Pawning an item is a great way to generate income. Unfortunately, some pawn shops are not reputable. These businesses make lowball offers to maximize their profitability.

A seller that knows their item’s value in advance can protect themselves from shady pawn shops. They can reject or negotiate low offers. The trick is knowing how to determine your item’s value.

How to Determine the Value of Your Item

Online Marketplaces

Online marketplaces like eBay and Craigslist will give you some idea of your item’s value. Go to these marketplaces and look for your item or similar items. Find out the pricing most sellers use. This process should give you an idea of what your item is worth.

Use Google Lens

You can browse various marketplaces to learn about your item’s value, but Google Lens provides quicker results. Take a picture of your item and the platform will find comparable prices. It will generate links that show the item’s past and present valuations.

Get a Specialist’s Opinion

You may also consult a specialist to learn the value of your item. For example, you may go to a jewelry appraiser to find out the value of a precious jewelry piece. You can visit a comic store to get a comic book appraisal. 

Various online resources provide similar services saving you the trip. However, an in-person visit will help you understand the value considering your item’s condition. 

Calculate Resale Value

There is a formula that enables you to calculate an item’s resale value. However, you must first learn its depreciation rate.

The depreciation rate is based on the years an item is expected to be useful. For example, if the item’s useful life is five years, it will have a depreciation rate of 20% annually.

Once you know the depreciation rate, you can use the following formula to find the item’s resale value:

1.    Subtract the depreciation rate from 1

2.    Rise the resulting number to the power of the number of years used

3.    Multiply that number by the original purchase price

Considerations When Determining Value

• Consider Condition: The item's condition directly affects its value. If your item is broken or badly damaged, you may get a low valuation or you may be unable to sell it at all. If it’s in pristine condition, the valuation will be on the higher end of the scale.

• Consider Retail Value: Pawnbrokers need to profit off the items they sell. Therefore, their offer will only be a percentage of the resale value- typically between 25% and 60%. Try to work with pawn shops that make offers on the higher end of the scale.

Cash Express Offers Maximum Valuations

Sellers must work with pawn shops they trust to provide fair evaluations. Cash Express is a reputable dealer. Our expertise in antiques, diamonds, precious metals, and other upscale items means we know what luxury goods sell for. Our reputation in the industry ensures we treat customers fairly.

Contact us when you’re ready to pawn your luxury items. You will be happy with the offer you receive.

Most people think of pawn shops as places to buy and sell affordable goods. People sell items they no longer need and/or wish to trade in for money. Consumers come in to purchase these items at a reduced cost.

However, the process is a bit more complex than that. For example, sellers also have the option to loan their items. We will walk you through the steps, starting from the seller’s point of view, so you know what to expect.

Pawn Process Steps

1.    A Person Has an Item to Sell

It all starts when a person has an item to sell. They may no longer need the item or they may sell the item because they need money. Either way, they should consider the item’s value and the best pawn shop to work with.

Most pawn shops will only accept valuable items. Some pawn shops specialize in certain items like jewelry. Others also carry electronics. Do some research to find out which shops are suited to your selling needs.

You should also find out information about the shop’s reputation to ensure they are reputable and offer reasonable valuations.

2.    Get the Item Ready

Next, get the item ready for sale. An item in good condition will bring a higher valuation than a slightly damaged item. Get your item in the best shape possible by cleaning it and making minor repairs if necessary. 

You should also find out how much the item is worth. This information will help you determine if the pawn shop is making a reasonable offer.

3.    Decide if You Want to Sell or Loan

Pawn shops offer two options for sellers. You can either sell your item outright or get a loan.

Selling is straightforward. You come into the shop with your item. The salesperson will appraise it and make you an offer. If you accept the offer, you can leave with cash in hand.

A loan allows you to get cash and hold on to your item. The pawn shop will appraise your item and offer you a loan based on its value. If you accept, you leave with cash in hand, but you must repay the loan with interest over time.

When the loan is paid off, you can get your item back. If you cannot pay the loan, the pawn shop will keep your item, but the unpaid amount won’t reflect poorly on your credit or go into collections.

4.    Your Item Goes on Sale

Depending on the circumstances, your item may go on sale. It can be difficult to part with valuable items but think of it this way. You will help someone purchase an item they would otherwise be unable to afford.

Cash Express Pawn is Your Pawn Shop Destination

The pawn process offers a convenient way for sellers to make money and buyers to afford expensive goods, but you must work with a trusted dealer. Cash Express Pawn is a reputable business specializing in jewelry, watches, and high-end pieces. Our expertise in antiques, diamonds, and precious metals ensures accurate valuations.

Contact us when you’re ready to start your pawn process.