What impact does a net grade have on value?

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Hi all, I recently joined this site and have been collecting coins and bank notes on and off for a number of years.

My question is about net graded notes and the impact to their value.  I know that the pat answer of it's worth what someone is willing to pay for it is true, but I'm looking for opinions on what does that really mean.  In your experience do net grades get X percentage less than a non net grades?

The note in question is a 1935 $20 small seal note that has been graded as VF20 Net (see attached images).
The white horizontal lines are a reflection from the picture taking, not on the note or holder.

I'm looking forward to hearing what the forum has to say.

I do not think that you can accurately say that a NET graded note will be a certain or specific percentage less than one that is not since there are other considerations that must be looked at like the rarity of the note as well as what gave the note the net grade in the first place..
Personally I won't touch a NET graded note, but I'm sure there are others that will.
I find that too many things make the note unappealing to the eye no matter how scarce IMO
I'm sure others will disagree with me

When I started collecting I focussed primarily on getting any note I needed to fill a niche.  My focus on what I wished to acquire was pretty vague (to be honest).  I believe that in this case: a "net" graded note would be no big deal (& would have satisfied my goal). You really have to ask yourself what is important in your collection?

I think you really have to ask yourself what it is you want to get out of the hobby (to fill a collection or to get the best possible notes for a future return: if you or your descendants decide to sell).  About 3-5 years ago my focus changed and I realized that I really wanted the highest graded note I could afford and changed my emphasis on only BOC notes up to $20 denomination.   My collection really lacked focus and I really wanted to change that since it was becoming an expensive hobby (that was getting a little out of hand- to be honest!)  You also have to decide whether your collection is going to consist of 3rd party graded notes or whether your satisfied with grading them yourself.

So the bottom line: Ask yourself what kind of collection do you wish to aquire?  if you want your collection to be a "Show-stopper" of "trophy notes" take a pass on the Net graded notes and go for only genuine (EPQ) or ("Original") designated notes.  Such a venture could be pretty costly so it may do you well to focus on a select number of series (& denominations).   That's what I've done & I've realized it will take me a while to get what I want (& I may not get every note I want).  There are compromises with this resolution.

If those qualifications on 3rd party graded notes mean little to you: get the "net" graded notes b/c it really means little to you (right?) This won't break your bank but you can be happy to know you can easily afford most of the BOC issued series notes.

 

My question is about net graded notes and the impact to their value.

Yes- the "net" grade will affect value but I honestly cannot tell you how much.  As "Friedsquid" rightly pointed out: it depends (how scarce/& many factors).  "Eye appeal" is a factor which I always take into account (how nice does the note show).

Friedsquid also eludes to the market in which a "net" graded note will appeal to: i.e. we believe that significantly less # of collectors will be in search of a note with "net" designation than the other designations.  Those things you may wish to consider (or that a "raw" ungraded note will do). 

(hope that helps)

Thanks for the replies and the thoughts on this subject. 

I think I also need to focus my collecting so that I actually enjoy the items I have more.  Volume of items just means more stuff in the way as opposed to the hunt of finding what I really want to collect.  That will be the toughest thing to do though, figure out what I really want to collect.  I do like the suggestions of eye appeal and best condition and having lesser items as "placeholders" until I can afford/find the item I really want.

Thanks again.

When I started collecting, I was told to buy the best you can afford.
 This hobby does cost a lot of money if you are going to buy the best all the time, that being said, the only time I would buy a net graded note is if there are less than 10 population. When being so few notes available you are not left with to many options, an example of this for BOC would be a 1954 E/R test note as there are few known to this day.

 You did get it right though, as you have to make a decision on price you would pay for a net graded note. Eye appeal, missing pieces, repairs, tears all are reasons to lower the amount you would be willing to pay for a note. If you don't get it there will usually be another one come up. If you are unsure whether the note you are going after is rare or common, research the internet for that series note through auction sites and see what has been active with them.