Introduction
When it comes to valuing an aircraft, appraisals are essential in determining its current market value. This process is especially important during transactions, such as buying, selling, or financing an aircraft. Today, aircraft appraisals can be conducted either as desktop appraisals or in-person appraisals. Each method has its pros and cons. In this blog post, we'll explore the differences between desktop and in-person aircraft appraisals, and help you decide which option is best for your specific needs.
Desktop Appraisals
A desktop appraisal, as the name suggests, is conducted remotely, utilizing digital tools and resources to evaluate an aircraft's value. Here are some of the key aspects of desktop appraisals:
Time and cost-efficiency: Desktop appraisals are typically faster and more cost-effective than in-person appraisals. Since the appraiser doesn't need to travel to the aircraft's location, expenses such as travel and accommodation costs are eliminated. The turnaround time is also shorter, as the appraiser can work on multiple projects simultaneously.
Limited information: Desktop appraisals are as reliable as the information provided to the appraiser. Appraisers can't inspect the aircraft physically and must rely on the data provided by the owner or seller. This limitation could result in less accurate valuations if the information is outdated or incomplete.
Best for most straightforward assignments: Due to their limitations, desktop appraisals are often best suited for pre-purchase evaluations or financing decisions for an aircraft that has been operated in standard conditions and with no damage history.
In-Person Appraisals
In-person appraisals involve a professional appraiser visiting the aircraft's location to conduct a thorough inspection. Here are some of the key aspects of in-person appraisals:
Comprehensive inspection: In-person appraisals offer a more thorough evaluation of the aircraft. The appraiser can inspect the aircraft's interior and exterior, scrutinize maintenance records, and assess the aircraft's overall condition. This hands-on approach could result in a more accurate valuation.
Higher cost and longer turnaround time: As the appraiser needs to travel to the aircraft's location, in-person appraisals are more expensive and time-consuming than desktop appraisals. The appraiser's travel and accommodation expenses must be factored into the cost, and the overall appraisal process will take longer due to travel time.
Ideal for high-stakes transactions: In-person appraisals are best suited for high-stakes transactions, such as litigation support. The comprehensive inspection provided by an in-person appraisal can uncover potential issues or discrepancies that might not be evident in a desktop appraisal.
Conclusion
Both desktop and in-person aircraft appraisals have their merits and limitations. Desktop appraisals are ideal for most applications, offering a time and cost-efficient way to determine an aircraft's approximate value. In contrast, in-person appraisals provide a more comprehensive valuation, making them a better choice for high-stakes transactions.
Ultimately, the choice between desktop and in-person appraisals will depend on your specific needs, budget, and the level of detail required for your valuation. It's crucial to select a qualified and reputable appraiser, regardless of the method you choose, to ensure an accurate and reliable aircraft appraisal.
