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2 very different appraisals

2

2appraiserquotes

Rough_Rock
Joined
Jan 24, 2012
Messages
5
Hello all - I'm a newbie.....

I sat with an appraiser yesterday who I was referred to by an estate administrator. I brought several pieces and thought the appraisal was going well, till we came to one ring in particular - a ruby and diamond wedding ring that has been in a safe deposit for many years. It was appraised yesterday at $5-600 by a private gemologist/appraiser. A year ago, it was appraised at $11,500 by Mayors Jewelers.

Can someone help me understand the huge difference? It makes me question the rest of the pieces i brought to yesterday's appraisal.......

thanks
 
It’s impossible to give a straight answer without knowing both about the piece and both appraisals but there are two major reasons that are common with this along with a few minor ones:

#1 Make sure they agree on WHAT it is. If one is calling it a ruby and one is calling it glass or some similarly important difference, that’s a big deal. Treatments, grading and similar things also come into play. Read the descriptions carefully. If in doubt, ask. I see that appraisal #2 is fairly recent and you can simply ring them up, point out the difference and ask them to explain.

#2. Definition of ‘value’. Most estates are valued on either 'Fair Market Value' or 'Liquidation Value'. Most jewelry store appraisals are estimating custom retail replacement new. This difference is important and it can be huge. The definition of value being used should be in the body of both of the reports but, again, if you can’t find it, ask.

#3. Inflated ‘insurance’ values and lowball bids. It’s not unusual for appraisers to put high values on things being appraised for insurance because it makes the store look good because the things they’re selling are cheaper and because customers unwisely like it. Similarly, it’s not so unusual for an appraiser to be angling to buy something from an estate settlement and what you’re seeing is an offer to buy. They’re welcome to bid whatever they want, and you can accept or decline it as you wish, but it should be clearly labeled as such and this is NOT an appraisal.

#4 Errors. It’s always possible that one or both appraisers simply made an error. This can range from calculations on weight or grading to typos when they wrote the price. As with the above, ask.
 
I'd love to see a picture of this ring. It is a pretty astounding difference. What metal is it set in?

I almost feel like there might be something a little shady going on. Like maybe the guy gives low estimates so someone else can offer you more for the pieces and then you feel like you are getting a great deal. Did you express to either one of them that you might be selling any of the pieces by chance?

I highly recommend sending any pieces that you think are valuable to someone like Neil because we know he is honest and will explain what kind of value he is putting on the pieces.
 
Thank you all for your comments - I think I have unfortunately fallen into Denverappraisal's #3 comment - somewhere between an insurance replacement cost and an estate appraiser's bid to buy my goods.

so next question, since I'm now uncomfortable with both parties - where do i turn for a relevant appraisal?

the estate appraiser, go ahead and laugh - gave me a handwritten paper - perhaps she will send me something more formal in the future or should i request it - she was the lowball. the jewelry store appraiser, gave me photos and also, on some of the pieces suggested I have them appraised at an outside gem institute.

my next step in your opinion should be........
 
1) Talk to the estate administrator about it. If they're a pro, and they're referring someone who isn't, they should know. You're not the first and you're unlikely to be the last with this problem.

2) Make sure that YOU understand what definition of value you want to be applied. Is this an estate valuation? Insurance? Divorce? Charitable contribution? Something else? I presume you aren't the decedent in an estate and it sounds like you were involved in having the things appraised for insurance a year ago. What changed that caused you to want to get an appraisal now? Did either appraiser ask you this question?

3) Shop for an appraiser that you DO trust and who understands your question.

Where are you?
 
I'm in Florida. the changes are where the market is now, and after a period of time, there are pieces i dont want.

in order to sell these pieces - i should ....
 
Some clever guy wrote an article on this topic in the journal section of this site that may be helpful.

https://www.pricescope.com/journal/consumer%E2%80%99s_guide_reselling_diamonds

By the way, rubies are a tough sell these days. I don't know what else is in the collection but I'm not surprised that a dealer bid and an insurance replacement valuation results in very different numbers.
 
Do you have a large quantity of pieces? If not, I would send them to Neil to appraise because he is independent and reliable. He can advise you on pricing for the items you wish to sell. It depends on what the items are that you wish to sell, but some people here post items either on Diamond Bistro (which does not take commissions) or even ebay, and then post on the Pre-Loved forum (under PS Cafe) to get the attention of the jewelry lovers here!
 
damn clever guy......

thanks to all for your responses.
 
