The negotiated price and the value accepted for lending may differ. Build a cash plan that can absorb a valuation gap without depending on an unconfirmed advance amount.
Ask how value will be established
The lender may specify a valuation method, appraiser, inspection level or information set. Obtain those requirements before commissioning an appraisal that may not meet them. Clarify whether the financing base refers to price, value or the lower of specified amounts. Do not treat a listing, guide number or tax assessment as interchangeable with the lender's accepted value.
Provide comparable aircraft evidence
Prepare the exact model, year, serial, times, engine and component coverage, maintenance forecast, damage and modification history, cabin and avionics. Condition and configuration differences need explanation rather than blanket dollar adjustments. Asking prices and completed transactions are different evidence, and a larger sample of listings does not turn them into verified sales.
Reconcile price and financing
Calculate equity using the lender's actual financing base and advance definition. Identify separately any fees, taxes or improvement costs being considered for financing. If accepted value falls short, the options may involve more cash, renegotiation or reconsidering the transaction; none should be assumed available without the parties' agreement.
Use value as a dated estimate
Keep the valuation date, assumptions and limitations with the file. Market and aircraft condition can change between appraisal and funding or sale. A valuation supports a decision at a point in time; it does not guarantee future liquidity or remove the need for independent technical inspection.
Illustrative decision worksheet
Illustrative only: price is $5 million, accepted lending value is $4.6 million, and an assumed advance is 80% of that value. The modeled loan is $3.68 million, leaving $1.32 million toward price before other cash-paid costs. This demonstrates a valuation gap; it is not a lender's offered advance or a current market appraisal.
Your next-step checklist
- Lender valuation requirements
- Aircraft evidence
- Gap funding scenario
- Date and limitations
Sources & further reading
Primary sources support the relevant facts. Our planning questions and illustrative exercises are editorial analysis; they do not replace transaction-specific advice.
- AOPA original financing-types analysis · accessed 2026-10-28