Regular Guy
Ideal_Rock
- Joined
- Jul 6, 2004
- Messages
- 5,962
Probably they use a Ouija board.
Actually, I''ve been and continue to be hard on appraisers (witness any number of my previous threads, including this one. The job is a lightning rod for expectations, and with ones shingle out, where you say you "appraise," without being crystal clear, people will come to you with any number of reasonable expectations. Managing those are as much a matter of real live public policy, as they are a matter of earning your living, perhaps.
There''s no question that appraisers can come to serve two purposes (or more), based on the nature of the documentation they present, and the reasonable expectation the appraiser must have with respect to how that document can and likely will be used.
1) They can tell the customer, relatively, using price as a marker, how well they did (and, therefore, can possibly undo)
2) They can provide a document that will allow an insurer to provide insurance, whereby the customer can either get cash, or more frequently, replace the diamond. In the case of getting cash, item #2 is just a numbers game, and the diamond, if that''s brought in, may as well be collateral. But, with respect to serving as a document whereby the customer can get a replacement, the valuation become a significant figure.
Defining markets regarding #1 help the customer tell, relatively, how he''s done, and in this way, the appraisal document can also be seen as an aesthetic piece, communicating something to the buyer as well. Where upscale markets may be described, meanings can be attached to the description, with respect to the expected service that will be received at that sort of institution.
But, with respect to purpose #2, this function is a significant reason many people, the appraiser must acknowledge, is why the appraisal is done. Regardless of the market channel the buyer uses to buy the diamond, the insurer can typically disregard this process, and shop where they choose. Perhaps this is not the case, but in any case, the basis upon which they do make a replacement purchase for the customer will involve a different amount of money than the customer could pay to replace the item themselves. The function for an amount being higher than it needs to be, given the ostensible ability for the appraisal document to stipulate a replacement item of like kind, is in need of explanation.
Although, to avoid confusion, the appraiser may choose to publish on one document one value to represent the replacement cost of the item, in those instances where the buyer does go to a "higher end" market, the rationale used by the appraiser for accepting the higher number should come with an explanation, because it can only benefit the insurer, who is not known to the appraiser, and is not their customer. Then again, producing two documents may be confusing, but no alternative is obvious to me.
Not sure if this makes any sense, but it seems relevant to discussions today.
Regards,
Actually, I''ve been and continue to be hard on appraisers (witness any number of my previous threads, including this one. The job is a lightning rod for expectations, and with ones shingle out, where you say you "appraise," without being crystal clear, people will come to you with any number of reasonable expectations. Managing those are as much a matter of real live public policy, as they are a matter of earning your living, perhaps.
There''s no question that appraisers can come to serve two purposes (or more), based on the nature of the documentation they present, and the reasonable expectation the appraiser must have with respect to how that document can and likely will be used.
1) They can tell the customer, relatively, using price as a marker, how well they did (and, therefore, can possibly undo)
2) They can provide a document that will allow an insurer to provide insurance, whereby the customer can either get cash, or more frequently, replace the diamond. In the case of getting cash, item #2 is just a numbers game, and the diamond, if that''s brought in, may as well be collateral. But, with respect to serving as a document whereby the customer can get a replacement, the valuation become a significant figure.
Defining markets regarding #1 help the customer tell, relatively, how he''s done, and in this way, the appraisal document can also be seen as an aesthetic piece, communicating something to the buyer as well. Where upscale markets may be described, meanings can be attached to the description, with respect to the expected service that will be received at that sort of institution.
But, with respect to purpose #2, this function is a significant reason many people, the appraiser must acknowledge, is why the appraisal is done. Regardless of the market channel the buyer uses to buy the diamond, the insurer can typically disregard this process, and shop where they choose. Perhaps this is not the case, but in any case, the basis upon which they do make a replacement purchase for the customer will involve a different amount of money than the customer could pay to replace the item themselves. The function for an amount being higher than it needs to be, given the ostensible ability for the appraisal document to stipulate a replacement item of like kind, is in need of explanation.
Although, to avoid confusion, the appraiser may choose to publish on one document one value to represent the replacement cost of the item, in those instances where the buyer does go to a "higher end" market, the rationale used by the appraiser for accepting the higher number should come with an explanation, because it can only benefit the insurer, who is not known to the appraiser, and is not their customer. Then again, producing two documents may be confusing, but no alternative is obvious to me.
Not sure if this makes any sense, but it seems relevant to discussions today.
Regards,
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