Appraisal questions

[soxfan]

I have searched around and see that there are some recommended appraisers here on PS. I have a couple of questions. What is the difference between one of these independent appraisers and an appraiser at a jewelry store if they are a certified GIA appraiser and gemologist?

You always want to get the appraisal done by someone other than who you bought the ring or stone from, correct?

And is it common for the appraisal to be more or less than you paid?

Thanks for all your help!

 

[denverappraiser]

I'll start at the top. The list of appraisers under the resources tab is an advertisement. An appraiser who wants to be listed fills out a form and submits it to the Admin. There's a few requirements, like they can't be in the business of selling jewelry and the admin goes through a brief vetting process to see if they seem like a legitimate and reputable business. That's it. There's listed. It's free and it's a great ad by the way. Any professional appraisers out there who aren't listed should really consider it.

GIA offers a diploma called 'Graduate Gemologist'. Most of us have one. It's a program to teach diamond grading, gemstone ID and similar gemological sorts of skills. It's not an appraisal credential. Actually, the GIA-GG program doesn't even include a single class in appraising. The popular appraisal credentials come from ASA, AGS, NAJA and ISA, all of which require a GG as a prerequisite by the way. A significant percentage of people calling themselves appraisers have no training at all. This doesn't make them bad but it's definitely a red flag. GIA does not 'certify' appraisers.

The vast majority of appraisers are working out of, working for, or even own jewelry stores and there's nothing fundamentally wrong with this. It's important to understand your objectives in seeking out the appraisal and there are a few specific circumstances where the jewelry store represents a significant conflict of interest. If you're looking for a second opinion, for example, it obviously needs to come from someone other than who supplied the first.

Recommendations of appraisers here come from a couple of sources. Folks like me, Dave Atlas and Jeff Averbook participate regularly in the forum and some folks like to give us business for that reason (thanks everybody). You'll find forum discussions where people talk about their experiences with a particular appraiser, and you'll find the list mentioned above. Search for the name of an appraiser you're considering and see what previous clients have had to say. Each of these has it's merits but none of these would really be described as an endorsement by Pricescope.

So what to look for? My advice is to start by limiting it to people who call themselves professional appraisers, rather than salespeople who are doing it as a sideline. Next, look at the credentials, and again a GIA-GG is NOT an appraisal credential any more than a high school diploma although every competent appraiser I know has both (or an equivalent from one of the several fine schools outside of the US). If you're appraising a new purchase and part of your objective is to confirm or refute things the seller told you, eliminate from consideration everyone involved in the transaction, and this includes competitors who MIGHT be getting the deal if the appraisal uncovers something bad. That's where the whole independence thing usually comes in. “That was too expensive. You should send it back and buy one from me.” isn't an appraisal, it's an advertisement. On the other hand, if you're just looking to meet the minimum insurance company requirements for documentation, the manufacturer through the selling jeweler actually knows more about the piece than anyone else. Many will give you paperwork for free and although I bristle at calling these appraisals, they often are sufficient to make the insurer happy.

 

[nowicanseethemoon]

Wow Neil! Great information. Thank you for all of that. I'm only a couple of hours from Denver, so next time I need an appraisal, you're first on my list.

 

[Karl_K]

As our good friend Rockdoc always used to say "appraise the appraiser!"
Here is a good reference article: https://www.pricescope.com/journal/%E2%80%9Cappraise_appraiser%E2%80%9D_help_consumers

 

[soxfan]

I'll start at the top. The list of appraisers under the resources tab is an advertisement. An appraiser who wants to be listed fills out a form and submits it to the Admin. There's a few requirements, like they can't be in the business of selling jewelry and the admin goes through a brief vetting process to see if they seem like a legitimate and reputable business. That's it. There's listed. It's free and it's a great ad by the way. Any professional appraisers out there who aren't listed should really consider it.

GIA offers a diploma called 'Graduate Gemologist'. Most of us have one. It's a program to teach diamond grading, gemstone ID and similar gemological sorts of skills. It's not an appraisal credential. Actually, the GIA-GG program doesn't even include a single class in appraising. The popular appraisal credentials come from ASA, AGS, NAJA and ISA, all of which require a GG as a prerequisite by the way. A significant percentage of people calling themselves appraisers have no training at all. This doesn't make them bad but it's definitely a red flag. GIA does not 'certify' appraisers.

The vast majority of appraisers are working out of, working for, or even own jewelry stores and there's nothing fundamentally wrong with this. It's important to understand your objectives in seeking out the appraisal and there are a few specific circumstances where the jewelry store represents a significant conflict of interest. If you're looking for a second opinion, for example, it obviously needs to come from someone other than who supplied the first.

Recommendations of appraisers here come from a couple of sources. Folks like me, Dave Atlas and Jeff Averbook participate regularly in the forum and some folks like to give us business for that reason (thanks everybody). You'll find forum discussions where people talk about their experiences with a particular appraiser, and you'll find the list mentioned above. Search for the name of an appraiser you're considering and see what previous clients have had to say. Each of these has it's merits but none of these would really be described as an endorsement by Pricescope.

So what to look for? My advice is to start by limiting it to people who call themselves professional appraisers, rather than salespeople who are doing it as a sideline. Next, look at the credentials, and again a GIA-GG is NOT an appraisal credential any more than a high school diploma although every competent appraiser I know has both (or an equivalent from one of the several fine schools outside of the US). If you're appraising a new purchase and part of your objective is to confirm or refute things the seller told you, eliminate from consideration everyone involved in the transaction, and this includes competitors who MIGHT be getting the deal if the appraisal uncovers something bad. That's where the whole independence thing usually comes in. “That was too expensive. You should send it back and buy one from me.” isn't an appraisal, it's an advertisement. On the other hand, if you're just looking to meet the minimum insurance company requirements for documentation, the manufacturer through the selling jeweler actually knows more about the piece than anyone else. Many will give you paperwork for free and although I bristle at calling these appraisals, they often are sufficient to make the insurer happy.

Thank you!! You, specifically, were recommended! I was considering just having the ring sent to you AFTER setting to get the appraisal out of the way....

I am insuring the diamond through Jeweler's mutual before it heads to California for the setting process. Is it wise to just KEEP the insurance for the cost of diamond plus setting or go with the APPRAISED value after appraisal?

 

[soxfan]

As our good friend Rockdoc always used to say "appraise the appraiser!"
Here is a good reference article: https://www.pricescope.com/journal/%E2%80%9Cappraise_appraiser%E2%80%9D_help_consumers

I just read this. It's SO interesting. I wish I could be there for the appraisal!!!!!!!!!

 

[Jcm412]

What is a ballpark price to get an independent appraisal done?

 

[SB621]

I typically insure my items for what I actually paid for them. However, if I know I got a great deal (meaning if I lost the item or it was stolen I could never ever replace it at that price again), then i would insure at the replacement value. This is still usually different then the appraisal value. I think Appraisals are usually inflated so why pay more preimum for something that is not worth it.

 

[soxfan]

What is a ballpark price to get an independent appraisal done?

I was quoted $125 at a high end jewelry store. I am on the east coast.