Factors Influencing Value

By Lee Bernstein

Note: Every collectable category has independent definitions for value and grading. The terms below are general and apply to most collectables. However, collectors should study their category in-depth to learn the specifics of their collectable and how to determine the value.

The most important considerations when calculating the value of a collectable are condition, scarcity and desirability.

Condition
If two original, identical collectables are offered side-by-side, with one in like-new condition and the other in used condition, the like-new item will have the higher value.

A collector may still pay a premium price for a collectable in less-than-perfect condition, particularly if the collectable is difficult to find; however, the higher the grading, the higher the price.

It helps to research a collectable category when determining value. Some collectables sell faster in less than mint condition than others. Many paper collectables, for example, tend to sell slowly if not in excellent (or better) condition, while some "very good" mechanical banks may have many willing buyers.

Grading
Below are the most common grading categories used by collectors. Abbreviations, similar terms, and number gradings appear in parentheses.

Mint: (M, Fine, 10) A collectable that is in perfect condition and looks as it did on the day it was made. If the original collectable had packaging, the packaging is identical to how it appeared on a shelf with the original box (if there was one) in perfect condition, instructions included, original attachments, tags, and so on.

A mint item is absolutely identical to a brand new piece. The price tag does not have to be in place, but all the other tags and markings must be in tact. There must be no damage, and the item must never have been used. Another term for mint is Mint-In-Box (MIB).

Near Mint: (NM, Near Fine, Like-New, 9): The collectable is perfect but no longer has the original packaging or the collectable is perfect but the original packaging is less than perfect. All pieces original to the item are in place. A near-mint collectable may have been used, but it must appear to be new. It cannot have damage or defects.

Excellent: (EX, 8): Used, but barely. Excellent is just a small step under Near Mint and many sellers mistakenly interchange the two, but "excellent" can have very minor signs of wear. The wear must be a normal, desirable part of ageing or so minor that it's barely noticeable and visible only upon close inspection. Damage is not "very minor."

Example of very minor wear: ceramic figurine in perfect condition that has been on a shelf for 50 years will show some normal darkening on the underside of the base, particularly if the base does not have glaze (collectors look for this and want it; it's a sign of age authenticity). Even though the figurine is perfect, the condition "excellent" instead of "near mint" would be used since there is a sign of age, even though it's a normal and desirable sign of age.

Excellent means that there is no actual damage anywhere-no chips, hairlines, tears, dents, paint loss, rust, and so on. In some cases, very light scratches are allowed but they should be noted. Factory flaws, if there are any, should also be noted. (Factory flaws are small blemishes common at the time of manufacture -- a tiny air bubble under paint, for example.)

Very Good: (VG, 7): Displays well but has defects: perhaps paint flakes or a minor chip, light colour fading, tiny dent, a small tear outside a framable area, minor rust, and so on.

Good: (G, 6) Used with defects. More than a small amount of colour loss, chips, cracks, tears, dents, abrasion, missing parts, and so on. If an item is not working (a wind-up toy in need of a new spring, for example), it should be noted.

Poor: (P or G-, 5) Barely collectable, if at all. Severe damage, heavy use. If broken, the item is beyond repair.

Buying Tip: Always ask a seller to define the meaning of the terms used. Grading is subjective. What is "Mint" to one person may be "Very Good" to another.

Selling Tip: Be absolutely honest when stating condition. It's better to slightly undergrade than overgrade.

If you're unsure about which grade to use, use two grades and explain why: "Teapot: condition very good to excellent. The overall condition is excellent, but there is an eighth of an inch hairline hiding well underneath the lid, on the inside only. It's not visible and doesn't extend to the outside, but you can feel it if you run your fingernail over the interior."

Selling Tip: Do not attempt to clean or repair a collectable in order to upgrade the condition. Cleaning and repair can (and often does) lower the value. Unless you are sure, it's best to leave a collectable in the condition you found it. If it has been cleaned or repaired, say so.

Scarcity
How scarce an item may be is one of many reasons why it's important to research an item before selling it. Some collectables have minor variations that may make them more valuable. Something as simple as a modification in colour or a slight change in design can contribute to scarcity and value. Conversely, some items seem scarce when they are not.

