Questions For A Buyer's Agent
I recently had a first time aircraft buyer who was considering hiring us comment, "I don't even know the right questions to ask a potential buyer's agent." So I took some time to give him a few suggestions... and I thought it might helpful to share them with you.
If you're considering using a buyer's agent to assist you with the purchase of an aircraft, here are several questions you should consider asking the agent before you decide to hire them:
- Have you ever owned, operated & maintained the same make and model or aircraft I am asking you to acquire?
- Do you know the specific market for the aircraft I am considering and if so, can you provide me some insight with regard to asking versus selling price histories?
- Do you ever market to off-market aircraft owners directly? If not, how do you identify aircraft for sale? Internet websites? Aircraft dealer services? Other brokers?
- Do you obtain and review all of the aircraft logs & records before visiting an aircraft on my behalf? Are the expenses for these evaluation trips included in your fee?
- Do you or have you ever recommended an aircraft to a client with missing logbooks or damage history? Please explain?
- Tell me about your experience in aircraft acquisition transactions. How many years have you been providing these services? How many transactions have you facilitated? Can you provide me a list of references?
- Do you use an aircraft purchase agreement or a letter of intent to purchase? Does either help mitigate my risk exposure?
- Do you use an escrow agency in your transactions? If so, what agency?
- Do you agree to a purchase price contingent upon a thorough pre-buy inspection?
- Do you obtain a title search, registration history and 337 records history before evaluating the aircraft in person?
- Would you evaluate an aircraft in person prior to obtaining an executed agreement to sell the aircraft from a seller?
- Do you ever operate with "dual agency" representing both the buyer andthe seller?
- Can you explain how your method of acquiring an aircraft for me helps insure I don't pay more than I should for the airplane?
- How does your knowledge or skill set save me money or add value to this process?
- Would you buy the aircraft the aircraft you are recommending me at the same price you've negotiated on my behalf?