Considering Buyer's Premium into Values of Cards / Memorabilia

[Jayjones82]

Just wondering what some of my fellow collectors think: When you buy a card or piece of memorabilia from an auction house, do you take the buyer's premium into account when condidering the true value of the piece?

Ex. "Book" value of a certain card = $1,000. Recent copies of the card have averaged $950 with an average 17.5% buyer's premium at auction, so it costs (on average) $1,116.25 to get said card. To you, does this make the true value of the card $1,116.25? (Of, course, I'm not taking into account exraneous stuff, like sentimental value or the sporadic outlier).

This level of math is usually above my head, btw

Jason

[g_vezina_c55]

For me yes.

[scooter729]

100% matters - I consider all money out of my pocket (premiums, shipping) as the cost of the card to me.

If the auction house charges a 20% premium, you better realize that your $500 bid means you'd be paying $600 + shipping. And to me, I have a figure in my mind that I'd pay for an item; if that number is $500, then I prepare accordingly (an eBay bid of $500 might be only a $425 bid with an auction house which has a premium).

VCP prices include auction house buyer's premiums as well.

[ullmandds]

of course this has to be factored in...it is part of the total cost, right?

[calvindog]

When you sell the card do you consider as part of your basis for tax purposes the buyer's premium?

I mean assuming you ever declare profits or losses re cards on your tax return.

[ValKehl]

Originally Posted by calvindog

When you sell the card do you consider as part of your basis for tax purposes the buyer's premium?

Of course, and the shipping cost as well.


I mean assuming you ever declare profits or losses re cards on your tax return.

And yes, I do pay Federal & Virginia income taxes on my bb card profits (doesn't everyone?). For this reason, I much prefer to trade, rather than sell, cards that I acquired 10 - 20 years ago, so as to defer the income taxes.
Val

[christopher.herman]

Originally Posted by scooter729

VCP prices include auction house buyer's premiums as well.

This is very helpful information. I did not know this. Thanks.
--C.

[Jlighter]

When I put price paid into my spreadsheet I include the buyers premium, not shipping though

[Exhibitman]

I consider both BP and shipping, esp. if the item is low cost and the shipping is considerable. Doesn't make sense to me to cost an item at $5 when shipping added $3 to it. To me that is a $8 item.