Appraisal that came with ring accurate?
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Richard Sherwood
Ideal_Rock
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- Sep 25, 2002
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I''ve seen the appraisals supplied with WhiteFlash stones, and they seem accurate and adequate for insurance purposes.
The nice thing about WhiteFlash, and many of the vendors here on PriceScope, is that they supply an abudance of information which, along with the appraisal, provides nice documentation for insurance purposes. (major lab report, OGI/Sarin report, IdealScope photo, Hearts & Arrows photos, appraisal report, etc.).
It''s only if you wanted the stone, this information, and the price doublechecked by an independent appraiser of your choice that you''d bother getting another opinion. Some buyers feel comfortable with the information supplied, others feel comfortable having a third party verify it.
The nice thing about WhiteFlash, and many of the vendors here on PriceScope, is that they supply an abudance of information which, along with the appraisal, provides nice documentation for insurance purposes. (major lab report, OGI/Sarin report, IdealScope photo, Hearts & Arrows photos, appraisal report, etc.).
It''s only if you wanted the stone, this information, and the price doublechecked by an independent appraiser of your choice that you''d bother getting another opinion. Some buyers feel comfortable with the information supplied, others feel comfortable having a third party verify it.
My finance purchased my ering from Whiteflash, which provided us with an independent appraisal, however, since my finance was hesistant on making such a big purchase online (he wanted to get the ring from a maul!...) I had to assure him that the diamond we got online was exactly the diamond we purchased. I took it to another local appraiser and sure enough, it indeed was correct. As a matter of fact, the ring appraised higher than what the one Whiteflash gave us. (I didn''t let the local appraiser know what the first appraisal said).
It''s always good to be sure.
It''s always good to be sure.
Depends on what you mean by accurate.
When anything -- and I mean anything -- is appraised, the appraiser needs to have instructions. Otherwise, the appraisal is not worth the paper it is printed on.
You should ask when you receive any appraisal if it is based on wholesale value, fair market value, retail value (and if retail, B&M or internet?).
If you buy a stone on the internet, it does you no good whatsoever to receive a B&M retail appraisal (which is what you are getting if the number on the appraisal is a lot higher than what you paid).
When anything -- and I mean anything -- is appraised, the appraiser needs to have instructions. Otherwise, the appraisal is not worth the paper it is printed on.
You should ask when you receive any appraisal if it is based on wholesale value, fair market value, retail value (and if retail, B&M or internet?).
If you buy a stone on the internet, it does you no good whatsoever to receive a B&M retail appraisal (which is what you are getting if the number on the appraisal is a lot higher than what you paid).
niceice
Brilliant_Rock
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- Jan 29, 2003
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- 1,792
With the exception of Richard Sherwood who has seen a White Flash appraisal, the rest of us would need to see the detail of the information provided in order to form an opinion. However, most of the vendors here on PS are familiar with the insurance replacment process and know the type of information that is needed in order for an accurate replacement of their diamonds to be obtained for their customers. The appraisal should contain a detailed description of the diamond and the setting if there is one. This should include the carat weight of the diamond, the diameter and depth of the diamond, the clarity, color and degree of fluorescence, the total depth / table diameter / crown angle / pavilion angle / girdle thickness and culet size measurements... The polish and symmetry rating and any characteristics that are unique to the diamond which need to be documented to ensure accurate replacement of the item or the establishment of an accurate cash value for the item in the event that you do not want it replaced and prefer to be cashed out in the event of loss. Some of us feel that the appraisal should declare the actual purchase price of the item and an estimate of the fair market low retail value of the item, this provides the insured with reasonable coverage in the likely event that the value of the diamond increases over time (a year or two, then a new appraisal is required) but discloses the actual purchase price of the item so that the insurance company can not cry fraud based upon pertinent information being withheld at the time the policy was issued based upon the amount stated on the appraisal document. If you''re not sure about the format or detail of the appraisal, we suggest contacting one of the independent appraisers here on PS to arrange for a review of the document.
RE: Fair Market Value....
There is NO FMV for insurance functions, unless it is supported by either statute law or case law in the state where the appraisal is to be used, reconciled with the state or case law in the jurisdiction of the insurance company.
Fair Market Value definitions vary tremendously, based on the venue and reason for which the valuation assignment is based.
If an appraiser is using an FMV approach to the assignment, then the specific definition of how that is to be considered is CRITCALLY important that it be narratively explained in the report.
For instance take the IRS definitions of FMV. They vary in Estate Tax/Donation function and Casualty Loss almost to the extent that they are completely opposite of each other.
Unless the appraiser has complied with the LEGAL definitions of this, FMV SHOULD NOT BE USED. In many cases, appraisers state an FMV when no definition exists for that function.
Instead the terminology of MARKET VALUE should be applied.
There are however some erroneous legal opinions of this, and many of the Court experts don''t understand the differences. In many states there is case and statute law that specifies that Fair Market Value and Market Value are synomous.
But every state has varying FMV definitions based on the function of the assignment! The basis of how FMV is concluded for a theft, is far different than the FMV definition of the function for Equitable Distribution or Divorce.
In fact, considering the definitions of FMV in Maryland and Virginia, some of them are actually opposite of each other, even thought the two states boundry each other.
Where can you find these definitions? Commonly, they are defined in JURY INSTRUCTIONS and in IRS material.
In an elementary explanation, Market Value can apply to varying values ( and should be narratively and thoroughly explained in the assignment) while FMV is very specific in how it is to be arrived at.
For those interested, a quite interesting case, is one here in Florida where the Court ruled that both appraisers were negligent and incorrect in their methodology of valuation. It concerned the value of the Florida East Coast Railroad.
Another interesting case was concerning the theft of items from Sears, as to the FMV of some stolen fishing equipment.
Fascinating reading for those who have a legal interest.
Rockdoc
There is NO FMV for insurance functions, unless it is supported by either statute law or case law in the state where the appraisal is to be used, reconciled with the state or case law in the jurisdiction of the insurance company.
Fair Market Value definitions vary tremendously, based on the venue and reason for which the valuation assignment is based.
If an appraiser is using an FMV approach to the assignment, then the specific definition of how that is to be considered is CRITCALLY important that it be narratively explained in the report.
For instance take the IRS definitions of FMV. They vary in Estate Tax/Donation function and Casualty Loss almost to the extent that they are completely opposite of each other.
Unless the appraiser has complied with the LEGAL definitions of this, FMV SHOULD NOT BE USED. In many cases, appraisers state an FMV when no definition exists for that function.
Instead the terminology of MARKET VALUE should be applied.
There are however some erroneous legal opinions of this, and many of the Court experts don''t understand the differences. In many states there is case and statute law that specifies that Fair Market Value and Market Value are synomous.
But every state has varying FMV definitions based on the function of the assignment! The basis of how FMV is concluded for a theft, is far different than the FMV definition of the function for Equitable Distribution or Divorce.
In fact, considering the definitions of FMV in Maryland and Virginia, some of them are actually opposite of each other, even thought the two states boundry each other.
Where can you find these definitions? Commonly, they are defined in JURY INSTRUCTIONS and in IRS material.
In an elementary explanation, Market Value can apply to varying values ( and should be narratively and thoroughly explained in the assignment) while FMV is very specific in how it is to be arrived at.
For those interested, a quite interesting case, is one here in Florida where the Court ruled that both appraisers were negligent and incorrect in their methodology of valuation. It concerned the value of the Florida East Coast Railroad.
Another interesting case was concerning the theft of items from Sears, as to the FMV of some stolen fishing equipment.
Fascinating reading for those who have a legal interest.
Rockdoc
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