Opinion on Bidding Amount

I'm watching a coin on Heritage.
I've checked all the catalogs (paper and online) that I know of and have arrived at a value.
Let's say that I have decided that it's worth $5000.
That's the most I'm willing to pay.
Considering the buyer's fee and S&H I'm limiting my bid to 80%.
So I would bid $4000 which gives me $1000 to cover the "business" part of the transaction.

Do you agree with this thinking?

 

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Your math is correct, however you can not include buyers fee, shipping, insurance and any other factors into the cost to reduce it. If the coin is worth $5000 then the coin is worth $5000, not $4000 and a buyers fee and insurance and shipping. Those are extras added into the cost of the corn but they in the way affect the value of the coin.

It boils down to do you want it or not. If so, I would bid up to the value of the coin or $5000. If the bid goes above that I would drop out.

 

If the most you are willing to pay is 5000, then you have to do what you plan to. Because if you bid 5000 and win, you will not be limiting yourself to paying 5000, but 5000 plus all the incidentals required. But be prepared that your max will not get the coin.

 

Knowing the quality of coins you collect not surprise of a 5k purchase.
As long as I personaly knew the coin in question is liquid enough to flip and break even I have no problem buying. If it's something that is lets say in vogue at present and tomorrow or next month it wasn't in vogue...then no!
If I want it I bid the max....5k as how many times have you lost an auction by dollars?
So again no doupt the specimen in question is worth the hunt.
Good luck and I know you'll post it here .....soon

 

The way I look at it is if I can find one from a dealer at a show for $5000, why should I pay more.
If I don't win the auction I'll look around at the Baltimore Whitman Show in November.
But I'm also beginning to think I may have to expand my search beyond the three Baltimore Whitman Shows each year.
Probably have to consider the FUN shows and Central States and possibly an ANA show.
I won't go west of the Mississippi. Too expensive.

 

As far as Heritage goes, don’t forget about sales tax. Here’s a state chart:

https://www.ha.com/information/state-sales-tax-info.s

 

Luck is still on my side.
I'm in Maryland.
No state tax on coins over $1000.

I only recall one time kicking myself (hard) for not really continuing to bid on a coin.
I think it was on Heritage.
The coin was an 1837 quarter, variety B-6.
Probably in the XF grade area (but that wasn't important).
At the time there were only 2 or 3 known.
Bidding was at $4200 so I gave it a try at $4400.
Lost to a $4600 bid.
Alas.

 

@kanga your thought process is correct (in my opinion). If $5,000 is the market value of the coin, then bidding $5,000 would be too high (it would cost you $6,000 + shipping). The 20% fee is definitely a big part of the final price. Now some bidders will forget about the fee and bid more, but then they will be surprised at the end (and potentially buried in the purchase).

Now if this is a unique coin (nicely toned, rare variety, rarely offered example, etc), then anything is possible. Guides and prior sales might suggest a $5,000 value, but bidding can become spirited and carry it over expected prices.

 

You should have a go at some local shows.
We both live in Maryland and I can give you times and places of some really nice shows, Gettysburg, Pa. As well shows in state and in Va.
You be surprised as to what's showing up at these shows.

 

You don't know what the other bidder's max was. You might have lost to a $5200 bid, but it went for one increment above your bid.

 

If you bid up to $4000 and it hammers for that, with a 20% buyer's fee that would make $4800, plus shipping would still be under $4850. So, you have a little more room.

 

Everyone I know who bids on Heritage auctions uses this exact same thought process, including myself.

 

The times have really changed. Fees, taxes and shipping can reach as much as 30%. I remember when folks thought 10% was high. I factor in all cost unless it's a coin I want, no matter what it cost. Not a smart way to buy but collectors do that sometimes.

 

I've been to 3 local shows:
- Hagerstown
- NOVA
- Vienna
Some good dealers set up at them.
- Angel Dee's, but Andy is a small cent (and Jefferson/buffalo?) specialist.
- Wayne Herndon covers most areas.
- Reeded Edge handles some nice material.
But a 1796 dime is not really in their areas.
I'm vaguely aware of Gettysburg.
And I seem to recall a big show over near Pittsburgh (Milford? Middle-something?).

 

If you can. The Fun Show in January is a great choice of shows.

 

In this case I should have gone higher.
The variety was an R-8.
And I suspect there aren't many collectors working the Browning varieties of Capped Bust quarters.
LOTS of Capped Bust halves varieties collectors (Overton).
And some Capped Bust dime collectors, but varieties don't seem to be labeled with a name.

 

So I understand.
But MFD says avoid the summer FUN.

 

Yeh, there would be a little wiggle room but at that level I believe bid increments are $200 or $250.

 

The PAN Show is in May and Oct(?). Held in Monroeville, east of Pittsburgh.

 

Yeh, that's it.
Thanks.
I get the impression that it's a better show.