Guide
How to tell if a second-hand listing is under market value
A low price is not the same as a good price. Reselling depends on knowing what an item is really worth before you buy it, and that takes a repeatable method rather than a gut feeling. This guide sets out one.
What does market value mean for a second-hand item?
Market value is what similar items in similar condition actually change hands for, or are typically listed for, at the moment you are looking. It is not what one seller hopes to get, and it is not the original retail price.
It also moves. Condition, whether the item is complete, where it is and how much demand there is right now can all shift it, so a number you noted a few months ago may no longer hold.
Why is a single asking price not enough to judge a deal?
An asking price is one seller's opinion. Sellers overprice, and some listings sit unsold precisely because they are too expensive. If the item you are looking at is cheaper than the four other listings you happened to see, that tells you it is cheaper than four opinions, not that it is cheap.
Prices that buyers have actually paid are stronger evidence than asking prices where you can see them. Some marketplaces let you filter for sold items. Where you cannot, a larger set of comparable asking prices is the next best thing.
How do you find genuinely comparable listings?
Comparable means the same model and specification, in similar condition, with the same things included. A phone with its box and charger is not comparable to one without. A working item is not comparable to one listed for spares or repair.
- Match the exact model, not just the product family.
- Match condition, and whether accessories, packaging or documents are included.
- Leave out listings for parts, repairs, bundles of unrelated items and wanted ads.
- Compare like with like on collection versus delivery where it affects the price.
- Gather several listings rather than one or two, so a single odd price cannot mislead you.
Should you use the average price or the median?
The median is usually the safer choice. It is the middle value once the prices are sorted, so one listing at an absurd price, or one obvious mistake priced far too low, barely moves it. An average is pulled towards the outliers, which is exactly the wrong behaviour when you are trying to find the typical price.
If you have only two or three comparable listings, treat any figure as a rough guide. The fewer the comparisons, the less a single number means.
How far below market does a deal need to be?
That depends on what it costs you to buy, fix and resell the item. A discount that looks large can disappear once you subtract everything between buying and being paid.
A useful check is to estimate what you expect to resell it for, then take away the purchase price, the marketplace's selling fees, postage or delivery, and the cost of any repair or cleaning. What remains is your margin, and it needs to be worth your time and your risk. Fees differ between marketplaces and change over time, so check the current ones for where you plan to sell.
How does Snaffla work out whether a listing is under market?
Snaffla follows the same method automatically. For each listing that matches one of your searches, it compares the asking price with comparable listings from its own data and labels the result Under Market, At Market or Over Market.
When there are not enough comparable listings to be reliable, it labels the listing No Valuation instead of guessing. The listing page shows the comparable prices behind the label so you can check the reasoning.
A valuation is a starting point, not a guarantee. It cannot see the condition of the item in the photos, so read the description and check the photos before you commit.
Let the alerts find them for you
Save a search once and get notified when a matching listing appears, with its price compared against similar ones.