I’m calling the peak

edo2000 said:
Actually, I guess it depends on the wording of the agreement. I very recently bought a Bonanza (through a broker, believe it or not...). It was several states away and I was working. I found a local(to the aircraft) helicopter A&P/IA who also owned a Bonanza, to do a remote pre-buy and test flight for me. The seller (communicating through the broker) was unwilling to allow the inspection/compression checks/retract test/test flight, etc. without an offer/purchase agreement and a *large* escrow deposit from me. I guess he was trying to determine if I was serious. The broker said this was S.O.P. I confirmed with the aviation escrow company that unless I signed a second document accepting the aircraft after inspection, the money would automatically revert to me, less a small charge for the escrow agent. The deal went down as expected. I'll know in a year or so if I got a good deal. ;)
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Think of it from a sellers perspective. Read the basic AOPA sample purchase agreement that's out there for free. Seller is agreeing to allow a person to poke/prod their aircraft, making it unavailable to themselves and other potential buyers. And there's potential for damage as well. If you want that access, please put down a deposit. 5-10% is normal IMO.
The purchase agreement also includes language about issues that are found in the pre-buy, how they're resolved, negotiations on them and return of the deposit if an agreement can't be made.

So yes, they're making sure you're serious about the purchase.
 
Eh - at the end of the day, the seller can set whatever conditions he/she wants. My comments are only about whether or not some conditions are helpful to getting the airplane sold.

It seems to me that allowing a potential buyer who is traveling or paying someone to see the inspect the plane isn't an unreasonable burden for the seller. It will take a day away from the seller. Plane is still for sell to anyone else who wants to potentially buy it. Any test flight will be with the seller on board, so not much bad is going to happen while flying.

Your chances of getting the maximum sale price is enhanced by having a wider net of potential serious buyers. Excluding potential buyers who want to look at the plane before hand doesn't make sense. It would be like selling your house but not allowing anyone to look at it unless they first agree to buy it.

As a bonus, the seller usually gets a higher price if not an Z*!!&&$ and is reasonably pleasant/cordial to deal with. But at the end of the day, the seller can do what he wants.
 
UngaWunga said:
The purchase agreement also includes language about issues that are found in the pre-buy, how they're resolved,
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I think is one point that gets repeatedly overlooked during the pre-buy phase and should also include how the work performed during the pre-buy is logged. While it might be "inconvenient" to the potential buyer it becomes a liability to the seller especially when they allow a 3rd party to perform the work.
 
UngaWunga said:
... If you want that access, please put down a deposit. 5-10% is normal IMO.
The purchase agreement also includes language about issues that are found in the pre-buy, how they're resolved, negotiations on them and return of the deposit if an agreement can't be made.

So yes, they're making sure you're serious about the purchase.
Click to expand...
In my recent Bonanza deal, the seller requested a deposit at 100% of my offer. The pre-buy A&P was not employed by a maintenance shop with insurance covering their work. He was a maintenance tech at a medevac helicopter firm. He was doing my pre-buy as a side gig. The seller asked - "is he insured for any damage that happens to my aircraft during inspection"? A&P said - "don't think so...". The whole deal stalled for a couple of days, then the broker asked - "what if the buyer put the entire offer amount in escrow?" The seller decided to allow the inspection. The purchase agreement already included language the made me liable for damage during the inspection.

My A&P found some unreported issues. The final agreed price was considerably less than the offer. After the purchase, the escrow company returned the difference.
 
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