Neil, why are rubies a tough sell these days (other than the fact that they are priced sky high)?
 
ops double post
 
diamondseeker2006|1327453744|3110948 said:
Neil, why are rubies a tough sell these days (other than the fact that they are priced sky high)?
Click to expand...
I was wondering the same thing? Are people switching to spinels?
 
diamondseeker2006|1327453744|3110948 said:
Neil, why are rubies a tough sell these days (other than the fact that they are priced sky high)?
Click to expand...
Colored stones, meaning non-diamonds, are tough sales anyway but rubies are especially hard. Inexpensive glass filled rubies have been flooding the market for the last several years and they are a significant fraction of the stones out there. A lot of them look pretty good and there are literally tons of them in the market. There are major shenanigans going on surrounding the whole issue of treatments, what’s ‘real’, etc. and the whole market has changed dramatically. Check out ebay offerings for 'real' rubies. The serious buyers are skittish and they want lab paperwork and credible sellers that include recourse. Nearly everybody thinks they have the crown jewels based on what the seller or some appraiser told them. A few do, but when it comes time to actually make a sale, even those find it terribly frustrating to attract a buyer. Buying is easy, selling is hard.
 
Thank you, Neil! So it is really essential to get an independent appraisal on rubies then. Is that something you can easily determine (re: treatments)?
 
CharmyPoo|1327459392|3111032 said:
Since you in Florida, is Richard Sherwood close by? http://www.sarasotagemlab.com/

He is awesome but I haven't been able to reach him lately.
Click to expand...

He recently posted that he is swamped and not doing much of this kind of appraisal work at this time. Otherwise, I would have also mentioned him.
 
diamondseeker2006|1327460925|3111063 said:
Thank you, Neil! So it is really essential to get an independent appraisal on rubies then. Is that something you can easily determine (re: treatments)?
Click to expand...
Untreated natural rubies can get terribly expensive. Filled rubies are remarkably cheap. The difference is not obvious and there's a wide range in between. I certainly agree that the first step for a seller is to understand what they have and for the majority of folks that involves a capable appraiser. Documentation for sales usually goes beyond that if you're going to try and ask a premium price. GIA, AGL and the EGL among others offer good services for this purpose. The buyer may want an appraisal as well to protect THEIR interests and, as with the sellers, this depends on their own skills. Sometimes it's obvious but no, it's not always easy. Yes, I sometimes use outslde lab services for exactly this purpose.
 
I have been told by an honest appraiser that most appraisers don't even have the right equipment to determine treatment on many gemstones. I suggest sending it to http://www.aglgemlab.com/ but I am not sure if they evaluate set stones. I will just get a lab report and then look online for compareable online prices.
 
diamondseeker2006|1327461029|3111066 said:
CharmyPoo|1327459392|3111032 said:
Since you in Florida, is Richard Sherwood close by? http://www.sarasotagemlab.com/

He is awesome but I haven't been able to reach him lately.
Click to expand...

He recently posted that he is swamped and not doing much of this kind of appraisal work at this time. Otherwise, I would have also mentioned him.
Click to expand...

That's too bad - he is one of my faves. His reports are well written and professional versus some of the typo filled reports I have seen from other appraisers.
 
Thank you Neil and Charmy! The world of colored gems seems to be far more hazardous than diamonds since we can easily find reliably graded diamonds at this point in time.
 
CharmyPoo|1327462712|3111100 said:
diamondseeker2006|1327461029|3111066 said:
CharmyPoo|1327459392|3111032 said:
Since you in Florida, is Richard Sherwood close by? http://www.sarasotagemlab.com/

He is awesome but I haven't been able to reach him lately.
Click to expand...

He recently posted that he is swamped and not doing much of this kind of appraisal work at this time. Otherwise, I would have also mentioned him.
Click to expand...

That's too bad - he is one of my faves. His reports are well written and professional versus some of the typo filled reports I have seen from other appraisers.
Click to expand...

Yes, what is up with this? I paid $125 for about a half hour of time, and got an appraisal that spells "pendant" wrong, among other typos.
 
Do you have any pictures?
 
follow-up......

I was able to get in-touch with the original appraiser - the "high" guy......

yes that was an insurance/replacement appraisal. he remembers the pieces and says in no way is $500 a proper amount for the ring.

He gave me very similar advice to denver's and also gave me several local resources to use to sell the pieces.

thanks again to all for your wise counsel.!
 
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