Appraisals

[DMcD]

Can someone (an appraiser) give me a quick explanation on how ring appraisals work? I just bought the ring today (i posted images of the setting HERE ) for $13,700 (total for custom setting and diamond) and then he did the appraisal for my insurance I sat there...said it was $31,000.

I understand that the appraisal is going to be for more than I paid, because of inflation and I have to be able to replace it if something were to happen down the road, but seriously...$31K could that be possible?

I''m going to get pictures up soon of the completed ring.

 

[fanboy]

The problem is that the appraisal came from the same source that sold you the ring. There's no way a ~1.5 carat G VS1 princess would cost even nearly that much.

 

[Richard Sherwood]

Date: 8/6/2007 9:47:35 PM
Author:DMcD
Can someone (an appraiser) give me a quick explanation on how ring appraisals work? I just bought the ring today (i posted images of the setting HERE ) for $13,700 (total for custom setting and diamond) and then he did the appraisal for my insurance I sat there...said it was $31,000.

I understand that the appraisal is going to be for more than I paid, because of inflation and I have to be able to replace it if something were to happen down the road, but seriously...$31K could that be possible?

What do you think?

Sounds like a load of horse manure to me.

You better get that thing checked out to make sure they're not lying about anything else.

Absolutely ridiculous.

Nice looking ring though.

 

[denverappraiser]

Talk to your appraiser about their own methodology.

Here’s the concept of how it’s supposed to work.

First the appraiser identifies what it is you have. This includes the details of stones, karatage of the metals, necessary assembly labor, designer provenance etc.

They then identify the appropriate marketplace for valuation. In pre-loss insurance work, this is generally theoretical mid-priced local jeweler selling new merchandise like what’s described. This market selection is an important topic. For starters, it’s fairly likely that it will NOT be the marketplace chosen by the insurance company if a replacement becomes necessary and it’s sometimes a little complicated to figure out what the stores are really charging for their merchandise as opposed to what they write on the price tags.

The appraiser then provides a budget sufficient for the insurance company to make the replacement in a timely manner in the appropriate marketplace. This may be a custom made piece or it may be a stock item available from a manufacturer.

The thought process on all 3 of the above should be thoroughly described in the report.

When the valuation is out of whack with what you know to be reality, I would read the appraisal report looking for the above details. Do they agree about what it is and have they chosen a reasonable marketplace and approach for replacement? Did they even say?

A valuation without explanation is fiction. It's doing yourself a serious disservice to use that as a basis for an insurance contract.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Richard Sherwood]

You''re so much more diplomatic than I, Neil.

 

[DMcD]

I mean, I know its a bunch of bull...and I know what the ring is worth right now (right around what I paid..give or take a little). I''m probably going to get it appraised by a third party, but isnt it better to have this high valued appraisal in case something were to happen?

 

[surfgirl]

The thing is, you DONT really know what the ring is worth right now because you haven''t taken it to an independent appraiser - someone who does not buy/sell jewelry at all. They will have no reason to lie to you. You''ve got to take it to someone like that. Go in with a clean slate to an independent and see what they say. Your ring is nice but you dont even really know if it''s worth what you paid for it. Please, get it appraised at an independent ASAP...The very fact that they jacked the price up that much makes me suspicious, like they''re trying to make you feel like you got a deal when you maybe didn''t...

 

[Richard Sherwood]

The majority of insurance companies have in their fine print the option to replace your diamond/ring with another of like quality or better, or cash you out if they are unable to find a comparable diamond/ring.

In order to use that (bogus) appraisal, you would have to submit it and pay premiums on a $31,000 value. Then, if anything should happen to the ring they would just replace it at current market level (probably around what you paid for it).

So then you've just shelled out hundreds (possibly thousands) of dollars in unnecessary insurance premiums.

Inflated appraisals don't help anyone. They make the vendor look bad, and cost the consumer money.

Take it back to the vendor and tell him you appreciate the feel good stroking, but ask him to write up a realistic value you can use for insurance. That way he gets some feedback about his antiquated appraisal methods. And then have the whole thing double checked buy a non-vested, non-biased appraiser.

