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Are there appraisal markups over retail price?

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evansjm1

Shiny_Rock
Joined
Mar 24, 2009
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146
I''m a little confused on the appraisal front. I remember my mom saying that, "appraisals always come in high." Is that true? If so, why? And how much higher over retail?

I''m not very clear because I am very lucky to have a good friend who is a gemologist and owns his own store. He gave us my e-ring at or near wholesale. The appraisal he gave us for insurance purposes was written for much, much more than we paid though....about 175% more.

So for a B&M store, what is typical markup from wholesale to retail? And then is there an additional markup from retail to appraised value?

If it helps, I''m talking about a HOF AGS0, 1.62 ct, I , VS1 stone in a HOF setting. I''m not looking to sell or anything. Just kind of trying to figure out what it''s real "worth" is.

Any education would be much appreciated


Thanks!
 

Diamond Explorer

Shiny_Rock
Trade
Joined
Sep 7, 2008
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294
Hearts on Fire, is traditionally a no discount brand, but some jewelers make exceptions. He probably was just appraising it for its standard retail price or maybe a bit higher. Its common for jewelers to over estimate appraisals to make it seem like they are giving a better deal than they are. This is not good for consumers however, because they pay too much in insurance premium. I think the best apprasal value is the true cost to replace the item with an equivalent one. Some people like to add a bit on top to account for inflation down the line. This I feel is unnecessary as long as you keep your appraisals for significant pieces of jewelry relatively up to date.
 

Lorelei

Super_Ideal_Rock
Premium
Joined
Apr 30, 2005
Messages
42,064
Date: 4/1/2009 9:42:33 PM
Author: Diamond Explorer
Hearts on Fire, is traditionally a no discount brand, but some jewelers make exceptions. He probably was just appraising it for its standard retail price or maybe a bit higher. Its common for jewelers to over estimate appraisals to make it seem like they are giving a better deal than they are. This is not good for consumers however, because they pay too much in insurance premium. I think the best apprasal value is the true cost to replace the item with an equivalent one. Some people like to add a bit on top to account for inflation down the line. This I feel is unnecessary as long as you keep your appraisals for significant pieces of jewelry relatively up to date.
Jonathan gives good advice!
 

LaraOnline

Ideal_Rock
Joined
Feb 24, 2008
Messages
3,365
Yes, I have just received my valuation, and the markup was similar.
when I contacted my insurance company, I asked them if I could insure to a value slightly below the appraisal price. They refused!!! which surprised me.
 
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