I recently started wondering why somebody would still put something up for auction. Especially when it is a ´wanted´ card.
A lot of auctions, specifically for vintage, end a lot lower than the Buy it now´s and with only 1 copy available a lot at the time, I really don´t get that people still use the auction option.
This got me thinking that it might be interesting to discuss what a good way to sell is, and if you would still choose the auction option. In Holland, we mostly use an Ebay related site, which basically comes down to Buy it now/best offer.
Well, if the BIN is up and hasn’t sold in awhile, that likely means the market price is lower and the auction is the true value.
If you are in a major market like the US, auction has lots of benefits:
Auctions get exponentially more views and interest than BIN listings
Auctions generate the thrill of the chase and can spark competition and bidding wars
Auctions guarantee a sale and (hopefully) immediate payment, rather than waiting however long it may take for an item to sell at BIN prices
For rare or otherwise difficult to price high-demand items, especially in boom markets like now, auctions avoid the risk of undercutting the true market value with an underpriced BIN
Many auctions these days end up going for more than comparable BIN listings because of this. Especially when you use a major auction consignment service like Z&G/Fanatics/Probstein who have major followings already.
Auctions need to be done right because they are much more risky. If you don’t know what you’re doing and list your rare card for auction to end at 11am on a Tuesday on your 98-feedback eBay account with bad pictures and $20 shipping, you’re not gonna have a good time.
This sounds pretty logical. At the same time I have seen quite some cards, even through big consignment services, finish a lot lower than a recently bought card.
But I do agree, that might have been someone who was waiting for that card a long time. The thing is though, with cards that are truly rare, this seems like a good option to try. I´m only following certain cards though, so maybe I´m completely off on other markets.
I guess in the end the auction is just a gamble. You can win or loose.
I don’t think this can be overstated. Unless someone is already a big established seller (i.e., not me), sending cards to a place like ZandG is so helpful.
I had a PSA 10 reverse holo sitting in my store as a BIN for nearly 6 months, finally sold it to someone at a card show, and I watched it go up on a ZandG auction two weeks later, only to be sold for $500 more than the price I had it listed at where it had been sitting with minimal interest. Lesson learned on my part: visibility matters.
If i ever sell some of my slabs i will probably use a consignment company that sells in eBay. Since i will get a higher % than selling it on my own due to eBay fees. They get more eyes on their listings than i would if i were to sell it. I just send the slab and they care of everything and i get my money. I’ve seen auctions going above BIN.
If you need money now, you auction. If you have a minimum price you don’t want to sell something for, and are willing to let it sit for months or years, Buy it now. But also for things you aren’t sure about due to low liquidity, its often best to just auction it. I’ve gotten some mad good deals on buy it now for things that would have auctioned for more. This is the case for obscure rare things where people who know, know and will sell a kidney to buy, and it only takes 2 people in a bid war. But a buy it now on some obscure thing I don’t have to compete and yeah, I’ve had some killer deals that way.
Maybe it’s just the cards I’m watching but for the most part I’ve seen the opposite. I consistently see auctions from big eBay sellers surpass fixed priced listing for the same card. I never understood why. Maybe the auctions just get more eyeballs and the bidders aren’t aware of the other listing?
The more perceived urgency from buyers to buy an item, typically the better it will do on auction. If the item can’t draw enough competitive eyeballs to bid, buy it now is a better choice than auction.
In other words… for an auction to do better than BIN, you just need 2 people to bid. One person willing to pay current FMV and one person willing to pay more than that.
Yeah, I see this a lot for modern. My guess is that people are just hyped up and forget to look around.
I sometimes forget that most people do not spend the time analysing the market that I (we) do. Or, they´re new.
In any case, I think this can be a very useful thread. It´s cool to be investing and all, but at some point you want to sell. I think a lot of us are wondering what the best way is to do this.
I know it might seem a bit specific, but I really don’t mind paying a premium if it means the card is a newer cert and clearly cleaner than the other cards/slabs for sale. I’ve actually been in that situation twice recently, getting into bidding wars for high value slab, newer cert.
I didn’t win either because I have a strict limit on the premium I’m willing to pay. Since I mostly buy vintage, my process is usually to look for the grade i am buying then into analyzing the card itself. I’ll compare it against every other copy currently for sale before deciding which one I’m actually going all in on.
