Are there appraisal markups over retail price?

[evansjm1]

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]

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]

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]

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.