Who, What, When, Where,

Why and How You Should

Select a USPAP Compliant

Aircraft Appraisal and

Appraiser

WHO IS AN AIRCRAFT APPRAISER?

An AERONUVO certified aircraft appraiser is a professional who is required by law and professional standards to act in a manner that is independent, impartial and objective. An appraiser is not an advocate. An aircraft appraiser’s role is not to help make the loan or “hit a number.” In the lending world, the three C’s (credit, capacity and collateral) are common knowledge. It is the valuation of the airplane collateral that creates the need for a lender to use the services of a professional appraiser. A professional aircraft appraiser is an integral part of the collateral valuation, whether it is real property or personal property.

WHAT IS USPAP?

In 1989, the Uniform Standards of Professional Appraisal Practice (USPAP) was authorized by Congress as the minimum performance standards for appraisal practice in the United States of America. Published by The Appraisal Foundation, USPAP is recognized as the source for standards for professional appraisal practice in the United States and many other parts of the world. The main purposes of USPAP are to protect the public and to promote public trust in the appraisal profession. USPAP contains both rules and standards pertaining to: (1) development of an appraisal; and (2) the reporting of that value opinion to the client. USPAP provides details on what an appraiser must consider in order to be independent, impartial and objective and to arrive at a credible opinion of value. It does not dictate specific methodologies or approaches that are to be employed in order to arrive at a conclusion. For a complete understanding, the official USPAP document can be viewed at www.appraisalfoundation.org.

WHY IS USPAP IMPORTANT?

As a lending professional, buyer or seller of an aircraft, it is important to have a basic understanding of the appraisal profession. The information that appraisers convey to clients can often be critical to the lender’s decision-making process. It is important that the aircraft appraiser provides the lender with an unbiased and competently developed opinion of value so that the lender can make a sound lending decision. It is a violation of USPAP for an aircraft appraiser to be an advocate when providing valuation services. He or she must remain impartial throughout the appraisal process and not favor a predetermined outcome.

HOW DO I SECURE AN AIRCRAFT

APPRAISER’S PROFESSIONAL SERVICES?

USPAP requires the appraiser to understand the appraisal assignment to be undertaken. This is done through an agreement for services (for example, an AERONUVO Engagement Letter). Among other things, the agreement for aircraft appraisal services specifies the scope of work (once it has been agreed upon by the appraiser and the client). Both the client and the aircraft appraiser must agree to the terms of the Agreement for Services before the assignment begins. These terms often include the following: • The client (and any additional named intended users) have exclusive rights to the use of the aircraft appraisal. The client has the exclusive right to have a dialogue with the appraiser regarding the aircraft appraisal and its results, unless other parties are also authorized by the client. • The scope of work details the specific work that has been agreed to by the client based on the appraiser’s identification of the aircraft appraisal assignment. • The method of delivery and type of report identify the means by which the appraiser will communicate their opinion of aircraft value to the client. The options available to an appraiser are either a written or oral report. • The intended use indicates the purpose of the aircraft appraisal assignment. The agreement for services must never make the assignment contingent upon “hitting a number.” Ken Holder, AERONUVO’s Senior Certified Appraiser can provide to the client a USPAP compliant aircraft appraisal. Contact us for a free consultation on your appraisal needs for 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.