when the seller of an item deals with a pawnbroker they will likely receive offers below the value of the item the pawnbroker bids low because they intend to resell the item for a higher price and turn a profit even if an item is appraised at a higher value a pawnbroker will still look for a way to make a profit 
the tradeoff a seller gets from accepting an offer that is below market value is the immediate cash the sale provides there are times when potential buyers may take advantage of the circumstances that forced a seller into conducting a distress sale the buyer may be aware of the seller s immediate need to complete a transaction and receive payment this could lead to bids that are substantially lower than the value of the property special considerationsif an asset is sold through a distress sale the valuation of the asset is considered artificial because it was not sold under true competitive market conditions in the case of real estate for example the sales price cannot be used as a comparator to establish the asset s true value buying a distressed property means that you stand a good chance of buying it at a price that is below market value however there are drawbacks if the seller was in a hurry to sell it is unlikely that they will have performed any repairs on the house to boost the sales price the new owners may have to spend a substantial amount to bring the property up to the desired state 