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100% Increase on Appraisal for ER? Confused

angel01x83

Rough_Rock
Joined
Jun 3, 2011
Messages
22
Hello!
I'm newly engaged and just got my ring appraised. I about fell over when I saw that the appraisers Estimated Retail Replacement Value was double what he paid for the ring. My Fiance bought a loose diamond and then had a designer custom make the setting. I've heard that appraisals will always be more than what you paid but I didnt expect an almost 100% increase! The appraiser is a senior member of NAJA and has GG (GIA) after her name on the certificate. Is it normal to be this high or did my Fiance just do an exceptional job researching the right designer to make my ring??
 

kenny

Super_Ideal_Rock
Premium
Joined
Apr 30, 2005
Messages
33,444
How long ago was the purchase?
Diamond prices have skyrocketed recently.

Also values are not absolute.
The same diamond will list for many times more in a chic high-end boutique on Fifth Ave. in Manhattan than what a pawn shop in Detroit will offer you for it used.
 

angel01x83

Rough_Rock
Joined
Jun 3, 2011
Messages
22
He started "conversing" with the designer who made the setting back in May about what he wanted and purchased the diamond July 4th weekend.
 

angel01x83

Rough_Rock
Joined
Jun 3, 2011
Messages
22
The Diamond was actually purchased in Manhattan from James Allen. We went to the actual office to see it before purchasing. The woman said it was one of the best diamonds she has seen for the specs and price. I figured they told everyone that. The setting was made by an exceptional desinger my Fiance found online located in Los Angeles.
 

centralsquare

Ideal_Rock
Joined
Jan 18, 2009
Messages
2,216
100% increase is a lot, but the price increase has been steep. Consider yourself lucky you got a good deal!
 

crbl999

Brilliant_Rock
Joined
Jan 21, 2010
Messages
566
Who appraised the ring? Was it an independent appraisal? What market (B&M, online, etc.) was the value based on? You may have received a 'feel good' appraisal rather than an actual replacement value in the market of your choosing. If you have a question concerning the appraisal value I would ask the appraiser how they arrived at the value and why the appraisal is 2x the amount spent.
 

kenny

Super_Ideal_Rock
Premium
Joined
Apr 30, 2005
Messages
33,444
Tell your "appraiser" you will sell it to him/her right now for 25% less than "it is worth" so he/she can turn a 25% profit overnight.. :lol: :lol: :lol:

OH, I'm hurting myself laughing so hard.
 

Dreamer_D

Super_Ideal_Rock
Joined
Dec 16, 2007
Messages
26,136
Get the appraisal redoen to better reflect what you paid. Unless you want the ego boost of thinking you got a deal, all the inflated appraisal means is that you will pay too much insurance for the ring.

JA has fair and competitive prices for online. It can be up to 50% of a B&M retail, so if that is the standard then the appraisal could be accurate.
 

angel01x83

Rough_Rock
Joined
Jun 3, 2011
Messages
22
What is B&M? Sorry I'm not up on the lingo yet.

The appraisal was done at a local jewelry store by their certified appraiser. I thought about taking the ring to another store and getting it appraised but I really hate to spend another $75. Although it may be worth it in the end to avoid a higher insurance premium.
 

tyty333

Super_Ideal_Rock
Premium
Joined
Dec 17, 2008
Messages
27,434
angel01x83|1315927837|3016514 said:
What is B&M? Sorry I'm not up on the lingo yet.

The appraisal was done at a local jewelry store by their certified appraiser. I thought about taking the ring to another store and getting it appraised but I really hate to spend another $75. Although it may be worth it in the end to avoid a higher insurance premium.


Brick and Mortar (store) vs. On-line store

You should be able to take it back to the person you already paid and ask them for a fair replacement value apprasial. Should be
close to current values you can find on-line plus a couple of thousand more or so.
 

ideal5555

Rough_Rock
Joined
May 3, 2008
Messages
46
Interesting topic...

I also got an stone from James Allen recently and same thing happen.

I'm thinking, maybe JA is giving us good deals! :)
 

RobertLejman_ISA_GG

Rough_Rock
Trade
Joined
Sep 10, 2011
Messages
13
Some appraisers use formulas when appraising an item, and don't take into consideration the items deductions from that formula. These could be items like fluorescence, proportions, etc. However, sometimes the seller had the stone in inventory and paid a cheaper price than he would if he had to buy it again at todays prices, and passed along a savings to the end user, which is you. However, if we had more info about the piece, we could you you a better idea if the appraisal is over-inflated.
 

denverappraiser

Ideal_Rock
Trade
Joined
Jul 21, 2004
Messages
9,153
angel01x83|1315512836|3012924 said:
Hello!
I'm newly engaged and just got my ring appraised. I about fell over when I saw that the appraisers Estimated Retail Replacement Value was double what he paid for the ring. My Fiance bought a loose diamond and then had a designer custom make the setting. I've heard that appraisals will always be more than what you paid but I didnt expect an almost 100% increase! The appraiser is a senior member of NAJA and has GG (GIA) after her name on the certificate. Is it normal to be this high or did my Fiance just do an exceptional job researching the right designer to make my ring??
Most insurance type appraisals are estimating what it would cost to replace the item at retail, locally, new, and in a specialty jewelry store without discounting or the need to wait for a sale. Obviously this isn’t the way you bought it so I’m not surprised that there’s a difference. Occasionally there’s also a significant bump because of a hedge for inflation or just because the appraiser wants to make you ‘feel’ good. There’s no way of knowing without seeing both the report and the merchandise. I would start by calling up the appraiser and asking her. It might be as simple as a typo. It’s not really doing you any favors to have it seriously inflated beyond the cost to replace and part of what you’re paying her for is to keep this in balance. On the other hand, JA is a pretty price aggressive outfit and, depending on what you bought, it's not at all out of the question that they're charging half of what it would cost to replace using the above methodology.
 
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