How does grading work?

[monkey_roo]

OK, not sure if this is covered anywhere else on the site, had a quick search but didn't find anything.
I am getting into a bit of a debate on another forum around grading, which is now creeping into the Lego market see example - http://www.ebay.com/itm/2007-LEGO-STAR-WARS-MILLENNIUM-FALCON-10179-1ST-EDITION-MISB-AFA-9-25-UCS-/221118362578. this is something that the majority of Lego fans simply don't understand as, well, why would you ever seal up a box of Lego. I have tried to explain a bit how it works with action figures but i rapidly come unstuck when i do the maths, so:

Cost of figure = $100, cost of grading (AFA) = $50 so why does the final resell value not equal $150 (or close to taking into account some effort and effort factors) so say $170.

So my question is who/why/what determines the resale value of an AFA item after grading? Taking the example above in the Lego world that model was $400 RRP and grading probably cost $400 (it is a truly massive box) and shipping $100, so for a $1000 outlay the chap is after $12.5k. Obviously he may not get it but trying to get my head around the entire grading cost thing? I do understand that the varying grade results and original rarity of the item play their part, but is there a basic mathematical rule to follow here?

Anyway, any comments welcome so i can report back to my brick minded friends

 

[Badderius]

Hot topic for sure, and as a Lego collector I can see the damage it could cause, however cant get my head around a graded boxed Lego set.........

As for pricing, you will find there is no real calculation involved, and for those who do purchase MOC to send to AFA for re-sale now a days either at best break even on anything less than an 80 or will take a hit. To make some kind of profit then 85 grading+ will help.

Also depends on FOTM, and of course rarity. Made some good purchases with AFA75 being listed, good price for me and saved me buying an Acrylic case.

Probs no help at all for ya, but IMO there is no calculations involved.....

Cheers

 

[Richard_H]

I think the answer to this is...


How (insert adjective here) is the buyer to get the product.

 

[theslider]

Not that I'm a proper collector like some on here, but I think grading is totally bogus (man). I mean it's totaly subjective, the guy who get's to grade you item, it's just his/her(not likely! lol) opinion. As I've said before, the only good thing for grading is the nice cases they put them in!

 

[poncho]

that guys an idiot $12k for graded lego set! its not even that old! who ever pays that is a fool

 

[Grant_C]

Its just crap. Total Crap.

 

[tiefighterboy]

I have a vintage pair of white underwear with a brown racing stripe down the center that requires AFA grading.

 

[monkey_roo]

^ I am sure those pants will get top rating

The whole graded Lego thing is getting a few people wound up on the other forum as those of us who have seen the affect in price and availability elsewhere can see the same thing eventually happen there, although the guy wi his $12.5k falcon has clearly had a momment out from reality, I would love to know what the rejected offers we're for though.

 

[.Q.]

I have some brown underwear with a white racing stripe. Medical attention is being sought....

 

[lee gray]

what a silly amount of money that lego set is..... getting items graded is a bit of fun, but I prefer the authenticity myself and acrylic cases are nice.

 

[Dark Sith Lord]

http://www.gumtree.com/p/for-sale/2004-lego-star-wars-cloud-city-10123-misb-afa-85-graded/1001153095

:shock:

 

[Stormtrooper37]

http://www.gumtree.com/p/for-sale/2004-lego-star-wars-cloud-city-10123-misb-afa-85-graded/1001153095

:shock:

Oh yes let's all pay £700 to display a huge acrylic case with a cardboard box inside. :roll:

The whole point of Lego is to build the set, display it and enjoy it - well that's what I do with the few Star Wars Lego bits I have or am I missing the point :?

 

[_Lee_]

Buy a toy for £7.99 at Toysrus

Send it to AFA/UKG and pay them to encase it in an empty Ferrero Rocche box

Pay them £65.89( :lol: Approx-price differs for AFA/UKG) for doing it

And finally,you guessed it-someone has told you officially your toy is worth more than 2,000,000,000 other examples of it.

OR

Buy a vintage Klattuu on Ebay for £20

Send it to AFA/UKG and pay them to encase it in a vintage Ferrero Rocche box

Pay them £70.89(approx price :lol: ) for doing it

And finally you get to lose money when you sell it for less than the original price plus the AFA cost.

So the answer is-dont be a tit,and grade stuff yourself-oh,and buy Galactic Womble cases if thats your obsession!

 

[weasel]

Asking a silly price is not necessarily the same as GETTING a silly price.

 

[aussiejames]

Asking a silly price is not necessarily the same as GETTING a silly price.

but it's still silly

 

[weasel]

Tis true! :lol: