appraisal value

[gnojham]

when you all get your diamonds appraised, do you typically see appraisal values at about what you paid, or significantly more? or , heaven forbid, less?

 

[NewlyEngaged]

Appraisals should typically be for more than what you paid. Not ostentatiously higher however. I just bought an ering that I picked up yesterday and paid $6,425 and the appraisal says "replacement value: $11,500". Insurance companies typically charge $xx.00 per thousand to cover the itemized piece(s) of jewelry. Mine for instance, is $16.00 per thousand, so it will be $192 for the year (rounding up). However, if the appraisal came in over 15k, it would be $18 per thousand. So it is good to get a "realistic" appraised value as it will save you money in the long run. It doesn't matter 100% anyways, as g-d forbid if I lost the ring and filed a claim, I would NOT get a check for $11,500. Instead, the insurance company would likely send me to two or three stores to get an estimate to replace the ring with like setting and stones, etc. If that came in at 8k (as an average or low of the three estimates), then I would get a check for 8k. Hope that helps.

 

[gnojham]

yeah, it kinda helps, thanks
so the appraisal is worthless kinda? like, im want to be sure i didnt overpay for my diamond, and the appraisal wont really tell me that, right? i mean it will most likely be higher than what i paid,but isnt a good indicator of worth? or am i crazy?

 

[NewlyEngaged]

On 8/3/2003 7:58:30 PM gnojham wrote:

so the appraisal is worthless kinda? like, im want to be sure i didnt overpay for my diamond, and the appraisal wont really tell me that, right? i mean it will most likely be higher than what i paid,but isnt a good indicator of worth? or am i crazy?
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You are not crazy... But, my understanding is that, yeah, kind of. However, there are some very reputable independent appraisers out there that will give you an unbiased valuation for a fee. I'm told $50 to $100 on average. The place you bought from will always give you a number that looks good. An unbiased person will give you realistic numbers to help with the peace of mind thing. But then, if you need to file a claim with the insurance company for a loss, then it all is useless data as it is only a guide to help the actuaries at the insurance companies factor future losses.

 

[gnojham]

yeah, im really just getting the apprasial to settle my head. i hate getting screwed
at least when i buy a car, i know a certain model has x features and i only need to worry about price, i dont have to worry about the angle of the headlights and thickness of the ceiling etc. too many friggin vaariables buying a diamond!!!!

 

[NewlyEngaged]

LMAO!!!!! Outstanding!

Post the "specs" of what you are looking to get on this site. You will get some excellent feedback.

Good luck! I propose a week from today and will likely be posting more and more as I get more and more neurotic.

 

[Richard Sherwood]

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so the appraisal is worthless kinda?
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Heh heh heh... Some of them most certainly are.

But they're not supposed to be. They're supposed to help you in several areas, and tell you several things.

1. If the diamond you purchased is the quality it was represented as.
2. If it matches any cert it came with.
3. Additional information often not provided by the seller, such as:
Crown/Pavilion height-depth/angles
Optical symmetry
Light return performance
4. If you paid a fair price for the stone.
5. Provide you with documentation necessary for insurance.

Some retailers routinely provide appraisals along with rings they sell, at dramatically higher appraisal values. These are what we call "feel good" appraisals, designed to make you feel like you got a great deal.

An independent appraiser will usually provide a more realistic appraisal, although it will probably be at an "average retail replacement value". This will usually be more than what you paid for it if you bought it over the internet, which is often the lowest tier in the different market levels of diamonds sold to the public.

If however, you paid more than "average retail value" it might be that your ring would appraise for less than you paid for it. I've certainly seen that happen enough times, particularly with stones purchased at the higher market levels of mall stores or very high end jewelers with substantial markups.

A professional appraisal by a professional appraiser will be far from worthless. If you consult an appraiser during the purchase process, he can keep you out of trouble, and often save you considerable money. An appraiser is someone you can contract with to advise you on the best diamond to buy, at a reasonable price. That is far from worthless, often saving you hundreds or thousands of dollars for a modest fee.

If you bought a lousy stone at a lousy price, he can tell you that as well, often giving you time to return your diamond for a refund, and invest your money in a better choice.

Remember, what you're looking for is an independent, unbiased, professional Graduate Gemologist appraiser who does not buy or sell, or work for someone who does. That's where you'll get the opinions you'll need in order to make a proper judgement regarding your purchase.