appraisal question

[s95]

We got a loose stone appraised by an appraiser that was mentioned on this site here in town and it appraised at $14,420.

When we took it in mounted in the 0.65 ctw setting it appraised for the same amount. How does this work? It seems like it should appraise for the amount of the setting + the diamond.

No matter, because the $14,000 is about what it seems like it would be worth, but I was just curious.

 

[oldminer]

Not making any excuses, but once you get into such a rather high price range there simply may be so much lattitude in mark-up that a round number covers the diamond or the whole item. Appraisers make consumers feel good when mark-ups are more liberal and yet we see mark-ups declining as wholesale costs continue to increase. It is difficult to make any dollar amount a firm value although we try to justify the process and the outcome.

We see diamonds for sale on Pricescope below listed wholesale costs in other dealer publications. We see some very fine, high end, stores charge full retail still. An appraiser can''t change the reality of the confusion all around us. If the diamond was really worth 14,400, then adding on the mounting definitely increased the underlying cost. How much more insurance you actually need, I can''t tell. $14,000 or $14,400 may well be enough or even more than enough.

 

[s95]

Thanks for your input Dave,
We''re fine with the total, we were more curious than anything. I couldn''t believe that a stone that I paid $7500 for would be worth $14,000 anyways, even though I had not reason to doubt the appraiser. I can however, believe that the stone+ring which cost around $9000 could be worth the $14,000.

 

[RockDoc]

Dear S 95

I would say that it depended on the function and purpose of the appraisal, and which market was analyzed. This should be CLEARLY stated on the report.

If it is for the purpose of insuring it, then the appraiser should have checked to see how your insurance company pays or settles its claims.

As Dave points out, there is a vast difference in prices charged and realized, in the entire jewelry market. There are pawn shops ( who generally don''t sell new diamonds ) all the way up to the Fifth Ave, Rodeo Drive type stores, which are most likely get the greatest value. Then there is the internet.

If the appraisal was done to report the range that an item sells for, where the intended purpose is to report what items are being sold for, then you can request that the appraiser analyze all or just one of these market levels.

But if it is for acquiring insurance coverage - then the type of policy you are purchasing should be addressed and defined in the report so that it parallels how a loss is settled.

But, if it is a replacement type policy, and you paid $9000.00 - you probably are just kidding yourself and paying more in insurance premiums to insure it for $ 14,400.00

I too am puzzled as to why the loose stone is worth x and the loose stone along with the ring is still worth the same amount! Did the same appraiser do both valuations? If so, you should ask what the basis was for the reporting of identical amounts when there is obviously a difference.


Rockdoc

 

[Regular Guy]

Rock,

I think that''s a reasonable and functional approach to take to creating an appraisal. My appraiser took a different, and what I had assumed was a more standard approach, who said -- insurance is your thing...we can make recommendations about an insurance company, perhaps, but whatever you do with that does not effect the document created here.

For a client who changes insurance companies a year later, I take it you would you recommend the consideration of a newly created appraisal, and analysis of valuation, based on the factors associated with the change?

P.S. and so s95, although my appraiser came to one dollar amount for the total valuation, in our conversation, with the ring having been mounted when presented (also different than your situation), she certainly did show me componentially how the total was arrived at, inclusive of the setting.

Regards,

 

[s95]

I too am puzzled as to why the loose stone is worth x and the loose stone along with the ring is still worth the same amount! Did the same appraiser do both valuations? If so, you should ask what the basis was for the reporting of identical amounts when there is obviously a difference.


Rockdoc

The same person did both valuations. I was puzzled, too and asked, but someone else came in right at that time and her explanation was hurried--something like, a loose stone is one thing and a set stone is another. I didn''t have time to get into the nitty gritty and we weren''t all that concerned and still aren''t. I guess I just don''t get it.

FYI, I looked at the two papers since I was writing of the top of my head--the stone appraised at $14,240, and then the ring appraised at $14,425, so I guess that the ring did appraise for a higher amount, but the setting is definitely worth more than $200. The valuations were not separated on the final appraisal--we received one for the stone and one after we had the stone mounted (more formal in presentation).

Does this sound right?

 

[RockDoc]

Date: 7/16/2005 12:48:15 AM
Author: s95

I too am puzzled as to why the loose stone is worth x and the loose stone along with the ring is still worth the same amount! Did the same appraiser do both valuations? If so, you should ask what the basis was for the reporting of identical amounts when there is obviously a difference.


Rockdoc

The same person did both valuations. I was puzzled, too and asked, but someone else came in right at that time and her explanation was hurried--something like, a loose stone is one thing and a set stone is another. I didn''t have time to get into the nitty gritty and we weren''t all that concerned and still aren''t. I guess I just don''t get it.

FYI, I looked at the two papers since I was writing of the top of my head--the stone appraised at $14,240, and then the ring appraised at $14,425, so I guess that the ring did appraise for a higher amount, but the setting is definitely worth more than $200. The valuations were not separated on the final appraisal--we received one for the stone and one after we had the stone mounted (more formal in presentation).

Does this sound right?

I doubt that this sounds right. Getting the sluff off when you asked should NOT have happened. she did work for you, and you were charged for it. Any questions that you had now or in the future should be answered in such a way that you understand completely what was done.

If you were with me and that happened, the person that came in could wait a few minutes so that you didn''t leave confused or puzzled. The appraiser charged you for the service, and in my opinion should have clarified the work she did.

Why not scan these two documents and post them here...

Then you can get more relevant opinion.

Rockdpc