I've been shopping on Ebay for some pocket knives that I collect. I am always amused when I get on Ebay. I mean, you can find anything... nearly. For whatever reason you can't buy and sell firearms on Ebay. Anyway... I wonder how some of these sellers arrive at their price? I suspect they are asking what they want for the item based solely on WANT. Maybe they overpaid for a particular knife and they are letting that error determine their price.
The knife in red is one that I bought for $15 in an auction. It has some scratches and there are many out there of this model despite it being about 30 years old. So, it went for a market price of only $15.
I also bought the one in blue for $50 because it is very rare and in like-new condition. Pretty easy to understand so far? Of course it is. Ebay auctions are a pure-free-market environment. You want widgets, I've got widgets, how much will you pay based on how much you and the rest of the world want widgets? Easy. Ebay.
Nevertheless, sellers on Ebay frequently try to sell things for a price that has no reflection of market value. I have seen the $15 knife for sale for $25-$50. Needless to say, the buying population looks at that auction, and passes--the item ends, unsold. We buyers move on to the ones that start at $0.99 and then bid them up to the "market price."
Market Value. A simple but elusive concept. When folks try to sell their homes, they sometimes forget they are selling one house among hundreds--the local real estate market. If you have that rare "$50 knife" then you can expect a bit more. But be honest with yourself. If you have a "beat up two-blader" and there are 5 others out there just like it, you aren't going to hit your goal trying to get "$50" for it.
As a REALTOR, one of my most finely tuned and important skills is analyzing market value for my clients. It starts before they go on the market, and it continues regularly until we are sold. That translates into a short time on market for you and a greater feeling of success. Very often accurate pricing also sells for a higher price than inaccurate pricing which has to be compensated for by many days on market and painful price reductions.
Sellers of used pocket knives on Ebay and sellers of real property in the NE Dallas Metro area have the same objective and the same reality: Market Value.
PS Any currently listed clients of JTOden Realty need not take this post personally. We experience this phenomenon ALL the TIME and applying it to your own present circumstance, while possible fruitful and valid, is unintentional. Besides, any client of JTOden Realty that is over priced, KNOWS IT.
