DEFINITONS USED IN

THE AIRCRAFT

APPRAISAL PRACTICE

National Aircraft Appraisers

Association (NAAA)

Appraisal:

The act or process of developing an opinion of value; an opinion of value for an aircraft.

Appraisal Consulting:

The act or process of developing an analysis, recommendation, or opinion to solve a problem, where an opinion of value is a component of the analysis leading to the assignment results for an aircraft appraisal. c raft appraiser

Appraisal Practice:

Aircraft valuation services performed by an individual acting as an appraiser, including but not limited to appraisal, appraisal review, or appraisal consulting. May include such functions as instructing and performing aircraft market surveys.

Appraisal Review:

The act or process of developing and communicating an opinion about the quality of another aircraft appraiser's work that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment.

Appraiser:

One who is expected to perform aircraft valuation services competently and in a manner that is independent, impartial, and objective.

Appraiser's Peers:

Other aircraft appraisers who have expertise and competency in a similar type of assignment.

Assignment:

1) An agreement between an aircraft appraiser and a client to provide a valuation service. 2) The aircraft valuation service that is provided as a consequence of such an agreement.

Assignment Results:

An aircraft appraiser's opinions and conclusions developed specific to an assignment. Assumption: That which is taken to be true.

Assumption:

That which is taken to be true.

Bias:

A preference or inclination that precludes an aircraft appraiser's impartiality, independence, or objectivity in an assignment.

Client:

The party or parties who engage, by employment or contract, an aircraft appraiser in a specific assignment.

Confidential Information:

Information that is either: Identified by the client as confidential when providing it to an aircraft appraiser and that is not available from any other source; or classified as confidential or private by applicable law or regulation (e.g. Gramm-Leach-Bliley Act).

Credible:

Worthy of belief.

Intangible Property (Intangible

Assets):

Nonphysical assets, including but not limited to franchises, trademarks, patents, copyrights, goodwill, equities, securities, and contracts as distinguished from physical assets such as facilities and equipment.

Intended Use:

The use or uses of an aircraft appraiser's reported appraisal or appraisal review opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment.

airplane in a turn in blue kies, we can appraise

cessna aircraft for an airplane appraisal

What Are The Differences

between Service Bulletins

and Airworthiness

Directives?

An Airworthiness Directive (A.D.) is a directive issued when the FAA realizes that a perilous condition exists in a product (aircraft engine, airframe, appliance or propeller). They notify aircraft operators and owners of potentially unsafe conditions that need special inspections, alterations, or repairs. A Service Bulletin (S.B.) is a notice to an aircraft operator from a manufacturer informing him/her of a product improvement. An alert service bulletin is issued when an unsafe condition shows up that the manufacturer believes to be a safety related as opposed to a mere improvement of a product. Service bulletins often result to issuance of Airworthiness Directives by FAA. An airworthiness directive references the alert service bulletin as a way of complying with the AD. Having realized that there were distinct levels of seriousness to a service bulletin, manufacturers started to categorize them as optional, recommended, alert, mandatory, informational, etc. It was left to the manufacturers to classify a service bulletin as they considered best for there was no standard for the terminology. Differentiation between non-mandatory service bulletins is done and decided only by the FAA. Although a service bulletin may be categorized as mandatory by the manufacturer, it is crucial to know that compliance with service bulletins isn’t necessarily required under the FARs (Federal Aviation Regulations) unless the service bulletin includes or is accompanied by an airworthiness directive. As opposed to service bulletins, airworthiness directives affect the safety conditions of a flight. It’s for this reason compliance becomes mandatory. So, just because the FAR’s don’t necessarily demand an aircraft owner to comply with service bulletins, does this imply an aircraft owner or operator can ignore service bulletins? Not necessarily. The inaction may come back to haunt the aircraft owner at some time in the future. Therefore, it is always important to keep in mind that manufacturers issue service bulletins because they believe compliance will make their products safer. However, compliance with service bulletins basically translates into higher costs to the aircraft owner. Whether it requires performance of a more detailed and elaborate inspection or replacement of a component, service bulletin’s recommendation simply means that the aircraft owner will dig dipper into his/her pocket in paying for labor or parts. As a result, the majority of aircraft owners reject or defer compliance with service bulletins in order to save money. The bottom line? Compliance with an A.D. is exclusively mandatory; compliance with a S.B. is not mandatory unless the service bulletin includes or is accompanied by an airworthiness directive.

Intended User:

The client and any other party as identified, by name or type, as users of the aircraft appraisal, appraisal review, or appraisal consulting report by the appraiser on the basis of communication with the client at the time of the assignment.

