Understanding Price vs. Value in the Real World: A Comprehensive Guide
- Drew McDermott
- Jul 17, 2025
- 5 min read
Updated: Dec 15, 2025
Every week, we hear the same thing from private sellers:
“I paid $1,200 for this, and it’s still in perfect condition. I saw it listed on GunBroker for $2,000. Why are you offering less?”
We understand. Firearms aren’t just objects; they’re investments, heirlooms, and sometimes even symbols of trust. However, when it comes time to actually selling a gun, many sellers confuse what it cost with what it’s worth in today’s market.
This post breaks down the difference between Fair Market Value (FMV) and Marketable Cash Value (MCV). It also explains why you may be offered less than you expect—and why that’s not a scam.
Questions about firearm value often come up during life changes such as retirement, divorce, or estate settlement, when understanding fair market value becomes especially important.
Fair Market Value vs. Marketable Cash Value: A Quick Primer
Before we talk about emotion, let’s talk about math.
At MDRF Enterprises, we calculate Fair Market Value by averaging:
Recent GunBroker.com listings with active bids
Paid for, At Auction, Realized Price sales data
Plus, model-specific market demand and condition
This gives us the price a gun is realistically selling for, not just what someone listed it at.
Most private sellers aren’t using these tools. They base their expectations on:
Their original purchase price (often full retail, new in box)
A few high-priced GunBroker listings (with no bids)
Rumors or outdated appraisals
Let’s break that down.
Common Pricing Myths We Hear
1. “I paid $X, so it’s worth $X.”
Once you buy a gun, especially if it’s new in the box, it immediately becomes used. Like a car driven off the lot, it loses retail value the moment it leaves the case. Even if it’s “barely shot,” it’s still:
Missing warranty protection
Potentially missing original box/papers
No longer legally NIB (New in Box)
Used condition = used value.
2. “It’s listed for $Y on GunBroker.”
There’s a huge difference between:
Asking price
Selling price
We see this all the time: a Colt Python listed at $3,000 but no bids, with 9 re-listings in a row.
GunBroker is like eBay; it reflects what sellers hope to get, not always what they receive. That's why we only consider closed listings with bids in our FMV estimates.
3. “You’re lowballing me.”
No, we’re giving you the Marketable Cash Value: the realistic amount a seller walks away with after fees, delays, and friction.
Platforms like GunBroker or auction houses often charge 10–15% in fees. Factor in the time it takes to photograph, list, answer questions, and ship, and the buyer still wants a deal.
MDRF offers a streamlined alternative: We calculate FMV, subtract 30% to reflect real-world liquidity, and provide a fair, no-hassle cash offer. No auctions. No wait.
And here’s something most sellers don’t realize: as a licensed dealer, we can often purchase *current-production firearms from our wholesalers at 30–40% less than the retail price they originally paid. That’s not a reflection of the gun’s quality; it’s just how margins and manufacturer pricing work in the industry
Infographic: FMV vs. MCV – What’s the Real Difference?
Title: "Understanding Firearm Value: FMV vs. Marketable Cash Value"
This visual lays out:
How FMV is calculated using market data
How MCV reflects what sellers actually receive
Why MDRF applies a consistent, transparent 30% discount (not arbitrary lowballing)
Real examples with typical firearms
At MDRF Enterprises, every certified firearm appraisal for estates in Missouri includes both Fair Market Value and Marketable Cash Value. This gives executors, heirs, and professionals a realistic, defensible view of what a firearm is worth today.
Real-World Example
Let’s say you have a Smith & Wesson 686, lightly used, with a few handling marks.
You paid $950 new at retail.
Current FMV (based on GunBroker + At Auction Service) is $775–$825.
MDRF would offer around $550–$575 in cash, based on MCV.
You skip the 3-week auction wait, the 15% fees, the no-show buyers, and the legal liability.
Learn more about our certified firearm appraisal process and how we determine value accurately on our Appraisals page.
Who This Helps
Heirs who need a quick, fair valuation during probate
Collectors looking to offload duplicates or thin their safes
Executors or liquidators who don’t want to deal with shipping and background checks
"If you’re handling the entire cleanout process, check out our Estate Firearm Checklist."*
"Read more on executor responsibilities for firearms in Missouri."*
We’re not here to haggle; we’re here to provide clarity and help you move forward confidently.
"And if you're not sure about your legal role, see our post on whether executors or liquidators need a license."*
If you’re an estate attorney, fiduciary, or trust officer, explore our dedicated resources for professionals to assist your clients with confidence and compliance.
Understanding the Importance of Accurate Valuation
Accurate valuation is crucial in the firearm market. Knowing the difference between FMV and MCV can save you time and money. It helps you set realistic expectations and avoid disappointment.
The Role of Market Trends
Market trends can significantly impact the value of firearms. Prices fluctuate based on demand, rarity, and condition. Staying informed about these trends can help you make better selling decisions.
The Impact of Condition on Value
The condition of a firearm plays a vital role in its value. A well-maintained gun will fetch a higher price than one that shows signs of wear. Regular cleaning and proper storage can help maintain its condition.
Bottom Line: Don’t Fall for Listing Price Illusions
Gun value isn’t about what you paid or what someone wants on GunBroker. It’s about what someone will actually pay you today, minus all the red tape.
At MDRF Enterprises, we:
Give you both FMV and MCV
Base our numbers on real comps, not guesswork
Work on a flat, transparent margin
Help you comply with state and federal law
No pressure. No surprises. Just clear options from a licensed professional who values your time and your firearm.
Planning to transfer a firearm out of state or through an estate? Be sure to review our blog on shipping a gun if you’re not a licensed dealer to avoid common legal pitfalls.
Want to Know What Yours is Worth?
Visit our FAQ: *Firearms and Unlicensed Persons
For a deeper understanding of how to manage inherited firearms, download our Estate Firearms Guide. It’s designed for heirs, attorneys, and anyone navigating legal firearm transfers.
By:
Drew
Gun Buyer | St. Louis, MO | MDRF Enterprises