by Glenn Graham
Time and time again at Graham Aviation Sales I am asked “How do I go about selling my aircraft?” I was going to write a single blog on selling aircraft, but in starting I realized that I would take up quite a lot of your time at one sitting. So in keeping with my promise of short informative blogs, I have put together a six (6) part blog to cover Aircraft Brokers, Evaluations, Marketing and Promotion, Escrow, Pre-purchase Inspections & Sales Documents.
Part 1 AIRCRAFT BROKERs – Are they necessary?
First and foremost “YES” Brokers are necessary; if you want a smooth and stress free transaction.
Think of the aircraft broker as a real-estate agent but for aircraft. A good broker will support, guide and keep you informed throughout the entire selling process. He or She will have the expertise to know what buyers are looking for; current trends, recent sales and aircraft values. As well a good broker will have a network of potential buyers, a worldwide network of other brokers with whom he can share your aircraft with.
When looking for a broker, I suggest smaller reputable firms who have time to dedicate to your aircraft sale. Don’t let your aircraft get lost in the crowd! Larger brokerage firms may look and sound great, but they will have many aircraft like yours; so ask your-self “how much time will “Company X” have to dedicate to my aircraft sale.” Don’t forget that the larger the brokerage firm is, the more overhead they will have; the more overhead the higher the commissions. Commissions are how Brokers are paid so the larger firms commission will be anywhere from 6 to 10 percent of the selling price. A smaller, reputable firm will have less overhead and you may in fact be dealing directly with the owner. Expect commissions of 3 to 6 percent as well if you are dealing with the owner you may be able to negotiate the commission.
Some of the tasks a good broker will perform for you are as follows:
- Set the asking price, upon your approval, based on a certified or desktop evaluation (Blue Book/Vref), market trends, and an overall market analysis;
- Markets your aircraft through their network and develops promotional material (photos, videos);
- Acts on your behalf answering questions from potential buyers, supplying photos and aircraft documents as required; and importantly he or she will deals with the “tire kickers”;
- Negotiates with the buyer on your behalf;
- Draws up purchase agreements, bills of sale and any other sale specific documents;
- Opens up an Escrow account (if required) on your behalf;
- He / She may represent you at the Pre-purchase inspection;
- Organizes the closing and delivery of the aircraft.
At Graham Aviation Sales will give you peace of mind and make your selling experience a positive one. So if you are in the market to Sell, drop me a line at https://grahamaviationsales.com/contact/ or call me anytime at 1 (705) 923-1552. Next up “Aircraft Evaluations”