Waiting for the appraised price has a carrying cost

The net benefit of delaying a sale is the additional disposal proceeds after the costs and consequences of waiting. A higher eventual sale price does not establish a positive net benefit.

The comparison has two separate inputs. The owner needs a defensible assumption about what waiting changes in the sale outcome and an account of the costs that continue during the delay. An appraisal supplies neither a guaranteed future buyer nor a free marketing period.

Fair market value assumes a type of transaction

The US federal tax definition of fair market value assumes a willing buyer and seller, neither under compulsion, with reasonable knowledge of the relevant facts. It defines the circumstances underlying the valuation.

A sale forced by distress or a binding deadline differs from that assumed transaction. The definition does not specify how large the price difference will be, or establish that waiting until a particular date will produce the appraised amount. A deadline also does not, by itself, prove that every seller is under compulsion.

Waiting changes the ownership period

Insurance, standing property expenses, storage, and other continuing commitments can extend with the sale period. The relevant costs are those added by waiting. Acquisition costs already incurred do not become new costs of delaying the decision.

Take net proceeds of 95 available now and conditional net proceeds of 100 after six months. At incremental carrying costs of 1 per month, waiting leaves 94 after those costs. The later sale price is higher while the resulting amount is lower.

This comparison assumes the stated later outcome occurs and treats both sale figures as net of disposal charges. It excludes investment returns on earlier cash, changes in currency value, and other timing effects. If the later outcome is uncertain, 100 remains a scenario rather than an assured receipt.

Comparable proceeds require comparable definitions

An auction hammer price and a buyer invoice are not seller proceeds. Premium schedules add charges to the buyer’s side, while the seller’s own terms determine deductions from the seller’s side. Comparing immediate net proceeds with a future headline auction result mixes accounting bases before carrying cost is even considered.

The decision therefore depends on the incremental sale benefit, the incremental holding cost, and the uncertainty of the later transaction. Lower liquidity in a collecting category makes the timing question relevant; it does not supply a standard waiting period or a universal discount for selling sooner.