Where do people come up with these prices and values? Understanding the difference between what was paid for an item and what you can sell the item for in today’s market is like the difference between buying a new car and selling it used. Depreciation has taken place in most cases. Much has changed in the secondary marketplace. Sellers must realize that there must first be someone who wants the item (demand) in order for it to have and hold value.
People still call my office to inform me of what their items are worth, even though they are hiring me to find out. I don’t normally mind when they say they already know the value because they “found it on the internet.”. Many of them have it wrong or have searched incorrectly. They see an “asking” price – a ridiculously high dollar figure that came from someone else’s head – which is now stuck in their head. They would like to believe and hope that this is the value.
The responsibility for sharing valuation knowledge with clients falls to all estate experts. We have to help clients set reasonable expectations. Some people will heed what we have to say, while others will continue to believe that if it was valuable in 1982, it must be more valuable today. These individuals are in for a rude awakening, resulting in anger and frustration which they will probably take out on the individual selling their items for them.
Who comes up with values? Ultimately, it used to fall on the serious collectors who set trends and values. Marketability and collect-ability are somewhat related. If an item belongs to a category of objects that people desire and collect, then logically that item’s value increases. However, we need to consider that the current market is fairly saturated with many of the collectibles that were highly sought after 20, 30, 40+ years ago, back when our parents’ generation paid top dollar for them.
Older “die-hard” collectors are passing away and selling their massive collections all at once. We’ll look at how this complicates the market and depresses the values next week in “Perils of Preposterous Pricing, Part 2”.
©2016 The Estate Lady®
Julie Hall, The Estate Lady®, is the foremost national expert on personal property in estates, including liquidating, advising, and appraising. http://www.TheEstateLady.com She is also the Director of American Society of Estate Liquidators®, the national educational and resource organization for estate liquidation. http://www.aselonline.com.
No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.
One thought on “Perils of Preposterous Pricing, Part 1”
This is an excellent post. With new generations opting for more experiences rather than property, it will be interesting to see how these collections sell.