Appraisals & NADA Price Guide - Valid for Asking Price?

[sdgrant]

In the last two weeks, I've gone to see two excellent cars that I've always wanted to see. Last weeks was the '66 Galaxie 7 Litre convertible, and last Sunday (in Johnpro's memory) I went to see & drive a nice driver '65 Mustang GT convertible. Both owners cited NADA price guide (Galaxie) and appraisals (Mustang) to firmly insist on over-inflated prices. Both were insisting on $30K+, and recent market conditions are more like high teens for the Galaxie, maybe low $20s for the Mustang.

Are these 3rd party price indicators a realistic indicator of current market values? I always thought the NADA guides were way off, and appraisals were for insurance purposes but not valid as a selling point.

 

[sigtauenus]

First off, please don't take any part of my post as arrogance, this is my observations based on my experience.

NADA is based off of actual sales. The insurance companies aren't in business to pay you more for your car than it is worth in any given market condition. If you get an actual appraisal by somebody qualified to do so, that should be a fair market price.

Everybody wants to think they have something of value. Somebody who goes online to the NADA and selects their car as "Excellent" even though it should be "Average" or even "Fair" is either delusional or deliberately decieving potential buyers. My opinion is that a lot of classified ads have cars that are indeed overvalued, but that's because the are using the wrong condition in the NADA guide. If they actually used "Fair" or "Average" condition, you'd see more accurate prices out there.

I had my fastback appraised in April and it came in at $38k. There was no chrome on it and no interior, and the guy who appraised it said to bring it back to him when it was done and it would likely appraise at $45-50k. I had my car on a rotisserie, there is no rust in the car, everything is new, paint is awesome, etc. When you look in the NADA guide for the value on my car, it meets their definition for "Excellent" condition.

So, yes, I do think the NADA guide and an actual appraisal are valid for an asking price. That said, how old is the appraisal? 4 years old from when the market peaked or 2 months ago? My appraisal reflects current condition, and as soon as I start driving the car, the value will go down as I tear it up.

What NADA condition was used? If they used the "Excellent" or "Average" condition when the car needs some work and is only in "Fair" condition by NADA definition, then that is a factor too.