 

[denverappraiser]

Date: 8/6/2007 10:35:50 PM
Author: Richard Sherwood

Inflated appraisals don''t help anyone.

They’re great for the insurance companies. They get to collect higher premiums while paying out the same amount in the case of a loss.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[Richard Sherwood]

Date: 8/6/2007 10:41:15 PM
Author: denverappraiser

Date: 8/6/2007 10:35:50 PM

Author: Richard Sherwood

Inflated appraisals don''t help anyone.

They’re great for the insurance companies. They get to collect higher premiums while paying out the same amount in the case of a loss.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

Hah hah hah hah !!!

You always see the big picture.

 

[DMcD]

Does anyone know of a 3rd party appraiser in the Bethesda, MD area?

 

[Richard Sherwood]

McD, at the top right of your screen is a tab entitled "Resources". Under that is a drop down entitled "Appraisers". You can click on your state or region and pull up several appraisers.

Keep us posted. Let us know what the independent thought about your ring.

 

[DMcD]

Date: 8/6/2007 10:49:21 PM
Author: Richard Sherwood
McD, at the top right of your screen is a tab entitled ''Resources''. Under that is a drop down entitled ''Appraisers''. You can click on your state or region and pull up several appraisers.


Keep us posted. Let us know what the independent thought about your ring.

Thanks, will do. I would guess it gets appraised for somewhere in the 15-20k, but that''s just a guess from what I have seen from some friends. I really doubt I was ripped off, I just know it''s not worth $31K

 

[Regular Guy]

DMCD,

You''ll see, looking at the appraisers listed locally, that zero of them .... despite their having filled out the detailed sets of questions from the past admin, so that they are documented on the list...virtually none of the local ones have either shelled out less than $100 to get any kind of reflector device, to give even a nod to the kinds of methods reviewed here daily, for analyzing light performance. And...forget about sarin and such...not that that becomes relevant, once your diamond is set.

Any of the listed ones will probably give you a much more accurate valuation for replacement. If you feel as though you''ve invested man-hours in a quality of cut, and when seeking replacement, want to be assured that quality of cut is redeemed in a replacement stone, before you select your appraiser, I would consider asking them how they document cut.

One clue...an appraiser that most people used in the DC area is not listed. He''s respected, but solves no problems reviewed here.

 

[DMcD]

Date: 8/6/2007 11:05:12 PM
Author: Regular Guy


One clue...an appraiser that most people used in the DC area is not listed. He''s respected, but solves no problems reviewed here.

who who?

 

[Regular Guy]

Date: 8/6/2007 11:10:11 PM
Author: DMcD

who who?

For you, owl.

 

[JohnQuixote]

Martin is great. I'd also mention that the Pricescope appraisers participating in this thread are great. You have the Michael Jordan and Peyton Manning of appraisers right here (they can fight over who's who). In fact, apples for apples, the amount of information and education you'd receive from sending your piece to Neil or Rich for their full workup - and interacting via email and phone with them - is considerably more than you can expect from the vast majority of pedestrian appraisers. If you're unable able to see someone so well-equipped in-person I urge you to consider these guys.

 

[Modified Brilliant]

Date: 8/7/2007 1:13:19 AM
Author: JohnQuixote

Martin is great. I'd also mention that the Pricescope appraisers participating in this thread are great. You have the Michael Jordan and Peyton Manning of appraisers right here (they can fight over who's who). In fact, apples for apples, the amount of information and education you'd receive from sending your piece to Neil or Rich for their full workup - and interacting via email and phone with them - is considerably more than you can expect from the vast majority of pedestrian appraisers. If you're unable able to see someone so well-equipped in-person I urge you to consider these guys.

and don't forget our hometown favorite...Tom Brady!

"pedestrian appraisers" no relation to "boutique labs"

Jeff Averbook, G.G. Graduate Gemologist (G.I.A.)

www.metrojewelryappraisers.com