Ready to sell your private jet? Do you need a broker?
Why Hire a Broker to Sell Your Private Jet
A broker who represents your best interests can save you time and money when you sell your jet. A broker knows others in the industry and can facilitate difficult negotiation. Do you have time to research the value added to your plane by the new avionics installed last year? Do you have time to identify the competing aircraft on the market, their price and how that affects pricing your aircraft so that it is the next plane to sell? Do you need to ensure your company’s interest is represented by a professional who knows how to value offers that may differ in the price, scope of the inspection and the timing and rejection rights of a buyer after the inspection?
How to Locate a Broker to Sell your Private Jet
Interview Several Brokers
You can probably benefit from interviewing several jet brokers before selecting a broker. Did a broker help you buy your aircraft? Did they provide value? Do you want to hire them to broker the sale?
Who Do Friends Hire as their Jet Broker
Ask friends and business acquaintances which broker they used to sell their jet. If their jet is a different make/model than yours, their broker may or may not be the best broker for your plane, but you can talk with them to find out.
Your Private Jet Sales Broker May Not be Local
Look for the best broker for your sale. The best broker for you may be based across the country.
Questions to ask Prospective Jet Brokers
Once you have identified a few brokers, interview them. Questions to consider asking:
- Do they specialize in any specific make/model of plane?
- What is the current market for your aircraft? Does the broker have recent experience selling this make/model? How many listings of this make/model are posted at this time? How long does this aircraft usually remain on the market? What geographic area is the best target market for this plane? The broker may need to research the current market and call you back. Listen to determine if they know the market or are telling you what they think you want to hear.
- What is the broker’s experience?
- Does the broker have a technical advisor who can assist with evaluating the physical condition of an aircraft?
- Consider whether you prefer to work with one person who handles all of your calls and works hand in hand with you or with a large organization with departments. If you hire a brokerage because you spoke with Suzie Jones and want to work with Suzie Jones, confirm that you will work with the broker, Suzie Jones.
- Listen to the broker. Do they want to sell your plane or do they just want to add a listing to their website?
- How does the broker avoid conflicts of interest?
- What are their brokerage fees? What is included? What expenses do you pay (photographs, marketing, travel) and what is their estimate of those fees?
- What other services do they provide? Brokers may negotiate the terms of offers and participate in negotiation of the sales agreement. Your aviation lawyer can represent you in a legal review.
Compare proposals. The lowest commission may not be the best broker for you. You will work closely with your aircraft broker. Hire someone you like and will enjoy working with to sell your jet.
Michelle M. Wade is a partner with the law firm of Jetstream Aviation Law and counsels clients on the acquisition, financing and operation of corporate jets operated under Part 91 and Part 135 of the Federal Aviation Regulations. Jetstream Aviation Law can be found at www.JetstreamLaw.com.
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.
