Sale value versus Trade value

Discussion in 'Off-Topic' started by _MonSTeR_, May 29, 2017.

  1. _MonSTeR_

    _MonSTeR_ SS.org Regular

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    Guys,

    Can someone tell me what the difference between trade value and sale value is and why the appraisals are often different? Usually I'm seeing trade value being higher, but don't do many forum deals, so I'm not seeing enough correspondence to know why.

    Thanks in advance.
     
  2. TedEH

    TedEH Cromulent

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    I see this in local ads pretty often, where they quote different values depending on what kind of transaction it is. Comes across as weird to me so I tend to avoid those ads.
     
  3. Hollowway

    Hollowway Extended Ranger

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    Yeah, I have no idea. I suspect that at some point someone tried to do a trade where the other guy felt it wasn't balanced in terms of price, so he did that. But now most people probably figure that they're supposed to, so they do. But it makes no sense to me either.
     
  4. Electric Wizard

    Electric Wizard Dignity

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    I think it makes perfect sense. Cash has the benefit of usefulness and liquidity. You're willing to take less because cash is more useful and you want to incentivize a sale which will be faster. Trading in kind doesn't grant you benefits so you might as well pursue the maximum value for your stuff since it's going to be a tougher deal to land anyways.
     
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  5. MaxOfMetal

    MaxOfMetal Likes trem wankery. Super Moderator

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    This.

    Cash has more "value" and is more stable, thus a given instrument can demand less of it in exchange for a similar guitar.
     
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  6. Ordacleaphobia

    Ordacleaphobia Can only power chord

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    I always got this part, but the bit that always left me a little confused is if say I want to trade my guitar I'd sell for $1500 for...$1700 trade value. Wouldn't trading it for someone else's guitar that's "worth" $1700 not really make sense because he's basically shafting himself on *his* 'trade value'? Like how do you determine what the 'trade value' is for the other party? Because if you're going based on current market pricing, you need to go off of current market pricing for your piece as well, which would get you back to where you started, wouldn't it?

    I like "Shoot me an offer if you think you've got something interesting" or "Looking for X, Y, maybe Z" way better :lol:
     
  7. MaxOfMetal

    MaxOfMetal Likes trem wankery. Super Moderator

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    Folks are usually a lot more willing to fudge a couple hundred dollars in trade value if it's something they really want and don't have the actual cash for.

    Say I'm selling a guitar for $1600 cash firm or $2000 trade value.

    You really want that guitar but don't have the money. You do have a guitar that you could probably sell for $1900, eventually.

    If I'm interested in your guitar and you're willing to take a small hit on value to facilitate getting my guitar faster it's a deal.

    My trade value is placed higher than cash value as I'll need more incentive, such as a nicer guitar in trade, to not wait for a cash buyer.
     
    Last edited: May 30, 2017
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  8. _MonSTeR_

    _MonSTeR_ SS.org Regular

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    So basically it's "or cash offer" in the hopes of doing a fast deal for cold hard cash in the immediate term...

    Thanks guys, I appreciate everyone's input on this, it seems an odd way of doing things to me, but at least I understand where it's coming from :)
     
  9. Edika

    Edika SS.org Regular

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    It does make sense to me too, especially whenever I try to sell something I get mainly trade offers even if I specifically mention not trades or specific items (not here, mainly in facebook groups). It puts a bit of perspective for people wanting only to trade and might make them think about what they should aim to trade.

    I used have offers for straight trades on items I was selling on current used market prices with other used guitar and amps that cost new what I was asking for a sale. I politely declined all these offers as they're usually stuff I'm not interested in. Since putting a different trade price it has taken care of that.
     
  10. bostjan

    bostjan MicroMetal Contributor

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    $1500 cash is better than a $1700 guitar to a business that converts guitars into cash.
     
  11. Xaios

    Xaios Foolish Mortal Contributor

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    Think of it like the difference between an item's actual value vs retail price. For myself, dealing with the buying and trading Magic: the Gathering cards, everyone I know bases the trade value of their cards on one or two sites that are generally recognized as price authorities for retail (SCG and FtF, Magic players know who they are). Buying and selling is a completely different story, as I'll only likely buy or sell at around 60-70% of those sites' listed value.
     

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