Appraisal value good or bad?

[smelvinwrong]

I bought my 0.95 loose diamond (VS2, I color, med fluro) for 3850 and got it appraised over the weekend. He was independent, based in LA, got him off the appraisal list here on PC. Anyways, he was saying that he would write the appraisal value for $4k as the insurance company will use the lowest retail value in their insurance calculation and based on these charts of the 4C's and ratio figures and the fact that it has medium blue fluro knocks the price down a bit by X percent.. giving me a total of 4k. Now it's just slightly more than what I paid for it, but in the appraisal world, is it better to have it appraised for the same amount I paid for it or double/triple the amount etc??

 

[MollyMalone]

This isn't a new article, but still very worthwhile imo; scroll about 2/3 of the way down the page for an explanation as to why you don't want to pay the higher premiums for an "inflated" policy that the insurance company will not pay out on:
http://www.palagems.com/choosing_an_appraiser.htm

Kudos for seeking out the services of a reputable, independent appraiser!

 

[dollyanjuli]

Did you go to Patrick Davis? This sounds like him!

Either way- those double/triple value appraisals always make me think of ebay hucksters. "Here is an amazing deal on a ring that appraised for $25000, only $3999!" or those "jewelry exchange" ads. Much better to have a realistic appraisal, especially if it's for insurance. I know someone who lost her ring and had an over inflated appraisal- insurance only gave her about half of it (aka pretty close to the real value). If you are getting Jeweler's Mutual in the fine print it says they have the right to re-evaluate, so keep that in mind.

However, If you are trying to get a stone appraised for resale purposes even good appraisers will be a bit more lax ...at least from what I have seen/ heard.

 

[diamondseeker2006]

Sounds like you found a great appraiser! You do not want to pay inflated insurance premiums 3x of the stone's true value, because the insurance is only going to pay to replace the true value of the stone. Your appraisal is perfect.

 

[smelvinwrong]

This isn't a new article, but still very worthwhile imo; scroll about 2/3 of the way down the page for an explanation as to why you don't want to pay the higher premiums for an "inflated" policy that the insurance company will not pay out on:
http://www.palagems.com/choosing_an_appraiser.htm

Kudos for seeking out the services of a reputable, independent appraiser!

Thanks for the link! I haven't had a chance to read it yet, but I will. It's good to know and confirm that the appraisal value is where it should be at.

 

[smelvinwrong]

Did you go to Patrick Davis? This sounds like him!

Either way- those double/triple value appraisals always make me think of ebay hucksters. "Here is an amazing deal on a ring that appraised for $25000, only $3999!" or those "jewelry exchange" ads. Much better to have a realistic appraisal, especially if it's for insurance. I know someone who lost her ring and had an over inflated appraisal- insurance only gave her about half of it (aka pretty close to the real value). If you are getting Jeweler's Mutual in the fine print it says they have the right to re-evaluate, so keep that in mind.

However, If you are trying to get a stone appraised for resale purposes even good appraisers will be a bit more lax ...at least from what I have seen/ heard.

haha yeah I went to Patrick Davis. Pretty interesting you were already able to tell by that brief description lol. I had heard that an over priced appraisal isn't really that beneficial, it just increases the cost of your insurance. I don't plan on reselling, hoping to keep this one for a looong time.

Sounds like you found a great appraiser! You do not want to pay inflated insurance premiums 3x of the stone's true value, because the insurance is only going to pay to replace the true value of the stone. Your appraisal is perfect.

Thank you! Good to know, it's just when you hear of other people saying, "I got mine appraised for double value!" I feel like something must be up because it doesn't really truly happen.

 

[WinkHPD]

I would want a little bit of cushion in that appraisal, just a couple of hundred dollars to cover price creep over the next couple of years. You will also want to mark in YOUR calendar to have the appraisal updated every couple of years, as nothing is worse than loosing an item that was properly insured when you bought it and now it is worth twice what you insured it for. (I have had this happen with clients who "depended" on their insurance company to tell them that they needed to update the appraisal. Usually, after ten or fifteen years that appraisal is dead on arrival at the adjuster's table.)

I know that real appraisers will say that I am not correct, that the appraisal is a snapshot at the time it is made, but I worry about the practicality of telling a client that every time the price goes up a dime that he needs to get a new appraisal. I am NOT a real appraiser and write "documents for purpose of Insurance" for my clients and those numbers always contain about a 10% cushion when I write them.

