Why can't I just use a "blue book" or another published price guide?
Price guides are always out of date --------- a published document updated quarterly.
Price guide data is faulty ---------- it is gathered from unreliable sources.
Price guides do not cover all value points --------- Damage History, Airframe condition, etc.
Price guides have no support --------- who do you turn to when you have questions?
Price guides just lay there --------- they do not physically inspect the aircraft.
Like shares of common stock, the value of an aircraft fluctuates daily. That's because value is determined not only by the aircraft itself, but also by market circumstances and conditions that are perceived to exist at the current time. Published price guides can be up to one year old due to lag times in publication and distribution. They are always out of date! Price guide data reports average selling prices gathered primarily from aircraft dealers, brokers, and FBO's. Therefore, the buyer actually establishes a false value, based strictly on what he is willing to pay. This faulty data is then published and passed off as an "appraisal guide".
Those so called "appraisal/price guides" do not cover all value points. They give no consideration to Damage History, Airframe condition, or logbook status, all of which can substantially effect the value of an aircraft.
These two aircraft appear to be identical. They are the same year, same make, same model, and have the same total hours of use. A price guide will lead you to believe they have the same value. However, one is actually worth $30,000.00 less! How do you know the differences? Who do you ask to find out how the value was determined? A "blue book" or other published price guide cannot answer these questions. They have no support.
You certainly wouldn't want your home appraised from a published list of selling prices in a homes magazine. There are far too many variables to consider, so the home must be examined on site. This also holds true for aircraft.
An aircraft's true value can only be determined after a thorough examination, a detailed evaluation, and a comprehensive review of the log books for Damage History, Maintenance History, and compliance with Federal Aviation Administration (FAA) directives and regulations.
So..........Why can't I just use a "blue book" or another published price guide?
With it's faulty, out of date, unsupported data, a price guide simply cannot produce an appraisal document that will withstand the scrutiny of a financial, governmental or courtroom audit.