Just a rant, but how can the exact same plane be advertised for $150k and $180k at the same time? To add insult to injury, the more expensive price is “just reduced” and the less expensive seller is “offering the aircraft as an exclusive broker”. Can’t even blame EASA, since it’s a N-reg. So, how much is the plane really worth? ;-)
The second ad is by a reputable, high integrity Beechcraft specialist, so I would suggest that advertised price is fair, albeit subject to the usual 0-25% haggle factor for second hand aircraft.
OP. If you are interested in buying it I can produce a vref valuation calculation. I’m sure either broker would let you meet the owner if you wanted comfort on that. The broker only gets paid when the aircraft is sold so in that regard they will be doing their best to make a deal happen.
In some cases letting the prospective buyer talk to the owner may not be such a good idea if you want the plane sold… Especially the kind of owners who claim their airplane has a weather radar when in fact all it has is a stormscope.
Talking to an owner is a mistake IMHO. They are often emotionally involved whereas a broker understands the true value and can act as a go between a buyer and seller. The Broker has a strong interest in the aircraft being sold at the best price, but will not destroy a potential deal that can be made.
@NCYankee Why is the broker interested in the aircraft “being sold at the best price”? I would instead suggest that the broker is most interested in the plane being sold at any price. This is because it’s likely that the broker’s commission varies very little for each $10,000 reduction in selling price, but if the plane doesn’t sell then he gets nothing. Of course, he has to protect his reputation and the vendor doubtless has a veto on a very low price.
This relative lack of price leverage on the level of sales commission is one of the enduring issues in engaging a broker or agent in sale of any valuable asset. :-(
Most commissions are based as a percent of the selling price, so the broker has the incentive to obtain the highest price that results in a sale.
Think Howard makes a fair point. The difference in getting 5% of 160k vs 5% of 125k is very little. All that really matters is getting it sold. I always like to at least get a conversation with the owner. Only then can you fully understand his motivation. Active listening to what they have to say can uncover an unknown unknown. Last time I met an owner with a broker viewing an airplane he let it slip he had overhauled the engine himself and gotten it signed off by a shop. Do I want an engine some old guy did in his shed? No. Hence meeting the owner is just part of the due diligence I’d like. Doesn’t always work out that way.
As a buyer it is in your interest to talk to the owner. It may not be in the owner’s or the broker’s interest.
@WilliamF – thanks for the kind offer to produce a Vref, but these planes are way out of my budget, I was mostly venting / expressing my ever growing confusion.
@RobertL18C – thanks for your opinion on K-Aircraft – they do seem to only offer planes they won’t have to be ashamed of; if they discount some of what they have advertised it might just make my budget, if an additional 25% adjustment can be made. They definitely are in my bookmarks.
@Howard – I have to ask – you did read and enjoy Freakonomics, right? IIRC they have a similar example, but related to real estate. But the point on getting a broker involved is well taken, although with the usual caveats, from both sides.
Everyone, many thanks for your thoughts on talking to the owner, once I finally get to the buying stage I’ll surely take them into account.
Best wishes to all!
