Buying or selling an aircraft?
Read these 40 important
"SkyFacts" and "SkyTips" first...

[Tip: For a printable .pdf version of this page, click here.]

SkyFact #1: It traditionally takes an average of 177 days to sell an aircraft by yourself, unless you list it at a rock-bottom price. But the average "time on market" for an aircraft listed with dealer/brokers is 144 days. SkyTip: At SkyMachines, our aircraft typically sell in under 120 days. Our reputation, the SkyTips we provide below, and our famous SkyAssist Flat-Fee Aircraft Brokerage System are why.

SkyFact #2: 43% of private aircraft-for-sale listings don't sell within 6 months and end up listed with dealer/brokers. SkyTip: Take the time and spend the money to follow the SkyTips on this page and it might not happen to you.

SkyFact #3: 87% of private sellers overprice their aircraft by 15-30% ...and then wonder why they haven't it sold 6 mos. later! They look at what others are asking and incorrectly assume that is the correct price. SkyTip: To sell an aircraft, nothing is more important than pricing it correctly. The only way to do that is by comparing your aircraft to those which have recently sold, adjusted for changes in the market since the sale was reported. SkyMachines offers a free aircraft valuation service that does just that.

SkyFact #4 : Missing airframe logbooks devalue an aircraft by 10%. For a buyer to purchase an otherwise suitable aircraft that has missing or foreign-language logs, he or she will expect to be compensated. Conversely, clean, typewritten logs help sell a plane and may increase its value. SkyTip: To prevent misunderstandings, delayed or cancelled sales, and even lawsuits, sellers should disclose everything about their aircraft, good and bad, in their specs and advertising. NEVER TRY TO HIDE A DEFECT.

SkyFact #5: 60% of aircraft have incorrect paperwork, such as missing logbook entries and 337 forms for repairs and installations, old and incorrect weight and balance data, and missing pilots operating handbook supplements for installed equipment. SkyTip: Paperwork matters: proper, complete records help sell a plane in a tough market. It's worth every minute of time to make sure your aircraft records are complete, legible, and well organized in binders. If you don't have the time to do it, hire someone who does. (Hint: It's also smart to post important paperwork on the plane's Internet spec sheet for buyers to view.)

SkyFact #6: Aircraft with computerized AD compliance records have an advantage in the marketplace. FAA airworthiness directive records which are typed, updated and well organized show buyers that the seller cares about the plane. SkyTip: If your normal maintenance shop doesn't use a computerized AD tracking system, take your plane (and the logs) to one who does before you list it for sale. (Alternatively, for $99, SkyMachines will provide you with a complete AD list for your aircraft and its components which you can then give to your regular mechanic to check off.) Then post the resulting record on the plane's Internet spec sheet for buyers to view.

SkyFact #7: Major damage history devalues an aircraft by 10% forever, regardless of the quality of the repairs. Moderate damage history (such as a gear-up landing) devalues it by about 6.5%. Think of it this way: If you were looking to buy one of two identical aircraft, except one had been through a gear up landing, how much would the seller of the damaged aircraft have to discount it to get you to buy that one instead of the other? SkyTip: Research your aircraft's accident history (order FAA 337 forms and accident history reports), rate it with our Aircraft Grading Standards, and price it accordingly. NEVER TRY TO HIDE DAMAGE HISTORY.

SkyFact #8: New paint and interior add less than 50% of their cost to an aircraft's overall value. For example, an average-quality new paint job or leather interior adds only $4,000 to a 4-seat aircraft and $5,500 to a 6-seater. Yet they cost about twice this amount to have done.  (However, all else being equal, aircraft with new paint and interiors sell before those that don't...especially in a down market.). SkyTip: Use our Aircraft Grading Standards to rate the paint and interior. Adjust the selling price of the subject aircraft up or down as if competing aircraft were rated 7.5.  

SkyFact #9: A complete professional detail job increases the value of the aircraft. We've seen aircraft rated as "5's" transformed into "6's" and "7's" just by being detailed by WingWaxers or a similar professional operation. For about $450, they will touch up the paint, power buff the paint with special compounds and waxes made just for aircraft, polish the windows, degrease the belly, and shampoo the interior. SkyTip: We also recommend having the engine washed by your maintenance shop.

