The 2,486-hour commercial pilot lost control of the single-engine airplane while maneuvering at low airspeed over a hot-air balloon that landed approximately 500 yards south of a grass-strip runway. The airport owner, who observed the airplane prior to the accident, stated that the pilot was performing touch and go landings at the airport, where there were hot-air balloon operations in the vicinity. He added that he observed the accident airplane perform a couple of low passes in the area where a balloon had landed. The wreckage of the airplane was found approximately one mile south of the airport. The Federal Aviation Administration (FAA) inspector, who responded to the accident site, reported that the tricycle gear airplane was found in a right wing low, in a nose down attitude, which he stated was consistent with ground impact as a result of a stall/spin mishap. He added that the left wing was bent forward, and the right main landing gear was folded under the fuselage. He added that fuel was present in the fuel tank; however, there was no post-impact fire. The wind was reported from 270 degrees at 6 knots at the time of the accident.