Why Use A Broker?
Answers to some frequently asked questions:
Why not run some ads and sell it myself?
Though expensive and time consuming, placing the advertisement is the easy part. Most sellers are unprepared for the hundreds of telephone calls, e-mails, and faxes necessary to sell an aircraft.
Few owners have a realistic view of their aircraft's true market value, relative to the ever changing competition at any point in time. This price guidance is essential in determining whether or not an offer is acceptable and in making the sale versus constantly missing by a narrow margin.
Over 95% of retail aircraft disposals involve a brokerage commission. It makes sense to have a professional on board from the beginning instead of collecting a commission at the last minute.
Few owners are prepared to accept a trade-in aircraft. Most dealers and some brokers can facilitate the transaction by accepting a trade. If trade difference is too low to allow taking the trade aircraft into inventory, the broker probably has a list of buyers who can move quickly at a workable price.
An experienced broker knows the buyers and the perennial "tire-kickers." While he will treat all potential buyers with respect, he will insure that the "tire-kicker" is qualified properly before any demonstration in your aircraft.
Your exclusive broker will work with other dealers, brokers, and acquisition agents. He will utilize registrations, if necessary, to sell your aircraft, rather than blocking your sale in favor of another aircraft or producing unnecessary commissions.
Brokering an aircraft involves a different focus and a different set of skills than selling a new aircraft. One example is the different attitude toward demonstration flight. The experienced broker works hard to limit the expense, disruption, and wear and tear of unnecessary demonstration flights on the seller's aircraft.
Why not choose the broker who offers the lowest commission rate?
It is only natural to try to control costs. However, the focus should be on the broker who will net the most out of the aircraft disposal in the proper time frame.
If an exclusive broker's commission rate is too low, he will skimp on advertising and other services. Worse, a few brokers advertise an aircraft they have signed up at unrealistically low commissions, then direct the buyers to the non-exclusive aircrafts for more profit or higher commissions. The exclusive broker needs to be strongly motivated to sell your aircraft.
Why not choose the broker who thinks my plane is worth the most?
The exclusive broker who "highballs" the value of your aircraft does a grave disservice. Unfortunately, some do just that in order to get exclusive listings. They will either give a sad story later about the declining market, or your aircraft will languish while others sell.
Price guidance is an important part of what the commission buys. It is infinitely more valuable than telling the seller what he wants to hear.