I too wildly disagree with those who write 2X or 3X or more "appraisals" as those are just feel good panaceas for the guppy that paid to much because of the bogus appraisal offered by the vendor.

Wink

 

[yssie]

I would want a little bit of cushion in that appraisal, just a couple of hundred dollars to cover price creep over the next couple of years. You will also want to mark in YOUR calendar to have the appraisal updated every couple of years, as nothing is worse than loosing an item that was properly insured when you bought it and now it is worth twice what you insured it for. (I have had this happen with clients who "depended" on their insurance company to tell them that they needed to update the appraisal. Usually, after ten or fifteen years that appraisal is dead on arrival at the adjuster's table.)

I know that real appraisers will say that I am not correct, that the appraisal is a snapshot at the time it is made, but I worry about the practicality of telling a client that every time the price goes up a dime that he needs to get a new appraisal. I am NOT a real appraiser and write "documents for purpose of Insurance" for my clients and those numbers always contain about a 10% cushion when I write them.

I too wildly disagree with those who write 2X or 3X or more "appraisals" as those are just feel good panaceas for the guppy that paid to much because of the bogus appraisal offered by the vendor.

Wink

You do your clients a big favour, Wink. Good appraisals are expensive. A cushion isn't a nice-to-have, IMO, it's a necessity - dropping $250 on an appraisal of a piece every year will generally cost far more than inflating the value say 25% and paying the decreasingly-inflated rate for 3-5 years...

 

[WinkHPD]

Thank you for your kind comment.

It is nice to see you posting so much more frequently these past few days. Welcome back.

(Or were you just hanging out on the Colored Stones portion of the forum, where I seldom visit?)

Wink

 

[two_little_birds]

I would want a little bit of cushion in that appraisal, just a couple of hundred dollars to cover price creep over the next couple of years. You will also want to mark in YOUR calendar to have the appraisal updated every couple of years, as nothing is worse than loosing an item that was properly insured when you bought it and now it is worth twice what you insured it for. (I have had this happen with clients who "depended" on their insurance company to tell them that they needed to update the appraisal. Usually, after ten or fifteen years that appraisal is dead on arrival at the adjuster's table.)

I know that real appraisers will say that I am not correct, that the appraisal is a snapshot at the time it is made, but I worry about the practicality of telling a client that every time the price goes up a dime that he needs to get a new appraisal. I am NOT a real appraiser and write "documents for purpose of Insurance" for my clients and those numbers always contain about a 10% cushion when I write them.

I too wildly disagree with those who write 2X or 3X or more "appraisals" as those are just feel good panaceas for the guppy that paid to much because of the bogus appraisal offered by the vendor.

Wink

You do your clients a big favour, Wink. Good appraisals are expensive. A cushion isn't a nice-to-have, IMO, it's a necessity - dropping $250 on an appraisal of a piece every year will generally cost far more than inflating the value say 25% and paying the decreasingly-inflated rate for 3-5 years...

+1. I wish there were more options for good appraisers in Canada.

 

[yssie]

Thank you for your kind comment.

It is nice to see you posting so much more frequently these past few days. Welcome back.

(Or were you just hanging out on the Colored Stones portion of the forum, where I seldom visit?)

Wink

Thank you, Wink.
I'm afraid I went MIA! I haven't been on PS in several months - it's nice to be back in the community, and I really appreciate the welcome

I am actually in the process of composing an email to you. I should warn you that it's long and rambling, and probably merits a couple of disclaimers in the heading, LOL.

Have a wonderful Thanksgiving Wink!

 

[WinkHPD]

And you also!

Wink

 

[Mhepburn20]

Just bumping this old thread as I went to Patrick Davis today too (mostly on the recommendation on PS from a few about him and a follow up to my Brick and Mortar LA search thread). I brought my now fiance with me and even though I had talked to her about ideal cut and the pavilion and crown angles he (according to her) made it all so much clearer and even though she already 100000% loved her diamond - she loves it even more after our appraisal. The Appraisal was exactly as smelvin wrote -he managed to get (without knowing what I paid) just a bit over what I spent (a healthy cushion over and he even commented that the vendor must not have made money on the setting when I told him how much I paid). It was fun to have him do the appraisal in person and walk you through what he was doing each step of the way.