How do you determine the value of a pawned item?

Pawnshops base the item value on its current condition, current appraised value and the ability to be sold out. Pawnbrokers use online research tools at their disposal to evaluate the item value and get you the most money out of it. The appraisal process depends on the item type—for example, a DVD player is evaluated differently than jewellery. All items that are pawned are tested to ensure their proper working.

Pawning your owned items is beneficial, especially during times when you would want to earn some extra cash, or you have a sudden financial emergency. The intention when pawning an item is to receive a good amount in return, regardless of your purpose and need. This is just natural, as you are about to surrender something which is of value to you. However, there are a few factors to keep in mind, when determining an item’s definite value. Here are a few indicators to look out for:

1. Online Resources and Market Research

You may think you are the only one coming in prepared when pawning off an item, think again. Pawnshop representatives do their own research. They are equipped with many resources on which they base their prices from. The most common place to begin with is the internet, regardless which item you are going to pawn off. Don’t get surprised to learn that the jewellery that you have kept for a decade still has a recorded price online. Old items such as valuable antiques and rare books often have a price database, ready to be accessed by pawnshops.

2. Computations and Experienced Markups

Experience is the best teacher, and it is also true in the pawn industry. Pawning is a profession that you only master after many years of dealing and researching. It is already known that pawnbrokers are knowledgeable about prices, but the experience of bargaining to give a win-win deal is something that only an experienced pawnbroker may be good at. Knowing all of this, they can determine how much they will pay you in return without giving an impression that the whole deal was a 60/40 and not a 50/50.

3. Measureable Features

Pawnbrokers usually base their pricing on the measurable features of the items. The measureable features of items may range from functionality and working condition to weight and quality. Of course, if the items were to be sold out, they have to be in at least a good condition for the new owner to possess.

The loan amount for an item may vary according to the market value of the item. Certain laws also govern the maximum loan amount on a pawned item. Condition of the item and its current demand also factor into the final price of the loan. Every pawn shop is different, and pawn loans may vary significantly from one shop to the next.