If you have something that you want to sell, you may post a local ad or list your item online. But another option that many forget is taking it to your local pawnshop. If you have never sold an item to a pawnshop before, we are here to help know what to expect and understand the different option you may have. Cash for Gold dealers and pawnshops can get a bad reputation for offering lower than expected prices, but having an idea of how they operate will give you a better perspective of what to expect. We will now break down the different stages to selling an item to a pawnshop.
Step 1 – Evaluating Your Item
Lets say you bring in an old piece of jewelry that you would like to exchange for some money; the first step is having the pawnshop inspect what you have. Each item that is brought to them will be analyzed in various ways and even referenced to current online prices of similar items. Jewelry has its own way of being valued, and precious metals have the market price that why are trading at. Some pawnshops may be more experienced with different items and shopping around can earn you more money, because the more confident the pawnshop is in the value of the item, the more they are willing to offer.
Step 2 – Negotiating Your Price
Negotiating is where most people lose out on money and often where the pawnshop gets a bad reputation for low-balling. Everyone will have a different level of skill when it comes to negotiating, but by understanding where the pawnshop has leverage will give you an idea of where they are with their offer. For example, you may have a very nice piano that is often sold for $5,000. The pawnshop will offer you less than $5,000 so they are able to make a profit, but then the offer will also be considerably less because of the size of the item and the lack of buyers. If you had a ring worth $5,000, you would be able to say the opposite of the piano; that it does not take up much space and many engagement rings are sold at the store. Knowing how different items will produce different percentages of their value can help you understand why the pawnshop is making their and counter with reasons to raise the offer when negotiating.
Step 3 – Sell or Pawn?
The great benefit a pawnshop has over selling something online, is the ability to get your item back in the future. To pawn an item means to exchange the item for cash, and in a certain amount of time (usually 30 days) you can get your item back for a small interest fee. For example, you need $500 for rent so you don’t get evicted but cannot come up with the money; you also have a valuable necklace that is a family heirloom that you cannot sell. In this scenario, you could pawn the necklace, receive the $500 you need for rent, and then receive the necklace back in a month for ~$550 when you get paid. By pawning, you are able to stay in your home and keep the family heirloom that you cherish.
This is what you can expect when entering a pawnshop. These are businesses that are there to make money so don’t expect to get the market value for your item. The benefits of pawning and getting cash on-the-spot are extremely useful when needed. Our site lists several pawnshops all over the country and has information to help your earn the most cash for gold.