Added Buyer's Premium is NOT Market Value

[eWax]

I'm not really sure why everyone is making the assumption that when a card sells for xxx dollars on an auction website, the buyer's premium added on is what the card sold for. This is not accurate or correct. VERY MISLEADING

The seller doesn't get to keep the buyer's premium. And it's obvious that ebay vs auction house websites are different when it comes to final market value and final bid.

[Towns322Wiggins]

Why isn’t it? The buyer factors it into their purchase price, do they not? The total price paid equals the market value, at that moment in time.

[eWax]

Originally Posted by Towns322Wiggins

Why isn’t it? The buyer factors it into their purchase price, do they not? The total price paid equals the market value, at that moment in time.

If this be the case, why can't we say sales tax paid on ebay increases the value of an item? Both are added at the end after the auction is over?

[Miggy4583]

Originally Posted by eWax

If this be the case, why can't we say sales tax paid on ebay increases the value of an item? Both are added at the end after the auction is over?

Because not everyone pays tax or the same rate. BP is the same for everyone.

[hatchd]

Originally Posted by eWax

If this be the case, why can't we say sales tax paid on ebay increases the value of an item? Both are added at the end after the auction is over?

People do this all the time. The phrase "yeah but you have to pay tax on eBay" is thrown around constantly. The buyers premium is absolutely added to the price when trying to comp an item. In the end, the buyer paid $X for the card and that's the comp.

[BLongley]

Originally Posted by eWax

I'm not really sure why everyone is making the assumption that when a card sells for xxx dollars on an auction website, the buyer's premium added on is what the card sold for. This is not accurate or correct. VERY MISLEADING

The buyer doesn't keep the buyer's premium. And it's obvious that ebay vs auction house websites are different when it comes to final market value and final bid.

Right ... the buyer pays the buyers premium. And that final price paid is the market price of the card .... it’s not like it sold for less.

As someone who has used auction houses for higher end items I have also received a good portion of the 20% that the auction house charges. The consignors of those cards selling near $50k and up are collecting a part of the buyers premium and those well into the $100k’s are collecting nearly all of it... it’s all publicity value for the auction houses on those cards and actually little monetary value.

[eWax]

Originally Posted by BLongley

Right ... the buyer pays the buyers premium. And that final price paid is the market price of the card .... it’s not like it sold for less.

As someone who has used auction houses for higher end items I have also received a good portion of the 20% that the auction house charges. The consignors of those cards selling near $50k and up are collecting a part of the buyers premium and those well into the $100k’s are collecting nearly all of it... it’s all publicity value for the auction houses on those cards and actually little monetary value.

I meant to say the seller doesn't get to keep the BP.

[BLongley]

Originally Posted by eWax

If this be the case, why can't we say sales tax paid on ebay increases the value of an item? Both are added at the end after the auction is over?

There is sales tax on auction items too

[BLongley]

Originally Posted by eWax

I meant to say the seller doesn't get to keep the BP.

Sometimes they do ... on the big cards , I’ve kept it , depends on what your selling.

[theleica]

OP, Why don’t you subtract out the eBay fees you have to pay as a seller and use that price as the final market value?

[eWax]

Originally Posted by theleica

OP, Why don’t you subtract out the eBay fees you have to pay as a seller and use that price as the final market value?

You're taking my opinion out of context. All I am saying is final price regardless of premiums, taxes, fees, etc..should be final value. NOT added stuff in after the sale.

[mcgee2134]

Originally Posted by eWax

I'm not really sure why everyone is making the assumption that when a card sells for xxx dollars on an auction website, the buyer's premium added on is what the card sold for. This is not accurate or correct. VERY MISLEADING

The buyer doesn't keep the buyer's premium. And it's obvious that ebay vs auction house websites are different when it comes to final market value and final bid.

Great, another person that doesn't understand math.

You sound like the cable company salesman that says you only have to pay $100 a month, then the add in two cable boxes, a modem, additional taxes (non-sales), other fees and the bill is over $200.

[BLongley]

Originally Posted by eWax

You're taking my opinion out of context. All I am saying is final price regardless of premiums, taxes, fees, etc..should be final value. NOT added stuff in after the sale.

