Buying secondhand, how do I work out a fair price to offer?

[Iloveblingnz]

I'm considering a secondhand diamond or diamond and setting as it is an anniversary upgrade and therefore to me not as sentimental. How do I determine a fair 2nd hand value, is there a percentage of new cost I should work towards Ie 75% of new cost for excellent cut etc. Also would you ever consider a good cut? Everything I read says no buy the highest cut you can afford, however I have seen something in person and was surprised by how brilliant it was, it is in my country so less risk and well within my budget.

I'm in New Zealand and out dollar has dropped heavily against the U.S., my original budget was 20k but now with exchange rate would be more like 15k.

Wanting something in the 1.8-2.5 carat range, h-I colour and eye clean. Would prefer to save money then spend my entire budget if possible and am sure there is a stone out there for me!!

Thanks in advance

 

[diamondseeker2006]

Re: Buying secondhand, how do I work out a fair price to off

I would be very hesitant to buy a stone of that size unless it is an excellent/ideal cut. Plenty of people here from Australia and NZ have bought from the US in order to get well cut diamonds. I do make exceptions for antique rings and things like that, of course.

Does the diamond have a reliable grading report? If it doesn't, you are taking a shot in the dark as far as valuing it goes.

But for reference, excellent cut stones resold around here often get 75-80% of current value, superideal cuts from well known vendors might get 80-90%.

If this diamond was just "good" cut and you really wanted it, it would have to be a steal of a deal...like 50% of the cost of a new excellent cut stone, for me to consider it. Then I'd hope it could be recut. But it might be a very good cut and okay as it is. Can you post magnified pictures? People would be able to give you better advice if we had more info on the diamond.

 

[denverappraiser]

Re: Buying secondhand, how do I work out a fair price to off

At the risk of sounding self serving, you should have an appraiser involved in this. That is to say, an expert working for YOU, not the seller. It's easy to arrange to have them ship it somewhere for inspection if there's not someone near the sellers location where they can hand deliver it. Results can be delivered by email and the appraiser can arrange for the export or the return to the seller depending on the results. If the export shipping and insurance is already part of the deal, the seller can arrange pickup by the carrier at the appraiser's office. They can do the paperwork.

How much to pay is, of course, up to you. Negotiate based on what the seller is claiming for description, not the value, and have a qualifier that if the appraiser thinks it's different you have the option to return it or renegotiate.

You should have the right to return for ANY reason. The appraisers fee is on you, no matter what the results are.

 

[diamondseeker2006]

Re: Buying secondhand, how do I work out a fair price to off

I totally agree with the appraiser idea as long as she can access an independent one (who does not sell jewelry) who really is educated in diamond cut quality and who will not inflate the value. I just know those are so hard to find here and may even be harder there. But that is the only way to move forward, really.

 

[denverappraiser]

Re: Buying secondhand, how do I work out a fair price to off

I totally agree with the appraiser idea as long as she can access an independent one (who does not sell jewelry) who really is educated in diamond cut quality and who will not inflate the value. I just know those are so hard to find here and may even be harder there. But that is the only way to move forward, really.

If I thought about it I could probably come up with one.

Given that this is an export deal, any acceptable appraiser in the US within FedEx distance of the seller will work. It's not THAT hard to find someone.

 

[Rockdiamond]

Re: Buying secondhand, how do I work out a fair price to off

There's a lot of potential pitfalls with the plan of buying second hand.
I agree that an appraiser might be of assistance- but the issues I'd be most concerned about would have to do with the security of the sale.

As Neil mentioned, a money back guarantee is vital in such a transaction- but with a private seller, how will you know if they will actually honor that guarantee.

By all means consider VG cut grade stones to save money- but that will require a very good seller working on your behalf. Although I've seen many non EX cut grade stones that looked amazing, many Good or VG cut grade stones are not all that great, and to be avoided.

As Neil said, this might sound self serving- but a good seller ( professional seller) will earn their money by providing extremely valuable advice, and security of the transaction.