I need advice on how to make a reasonable offer on a used SR22.
Specifically, I’m looking at used SR22’s on trade-a-plane and controller. The price range is $150K - $200K. I plan to make an all-cash purchase (if that helps lower the price at all). Assuming the aircraft is mechanically sound, how much below the asking price would be a reasonable offer without being a low-baller?
Thank you in advance.
There are so many variables. I am happy to help. Sent you a PM already…
Patrick Rydzewski
Pay someone to review the logs, engine monitor and oil analysis. Saves you a big headache.
Cash from you, cash from a bank I wouldn’t care. I would look extra hard at someone who is in “urgent” need of a quick closing - have they had the money to keep the plane maintained properly prior to a fire sale.
I don’t know anyone in NoCal, but [mention:ecc60973c70b43588665a8d480b13c71:e9ed411860ed4f2ba0265705b8793d05] justin@tasaircraftsales.com at TAS Sales in Santa Monica knows the market inside out and what the “real” price should be. I would recommend using an agent if this is your first rodeo.
Just shooting out offers is not a very smart way to buy. There are no two Cirrus alike value wise. Some might be grossly over priced and another fairly priced. Options, time, condition, history and more all matter. Find one plane that has more or what you want and it is worth more to you than one that might have less time but needs more money spent on it to make it what you want.
Think hard about the options you want. And more importantly the ones you NEED. Good luck.
+1[Y]
The relatively small price you pay an agent to negotiate for you could save you thousands. Also get a third party to manage the pre purchase inspection. Savvy is good choice.
Good Luck!!
You are making a mistake if you assume the asking price is always indicative of the value. Therefore, offering “X”% lower makes no sense. Some aircraft may be an excellent buy if you pay the full ask price. Others may be a bad deal at ANY price. And everything in between these extremes.
You just have to do the research of the marketplace vs. an aircraft’s condition and logbook history. Either do it yourself or pay a good experienced broker you trust to do it for you. There is no way to shortcut that process.
When you are satisfied with what a given aircraft is worth to YOU, offer that amount with complete disregard to whether (or not) it may insult or anger the seller. If your offer is accepted, everyone is happy. If your offer is turned down, move on to other options, confident in the knowledge that you offered what it was worth to YOU and it just didn’t work out. Don’t bluff or play games. Be honest and fair, recognizing that value to YOU may not coincide with a seller’s sense of value.
Bottom line, this is like buying a house. You have to take your time and be methodical. You hire the people you need to hire to help you make an informed decision.
A very very rough rule of thumb I’ve seen a couple times is that the sell through price is typically 10% below the asking price.
Chris,
i agree with the others that a broker makes sense. They provide you a sense of the market and values. second use savvy. I sent them the logs of three planes and they threw out one as not worthy of an offer. And they can help with the prebuy.
Finally, I wish I would have asked for a copy of the last annual report from the plane we purchased. It was a great plane but the annuals were very expensive. To see what the SC found, and compare that with what the prior owner did would have been a help.
Good luck…
t
I would hire Jaime Steel if I was buying a Cirrus. She seems to know the market as well as anyone. I used a broker for my last plane for the first time and it was the best thing I ever did. Much less stress and I feel they more than paid for themselves.
This is a great thread.
Are there any “Buyer’s Brokers” only out there? That is, in real estate I am often uncomfortable looking at property that is listed by the broker.
In my opinion, there is no reasonable way that a person can act as a ‘dual agent’ I would feel the same way about a plane purchase.
If I were listing my (hypothetical) plane (I don’t own one yet, but plan to buy once I’m done building this ridiculous house), I’d want to be sure that my broker were laser focused on getting me top dollar. As a buyer, I would expect my broker to help me find absolute best value. I don’t see a way that the same person can do both.
Does Savvy only do the pre-buy, or are they a buyer’s broker?
Engage the services of an expert broker, and be sure your pre buy is independent of the planes shop. So many variables that cannot be missed. Good luck!
They manage the prebuy. They are not a broker nor do they do the inspection.
Essentially what you’re looking for is an owners rep. They can work in the background in an advisory capacity giving you the information to use, or they can the mouth piece of the owner.
It’s important for the potential buyer that the rep they have has both a flight background and maintenance background. I do work in the capacity of a buyers rep when the need arises.
My advice:
I don’t think you need a “buyers” broker. In the first place I am not aware of one and most or the reputable Cirrus brokers make there money selling planes, though they may find planes for a fee. But by and large these brokers care about their buyers and sellers. I work with brokers in several industries and simply put, the Cirrus brokers I have dealt with have a passion about the business and are of very high caliber. I would second the jamie Steel recommendation and add Chris Eichman from TAS. I just bought a plane he brokered and he was very straight with me. I deal with brokers every day and can detect the bs factor very quickly. I would call several brokers and let them know what you are looking for
Call Alex and Ross Rollibard to see if they know of any planes. They tend to know a lot.
Have Savvy handle the Pre-Buy I think that is the biggest no- brainier in the process. For a small fee they can save you a lot of headaches they know these planes better than anyone
good luck!
Thank you everyone for your kind responses! This is an eye-opener for me. I’ll do more research on this and hopefully will join the ranks of proud Cirrus owners soon.
The Cessna board likes Mike Simmons, who exclusively acts as a buyer’s agent. He’s also a NAAA appraiser. www.planedata.com.
I’m in the same boat as you, looking for a nice 2005 - 2008 SR-20, and will likely use Mike, or someone similar as well as Savvy. Best of luck to you!