Diamond Appraisals and Cut quality, do they notice?

[uproar]

Question for all you experts here. I was looking at buying a (overdue) engagement ring and was considering a Hearts and Arrow/ Brian GAvin Signature or Blue cut, when a thought came up in my head, when a diamond is being appraised do they merely just take the GIA/AGS report and make sure the diamond matches and then come up with a price based on the stats on the report? Or will the actually notice that it is not only a normal AGS "ideal 0" or "GIA excellent" will they notice that the diamond is a TIC Tolkowsky Ideal Cut on the Holloway Cut Advisor? Or is everything after Ideal 0 the same as far as appraisals are concerned?

 

[OnlyOncePlease]

I'd like to know as well.

 

[denverappraiser]

Not all appraisers are the same. The first step of any appraisal process is choosing your appraier and this involves questions about what sorts of services you what, what they offer, and how these two overlap.

It's also worth noting that all appraisal services are not the same, even if they come from the same appraiser. I can only speak for my own practice but, for example, I do NOT normally discuss HCA scores in my reports unless the it's requested by the client as part of what they consider important and would like to document. It's also worth noting that many appraisers charge by the hour and although it is fun to 'nclude as much data as humanly possible, this tends to drive up the price of the service.

 

[ponder]

I think Denverappraiser has hit it on the head with emphasizing what do YOU want and maybe more importantly what does your insurer want from the appraisal. I would talk in depth to your insurer to determine what kind of policy you are looking at and what kind of information is required to fulfill a claim to your satisfaction.

 

[denverappraiser]

The bar set by insurers is usually extremely low. Strong appraisals are primarilly for the benefit of the client, not the insurer. This is especially true with new purchases. The description in the appraisal is routinely used as the purchase order for the replacement in the case of a loss, which is why they want you to submit it, and it is the minimum standards they must meet or exceed. The broader the better as far as they're concerned. They will tollerate a claim of hearts and arrows, for example, but they will never require it. Why? Because it limits them on the replacement. The reverse is true of the client. If H&A, HCA score, brand name, country of origin, or anything else about the deal is important to you, it benefits you to have it spelled out in the body of the appraisal and in the photographs. If it's not in there it will NOT be one of the specs for the replacement.

 

[Karl_K]

It's also worth noting that many appraisers charge by the hour and although it is fun to 'nclude as much data as humanly possible, this tends to drive up the price of the service.

I am a firm believer in burying the claims adjuster in paperwork and feel it would be money well spent to have everything possible spelled out even if it costs slightly more.
Having dealt with dozens of claim adjusters in the computer field if you leave them an inch of wiggle room they will try and take a mile.
With the right paperwork you can just keep pointing back to the paperwork and saying it is right here and your proposal does not meet this part.

 

[Karl_K]

If it's not in there it will NOT be one of the specs for the replacement.

That needs to be repeated 3 more times.
If it's not in there it will NOT be one of the specs for the replacement.
If it's not in there it will NOT be one of the specs for the replacement.
If it's not in there it will NOT be one of the specs for the replacement.

 

[uproar]

I'm guessing from what i'm reading here that a stone like this would not appraise well.
Although the 2.018 cut is second to none with a HCA rating of 0.8 it probably won't rate well being in the Brian Gavin Blue collection and K in color along with a very clean SI1
http://www.briangavindiamonds.com/diamonds/diamond-details/2.018-k-si1-round-diamond-ags-bl-104063998022

This 2.2ct J in color and VS2 only has a HCA rating of 2.7 might be worth more to the average appraiser.
http://www.briangavindiamonds.com/diamonds/diamond-details/2.210-j-vs2-round-diamond-gia-43542792

 

[denverappraiser]

In general, replacing a 2.21/j/VS2 will cost more than an otherwise similar 2.01/K/SI1 but I would not describe this as the latter ‘not appraising well’. Buy what you like. In general HCA score is not an attribute that drives pricing but this too is not necessarily a problem. Again, buy what you like and document accordingly. The value conclusion on the appraisal is NOT evidence of which is a better purchase. It is an estimate of what it would be expected to cost to replace the stone at some future date with another of ‘like kind and quality’. BG branding is part of that like kind topic (assuming you document it as such. The attribute that drives this in terms of the report is the BG girdle inscription). The valuation question becomes what would BGD be reasonably expected to charge for a substantially similar diamond as a replacement and what makes that stone different from a more generic equivalent. They are welcome to offer an alternative brand if they wish but you are under no obligation to accept unless BG can’t or won’t do it (for example if they’re no longer in business or are no longer offering goods like that at the time of the loss). You are buying a genuine BGD and, given the agree to bind a policy on a properly written appraisal, the company is agreeing to replace with a genuine BGD.

 

[uproar]

In general, replacing a 2.21/j/VS2 will cost more than an otherwise similar 2.01/K/SI1 but I would not describe this as the latter ‘not appraising well’. Buy what you like. In general HCA score is not an attribute that drives pricing but this too is not necessarily a problem. Again, buy what you like and document accordingly. The value conclusion on the appraisal is NOT evidence of which is a better purchase. It is an estimate of what it would be expected to cost to replace the stone at some future date with another of ‘like kind and quality’. BG branding is part of that like kind topic (assuming you document it as such. The attribute that drives this in terms of the report is the BG girdle inscription). The valuation question becomes what would BGD be reasonably expected to charge for a substantially similar diamond as a replacement and what makes that stone different from a more generic equivalent. They are welcome to offer an alternative brand if they wish but you are under no obligation to accept unless BG can’t or won’t do it (for example if they’re no longer in business or are no longer offering goods like that at the time of the loss). You are buying a genuine BGD and, given the agree to bind a policy on a properly written appraisal, the company is agreeing to replace with a genuine BGD.

Thanks i had no idea i could document the BGD branding and then use it as part of the criteria for a replacement if anything should happen. It makes total sense now that i think about though. I'm sure if Cartier or Tiffany stones / rings were replaced with something that didn't have the same branding there would be huge uproar by insurance customers.