The BP though is technically part of the original final sale ... it’s not like shipping and taxes. Most buyers figure the premium when they’re making their bids and it’s not like you see significantly different final prices when looking at regular type cards in an auction house or on eBay .... PWCC has set numerous all time high sales on cards even when auction houses are selling similar cards with BP.

[sebreg]

For such a categorical thread title I would have expected a stronger argument. Now I'm just here for the massacre.

[gnrsportz]

Merriam-Webster definition:
purchase price noun

Definition of purchase price
: the amount of money someone pays for something

[SupermanBrandon]

Added Buyer's Premium is NOT Market Value...YEH you're wrong.

BP is part of the Market Value. Always has been. Always will be. Nothing new. Its universally excepted across all big boy auctions, ever. Cards, Cars, Art, etc. Taxes and Shipping are different for almost every sale, everywhere. Those dont count.

[Archangel1775]

When I value a card on the PSA registry, I include the taxes and shipping. I would include the Buyer's Premium as well. It's my registry and for my own records. Do your thing, I dont think it matters to anyone else unless you're trying to buy it at a discount. .

[Spacemanspif]

Originally Posted by gnrsportz

Merriam-Webster definition:
purchase price noun

Definition of purchase price
: the amount of money someone pays for something

yeah except that's not what he said.

purchase price = what a buyer pays. payout, or "net to me" is what the seller receives. Market price is the average price at which an item is bought or sold. buyer's premium, ebay fees, sales tax, shipping costs, are all considerations, but they only indirectly affect a market price. people quoting prices including BP and claiming they are market price are just pumpers.

[gnrsportz]

Originally Posted by Spacemanspif

yeah except that's not what he said.

purchase price = what a buyer pays. payout, or "net to me" is what the seller receives. Market price is the average price at which an item is bought or sold. buyer's premium, ebay fees, sales tax, shipping costs, are all considerations, but they only indirectly affect a market price. people quoting prices including BP and claiming they are market price are just pumpers.

Yes but it is an intricate part of determining market price. You said it yourself, it is the average price paid. You don’t just start going through purchase prices and saying oh we will through this price out because it includes buyers premiums, sales tax, shipping, etc. the buyer still paid that money as a part of the purchase.

[Spacemanspif]

Originally Posted by gnrsportz

Yes but it is an intricate part of determining market price. You said it yourself, it is the average price paid. You don’t just start going through purchase prices and saying oh we will through this price out because it includes buyers premiums, sales tax, shipping, etc. the buyer still paid that money as a part of the purchase.

again, you're ignoring the part about "or sold". you can't solely focus on "what is the highest amount of monies that went out of someone's pocket for this card", while ignoring the seller's payout, because if you're on the other end, do you only skew to the highest number?

simple scenario: KD Topps Chrome PSA 9 consistently sells at or around the $3k mark. depending on the buyer's sales tax, it could mean anywhere between $3k and $3.3k. depending on the seller's ebay store situation or managed pay or whatever, their payout is probably somewhere around $2.7k. you're making a deal with someone in B/S/T, A) what price do you settle on when you're buying? B) what price do you settle on when you're selling? If A) and B) are different numbers, I don't want to deal with you.

[no10pin]

Originally Posted by eWax

You're taking my opinion out of context. All I am saying is final price regardless of premiums, taxes, fees, etc..should be final value. NOT added stuff in after the sale.

It's the same concept though. Ebay sellers who use managed payments get their money less the 12.35% fees. It's money the buyer is paying but the seller isn't getting in both cases.

[rainmaker]

Swing and a miss!

[hairyangryfella]

Completed auctions (on Goldin at least) show the final selling price as the end value plus the premium, which is how it should be. That's the amount that was paid to acquire that item, and all experienced buyers take that into account when bidding.

What people don't take into account is any other fees the buyer may have had to pay, such as import fees. Sure, the jersey I bought may say it was $1700, but I had to pay another $700 (NZ) to get it here, thus the actual value was more

[KhalDrogo]

Originally Posted by Spacemanspif

people quoting prices including BP and claiming they are market price are just pumpers.

[Onepocketj]

Originally Posted by sebreg

For such a categorical thread title I would have expected a stronger argument. Now I'm just here for the massacre.

He's so wrong people don't even feel like correcting him.