Million Dollar Mario...1.56M...What the..?

[DefaultGen | 5,407]

36 minutes ago, GPX said:

I just realized that the actual auction price was 1.3 Million. Buyer then has to pay 20% buyer fees ($260,000K), which totals 1.56M. 

Yet, all the publicity is about “Mario 64 being worth 1.56M”, and most people discussing it post-sale assumes that value. Obviously, the question everyone is eager to know is whether payment has been or will be made. For now, just thought I’d point out the actual sale value for those unaware (such as myself until recently).

The sales prices and headlines always include the buyer’s premium because it doesn’t matter what the seller nets, just what the buyer is willing to pay. You wouldn’t have Pricecharting take out 10% for Ebay fees.

[Gulag Joe | 582]

4 hours ago, GPX said:

I just realized that the actual auction price was 1.3 Million. Buyer then has to pay 20% buyer fees ($260,000K), which totals 1.56M. 

Yet, all the publicity is about “Mario 64 being worth 1.56M”, and most people discussing it post-sale assumes that value. Obviously, the question everyone is eager to know is whether payment has been or will be made. For now, just thought I’d point out the actual sale value for those unaware (such as myself until recently).

And 10% of that 1.3 million goes to the auctioneer for commission.

[a3quit4s | 4,102]

12 minutes ago, Gulag Joe said:

And 10% of that 1.3 million goes to the auctioneer for commission.

So HA gets the buyers premium and the 10% commission since its an online auction and has no auctioneers?

[16BitBricks | 59]

Don’t forget about the “gubment’s” cut. Would the profits fall under long term capital gains? So let’s say you take off another 20% for that. Sells for $1.56 million, you might net $1.0 million. Still pretty sweet, but for lesser grades and factoring in WATA Grading fees, some people are gonna get burned hard if there’s even a small drop in the market.

[Californication | 1,477]

5 hours ago, DefaultGen said:

The sales prices and headlines always include the buyer’s premium because it doesn’t matter what the seller nets, just what the buyer is willing to pay. You wouldn’t have Pricecharting take out 10% for Ebay fees.

Price charting should take out ebays 10% imo since the goal is to get to FMV. The added costs aren't for the video game they are for services rendered.

Edited July 25, 2021 by Californication

[Gulag Joe | 582]

1 hour ago, a3quit4s said:

So HA gets the buyers premium and the 10% commission since its an online auction and has no auctioneers?

Correct. And yes, it's long term capital gains.

[blarky | 42]

5 hours ago, Gulag Joe said:

Correct. And yes, it's long term capital gains.

Respectfully, you have no idea if it's short term or long term capital gains.  Only the seller knows if he's owned it for < 1 year (short term), or > 1 year (long term).  

[Caliboy24 | 47]

8 hours ago, a3quit4s said:

So HA gets the buyers premium and the 10% commission since its an online auction and has no auctioneers?

Doubt the consignor was charged 10% seller's premium (which can be negotiated down to 0% depending on the value of your collectibles consigned) .

I think it's more just the 20% BP deducted. I believe that one cannot be negotiated. But who knows for something as big as the N64 mario and Zelda he consigned might be a gut shot that can be lowered too

[Gulag Joe | 582]

1 hour ago, Caliboy24 said:

Doubt the consignor was charged 10% seller's premium (which can be negotiated down to 0% depending on the value of your collectibles consigned) .

I think it's more just the 20% BP deducted. I believe that one cannot be negotiated. But who knows for something as big as the N64 mario and Zelda he consigned might be a gut shot that can be lowered too

The 10% consignors fee is not negotiable 

[kell | 102]

27 minutes ago, Gulag Joe said:

The 10% consignors fee is not negotiable 

Standard is 15% and is negotiable.

[Gulag Joe | 582]

1 hour ago, kell said:

Standard is 15% and is negotiable.

Here's the contract

[Californication | 1,477]

nm.

Edited July 26, 2021 by Californication

[Tyree_Cooper | 755]

I would like to know if the seller offered free shipping, and if not, how much it was, and whether the seller used a padded envelope to save money.

[ExplodedHamster | 404]

On 7/20/2021 at 10:45 PM, OptOut said:

You guys are NUTS! Of COURSE it is relevant if the money was actually paid, because it will show whether this price is legitimate or not, and whether we should expect it to be repeated for this and/or other games!

