Gem Gehrig @ Heritage

[Bliggity]

Originally Posted by irv

Thanks guys.

I knew there were fees, but had no idea they were that much.

So in reality, if you paid the $65,000 total, all fees in and wanted to or had to sell the card in a month or two, would you list/reserve it for the $65,000 you paid or the $55,000 that it is actually worth? (Rounding numbers only)

Also, if it gets listed in VCP, is the $55,000 price the one that gets entered or the $65,000, total cost amount?

You would list the card for $65k because that's what it's "actually worth." Bidders will take the premium into account when bidding. Therefore, if a bidder believes the card is "actually worth" $X, then the bidder will only bid 80% of $X, knowing that the total amount will add up to what the real value is. So for example, if a certain T206 usually sells for $500 on eBay, you would expect the high bid at an auction house for the same card to be about $400 (depending on the specific percentage of the buyer's premium).

VCP records the full cost, including the buyer's premium.

ETA: Jesse is correct that you'd probably take a loss on a quick sell for a couple reasons. If you were the high bidder at auction, that means the next highest person in line to buy the card when you sell probably isn't willing to pay as much as you, or else they would have won it the first time. Also, although bidders "should" take the BP into account when bidding, it's easy to get brainwashed by the lower number that appears on the bid screen, and end up bidding higher than you should. This has been discussed ad nauseum before, and is a foolish thing to do, but is human nature I suppose.

[ValKehl]

Dan, to be a nitpicker, in the example you gave, the expected high bid at an auction house with a 20% BP would be $416.67 (rather than $400.00). This figure is determined by dividing $500.00 by 120% (i.e., 1.20).
Val

[Bliggity]

Originally Posted by ValKehl

Dan, to be a nitpicker, in the example you gave, the expected high bid at an auction house with a 20% BP would be $416.67 (rather than $400.00). This figure is determined by dividing $500.00 by 120% (i.e., 1.20).
Val

Hence my statement, "about $400"

[irv]

Originally Posted by pokerplyr80

VCP lists the total price including BP, 65k in your example. If you had to sell the card in a month or two you would most likely take a loss, unless you could sell it privately for what you paid. Even then unless the card went up you'd most likely be out at least half the buyer's premium.

Originally Posted by Bliggity

You would list the card for $65k because that's what it's "actually worth." Bidders will take the premium into account when bidding. Therefore, if a bidder believes the card is "actually worth" $X, then the bidder will only bid 80% of $X, knowing that the total amount will add up to what the real value is. So for example, if a certain T206 usually sells for $500 on eBay, you would expect the high bid at an auction house for the same card to be about $400 (depending on the specific percentage of the buyer's premium).

VCP records the full cost, including the buyer's premium.

ETA: Jesse is correct that you'd probably take a loss on a quick sell for a couple reasons. If you were the high bidder at auction, that means the next highest person in line to buy the card when you sell probably isn't willing to pay as much as you, or else they would have won it the first time. Also, although bidders "should" take the BP into account when bidding, it's easy to get brainwashed by the lower number that appears on the bid screen, and end up bidding higher than you should. This has been discussed ad nauseum before, and is a foolish thing to do, but is human nature I suppose.

Thanks guys.

That's some interesting, good to know information!

I appreciate it.

[Bliggity]

$167,300.

30% over last sale in 2013. Not a bad ROI.

[egbeachley]

Originally Posted by Bliggity

$167,300.

30% over last sale in 2013. Not a bad ROI.

Nope. Wrong, wrong, wrong. That's how people get suckered into thinking cards are always a good investment.

Sale on 8-11-13 was for $125,332. Sale on 2-20-16 was $167,300, but it was $140,000 before buyer's premium. The $140,000 is what the seller received.

$140,000 - $125,332 = $14,668. ROI of 11.7%

For comparison, NASDAQ on 8-11-13 was 3,660. On 2-20-16 was 4,504. ROI there during same period was 23.1%.

[Mikehealer]

Eric, I would think the consignor got a piece of the premium on a card like that.