Broker vs DIY when buying a plane

[Pak Ratt]

I was wondering (and its okay if you are a broker to chime in) about buying an aircraft through a broker vs doing it yourself. I would like to hear all sides (bonus points if you are a broker if you share the cons as well as the pros) and for those who purchased without a broker-- what would a broker have brought to the table for you.

I am interested in if the broker helps find financing, fitting the plane to the needs, etc

My only experience is with dealing with a realtor and how she helped with not only the search- but in negotiating price, paperwork, financing, etc.

[Gimble]

Brokers come in all shapes and sizes. I bought through a minimal broker, who did pretty much nothing but find the plane, and the paperwork associated with the sale. Understanding that going in, I was reasonably happy with the purchase process.

For a first-time purchase, I would recommend a broker or an "expert" that you know who can help you through the process. Be sure that your flying buddy really is an "expert" before trying to save a few nickles via that route.

In all cases, get your own mechanic to come in and do the pre-buy inspection on any plane. In the end, you *must* know the condition of the plane to make an informed decision and a mechanic or pre-buy report from ANYBODY else -- including the broker -- is probably an unacceptable risk unless the broker has impeccable credentials.

[Mike Simmons]

First, know that I am biased in my opinion but brokers don't appear to bring very much to the table that you cannot do yourself.

As an NAAA Qualified Buyer's Agent, I help individuals find aircraft routinely and as part of this activity I interface with brokers and dealers. Like any other group, there are good ones and bad ones but their worst fear is an educated buyer.

One of the largest issues I have with brokers is that they have no incentive to discuss market value as they are paid based on the selling price of the aircraft. If they are helping you find an aircraft they will most likely never look at it or examine the log books (there are exceptional situations as always) even if they have it in inventory. They can also be representing both the seller AND the buyer and they do not have to disclose this information. However, they may be a cost effective solution given your budget.

Normally, they will charge anywhere from 2% to 10% of the aircraft's selling price. Weigh that against the cost of your time finding an aircraft, traveling out to look at it, negotiating the Purchase Agreement, etc. and you will find that the price is reasonable - as long as the broker is working in your interest.

As in any profession, there are good guys and bad guys. Unfortunately, it is up to the consumer to figure out who is who.

Good luck.