A private aircraft broker helps to facilitate the sale or purchase of an aircraft between two parties. If you are looking to purchase or sell a private jet, working with an experienced aircraft broker can be beneficial.
What Does an Aircraft Broker Do?
A private jet broker is a company or person that works with a buyer or seller of a business jet to complete the sale of an aircraft. In most cases, the duties of an aircraft broker include facilitating the process of initial discussions through the final closing of the sale. Mostly, aircraft brokers typically only work with either a buyer or a seller to avoid a conflict of interest.
Regardless of if you are looking to buy or sell an aircraft, an aircraft broker can provide counsel, advice and market expertise to facilitate the sale and help the client reach their goals. An expert in flight brokerage can provide numerous benefits and facilitate a transaction so that it goes smoothly and is satisfactory to both parties.
A talented aircraft broker can spot and avoid common pitfalls that may cause a deal to fail, as well as find potential savings. If an aircraft broker is working with a potential buyer, they can also research the maintenance history of the jet to determine the overall quality of the aircraft.
Suppose an aircraft has previous mechanical issues or unreliable maintenance history. In that case, an aircraft broker may look for a more suitable jet, potentially helping the buyer save money by choosing an aircraft that is a better investment.
Duties of an Aircraft Broker Throughout the Sale of a Private Jet
Choosing an aircraft broker is an important step toward buying or selling an aircraft. Before selecting an aviation broker to work with, you will want to understand the various duties a broker will be responsible for during the sale. There are four total phases of a private aircraft sale, including appraisal, marketing, contract negotiations and post-sale support. Each process is a vital step toward the sale of an aircraft and requires the utmost attention to detail. An aircraft broker is responsible for:
- Appraisal: The first step toward the sale of an aircraft is the appraisal process. During this process, an aircraft broker can appraise the current value of an aircraft. Additionally, an aircraft broker can also look into the historical value of the plane as well as its maintenance history. If an aircraft was poorly maintained or did not receive necessary repairs, it can directly impact the value and sale price of the aircraft. An aircraft broker can provide an accurate and thorough appraisal of an aircraft as well as an in-depth look into current market conditions to help you make the best decision.
- Marketing: The next responsibility of an aircraft broker is a tailored marketing plan that can highlight the most desirable and attractive traits of an aircraft. An Aircraft broker can work directly with a seller and help to create a marketing campaign and strategy that can facilitate the sale of the jet. A private jet broker also has a deep understanding of current market trends and can help advertise an aircraft to prospective buyers by showcasing the aircraft’s unique aspects and positive traits.
- Contract negotiations: Another responsibility of an aircraft broker is to facilitate contract negotiations to sell the jet. Aircraft brokers are highly skilled at navigating the negotiation process and helping close a deal. One of the main benefits of an aircraft broker during the negotiation process is to help minimize any unexpected incidents or contractual changes during the closing of a sale.
- Post-sale support: After negotiations and a deal has been reached, an aircraft broker can ensure the transition of the jet is a smooth process. Post-sale support can provide buyers and sellers with peace of mind. If any unexpected complications arise following the sale of an aircraft, a broker is available to help correct any issues and ensure the smooth transition of ownership.
Why Should You Hire a Jet Broker?
A jet broker can be incredibly useful when looking to sell or purchase an aircraft. Brokers offer a safe, reliable way to get a fair value as well as appropriate exposure to facilitate the sale. If you are considering selling or buying a private jet, working directly with a jet broker can be helpful. An aircraft broker has many responsibilities in addition to brokering a deal. An experienced aircraft broker can help with many aspects of a sale, including:
- Fair value: For a seller, a jet broker can help ensure they receive a fair value during a sale. On the other hand, an aircraft broker can also help a buyer pay a fair value when purchasing an aircraft. Additionally, an experienced broker can help expedite the process and eliminate potential bids that are not valid or too low.
- Marketing expertise: Aircraft brokers are highly skilled at creating effective marketing campaigns and gaining exposure to garner more interest in an aircraft. If a broker is helping to sell an aircraft, they can create a marketing strategy to help you get the best deal. From social media and online or in-person ads, marketing is an effective way to showcase an aircraft to the right people at the right time. An aircraft broker can leverage the success of a marketing campaign to broker a beneficial deal.
- Minimal paperwork: Another benefit of a professional aircraft broker is that they can help minimize the paperwork you need to fill out during the sale process. An aircraft broker can process any necessary paperwork to work toward purchasing or selling a private aircraft. Additionally, an aircraft broker may take the responsibilities of clearing titles, closing escrow, transferring bills and other vital aspects regarding the sale process.
- Informative: Experienced aircraft brokers are highly educated and informed on the process of buying and selling an aircraft. With this extensive background and understanding of the various processes of selling or buying an aircraft, brokers can provide direct insight into the various aspects of buying or selling a jet. Aviation brokers also have a unique and thorough understanding of market trends and how to find you the best value for your money.
How to Choose a Charter Broker
When looking to work with an aircraft broker, there are a couple of things to keep in mind. While a well-designed website or office presentation may be impressive, it is often best to look beyond the first impression to better understand the broker’s work. First impressions are an important factor to consider, but you can learn much more about a broker’s success by taking a look into their work ethic and the experience of previous clients. When choosing a broker, you should consider these five attributes:
- Level of expertise: In general, more experienced aircraft brokers have a stronger understanding of the process and can prevent unforeseen complications from occurring and delaying a sale.
