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On average, a new car will lose as much as 19 percent of its value in its first year of ownership. That means that your $20,000 new car will be worth about $16,200 after just one year. So when you purchase anything else – why do we believe it holds its value over time? 

It has to do with sentiment. 

Sentimental value is not something that holds value over time. The way that sentimental value works is you have value in it because of personal or emotional associations to the item rather than the material worth. This happens more often than not because of something that you might have grown up with, or something that you like that you are forced to sell and don’t want to let it go.

An example we have had in the past has been false ideas of value. It may be that you have a false idea of value because you have a receipt that says you purchased it at a high end store for $1,600 and don’t understand why it is only worth $50 or $60 three years later. The sentimental value here is that it is believed with thorough emotion that the original receipt is the actual today value. 

Auctioneers will not commonly allow for reserves to be placed. A reserve is a price point that is set by the seller in which the seller believes he or she is protecting his or her value. The reason is that they won’t sell. An item that has a $500 reserve that is worth $100 in the eyes of a buyer will never sell. The fair market price for something is what a person will pay for the item you have – not a receipt or a value that is based on sentimental ideologies. 

Take a good look at the item or the property. Is it something you will live without? Is it something you will have to pay to have moved more than once? The call is up to you – your auctioneer is your friend, and your fiduciary.



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