Is it how to broker a deal?
 

Goldin: "I heard you have a t206 Wagner SGC-2 and I have someone looking for one. Is it available for sale?".

SGC-2 owner: "Make me an insane offer and I will decide"

Goldin: "Hmm.. a SGC-3 just sold for $6.6Mil and yours is SGC-2. What about we offer you the same price at $6.6Mil?"

SGC-2 owner: "Deal! Do I need to pay you any commission?"

Goldin: "Don't worry about it, I will add 10% on the $6.6Mil price tag!"

On the news: "On Aug 4, 2022, Goldin brokered a T206 Wagner SGC-2 for $7.25Mil.... Highest Price Ever For a Trading Card"


(Serious question, in deals like this, which side pays the middle man? Buyer or Seller?)

Buyer. It is a finder's fee to the middleman.

From my limited experience it is the buyer still pays it. However I have been the buyer and I have been the looker so the auction has been brokering the deal for me so i paid. However, I have never been the seller looking for the buyer in a private sale where the seller was using the auction house to broker the deal so not sure if that changes anything or not

I noticed that Heritage (most of the big houses broker) takes 10% from the amount the seller receives. Thus they happily mention that you should take that into account if sending an offer to a seller, lol.

Here's the not so subtle hint:

"This item's owner is actively responding to (though not necessarily routinely accepting) offers. Most owners in this category are still actively buying, and therefore interested only in offers where they can net (after our 10% fee) an amount sufficiently above today's market value. Owners in this category seldom counter-offer, and will usually simply reject offers placed at current auction values or lower."

It makes sense to me as they are selling on commission essentially, that the seller would pay and there would be no buyer premium. It's also semantics as they mention that in order to get a positive reaction to your offer you should calculate that in for the seller. So the actual legal payment is taken from the seller on the paperwork, however the real world answer is all perspective.

Here is their official language:

"What is Heritage's Commission?
Heritage retains only 10% (minimum $40 per lot) of the total price to offset payment processing, administrative and support costs. This service is free to the buyer (no Buyer's Premium), includes a 7 day return policy with the exception of third-party graded and encapsulated items (NGC, PCGS, CGC, PSA, SGC, PMG, CAG, Beckett, Wata, etc.), and protects the identity of both parties. Because Make Offer to Owner transactions are not auctions and no Buyer's Premium is charged, auction consignment discount coupons are not accepted for this program."

I do brokered deals fairly often (5-6 per year). It’s all negotiable, and frankly fungible. At the end of the day, the seller wants/needs a certain amount and the buyer has a limit on what he will pay. The broker falls somewhere in between and it’s all just part of the deal. I have paid the broker separately and I have paid the buyer who then pays the broker.

Also, the size of the commission will vary (often significantly) based on the size of the deal. A broker may take 5% or a flat $5000 on a large, six figure deal, but requires 10%+ on a $10k deal. It’s generally just as difficult to sell a $50k card as it is a $500k card. The broker needs to make money.

Also, as an avid buyer and a regular participant in brokered deals, I like that brokers make good money, so long as the deal makes sense, because they are more likely to bring me other deals.

I would imagine this also would be a benefit to the seller to avoid the governmental spotlight that comes with moving a high figure card. (I do not mean this as a slight, I mean this as realizing it is a wise decision) The only negative I see is the excitement and extra eyes that Goldin lost not having it in a premier auction. However, money is money and the lights stay on for another month.