Hypothetical Question on Regrading
erwindoc
Posts: 5,293 ✭✭✭✭✭
You find a really nice coin online at a well known dealer's site. After some correspondence back and forth, you agree to a price on this certain coin but before you take ownership, you decide to get it crossed over to another TPG as your membership has lapsed. After weeks of waiting, you get the news the pleasant surprise that the coin upgraded! Should the price of the coin remain the same???
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That possibility should have been laid out in the terms beforehand but if it isn't then yes.
If you bought the coin as is with no contingencies, and the dealer agreed to resubmit it as a courtesy for you, then the upgrade is irrelevant to the original sale IMHO. The price should not change.
To be clear, did the Dealer send it in for crossover?
Just a hypothetical, but yes, sent for crossover.
Depending on the change in value and the relationship with the dealer, I would work out something that makes us both happy. Especially if you think you will do future business with this dealer. Maybe split the change in value.
There's the key. You never took ownership. You made a deal, apparently contingent on the coin crossing, not upgrading. And they submitted the coin, not you. I would suspect that the dealer (or at least some dealers out there) are going to want a higher price. Was this deal going to result in a different price or be void IF the coin failed to cross? I suspect you were counting on a cross.
Getting a coin crossed is never a sure thing, no matter how nice you think the coin is...even if stickered. I've owned dozens of real nice NGC coins that wouldn't cross. They eventually stickered, but they would never cross for me. I made a deal with a buyer once contingent on a scarce type coin crossing. He did all the work, got the cross, and we sealed the deal. It was a nice coin, and stickered at that grade. But there would have been no deal w/o the cross as they needed it for a PCGS REG set.
I had a similar thing happen to me with a dealer who re-submitted a coin for me in order to save me time. And it upgraded on that submission giving me a potential $7500 windfall. That dealer wanted in on that action, and closer to the price it was at before upgrading (ie buy it is as cheap as possible). The irony of this was that the coin went NGC 64, PCGS 63, then NGC 65. They used the "hook" that the PCGS 63 grade suggested that the new 65 grade wasn't real legit...and a reason for them to buy closer to the original 64 level. There was never a deal of any kind or even a inference of one. But, when that coin upgraded, they know felt they owned it and were due some of those profits....after all....it was THEIR submission that did the "trick."
Imagine a deal where you have a dealer crack out a coin that you are ready to buy. You just tell them to send it in on their next submission. Totally unexpected by either party, it comes back body bagged or a grade lower. Now what? Are you still on the hook to buy it for the same price? You certainly would have bought it had it upgraded.
This must be hypothetical as it makes no sense.
Customer: I will buy that coin.
Dealer: Great that will be $XXXX
Customer: Sure, can you also include a regrade fee for me and send it in to see if it crosses?
Dealer: Sure that will be $XX more for the grading fee. Where do you want it shipped when it is done?
Customer: Back here?
Dealer: Sure, but if it does upgrade when I get it back then the deal is off, I keep the coin and give you back the grading fee.
Customer: What if does not upgrade?
Dealer: You get the coin.
Dealer: Now wake up, you are having that evil dealer dream again.
Offer to split the increase in value with the Dealer.
If you agreed to buy it and paid for it in advance, the upgrade is irrelevant. If you didn't then the dealer sets the new price.
Lance.
I like how @AMRC laid it out. My two cents: don't involve the dealer in the cross / regrade of the coin. If you are serious about buying it, then do it.
After you have ownership, regrade, cross, draw smiley faces on the slab, drop a scratch 'n' sniff sticker on the slab, whatever.
But don't start throwing red tape into the whole thing by involving the dealer. Why cause (possible) problems?
OWN > GONNA OWN
Insert witicism here. [ xxx ]
No the price remains the same.
In the real world, all the possible outcomes would have been agreed upon in advance and memorialized as part of the sales contract.
Was your purchase continent on the cross?
Or, did you agree to purchase and
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
This was purely a question I had in my mind, not an actual deal. I could see this potentially play out as I have let my membership lapse. Now I know that if I ever do something like this, I should carefully set forth terms in such an event.
Pay for the coin and cross and have it shipped to your home....then, if it upgrades, go back to the dealer and give him a bonus.....
Cheers, RickO
It's the same coin regardless. Chances are if it was nice for the assigned grade you would be paying a premium. I would imagine that premium would be some % discount from the next higher grade. Say the coin does upgrade, it is no longer nice for the grade but "ok" for the grade and may sell for a discount compared to solid for the grade material, so I would think the price will remain the same. But I guess that's not how the world works. Cross it yourself, or do it some time after the sale.
Collector, occasional seller