Many collectables become more difficult to find as time goes by. Generally, as scarcity increases so does desirability and value.

How "rare" is your collectable?

What's the best way to appear professional when selling a collectable? Avoid the word "rare" unless you are absolutely sure you are right. Amateurs often think a collectable is rare when it is not.

Just for fun: Go to the Collectables Category page. Do a search under completed auctions using only the word "rare." If you want to have even more fun, check the "search descriptions" option as well. How many "rare" items appear? If rare is rare, there shouldn't be much there, but sometimes numerous rare items appear. Suddenly rare isn't so rare!

Now pick a few items that have been labelled as rare and do an individual search under each, also using the "search descriptions" option. The same "rare" collectable may have been offered many times.

Finally, do a search under your collectable (by name or category) on eBay, and continue to do so daily for a month or two. It may surprise you to see how often your item appears.

Nothing opens collectors' eyes to the commonplace more than the Internet. With an item a click away, much of what was once viewed as tough-to-find has become a global piece of cake.

Of course, while an item may not be rare, it can and often is, highly desirable, which is why so many sellers have great success selling things that have been sold by others. However, unless a collectable has been identified as being "rare" by an expert, or unless it has been proven to be one of only a few in the world, it is probably not rare and shouldn't be labelled as such. Of course, if you are absolutely sure about rarity and can quote a source, go for it.

The more difficult a collectable is to find, the more desirable it usually becomes, but the value increases only if collectors want it, know about it, and agree upon its being genuine. Occasionally a legitimately rare item – an authentic prototype without any documentation, for example-fetches a lower price than an item more commonly known, particularly if collectors haven't heard of it or can't authenticate it. Usually though, scarcity makes collectors' hearts grow fonder and the price go higher. If you have an item in excellent (or better) condition and there are a number of collectors who want it, bingo! You have a winner! Condition + Number of Collectors + Desirability = Value

Book Price
There are hundreds of books on collectables and their values. These books are usually written by knowledgeable and responsible experts who go to great lengths to give the reader the finest information possible. The prices quoted in these books are known as "book price," or "secondary market price," or "fair market value."

Almost without exception, the authors of these wonderful tools warn collectors that book price should be used as a guide only, and not as an indication of what to expect if and when they sell.

Despite countless experts' cautions, collectors continually expect to receive book price (or higher) when they sell a collectable.

Here are some tips about book price:

1. Book price doesn't show final price, bargaining price, or even if an item sold at book price at all. Unless stated as such (or unless stated as being an auction block price), book price shows the price of something, somewhere, as it sat on a shelf. The same item may still be sitting on the same shelf... unsold.

2. If the price quoted is the shelf price, a highly desirable item may be underpriced at book price, especially if someone tries to sell a like item at auction. No one can predict how much an item will sell for when two or more passionate bidders compete. A desirable piece may go higher than expected. (This is one reason why an auction can be a great way to sell.)

3. Book price doesn't always show what to expect if the item is in less than excellent condition. Tip: Schroeder's Antiques Price Guide suggests "an item listed as VG (very good) will bring 40% to 60% of its mint price."

4. Book price reflects the price at the time the book was written, not the time of publication. Some collectables rise and fall, or fall and rise after publication.

5. Insisting on book price (or above) may be the slowest way to sell a collectable. Few collectors will pay book price unless an item in like condition cannot be found elsewhere. After all, bargains are half the fun! Smart sellers know this and seldom expect book price. As such, book price usually doesn't reflect dealer price, either.

6. The prices quoted in most collectors' books are intended as a buyer's guide to price, not a seller's guide in how to price.

7. Location matters. If the price quoted is from an upscale store in a Manhattan, that's not representative of what a collector might pay in a small rural area.

8. Given all the above, book value is still very important to buyers and sellers. It helps give people a general idea of market value, and it keeps people from making mistakes; however, a collectable is worth only as much as someone is willing to pay for it-sometimes a collectable will sell for more than book price, other times it will sell for less.

The preceding material was written by Lee Bernstein. These are the opinions of the author, not the opinions of eBay, and therefore eBay does not validate the accuracy of or endorse these opinions.