SkyFact #10: Modifications and avionics add only their uninstalled value on the used market to the aircraft's value. For example, the value of a used GPS installed in the aircraft adds only the value the GPS would earn if sold separately by a used avionics dealer or on Ebay. (Sorry, but the labor cost of originally installing the unit in the aircraft does not add to the overall value of the aircraft years later.)

SkyFact #10: Certain radios add no value to the aircraft. All Lorans, non-digital navcoms, ADF's and DME's do not add value. 360-channel radios, which are illegal to use, actually reduce the value of the aircraft by the amount they (and their mounting tray and wiring) will cost to have removed and the logs and weight and balance officially updated by an A&P.

SkyFact #11: Avionics which are not built-in add no value to the aircraft. SkyTip: You'll net higher proceeds from the sale by removing portable GPS units and headsets from the aircraft and selling them separately on Ebay.

SkyFact #12: Recent repairs do not add value to the aircraft. It is assumed by buyers that the aircraft has been properly maintained and is in good repair, or will be made so before closing. Just because you recently redid the brakes or replaced the vacuum pump does not increase the aircraft's value. (And, yes, a fresh "top" overhaul is considered a repair, not an upgrade or improvement.)  SkyTip: Even though they don't add value, repairs must be done or the sale will be jeopardized after the pre-purchase inspection. Recent repairs show the seller cares for the aircraft and keeps it well-maintained. They also make the aircraft more attractive when compared to aircraft in the marketplace which have not had such work done.

SkyFact #13: An inoperative item cannot be included in the value of the aircraft. For example, if your aircraft has airborne weather radar and it doesn't work, don't calculate the value as if the radar worked, and don't list it on your aircraft spec sheet. SkyTip: Repair or remove any inoperative equipment before listing an aircraft for sale. At a minimum, placard inoperative or unreliable items "INOP" in order to comply with FAA regulations. (Hint: Realize that more than one or two INOP placards says to a buyer, "This owner doesn't keep up his aircraft.")

SkyFact #14: An unairworthy aircraft is automatically worth 10% less than an airworthy one, plus the cost of repairs. A buyer who agrees to deal with making an aircraft airworthy after the sale (such as getting an annual inspection performed) expects to be compensated for the hassle and risk of getting the work done, plus the actual repair cost. SkyTip: A buyer expecting to resell the aircraft after the work is performed will expect to earn an additional 10-15% profit.

SkyFact #15: A fresh or very recent annual inspection by a reputable shop adds $500-$750 of value to the aircraft, or about 50% of the flat-rate inspection charge from a major FBO, and depending on the aircraft's size and complexity. Conversely, an aircraft with an annual that runs out this month or next is worth a corresponding amount less. SkyTip: Aircraft with fresh annuals sell faster. A fresh annual by a well-known factory-authorized service center is even more valuable and will reassure buyers that nothing was overlooked by your local mechanic.

SkyFact #16: Aircraft currently maintained under FAR Part 135 are worth approximately 5% more than those maintained under Part 91. Maintenance required under commercial flight regulations is more restrictive than under private flight regulations. SkyTip: Knowledgeable buyers know it's worth it to pay a little more for Part 135-maintained aircraft.

SkyFact #17: Only 10% of aircraft buyers will even consider buying an aircraft with a runout or near-runout engine, so price it accordingly. Unfortunately, aircraft value services deduct the same amount per-hour for an engine with 1,900 hours as one with 1,100 hours, even though many more times the number of buyers will consider buying the aircraft with the 1,100 hour engine than the 1,900 hour one. SkyTip: Buyers must be significantly compensated in order to agree to experience 4-8 weeks of downtime while their engine is overhauled, not to mention the significant expense and hassle. If your engine is within 10% of TBO, reduce the aircraft value at least 5% below "book" value if you want it to sell.

