Jaken Aviation

Aircraft Broker vs Private Sale: Complete Comparison Guide

Choosing between aircraft broker vs private sale significantly impacts selling time, net proceeds, and effort required. Understanding broker fees, services, and DIY sale challenges helps determine the best approach.

Aircraft Broker Services

What Brokers Provide:

  • Professional marketing and photography
  • Listing on multiple aircraft sales platforms
  • Pre-qualified buyer screening
  • Negotiation expertise and advocacy
  • Transaction coordination and paperwork
  • Escrow and title company coordination
  • Market pricing guidance

Typical Broker Commission:

  • Standard rate: 5-10% of sale price
  • Under $100K: 8-10% or $5,000 minimum
  • $100K-$500K: 5-8% typical
  • Over $500K: 5-6% negotiable
  • Jets/turbines: 3-5% common

Private Sale Process

Seller Responsibilities:

  • Research market pricing
  • Create compelling advertisements
  • Take professional photos
  • List on multiple platforms
  • Screen and qualify buyers
  • Schedule and conduct showings
  • Negotiate price and terms
  • Coordinate pre-buy inspections
  • Handle all paperwork and closing

Private Sale Costs:

  • Photography: $200-$800 professional
  • Listing fees: $50-$300 per platform
  • Pre-sale inspection: $500-$1,500
  • Advertising: $100-$500
  • Time investment: 20-50+ hours
  • Total: $1,000-$3,000 plus significant time

Cost Comparison Example

$200,000 Aircraft Sale:

  • Broker sale (7% commission):
  • Sale price: $200,000
  • Broker fee: -$14,000
  • Net to seller: $186,000
  • Seller time: 5-10 hours

Private Sale:

  • Sale price: $200,000
  • Direct costs: -$2,000
  • Net to seller: $198,000
  • Seller time: 30-50 hours
  • Savings: $12,000 but 40+ hours work

Pros of Using Broker

Benefits:

  • Professional marketing reaches more buyers
  • Expert pricing prevents leaving money on table
  • Pre-qualified buyers (less tire-kickers)
  • Negotiation expertise maximizes price
  • Transaction experience prevents mistakes
  • Legal protection and guidance
  • Minimal seller time investment
  • Faster sales typically

When Broker Worth It:

  • High-value aircraft (over $150K)
  • Complex aircraft (twins, jets, turbines)
  • Owner lacks time or expertise
  • Unique aircraft requiring specialized marketing
  • Owner uncomfortable with negotiation
  • Quick sale desired

Pros of Private Sale

Benefits:

  • Save 5-10% commission ($10K-$50K typical)
  • Direct control over process
  • Flexible showing schedule
  • Personal knowledge to answer questions
  • No middleman communication delays
  • Can target specific buyer types

When Private Sale Makes Sense:

  • Simple, popular aircraft (172, Cherokee)
  • Under $100K value
  • Owner has time and expertise
  • Strong local market
  • Owner comfortable with negotiation
  • No urgency to sell

Cons of Using Broker

  • 5-10% commission reduces net proceeds
  • Less direct control
  • Communication through third party
  • Quality varies among brokers
  • Exclusive agreements limit options
  • Pressure to accept lower offers

Cons of Private Sale

  • Significant time investment
  • Dealing with unqualified buyers
  • Safety concerns with strangers
  • Limited marketing reach
  • Potential pricing mistakes
  • Negotiation stress
  • Legal/paperwork risks
  • Longer time to sell typically

Hybrid Approach

FSBO First, Then Broker:

  • Try private sale for 30-60 days
  • If no success, engage broker
  • Saves commission if sell quickly
  • Broker available as backup

Discount Brokers:

  • Flat fee vs percentage commission
  • $2,000-$5,000 flat fee typical
  • Limited services compared to full broker
  • Owner handles more tasks

Finance Your Aircraft Purchase

Jaken Aviation provides financing for broker and private aircraft sales. We work with all transaction types for smooth closings.

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Frequently Asked Questions

How much do aircraft brokers charge?

Standard 5-10% commission of sale price. Under $100K: 8-10% or $5K minimum. $100K-$500K: 5-8%. Over $500K: 5-6% negotiable. Jets: 3-5%. On $200K sale, expect $10K-$14K broker fee. Commission paid at closing from sale proceeds.

Is selling aircraft privately worth it?

Depends on aircraft and owner. Save $10K-$50K in commission but invest 30-50+ hours work. Worth it for simple aircraft under $100K if owner has time/expertise. Broker better for complex aircraft over $150K or owners lacking time. Calculate hourly rate saved.

Do aircraft brokers get better prices?

Often yes. Professional marketing reaches more buyers, expert pricing prevents undervaluing, negotiation skills maximize offers. Studies show brokers average 5-8% higher sales prices. However, this may offset commission partially. Quality broker with strong network delivers best results.

How long does it take to sell aircraft privately?

Average 3-9 months for private sale vs 2-6 months with broker. Simple trainers sell faster (2-4 months), complex aircraft slower (6-12+ months). Market conditions heavily impact timeline. Private sales take longer due to limited marketing reach.

Can I list with multiple brokers?

Depends on agreement type. Exclusive listing: One broker only for specified period (90-180 days typical). Non-exclusive: Multiple brokers allowed but creates conflicts. Most brokers require exclusive agreements. Switching brokers after exclusivity expires allowed.