Appraisal - Inflated Retail Price

[-Genuine-]

Hello All,

Just had a weird experience, and I don't know what to think. Had an appraisal done, but before the gemologist even appraised my piece, they asked what I paid and where I got it from... Isn't that why I am coming to them?

Anyways, foolishly I answered honestly and now wonder if he was then biased on their appraisal.

The retail appraisal price is always inflated, so I am wondering by how much?

In people's experience here, have your appraisal retail price been accurate, double or more than what you paid?

I.e. if you bought a Costco engagement right for $6k, was your appraisal retail price $6k, $9k, 12k or more?

Thanks

 

[diamondyes]

Is it that strange for a gemologist to want to collect as much information as possible before chiming in with their opinion? I’m truly wondering.

 

[-Genuine-]

Is it that strange for a gemologist to want to collect as much information as possible before chiming in with their opinion? I’m truly wondering.

Ok, so I have every right to think this was REALLY weird. I even said "I don't mind telling you, but can I do it after you assessment". However, he kept on bringing it up. So now I don't know if I didn't tell him anything, would the value be the same, or did it change his opinion.

Guess I'm most upset with myself for caving and being honest.

 

[yssie]

I give my appraiser everything I’ve got on a piece.

I’m paying my appraiser to document condition and create a valuation such that I can replace with like kind and quality one day in future if needed.

I’m not paying my appraiser to play guess-the-deets, and I’m not evaluating my appraiser based on his or her success at guess-the-deets games. Stones are graded loose, perfectly clean, and under very specific lighting environments, and an appraiser doesn’t have the time or resources to replicate all three of those prerequisite evaluation conditions.

Which makes withholding information a waste of everyone’s time and a waste of your money.

 

[diamondyes]

Ok, so I have every right to think this was REALLY weird. I even said "I don't mind telling you, but can I do it after you assessment". However, he kept on bringing it up. So now I don't know if I didn't tell him anything, would the value be the same, or did it change his opinion.

Guess I'm most upset with myself for caving and being honest.

Definitely you can feel however you feel! But I wonder if you need to find an appraiser that you feel a greater sense of trust with?

 

[-Genuine-]

At this point, it is what it is. I spent what I spent and got an appraisal.

I just think it was weird that I am paying for a professionals opinion, someone who went to school to learn the value something should be worth, yet have to tell them what I paid. That defeats the purpose does it not? I could just use the receipt for insurance, no?

If a ring was say a family heirloom, and bought in 1910 for $100, why would it matter "what was paid". I'd like to know that it's worth today. Prices are always fluctuating.

 

[kgizo]

I’ve done it both ways. The value range can be quite large so it doesn’t surprise me that the appraiser tried to have the appraisal amount align with what you paid. Some people are more wholesale shoppers and others high retail. If you tend to buy closer to wholesale the appraiser will likely put the value on the low end so that you aren’t “overpaying” for insurance. On the flip side, if you prefer a fancy retail shopping experience then the value will be on the high end so that you aren’t “underinsured” and can’t get a similar replacement from the same place you purchased it from.

 

[-Genuine-]

Also, I apologize @diamondyes, as I completely read your post incorrectly. On my phone and on the bus and I read your comment as "it is weird" and not "is it weird".

Hence why I agreed with you. Sorry if it sounded like I was being defensive.

 

[yssie]

yet have to tell them what I paid. That defeats the purpose does it not? I could just use the receipt for insurance, no?

If a ring was say a family heirloom, and bought in 1910 for $100, why would it matter "what was paid". I'd like to know that it's worth today. Prices are always fluctuating.

If the situation was indeed that your ancestor purchased the ring for $100 in 1910, then yes, it’s irrelevant.

If the situation is that you purchased a preloved piece made in 1910 last month for $2100 it’s different.