Now, of course mainstream media aren't going to be rushing to correct themselves if the sale falls through, so it won't stop the rush of people into the hobby, but frankly that doesn't really matter. As long as people in the hobby know what happened that will undoubtedly have an effect on future sales... We will still be looking for the first Million Dollar video game.

 

Anyway, we still don't know yet...

@ExplodedHamster can you confirm what you said before, that you will inform the community here if the sale falls through?

Sorry, late to respond to this, had a hectic week.

Yep same thing stands. I will say that if there are any issues. I have been told the same thing all along, which is that Heritage is highly confident in the buyer. With the certainty of tone that's been used, I am not at all worried. Once there is confirmation, I'll post it.

Edited July 26, 2021 by ExplodedHamster

[ExplodedHamster | 404]

7 hours ago, blarky said:

Respectfully, you have no idea if it's short term or long term capital gains.  Only the seller knows if he's owned it for < 1 year (short term), or > 1 year (long term).  

Doesn't matter with collectibles, which are a cool 28%, whether short or long term

Beyond that, I am considered a dealer at this point, there's no way around it. Given that, it's taxed as income. So, between federal and state, it's in the low forties . But that's how it goes. I am generally in favor of the idea of taxing (though certainly I do not agree with all the ways in which it is spent), so can't be a hypocrite now.

Edited July 26, 2021 by ExplodedHamster

[OptOut | 8,886]

5 hours ago, ExplodedHamster said:

Beyond that, I am considered a BALLER at this point, there's no way around it. 

FTFY!

[kell | 102]

13 hours ago, Gulag Joe said:

Here's the contract

That’s a template . Notice the “10%” is off, that’s because it’s an editable field. The commission is negotiable, I’ve spoken with HA... and others have said the same.

Edited July 26, 2021 by kell

[AdamW | 713]

On 7/25/2021 at 6:10 AM, 16BitBricks said:

Don’t forget about the “gubment’s” cut. Would the profits fall under long term capital gains? So let’s say you take off another 20% for that. Sells for $1.56 million, you might net $1.0 million. Still pretty sweet, but for lesser grades and factoring in WATA Grading fees, some people are gonna get burned hard if there’s even a small drop in the market.

I mean, logically speaking, capital gains tax can never contribute to anyone getting "burned", because you only pay it if you make a gain.

[AdamW | 713]

13 hours ago, Tyree_Cooper said:

I would like to know if the seller offered free shipping, and if not, how much it was, and whether the seller used a padded envelope to save money.

He's shipping it flattened. Buyer just has to fold it back out again. Saves a ton on shipping!

[Gulag Joe | 582]

3 hours ago, kell said:

That’s a template . Notice the “10%” is off, that’s because it’s an editable field. The commission is negotiable, I’ve spoken with HA... and others have said the same.

This is my contract from the signature auction, not a template. The 10% fee is not negotiable for HA's signature auctions, which is the topic at hand. To clarify, I was not able to negotiate it any lower than 10% and the reason being is its because it was a signature auction.

Edited July 26, 2021 by Gulag Joe

[16BitBricks | 59]

5 hours ago, AdamW said:

I mean, logically speaking, capital gains tax can never contribute to anyone getting "burned", because you only pay it if you make a gain.

I disagree. That’s, why they call them first, second, and third degree burns. Lesser degree, but it still hurts. When you add in inflation, time spent, and losing out on other investment opportunities (that’s what this is at this point), you can make a “profit” and still get burned. You can “profit” on paper and still take an L.

[arch_8ngel | 1,597]

On 7/25/2021 at 9:26 PM, Gulag Joe said:

Here's the contract

For what it's worth - that is A contract, not "the" contract, in this case  

Everything is negotiable, and unless you saw this seller's specific contract, you can't say for certain what their terms were.  (edit: since you clarified that this was YOUR contract, and you were unable to negotiate -- I suppose we could confidently say that ExplodedHamster's terms were "at least as good" as your -- but I still think it would be faulty to assume that there was no chance at all that he managed to negotiate those terms)

Edited July 27, 2021 by arch_8ngel

[ExplodedHamster | 404]

PAID

[arch_8ngel | 1,597]

1 minute ago, ExplodedHamster said:

PAID

Don't spend it all in one place!  

[Xjwebb1982 | 50]

12 minutes ago, ExplodedHamster said:

PAID

Congrats!!! Well played!