Selling Aviation Real Estate - Are Your Buyers Flyers?
The Aviation Amenity
Amenity Defined - Noun - A desirable or useful feature or facility of a building or place.
Value - Add extra value for the
Aviation Amenity
.
Scarce - Aviation Real Estate is
Scarce
but does not always mean desirable.
If your home was a beachfront home on the ocean..
Think of a beachfront home in San Diego with a patio touching the sand. The homes with a beachfront amenity will have more value and desirability than the homes setback without direct access. Aviation Real Estate Amenities should work exactly the same but not everyone has experience in the aviation amenity so its up to the seller to educate everyone involved.
Take the Appraiser For A Flight - Aviation Real Estate Value
It is estimated that 99.% of residential appraisers have never valued aviation real estate therefore it is essential to educate the appraiser on the extra value in the aviation amenity. Make a list of items such as the runway and surface type, runway lighting, fuel, (100ll and Jet A? ). Even things such as the hangar door type for example should all have a line item for extra value. A Schweiss door should be noted as a premium door with extra value to a buyer. Even the FAA Registration information should all be taken into consideration by the appraiser. When all done
expect the bank to "red flag" your appraisal and prepare for another visit from a second appraiser for a second opinion. This could delay closing so add time up front in your closing schedule for a second appraiser. We also have a discussion with our buyers that homes in airparks could be priced over current "comps"and appraisals. This is normally followed by some strange looks and a discussion on how they would never pay more than appraisal. A discussion regarding supply and demand and the scarcity of the aviation amenity follows. The love for the aviation lifestyle will generally overcome the difference between a slightly low appraisal and a selling price.
Price Reductions vs Paid Advertising
Price reductions in the range from $10,000 - $100,000 are common when selling aviation real estate if the sellers are not seeing any buyer activity.
The reality is that In many cases price reductions do nothing to increase buyer traffic and offers. An option to consider is targeted general aviation paid advertising. Prior to a price reduction of $50,000 consider investing $995 - $10,000 and fully engage the general aviation community with your aviation real estate value proposition. Once you have feedback from the general aviation community then adjust your pricing if needed.
(
Paid Advertising Link
)
Brokers, Agents, Appraisers and For Sale By Owners Welcome. pay now and pay later programs in place.
Is your Airpark Community Alive?
How to value an airpark community and lifestyle. As an example I was told Mogollon Airpark in Heber AZ has 5 + aviation plane kit builds going on at this time. The neighbors get together and discuss airplanes driving golf cart from home to home. Living in an airpark is about the common bond of general aviation and the brotherhood. Appraisers have a hard time establishing value for the airpark community as this type of value does not exist in other communities.
Sold for more than the appraised value? Would you pay more than appraised value?
An appraisal might not be a fair market price. Many appraisers are not willing to risk adding a realistic additional value for the aviation amenity. Supply and demand are are a major factor in determining a fair market value.
Pricing Example - Vacant Building Lots - Pegasus Airpark - AZ
Vacant building lots at Pegasus Airpark have historical sold for 20-25% more than the non aviation building lots within the airpark. (Pegasus has aviation and on aviation home sites)
View Current pricing - Pegasus Airpark -
Link .
Final Notes - Recap - When selling aviation real estate.
- Establish a baseline from known data and then add for the extra value of your Aviation Amenity.
- List High - Indicate your are negotiable. (See next item to justify)
- Aviation Real Estate Is Scarce.
- Expose to the GENERAL AVIATION COMMUNITY (Nationwide).
- Price reductions many time have no effect to increase buyer traffic unless you are giving it away or in a huge rush.
- Marketing - Consider paid advertising prior prior to price reductions.
- Each airpark is unique and the values will differ from location to location.
If the buyers are not flyers.. You could be loosing money.
Thinking of Selling Aviation Real Estate? Make Contact.
Visit us at Sun N Fun 2020 Florida or Copperstate Fly-In Arizona!
Erik McCormick - Aviation Real Estate Specialist - Founder - www.RealEstateSpecialist.com
Publisher - AirparkMap.com
Agent - Choice One Properties
REALTOR
480 888 6380
