Good Broker/Bad Broker

Recently, Charlie Bravo Aviation’s Rex McGreevy chatted with Corporate Jet Investor to discuss his experience and insight in the aviation industry. CJI invited Rex to share his opinions about the distinguishing characteristics of a good broker for private aircraft sales and acquisitions. According to Rex:

A good broker is tuned to the market and committed to finding the best aircraft for your unique objectives. On the other hand, a bad broker will work to close a sale quickly and without complete consideration. You can determine a good broker by professional references, the strength of his or her online presence, and a history in the aviation industry. Without these key attributes, the bad broker will be unable to truly assess the market and aircraft.

You should also take stock of a broker’s experience with particular types of aircraft. Interaction with the fleet is crucial. A broker who routinely solicits business from the aircraft fleet in which they claim expertise, at minimum on a quarterly basis, has the latest knowledge to assist their customers fully. Ask flight departments and other aircraft owners and operators which brokers have the best insight on the market. Brokers who build relationships have the greatest success and the best contacts to find ideal aircraft for the transaction.

Brokers who know what they’re doing provide real time market updates, publish quarterly reports and blog posts for their clients. They have a research team or in-house staff that help with the transaction process. A good broker can also be cross-referenced on social media sites like LinkedIn and Twitter, in addition to major websites, trade publications, and online properties such as World Aircraft Sales, AvBuyer.com, Executive Controller and ASO.

Always seek out a transaction history on your broker and query their knowledge of the market. Brokers who list aircraft without exclusive arrangements with owners might be hiding other bad business practices. A good broker, conversely, has spent time with the owner of an aircraft for sale and can give a realistic appraisal as well as backup data on the aircraft in question. When selling an aircraft, a good broker goes to the market to provide real time information on what an owner might expect to receive in a sale. Beware the broker who overvalues your aircraft just to get a listing. The result will be the preservation of the seller’s feelings at the cost of a lengthy time on the market.

There is a lot of information out there, so do your homework. A good broker makes a positive impact on the aviation industry—and your aviation goals.

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