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.