Valuation, in our space, is an inexact science. We work with sellers to come to a fair valuation based on numerous inputs including, but not limited to recent comparable sales, independent appraisals, and expert opinions.
When working with collectors, our goal is to price it fairly so that the drop sells out and is then able to move to secondary trading. We do this by not charging any seller fees, which allows us to price items fairly and in line with the market at the time of drop.
Typically, the seller comes to us with their initial asking price, what % they want to retain, and data to support the price.
We work collaboratively with the seller as our incentives are aligned:
If the asset is priced too high, it won't sell out, and we will have to return the asset back to the seller.
If the asset is priced fairly, it will sell out and will successfully move through close to secondary trading.
We typically value items slightly below the FMV of the asset because it's a win/win/win for everyone:
Sellers still net higher than working with auction houses.
Otis investors get a fair valuation.
Otis brings more assets to market!