each other, it’s a lose-lose situation. Don’t be afraid to ask questions to truly understand where the broker is coming from, how their processes work, and what they will do for you. If you’re considering hiring a broker to help you sell, be sure to interview them like you would if you were hiring for any other job.   Don’t hesitate to ask for a reference list and contact several of their references. You should be able to get a good feel for their approach to aircraft sales and their style of communication and collaboration with and for their clients. Evaluating value. Don’t make the mistake of hiring the company with the lowest commission rates. Instead, take the time to understand the value they can bring to your transaction. Because there are wide variances in the services provided by brokers, there are also wide variances in the results they can offer you. • How much will they be investing in your aircraft transaction to help you achieve your goals? • Will you have a chance to meet them and have them see your plane in person? If not, how do they fill in the missing pieces to that they can speak with buyers about your plane with accuracy? • How well do they know all the different aircraft that buyers might be evaluating as they consider your plane? • How well do they know the market? What is their follow-up like with buyers? • Do they have good processes in place for keeping your plane in front of everyone who inquires? Ultimately, if you can find a knowledgeable aircraft broker you can trust who is willing to invest significantly in you and your aircraft from the beginning of the transaction, you can put yourself in a position that should offer great results with minimal frustration. The right broker should help you understand the aircraft market for your make and model; create a sensible pricing strategy that optimizes the opportunity based on your goals; market your plane in a way that adds value, attracts buyers, and creates confidence to help prospective buyers make a purchase decision; and save you (and buyers!) significant time and stress by professionally and accurately handling all the paperwork, negotiations, and additional details. Contact AERONUVO, The Aircraft Appraisal and Valuation Company today. Feel free to use our toll free number, seven days a week.