Glossary of Aircraft Appraisal Terms

When it comes to buying, selling, financing, or insuring an aircraft, a misunderstanding of key appraisal terms can lead to costly delays—or worse, expensive mistakes. Whether you’re a first-time aircraft owner or a seasoned operator, clear knowledge of how appraisals work is essential to protecting your investment. At Everette Aviation, we believe that an informed client is an empowered client. That’s why we’ve created this glossary: to demystify aviation appraisal terminology and help you ask better questions, avoid common pitfalls, and ensure that you get exactly what you need—no more, no less. Use this resource to save time, build confidence, and make smarter aviation decisions.

A professional, evidence-based valuation of an aircraft’s current or projected worth. Appraisals may be used for sales, financing, insurance, tax reporting, or legal purposes.

An aircraft valuation conducted without a physical inspection. It relies on logbooks, maintenance records, photos, and market comparables.

A detailed valuation that includes a physical inspection, logbook verification, technical analysis, and market research. Often used in legal, financial, or insurance contexts.

The reduction in an aircraft’s market value after damage, even after full repairs. Common in insurance disputes or legal claims.

The estimated future value of an aircraft at a specific point in time, often used in leasing and financial forecasting.

An estimate of what an aircraft would sell for under forced-sale or distressed-sale conditions, typically lower than market value.

The price at which an aircraft would change hands between a willing buyer and seller, neither under compulsion and both with reasonable knowledge of the facts.

A generic reference to standardized published aircraft pricing guides. These values often do not reflect modifications, condition, or market fluctuations.

An appraisal that follows the Uniform Standards of Professional Appraisal Practice, typically required for legal, tax, and financial documentation.

The process of analyzing an aircraft’s maintenance history and documentation. Incomplete or missing logbooks can significantly affect appraised value.

FAA-approved modifications that alter the original design of the aircraft. Some STCs increase value, while others may narrow the resale market.

The appraisal method that compares the subject aircraft with similar aircraft recently sold or currently on the market.

A valuation used to establish the insured value of an aircraft, either for underwriting or claim resolution.

A formal appraisal performed for use in litigation or arbitration, often requiring additional documentation, testimony, or compliance with legal standards.