A good appraiser can tell you many things about a piece - era, materials, quality of make, current condition, and yes, current value. But no appraiser has Current Values Of All Jewellery Things memorized - they’ve got to search for information about either wholesale or recent retail on similar items. Often, as @kgizo explained, there is a surprisingly large range for reasonable “value”, depending on source, timing, and buyer. Just asking you shortcuts a lot of needless busywork

 

[-Genuine-]

If the situation was indeed that your ancestor purchased the ring for $100 in 1910, then yes, it’s irrelevant.

If the situation is that you purchased a preloved piece made in 1910 last month for $2100 it’s different.

A good appraiser can tell you many things about a piece - era, materials, quality of make, current condition, and yes, current value. But no appraiser has Current Values Of All Jewellery Things memorized - they’ve got to search for information about either wholesale or recent retail on similar items. Often, as @kgizo explained, there is a surprisingly large range for reasonable “value”, depending on source, timing, and buyer. Just asking you shortcuts a lot of needless busywork

Appreciate your response. And I guess that makes sense.

I also have nothing to compare this experience too, as this is my first time ever using an appraiser. Maybe I just thought the experience would be different, and I expected the retail value to be more "inflated" than what I got reading past threads on people commenting on insurance.

Also, my insurance also only covers a percentage of what the retail price is. For example, if the ring is worth $6k, they would only cover 40% or $2.4k. So having a fairly accurate appraisal also doesn't help. Again, that's not his fault.

 

[-Genuine-]

I guess that is why I started this thread, to ask the question if other users had appraisal done which were in line with what they actually paid, or if they were "inflated" and by roughly what amount.

New to all this, and really do apologize if my tone was ever perceived as hostile or angry. Completely not how it was meant. Also misreading a statement didn't help.

So thank you all.

 

[diamondyes]

I guess that is why I started this thread, to ask the question if other users had appraisal done which were in line with what they actually paid, or if they were "inflated" and by roughly what amount.

New to all this, and really do apologize if my tone was ever perceived as hostile or angry. Completely not how it was meant. Also misreading a statement didn't help.

So thank you all.

This stuff can bring up so many emotions! Glad you posted here to get some more ideas about how it all can factor in

Also glad you misread my comment because I definitely didn’t seek to offend and like you, want only to learn.

 

[Bron357]

There are different types of appraisals.
The appraisal for insurance purposes is to enable a retail replacement given taxes, commissions etc and it will be much higher than an appraisal for a deceased estate valuation (assumed immediate “Fire sale” value).
Its worth (ha ha) noting that for insurance purposes your premium will be based on the appraisal value, so while people feel “special” having a “high“ valuation it just means more yearly insurance premium.
I worked many years in General insurance.
Ive seen some absolutely ludicrous valuations, I was even recently provided with one for a ring I own.
I know, realistically, how much this ring is worth to sell, by me in a preloved environment within a reasonable time frame and what I could expect at say, unreserved auction after all fees are included.
The ring has a written appraisal valuation of $17,000
I would hope to get around $5,000 if I wait for a buyer who really loves it to come along however if I wanted money by next week I’d probably end up with $2,000 / $2,500 (after auction fees) if I sold it through no reserve auction.
So I can feel smug about my $17K ring (woo Hoo me) or face the preloved Marketplace as a private seller for a realistic $5,000 or feel absolutely gutted if I end up with $2,000 from an auction sale.

 

[LilAlex]

^ There is also "fair market value" which is closer to what you could buy a similar piece for on the "vintage" market. This is established by looking at comparables and someone needs to know what they are doing (not "one jade bangle, green").

And for a loved one's estate, there is appraisal for estate valuation (will you owe state estate/inheritance tax or -- hooray for you (!) -- federal estate tax). For estate, it can also be for "equitable distribution" so one sib doesn't take all the diamonds while the other gets all the moissanites, etc.

I do not want inflated valuations for my own things. I want a hyper-accurate description (which a local jeweler/gemologist will do) and an appropriate valuation. If you are paying 1-3% annually to schedule something on your insurance, that really adds up over a lifetime.

The appraiser should ask you the purpose of the appraisal at the outset. Of course you are under no obligation to provide the correct reason, AFAIK.