How to find the right aircraft broker
By Robert P. Mark - October 1, 2009
If you’ve thought about selling your aircraft, you have lots of company. This is a buyer’s market–and a fast-changing one. “A Falcon 2000EX might be worth $22 million until a similar serial number appears for sale for $20 million and sells for $17.5 million, altering the entire market,” commented one broker. Jeteffect’s East Coast managing director, George Marburger, said the business has been so volatile lately that he almost feels like a day trader.
In an environment like this, you can’t afford to sell an aircraft without the help of a good broker. Unfortunately, aircraft salespeople are a varied lot–some are well-educated professionals while others seem like rogues and potential swindlers. Brokers aren’t regulated, which means anyone can call himself a broker. There aren’t any Century 21-like franchises to look for, either. “We do breed the worst of the worst sometimes [in brokers], when there is a lot of money to be made,” Marburger said. “But a good broker is part mechanic, pilot, accountant and even part shrink.”
So how can you find such a broker? Word-of-mouth referrals are the most reliable, so begin by asking other owners for their contacts. Then call other industry professionals, such as attorneys or finance people, for their opinions. Another place to start a search is with the Web site of the National Aircraft Resale Association (www.nara-dealers. com), which lists 36 broker members. But the vast majority of the approximately 700 brokers in the U.S. aren’t NARA members. You might even benefit from doing a Google search for brokers, which can offer easy access to photos and data about a sales organization.
Once you’ve collected information on a variety of broker candidates, it’s time to cull the list to a manageable size and contact the most promising prospects. Keep a separate sheet of notes for each broker to organize the details. While an in-person exchange is always preferable, a broker’s location may make that impractical. Telephone is fine; just don’t resort to communicating only by e-mail regarding a deal as large as a business aircraft.
The most visible broker qualifiers are among the most important. Wondering how the brokerage will market your airplane? Track how it markets itself. If you didn’t connect with the broker the first time you tried, how long did it take the salesperson to return your call? Dallas Aircraft Sales president Carl Neuzil remembers making as many as 40 phone calls to gather information on aircraft for a potential buyer. “It is not uncommon to hear back from only six or seven people even after that many calls,” he said. Imagine how a broker who doesn’t promptly return calls will respond to someone who’s interested in your airplane. Another tip-off that you should pass on a broker is a post office box in place of a street address listing.
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