What is the difference between the PAAO, the NAAA and ASA aircraft appraisers?
A: The National Aircraft Appraisers Association (NAAA) ceased operations on 12/31/18. Technically, there are no members of the NAAA still in existence. Anyone currently claiming to be an NAAA appraiser is misleading you.
The American Society of Appraisers (ASA) is a large organization that has individuals specializing in a variety of areas. One of those is heavy machinery and aircraft fall under that category.
The Professional Aircraft Appraisal Organization, LLC (PAAO) is comprised of individuals who are aviation professionals and who focus exclusively on the evaluation and documentation of aircraft and ONLY aircraft. Our appraisal process involves field visits to see details about the aircraft and obtain the necessary research that is critical in the overall opinion of value. In fact, the PAAO is the ONLY aircraft appraisal organization that requires its Associates to perform field visits as a routine part of their reporting efforts. The result is a more credible and reliable opinion of value because it is based on factual data obtained from field research.
- Why should I hire a PAAO aircraft appraiser?
A: The answer to this question depends on your goals and objectives. If the objective is to find the lowest price for an aircraft appraisal that can be completed in the shortest amount of time, then a PAAO Associate may not be the appropriate choice. On the other hand, if the objective is to obtain a reliable and credible opinion of value, then our Associates are the best choice in this industry because of the research and methodology used in determining their Opinion of Value. In fact, the PAAO aircraft appraisers are the only professionals in this industry that routinely perform field visits as part of their aircraft appraisal efforts.
- Isn't the PAAO just a "warmed over" version of the NAAA?
A: When it was clear that the NAAA was ceasing operations, the Professional Aircraft Appraisal Organization, LLC (PAAO) was formed to continue many of the same aircraft appraisal standards and ethical behavior that the NAAA developed. As a result, many former NAAA members who were trained, experienced, qualified aircraft appraisers in their own right, elected to become Associates of the PAAO. However, the PAAO has opened its doors to other individuals who have an interest in becoming aircraft appraisers. Candidates are welcome to submit their qualifications on our website for review by the board and if accepted, they will be trained and mentored by experienced, aircraft appraisal professionals.
- Are PAAO aircraft appraisal reports accurate?
A: A number of individuals claim their reports are the most "accurate in the industry" - or something to this effect. However, "accuracy" is not an appropriate metric to use. For a report to be "accurate" an actual "fact" needs to be in place first - and this is where things get interesting. The asking price of an aircraft is not a "fact". Even a negotiated price for an aircraft is not necessarily a "fact" simply because the buyer may have negotiated poorly or even uninformed about specific details of the aircraft - as examples. As a result, being accurate to an incorrect and somewhat random number is meaningless. There are a number of aircraft evaluators who built their business model around minimal research and providing results based on a predetermined outcome - unethical as that behavior is. Those individuals believe accuracy is important.
A more appropriate metric for aircraft appraisal reports is "credibility" and "reliability". The difference has to do the content of the report and how it relates to the final opinion of value which may be very different than a negotiated price. For example, field research may uncover damage history or missing log book entries which were not revealed to the buyer prior to the negotiation of the price. The opinion of value in one of our reports may be inaccurate when compared to the negotiated price but at the same time be very credible in its assessment of the damage or missing entries in the overall valuation of the aircraft.