- Innovation: With social media continuing to be an important aspect of daily life for many people, traditional marketing efforts have shifted to include many online opportunities. A talented aircraft broker stays up-to-date on the latest trends within the industry while also taking innovative approaches to help you purchase or sell an aircraft. As the market is constantly changing, aircraft brokers must adapt and continue implementing the latest techniques and advances to close sales.
- Proactive: A proactive aircraft broker will get to work immediately and begin the important steps toward helping you close on a deal. A broker should work quickly to list an aircraft for sale or start looking for potential leads to prevent wasted time.
- Resources: Another important aspect to consider is the resources an aircraft broker has to help you sell or buy a private jet. How many people or offices does a broker have to commit to the sales process? Depending on your unique goals, you may be better suited to work with a team rather than an individual.
- Core activity: Taking a look at the core activity of an aircraft broker can help you choose the one that is best for your needs. Some brokers cannot secure exclusive mandates and focus instead on assisting another broker’s purchase or sale. Working with a broker who has an exclusive mandate is often more effective as they are just as committed to the sale of the aircraft as you are. In some cases, non-exclusive brokers may lose interest in the process if it is not a quick sale and may begin putting in less effort.
Questions to Ask Your Aircraft Broker
If you are interested in a particular aircraft broker, you will want to consider some of the most important questions to understand their work ethic better. Asking the right questions can help you determine if a broker is right for your own needs and how they would help you meet your goals. Some of the most important questions to ask potential aircraft brokers are their sales or purchase process and any fees they may charge for their services.
What Are Your Aircraft Broker Fees or Commissions?
One of the most important aspects of selecting a broker is determining their overall fees and commissions. While you will want to select an experienced broker with a proven track record of success, you also want to ensure you are getting the most value for your money. Determining a budget can help you select a broker that charges fair fees. Some brokers are paid a flat rate for their services, while others may take an overall percentage of the sale price.
In addition to commissions, you will also want to check if a broker charges retainers to continuing marketing efforts or if these services are included in their pay. Comparing the total costs of services can help you stay within budget and work with a broker that provides an appropriate amount of services for their pay rate.
How Would You Market My Aircraft?
Understanding how an aircraft broker plans to market an aircraft plays an important role in its success. Internet and social media play a vital role in marketing strategies. You will want to be certain a potential aircraft broker plans to use the latest and most up-to-date strategies when selling an aircraft. Additionally, some brokers also take advantage of email marketing to contact potential buyers.
How Long Could It Take to Finalize a Sale?
Setting realistic expectations for how long it may take to sell an aircraft and close on a deal is important. While the sale of an aircraft varies on numerous factors, understanding the average timeline can help you know what to expect throughout the process. Each transaction is different, but asking a potential broker what their typical turnaround time is can be highly informative and provide you with additional information when determining the broker to work with.
How Far Is Your Reach?
The reach of an aircraft broker plays a large role in selling or purchasing a jet. For example, some brokers may have a larger contact list when looking to sell an aircraft. On the other hand, other brokers may not have a large list of connections, leading to a potentially longer sales process. You may want to consider asking how far their reach is and see if they have a list of contacts that spans the local area, across the country or even globally.
How Does an Aircraft Broker Differ From a Dealer?
An aircraft broker helps assist a person in buying or selling an aircraft. An aircraft broker is somewhat similar to a real estate agent where they are able to present information on all the available aircraft on the market. An aircraft broker assists with aircraft transactions and can guide you through the sale or purchase process.
An aircraft dealer is often a business that actively seeks out aircraft to buy or trade for the purpose of resale. In many cases, aircraft dealers often hold dealer registration certificates. An aircraft dealer is more similar to a car dealership that looks to buy and sell inventory for a profit. They will usually focus on selling you only the aircraft they have in their own inventory.
Can You Hire a Broker for Charter Flights?
Another service some aircraft brokers offer is chartering private flights. A charter broker is a specialist that works as the representative for someone leasing their aircraft and can help charter a private jet. Charter brokers often act as the middle person in negotiations between an aircraft operator and a charterer. Providing charter solutions for various travel needs, a charter broker works directly with operators and other trip service providers.
When negotiating a deal, a charter broker is responsible for handling many aspects of the flight, including organizing flight logistics, creating contingency plans and how to safely and comfortably help their client get to their destination. The majority of brokers do not own the aircraft they use, meaning they are more inclined to look for the right aircraft for your specific trip so that you are not limited by inventory or aircraft types.
In some cases, charter brokers may be responsible for handling various details of trip planning if the client cannot do so. Additionally, a charter broker will also survey many aspects of a trip, including obtaining paperwork, certificates, insurance or other forms of documentation. A charter broker also prepares a backup aircraft if the original aircraft is no longer available at the time of the flight.
One of the final steps of a charter broker is to review the flight manifests and determine anticipated departure and arrival times. Mileage en route and any plans that require overnight accommodations for the aircraft and crew are also the responsibility of a charter broker. Flying private is one of the most cost-effective and efficient ways to travel.
Expert Private Jet Broker
Latitude 33 Aviation is a leading provider of aircraft management that specializes in client-specific, individualized programs. We are an industry-leading expert in providing full-service management programs while maintaining customer service records that clients can rely on. Our leadership takes a unique approach to the private jet industry and is looking to help current and future jet owners achieve their goals.
To learn more about our services, call 1-800-840-0310 or contact us online today.