SkyFact #18: Aircraft flown regularly sell faster than "hangar queens." Everyone wants a low-time aircraft, but savvy buyers know that low time isn't so great if it means the airplane hasn't been flying much recently. The new owner of an airplane will typically fly it frequently during the first six months, only to find that everything breaks...starter, alternator, magnetos, instruments, you name it. Airplanes need to be flown to stay in good mechanical condition, and savvy buyers know it. SkyTip: Before you list your aircraft for sale, make sure it has flown at least 20 hours over the last month or two, and show those flights in the aircraft's logbooks. If you don't have time to fly it yourself, loan it out to those who do. SkyMachines has proved that 20 hours of recent flight time results in reducing the time an aircraft is on the market. Buyer Tip: Unless adequately compensated by the seller for the repairs you are sure to be paying for soon, avoid airplanes which haven't flown at least 100 hours in the last year...unless they have flown 20 hours in the previous 60 days. (The seller should do the "shake-down cruise," not the buyer.)

SkyFact #19: Savvy buyers check the aircraft's oil and want to see oil analysis results. If the level is low or the oil excessively dirty, a buyer will question the quality of the seller's maintenance and operation of the aircraft. SkyTip: Before listing an aircraft for sale, wait until the oil is at the recommended change interval (either 25 or 50 hours), then change it. Get the old oil tested by an oil analysis lab (only $25) and post the results on the aircraft's Internet spec sheet. Cut open the old oil filter and check for contaminates...even pass a strong magnet through the paper portion of the filter. Take  pictures of the inside of the oil filter and the (hopefully) clean magnet and also post them on the aircraft's Internet spec sheet for buyers to view.

SkyFact #20: 53% of private party aircraft sales fail after the pre-purchase inspection. Either something major is discovered that scares the buyer off, or the seller refuses to make the necessary repairs or discount the price accordingly. SkyTip: Before listing an aircraft for sale, have a pre-sale or fresh annual inspection performed on the airplane by a shop that has never worked on it before, preferably a factory-authorized service center. At a minimum, have the shop: Test the cylinder compression; borescope the inside of the engine to check for oil, wear, ad proper valve operation; inspect the engine compartment for worn hoses, seals and belts; and inspect the inside of the airframe to check for corrosion. Have them type up the results and then post their report on the aircraft's Internet spec sheet for buyers to view. This inspection will cost around $450, but SkyMachines has proved it results in dramatically reducing the time an aircraft is on the market. 

SkyFact #21: 10% of aircraft have liens against them their owners don't know about. Closing the sale is then delayed while the lienholders are contacted for lien releases. SkyTip: Before listing an aircraft for sale, order an aircraft title search to make sure the title is clean. Get any liens released and then post the title report on the aircraft's Internet spec sheet for buyers to view. The title will cost around $99, but SkyMachines has proved it results in dramatically reducing the time an aircraft is on the market. In addition, a portion of the $99 will be deducted from the aircraft escrow fee at closing.

SkyFact #22: Airplanes which have been appraised by certified aircraft appraisers sell faster. Why? Because the buyer is reassured when an unbiased third party rates and values the airplane. Instead of taking the word of the broker or seller, the buyer can read the appraiser's report and contact the appraiser if he or she has questions. In addition, the appraisal verifies the value of the collateral for a loan, allowing the buyer to obtain financing from more lenders, including local banks. SkyTip: As the last step in the sales preparation process, get an airplane appraised before listing it for sale. Post the appraiser's report on the aircraft's Internet spec sheet for buyers to view. Although a certified appraisal costs around $450 for singles and $750 for twins, SkyMachines has proved that it results in dramatically reducing the time an aircraft is on the market. More information about aircraft appraisals.

SkyFact #23: The current light aircraft market is the softest its been since right after 9/11. As of Winter, 2008, most broker/dealers reported that, for average aircraft, their phones hardly ring anymore.

SkyFact #24: The days of piston-engine aircraft appreciating in value are gone, possibly forever. As of Winter, 2008, values of almost all light aircraft in the USA were declining, some quite rapidly. Overall, the values of average aircraft are declining at 1-3% per quarter. That means that, if we give you a quote today stating that your plane is worth $100,000 today, in 6 months it may very well need to be lowered to $94,000 or less in order to sell. With fewer and fewer pilots and skyrocketing fuel, maintenance and insurance costs, we aren't sure when the situation will turn around. SkyTip: In a declining market, don't hold out for top dollar today and risk the airplane depreciating before the next buyer comes along. And don't forget that you're also making payments for insurance, loan, hangar/tie-down. Factor these costs into the selling price you'll accept. Keep track of ads for competing airplanes for sale, and note how long they take to disappear. Check the Vref and NAAA online valuation estimator services monthly, and updated your asking price accordingly. Don't be the one who catches the falling knife!