Market Value:

The most probable price which an aircraft property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition are: 1) aircraft buyer and seller are typically motivated; 2) both parties are well informed or well advised, and each acting in what he considers his own best interest; 3) a reasonable time is allowed for exposure in the open aircraft market; 4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5) the price represents the normal consideration for the aircraft property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Personal Property:

Identifiable tangible objects that are considered by the general public as being "personal." — all property that is not considered real estate.

Price:

The amount asked, offered, or paid for a aircraft property.

Real Estate:

An identified parcel or tract of land, including improvements, if any.

Report:

Any communication, written or oral, of an aircraft appraisal, appraisal review, or appraisal consulting service that is transmitted to the client upon completion of the assignment.

Scope of Work:

The type and extent of research and analyses in an aircraft appraisal assignment.

Valuation Services:

Services pertaining to aspects of property value. Aircraft valuation services pertain to all aspects of property value and includes services performed by appraisers and others.

Value:

The monetary relationship between aircraft properties and those who buy, sell, or use those properties.

Workfile:

Documentation necessary to support an aircraft appraiser's analyses, opinions, and conclusions. AERONUVO’s Senior Certified Appraiser, Ken Holder can provide to the client a USPAP compliant report.

AERONUVO, professional, accurate, trustworthy aircraft appraisers for Virginia, West Virginia, Pennsylvania, Delaware, Maryland and Washington DC, Cessna, Piper, Mooney, Beechcraft (Beech) aircraft, airplane appraisals

The Aircraft Appraisal

and

Valuation Company

TOLL FREE 844.341.2376

Why Select AERONUVO

DEFINITONS

USED IN THE

AIRCRAFT

APPRAISAL

PRACTICE

National Aircraft

Appraisers

Association (NAAA)

Appraisal:

The act or process of developing an opinion of value; an opinion of value.

Appraisal Consulting:

Appraisal Practice:

Valuation services performed by an individual acting as an appraiser, including but not limited to appraisal, appraisal review, or appraisal consulting. May include such functions as instructing and performing market surveys.

Appraisal Review:

The act or process of developing and communicating an opinion about the quality of another appraiser's work that was performed as part of an appraisal, appraisal review, or appraisal consulting assignment.

Appraiser:

One who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective.

Appraiser's Peers:

Other appraisers who have expertise and competency in a similar type of assignment.

Assignment:

1) An agreement between an appraiser and a client to provide a valuation service. 2) The valuation service that is provided as a consequence of such an agreement.

Assignment Results:

An appraiser's opinions and conclusions developed specific to an assignment. Assumption: That which is taken to be true.

Bias:

A preference or inclination that precludes an appraiser's impartiality, independence, or objectivity in an assignment.

Client:

The party or parties who engage, by employment or contract, an appraiser in a specific assignment.

Confidential Information:

Information that is either: Identified by the client as confidential when providing it to an appraiser and that is not available from any other source; or classified as confidential or private by applicable law or regulation (e.g. Gramm-Leach-Bliley Act).

Credible:

Worthy of belief.

Intangible Property (Intangible Assets):

Intended Use:

The use or uses of an appraiser's reported appraisal or appraisal review opinions and conclusions, as identified by the appraiser based on communication with the client at the time of the assignment.

Intended User:

The client and any other party as identified, by name or type, as users of the appraisal, appraisal review, or appraisal consulting report by the appraiser on the basis of communication with the client at the time of the assignment.

Market Value:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition are: 1) buyer and seller are typically motivated; 2) both parties are well informed or well advised, and each acting in what he considers his own best interest; 3) a reasonable time is allowed for exposure in the open market; 4) payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

Personal Property:

Identifiable tangible objects that are considered by the general public as being "personal." — all property that is not considered real estate.

Price:

The amount asked, offered, or paid for a property.

Real Estate:

An identified parcel or tract of land, including improvements, if any.

Report:

Any communication, written or oral, of an appraisal, appraisal review, or appraisal consulting service that is transmitted to the client upon completion of the assignment.

Scope of Work:

The type and extent of research and analyses in an assignment.

Valuation Services:

Services pertaining to aspects of property value. Valuation services pertain to all aspects of property value and includes services performed by appraisers and others.

Value:

The monetary relationship between properties and those who buy, sell, or use those properties.

Workfile:

Documentation necessary to support an appraiser's analyses, opinions, and conclusions.

The Aircraft Appraisal and Valuation Company Toll Free: 844.341.2376