If you are having a financial crisis and decide to take a family heirloom to a local pawn shop to get some needed cash, you may think it is a simple process. However, first you need to do some homework so that you can get a fair deal and get your family heirloom back in the future. Here are some things to know when dealing with a pawn shop.
How Much the Heirloom is Worth
The most important thing you need to know is how much your heirloom is worth monetarily. While the pawn broker’s opinion of value is important, you need to have some idea of what the market value of the heirloom is so that you are not cheated.
How do you find out the value of an heirloom? There are a number of ways you can do this. You can have the heirloom appraised by a professional appraiser, or you can research internet auction sites and retail sites to get some idea of how much you would pay for such an item. You can also field different offers from different pawn shops in the area. Even if you are dealing with a financial emergency, don’t take the first offer you get until you find out if you can get a better one.
What the Interest Rate Will Be
If the pawn broker offers you a reasonable amount of money for your heirloom, you may be happy that you’re getting a good deal. However, you can’t be sure that you’ve got a good deal until you know how much it will cost you to get your heirloom back. Pawn shops allow you to buy back the items you’ve put up as collateral, but the price will typically have a certain amount of interest attached. If you can’t come up with the full price within a certain period of time, they will allow others to buy your family heirloom.
Therefore, it is vital that you consult a number of shops in the area to see who can offer you the lowest interest rate. Make sure you consider the entire cost of doing a transaction with a pawn shop, like Westminster Jewelry And Loan, before handing over your family heirloom.
Use the information laid out in this article to help you make the right decisions when pawning a family heirloom. Be sure to talk to the pawn broker about additional information that will affect your particular transaction, so that you can ensure you’ll be able to get the heirloom back if you want it.