SkyFact #25: The only aircraft holding their values now are the real "creampuffs." By creampuffs, we mean those with low total and engine times, recent paint and interior, and Garmin 430's or 530's installed. The creampuffs are continuing to sell at traditional "book" retail values in 60-90 days. SkyTip: If you don't have a "creampuff," your only option for selling the airplane is to price it better than its competitors.

SkyFact #26: The overseas aircraft market is much stronger than the US market, but most private sellers have no idea how to reach it. Due to the declining US Dollar, purchasing an aircraft in the US and exporting it is less expensive than purchasing an aircraft in one's home country. But most private sellers don't know how or where to advertise their market overseas. And exporting an aircraft is a complex and time-consuming process requiring the services of numerous professionals. SkyTip: If you have a late-model or "creampuff" airplane, be sure to advertise it on European, Pacific, and Latin American aircraft-for-sale sites.  

SkyFact #27: Internet presence is everything. To sell in this market, an online spec sheet has to do the best possible job of describing the aircraft. That means: at least a dozen photos (even of defects); disclosure of all negatives and defects; copies of the aircraft logbooks, 337 forms, AD compliance record, and pre-sale inspection report; proof of clean title; reviews of the make and model from aviation magazines; the appraiser's report; estimates of the buyer's monthly loan payment; performance and weight & balance data; explanations of the avionics; and much more. Remember, there aren't that many buyers out there these days...if the listing doesn't answer every question a buyer has, you risk getting beat by another seller whose does. SkyTips: Numerous photos are mandatory...many buyers will not look at ads that don't feature photos. You'll know the spec sheet is complete if the only questions prospective buyers have are "Is it still available?" and "When can I see it?" Here's an example of a spec sheet done right.

SkyFact #28: It costs $275-300 per month to sufficiently advertise an aircraft in this market. If your spec sheet...with lots of photos...isn't listed on every major aviation aircraft-for-sale web site, the chances of the aircraft selling within six months are dramatically reduced. SkyTip: If 2-3 calls or emails don't come in weekly, especially when the listing is new, either you aren't spending enough on the right advertising or the aircraft is overpriced.

SkyFact #29: If done right, it takes 50-60 hours and thousands of dollars to sell a plane in this market. Selling a plane is not an easy task...it's as difficult, if not more so, as selling a house yourself. And selling it to an overseas buyer? Look out! SkyTip: If you don't have 30 hours to spend getting the aircraft ready to sell, and another 30 hours over the next six months to handle on all the other details, hire someone who does: SkyMachines will do it all for $2995, and you don't have to pay us until it sells.

SkyFact #30: Most callers aren't serious buyers. They will only be looking to chat and seek information ("tire kickers"). They won't be pre-approved for financing and insurance. And many of the answers to their questions will require additional research on your part. The worst buyers are those who waste your time getting you to show them the airplane and flying it, but then back out. SkyTip: If you've already provided the buyer with all possible information about the airplane (appraisal, pre-sale inspection report, title report, copies of the logs and records, etc.), there is no reason you shouldn't be able to negotiate the purchase price, by email or over the phone, before you show them the plane. Just make it clear that there is no obligation on their part until they've signed a Purchase and Sale Agreement.

SkyFact #31: Serious buyers have been pre-approved for financing and insurance. Many buyers make calling sellers about their aircraft the first step in the sales process. They later find that either they can't get financing, or, in the case of a low-time pilot flying a retractable single or twin, insurance. SkyTip: Before spending too much time on the telephone with a buyer, politely ask the buyer if he or she has spoken with a lender or insurance company. If they have not, give him or her the phone numbers of some lenders and insurance brokers.

