When purchasing or making a sale on the aircraft, there is need to know the exact value of the aircraft. Understanding the damages that are present in the aircraft and also having the knowledge of the depreciation rate of the aircraft is essential. The buyer, the seller and the banker are among the parties that are involved in the aircraft appraisal process.
The banker, the seller and the seller may understand the meaning of the concept of the appraisal differently. To the buyers, the appraisal acts as an opinion to the value at which they should buy the aircraft. The maximum value at which the buyer should purchase the aircraft is provided by the aircraft appraisals. To the seller, the aircraft appraisal gives them the net value at which they should sell the aircraft and also the minimum cost at which the aircraft should cost. The meaning of appraisal to the banker is that the condition of the aircraft and the value of the aircraft should both be documented.
The three parties plays an important role in the process of buying and selling the aircraft.
The role of the aircraft appraisal is to ensure that the seller understands the market value of the aircraft before a sale is made. This is beneficial because the seller is able to calculate the price at which the aircraft should be sold. The role of the aircraft appraisal is to prevent the seller from selling the aircraft at a loss or over charging the price of the aircraft.
The provision of knowledge to both the buyer and the seller on the value to be used on the renovation of the aircraft is another importance of the aircraft appraisal. This is also beneficial as they give the buyer and the seller the knowledge of the value that would be spent when modifying the aircraft. The importance of this is that the owner of the aircraft prepares the money to be used in the renovation and the modification of the aircraft. The advantage of preparing the money is to ensure that the process of renovating and modifying the aircraft is speeded up.
Claiming of the damages caused by different kinds of accidents like fire and windstorms is a benefit of the appraisals. The function of the insurance covers is also played by the appraisals. This is because the aircraft owners can be able to claim the damages that results from various accidents that are mostly experienced by the aircrafts.
An appraisal is a very important tool to the buyer of the aircraft. This is because they help to distinguish between the selling prices of a particular aircraft with that of others that may be listed by other sellers. This gives the buyer an opportunity to weigh and vary the cost of these aircrafts and end up buying the aircraft with a fair price.
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