By Stefaan Ghijs

In the dynamic world of aircraft sales, some sellers are rethinking the traditional approach of signing exclusive aircraft broker agreements. While these agreements have been a standard practice in the industry, there’s still a sentiment among sellers that they might be better off without them. But there can be several downsides for aircraft sellers, if they choose not to set up an exclusive aircraft broker agreement with an aircraft broker. Here are 7 reasons:

  1. Limited Exposure: Without an exclusive contract, the aircraft may not receive the same level of exposure in the market. Exclusive contracts typically mean that the broker will prioritize marketing efforts for that particular aircraft over others, potentially leading to quicker sales.
  2. Conflicting Interests: Non-exclusive contracts may lead to conflicts of interest among brokers. If multiple brokers are trying to sell the same aircraft, they may not cooperate effectively or may undercut each other, potentially harming the seller’s interests.
  3. Lack of Focus: Brokers may not dedicate as much time and resources to marketing and selling the aircraft if they know that other brokers are also trying to sell it. This lack of focus can prolong the sales process and result in a lower sale price.
  4. Confidentiality Concerns: Without an exclusive aircraft broker agreement, it may be more challenging to maintain confidentiality about the sale of the aircraft. Confidentiality is often crucial, especially in high-value transactions where competitors or other stakeholders may have an interest in the deal.
  5. Inconsistent Messaging: Multiple brokers representing the same aircraft may convey different messages or pricing strategies to potential buyers, leading to confusion and uncertainty in the market.
  6. Lower Sale Price: The lack of exclusivity may lead to a perception of desperation or lack of commitment on the part of the seller, potentially resulting in lower offers from buyers.
  7. Legal Complications: Without a clear agreement in place, disputes over commissions, responsibilities, and other aspects of the sale process may arise, leading to legal complications and additional costs for the seller.
private jet broker contract to be signed

In summary, while opting for a non-exclusive arrangement may seem to offer flexibility, it can also introduce various challenges and risks that may ultimately impact the efficiency and success of the aircraft sale.

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