SkyFact #32: Serious buyers and sellers put it in writing. All real estate transactions are required by law to be in writing, but not aircraft transactions. Yet aircraft deals are often much more complicated! Written agreements are important because buyers and sellers have selective memories about what was agreed to orally. SkyTip: Negotiate and sign a thorough purchase and sale agreement with the other party, even if it costs $300-$400 in attorney fees. Make the agreement require that, in the event of a dispute, the parties agree to keep it out of the courts and submit it to binding arbitration. Alternatively, SkyMachines has a 6-page Aircraft Purchase & Sale Agreement we use with our clients.

SkyFact #33: Serious buyers can put down a 5% deposit. As long as the deposit is held by a third-party escrow agent and the Purchase and Sale Agreement describes how the deposit will be refunded, a serious buyer should not have a problem with wiring the escrow agent a 5% deposit.

SkyFact #34: Serious buyers and sellers use an escrow service. Having a third party who can be trusted by buyer and seller is priceless. A licensed and bonded aircraft title and escrow service in Oklahoma City, OK will cost around $550 ($500 if you use the same escrow agency that performed the title search). The fee is split equally between buyer and seller. The escrow agent will shuffle the funds and paperwork between the buyer, seller, buyer's lender, seller's lender, seller's other lienholders, and the FAA. Only when all the proper paperwork is filed with the FAA will the agent transfer the funds from the buyer to the seller.

SkyFact #35: Differences between buyer and seller can kill a transaction. Buyers and sellers have a strange way of insulting each other and ruining an otherwise doable deal. A seller is often only selling because he or she has to, and unconsciously looks for a reason to halt the process. SkyTip: Put your ego on hold for the transaction or hire someone to work with the buyer for you. Be pleasant and polite at all times. Don't be insulted if the buyer doesn't like what you've done with your plane...your goal is not to protect your ego, but to sell your plane. And don't be surprised or insulted if the other party isn't very social...for some, buying or selling a plane is a cold-hearted business decision...they aren't looking to make friends.

SkyFact #36: Negotiations after the pre-purchase inspection is the most dicey time of the transaction. How much will you agree to pay for repairs? Will you pay for repairs that are cosmetic and not airworthy in nature? What is airworthy, anyway? SkyTip: Be sure you've ironed out these issues in advance in the Purchase and Sale Agreement!

SkyFact #37: Be prepared to pay up to $6,000 in selling expenses (plus fuel and the value of your time)  to sell a plane in this market at its full retail value:

SkyFact #38: If you don't have the time or knowledge to sell an airplane yourself...the right way...your only choice is to hire someone to do it. SkyMachines' SkyAssist Flat-Fee Aircraft Brokerage System takes the hassle out of selling an airplane. We'll try our best to sell it within 120 days, and we'll only charge $2995 if we sell it ($4995 for twins).

SkyFact #39: You can sell your airplane in 7-10 days. If you can't wait 120 days to sell, consider our SkyCash Direct Purchase Program. We'll pay you a fair wholesale price (about 75% of the retail value) within 7-10 days. 

SkyFact #40: The lesser-known "liquidation sale" method can get you a near-retail price in 10-30 days. If you can't afford to sell your airplane for wholesale, and don't want to wait 120 days for it to sell retail, consider this option: SkyMachines will get your airplane appraised, publish and advertise it, and handle all aspects of the sale just as we would with a standard SkyAssist Brokerage System sale. However, we'll price it 10-15% below the appraised value so retail buyers will know they are getting a "deal." In return, the buyer pays the $2995 SkyMachines commission and all other fees, accepts the airplane "as is" (i.e., the seller won't pay for repairs), and must close the sale within 10 days. SkyTip: This option is most appropriate for late-model, low-time aircraft.

Fact: Once they know the SkyFacts,
smart sellers use SkyMachines!

We offer three unique programs for aircraft sellers:

SKYCASH™ Direct Purchase Program: We'll buy your aircraft ourselves, giving you a fair wholesale price in 7-10 days.

SKYASSIST™ Flat-Fee Aircraft Brokerage System: For a reasonable flat fee, we'll be your personal aircraft sales agent and do all the work involved with selling your plane...for the maximum price in 120 days or less.

SKYVALUE™ Nationwide Appraisal System: We can have your aircraft appraised by a professional aircraft appraiser in your area. Our detailed appraisal report will allow you to establish and defend the correct selling price...appraised aircrafts sell faster and for more.

[For a printable .pdf version of this page, click here.]