Appraised value/value and the cost of the item are two completely different things in my book.
If I bid 10,000 and the bottom line is 12,000 to get here, it COST me 12,000. I don't care if it appraises for .50 it cost me 12,000 to get it to me to hang it on my wall. Goes in my books as cost of goods = 12,000. -------------- Original message ---------------------- From: Jeff Potokar <[EMAIL PROTECTED]> > > this whole topic is deviating from the original idea of an item's > appraised value, not necessarily it purchase price. > > here is the scenario, AGAIN-- plain and simple: > > A poster has been taken to appraiser number 1, and is said to be > worth $10K. (follow me folks..). the owner of this poster consigns > it to heritage, and heritage also estimates that it is worth between > $9-10K, and states this fact on the auction page. .. again, so we are > clear-- this poster has an appraised value of 10 grand... the auction > may realize a winning bid that is less, or possibly higher than this > appraised amount. > > the winning bidder gets the poster for 10K. in order for the winner > to take the poster home, he must also pay the 19.5% BP, which is the > auction house fee/commission (plus shipping, if he isn't in dallas > personally). > > the winning bidder (who is in dallas), picks up his poster and pays a > total of $11,950.00. he goes home, happy, and decides to take his new > treasure to another appraiser, for a second opinion. > > Appraiser number 2 looks at the poster, and tells the winning bidder > that he would also appraise the piece at $9500-10K. > > The winning buyer, in a huff, tells the appraiser he is wrong--- that > he has just had to pay a 1950.00 BP at an auction house and the > poster is, in the buyer's own opinion, now worth just under $12K, > because that was the buyer's total outlay. "It IS worth 2000.00 more > because i had to pay that, in addition to the ten grand!" cries the > winning bidder. > > i guarantee that appraiser number 2 (or 3, 4 or 5) would tell him > that he was wrong. a paid fee for an item (whether it be a poster, > antique furniture, rare coin, etc) is not added on to suddenly > elevate an item's appraised value. that appraised value is in the > object itself. > > make sense? > > jeff > > > > > > > On Jul 13, 2008, at 6:06 PM, Phil Edwards wrote: > > > What Claude said - again. > > Not sure why some folks are finding this a debatable subject. > > You paid what you paid, however the amount was arrived at. > > > > Phil > > > > ----- Original Message ----- > > From: Claude Litton > > To: [email protected] > > Sent: Monday, July 14, 2008 10:39 AM > > Subject: Re: [MOPO] O.k....Where do you stand? > > > > My initial reaction to all this was ridiculous and I replied as > > such. i now find it amusing and relate it to a number of > > experiences in my profession which I will relate to you. > > > > I have represented owners of real estate in NYC for many years and > > I spend most of my time negotiating commercial leases. These > > leases require tenants to pay annual rent. Rent consists of "base > > rent" which is the cost per sq. ft. and is the same for every year > > of the lease. Then there are escalation clauses which increase the > > amount that the tenant pays and they are based on certain expenses > > which increase for the landlord and are passed through to each > > tenant. Some of these are "operating escalation", tax escalation, > > fuel escalation, capital expenses required by law escalation, > > asbestos removal cost escalation, etc. > > > > Many times when a lease has been in effect for years a tenant is > > shocked to learn that the $100,000 base rent is now $180,000 due to > > the escalations in the lease. When the tenant gets a renewal lease > > for more than $180,000 he calls and wants to know why the rent is > > going from $100,000 to $200,000 instead of from $180,000 to > > $200,000. The tenant never took the escalation into account even > > though he paid it all the years of the lease and many just cannot > > grasp this concept. > > > > No matter how you pay the rent or look at the auction results, the > > price you paid was the bottom line. For all of you who think the > > price is the hammer price and the rest are only incidentals, I have > > a question. When you bid, do you take the buyer's premium into > > consideration? > > > > My final statement concerns a poster you bought at auction and > > decide to sell at a later date. Let's assume you paid $1000 plus > > $200 BP. When someone asks you what you paid for it, do you tell > > him 1000 or 1200. If you are trying to sell it for 1500 and the > > person asks what you paid, I guarantee you will not say > > 1000-----------period. > > > > I guess by now you can tell I am relaxing because I never write > > such long emails. My children are at my home for the week and they > > are putting my grandchildren to bed. > > > > CJL > > > > > > > > Get the scoop on last night's hottest shows and the live music > > scene in your area - Check out TourTracker.com! > > Visit the MoPo Mailing List Web Site at www.filmfan.com > > ___________________________________________________________________ > > How to UNSUBSCRIBE from the MoPo Mailing List > > Send a message addressed to: [EMAIL PROTECTED] > > In the BODY of your message type: SIGNOFF MOPO-L > > The author of this message is solely responsible for its content. > > > > Visit the MoPo Mailing List Web Site at www.filmfan.com > > ___________________________________________________________________ > > How to UNSUBSCRIBE from the MoPo Mailing List > > Send a message addressed to: [EMAIL PROTECTED] > > In the BODY of your message type: SIGNOFF MOPO-L > > The author of this message is solely responsible for its content. > > > > > Visit the MoPo Mailing List Web Site at www.filmfan.com > ___________________________________________________________________ > How to UNSUBSCRIBE from the MoPo Mailing List > > Send a message addressed to: [EMAIL PROTECTED] > In the BODY of your message type: SIGNOFF MOPO-L > > The author of this message is solely responsible for its content. > Visit the MoPo Mailing List Web Site at www.filmfan.com ___________________________________________________________________ How to UNSUBSCRIBE from the MoPo Mailing List Send a message addressed to: [EMAIL PROTECTED] In the BODY of your message type: SIGNOFF MOPO-L The author of this message is solely responsible for its content.
