Correct way to perform an Apprasial

[Jimbo34]

Just wondered what the person needs to do a correct apprasial? Do we just take the ring in, and let them base everything solely on that? Is there a need to take a AGS report that comes with the diamond? Would they ask to see that? Just don''t see the point of them seeing that to give me the true value of the ring.

Can''t they just measure and test everything by just looking at it and then give us a value of the whole ring?

Jimbo34

 

[denverappraiser]

Jimbo34.

It depends entirely on what you are hoping to learn from your appraisal session.
You might find some useful information in this discussion.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[Jimbo34]

Good Evening Neil,

Basically want to know if it is worth what we paid for it and how much it should be insured for. Cost or value of the Apprasial. Also to make sure it is aleast what is stated on the AGS Report, Color, Clarity, Cut and Carat.

We bought the setting and the Diamond seperate, the setting has 12 diamonds on it and one Center Diamond makes 13 total.

Jimbo34

 

[denverappraiser]

Jimbo,

The series of questions in a new purchase appraisal session normally includes the following:

1) Is this a diamond?
2) What is it’s estimated weight, clarity, and color?
3) Is it THIS diamond (show the report)?
4) Has it been damaged or altered since the date on the report?
Obviously, these questions can’t be answered without examining both the item and the report. It’s not really necessary to ask all of these but most people who bought an AGS graded stone paid extra to get this particular document and they consider it important. Stones with AGS reports cost more than similar stones without a report or with one issued by another lab. It’s an important value characteristic. Why would you want to withhold it?

To answer your original question, yes, it is possible to do an appraisal without the documentation although the resultant conclusions and report will be less useful for either of your stated purposes. There are other purposes where it may be useful.

To answer your second question, you should insure it for an appropriate amount to properly fund the insurance company should they need to replace the piece with another of like kind and quality in the case of a loss. In your case, like kind would include an AGS grading report. This is the question your appraiser should be answering for your insurance question. It’s probably fairly close to what you paid unless there is something very unusual going on. There are many other variations on ‘What is this worth?’ that will produce vastly different answers and that will not be suitable for your purposes. Most professional appraisers charge by the hour and they will be happy to research and answer whatever market and product variations you want but you can save yourself some money if you’re fairly specific.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[Jimbo34]

Date: 4/14/2005 9:29

8 PM
Author: denverappraiser





Obviously, these questions can’t be answered without examining both the item and the report. It’s not really necessary to ask all of these but most people who bought an AGS graded stone paid extra to get this particular document and they consider it important. Stones with AGS reports cost more than similar stones without a report or with one issued by another lab. It’s an important value characteristic. Why would you want to withhold it?



Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

Thanks for your help, here''s my concerns though.

I don''t question the value of having the certificate as a tool for the appraiser, particularly if the diamond has been set. What threw me is she said the appraisal of a stone is the appraiser''s opinion, and opinions vary...so she would need the certificate to prepare the appraisal report where the color and clarity of the stone is concerned. This made me feel as if the appraisal is of little value, since it will simply repeat the information from the certificate.

Jimbo34

 

[oldminer]

An appraiser should voice their best guesstimate on color and clarity of a mounted diamond BEFORE they review an existing report if youwant them do guesstime first. It is not possible to really be sure about color and clarity on a mounted stone, but it is the perogative of the client on hiow much info to share with their appraiser before the report is finalized.

If the appraiser guesstimates very correctly, one would then assume the appraiser "know''s their stuff". Sometimes we guess perfectly and other times we miss the mark. We can''t help it, but we do what we are asked to do the best as we can do it.

In the end, the appraiser should use a legitimate lab''s grading report to put the value on the diamond. This is the way to corner the insurance company in case of a loss at a future time. You sure don''t want them to have much wiggle room. Having conflicting color and clarity reports won''t add to your security.
YOU need to judge how much trust to place in an appraiser and the value of their opinion. Some appraisers are more qualifed than others. Some appraisers have much more experience than others. Some appraisers are smarter or see better. You can check experience and credentials, but it is guesswork on how good an appraiser actually is.

We have some very good ones participating on Pricescope and that''s a very good clue as to how to pick one to help you. Take a good one over a weak one. The price differential will be quite nominal.

 

[murray93]

When I had my diamond appraised, the appraiser said the "proper" way to do it was without looking at the certificate. He did compare his final results back to the certificate and ended up remeasuring a few things... But since I was there I can validate that he formed his own opinion of the stone first.

 

[denverappraiser]

Date: 4/14/2005 10:27:56 PM
Author: Jimbo34


I don''t question the value of having the certificate as a tool for the appraiser, particularly if the diamond has been set. What threw me is she said the appraisal of a stone is the appraiser''s opinion, and opinions vary...so she would need the certificate to prepare the appraisal report where the color and clarity of the stone is concerned. This made me feel as if the appraisal is of little value, since it will simply repeat the information from the certificate.

Jimbo34

Jimbo34,

This is why I asked you for your purpose first. I ask clients to bring lab reports, warranty cards, store receipts and any other documentation they have along with them to their appraisal session. My usual procedure involves a thorough examination of the stone prior to looking at any of the paperwork and I report my findings immediately to the client. We then look at the report together and I re-examine the stone to confirm that it is indeed describing the same item. If there are any discrepancies in these findings, we will discuss them at that point before we move on to the other attributes of the diamond and/or the ring. At least in my case, this is not an attempt to get out of grading the stones by relying on the lab report. It’s an effort to provide you useful, complete and accurate information. My opinions on the weight, clarity and color of the center stone are not usually the clients primary concern although I personally enjoy this little guessing game. Attributes that are not included on the report, like the cut, are usually of much greater interest.

The wiggle room that Dave refers to is because, in the case of a loss, the insurance company will use the description from this report as a purchase order to make your replacement. The contract with the company usually says that they will replace with ‘like kind and quality’ or words to that effect and the description in the appraisal is where you are defining what that is. If you required a diamond with an AGS report, and your description defines your stone as one accompanied by an AGS report, then it would not be ‘like kind and quality’ to replace it with someone else’s product unless you agree that it’s acceptable. As I’m sure you’ve noticed, a stone with a lab report wherein AGS calls it an F will command a higher price in most marketplaces than that same stone described as an F by some guy in Colorado (even if he’s almost as smart as some guy in Pennsylvania). The lab report is important to both the description and the value for exactly the reasons that led you to buy it in the first place. This also holds true for branding on the diamond, designer on the ring, hearts & arrows effects, and any other value characteristic that you count as important. Doing this skillfully is part of the difference between an appraiser and a gemologist. This is also the reason that a well done appraisal is more useful and servers you better for your insurance needs than a schlock document, even if the schlock one is free (which they often are). The insurance companies will accept almost anything. It’s YOU who should be more selective.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver