Discrepancies in appraisals

[CluelessBuyer]

So I bought a ring recently with intentions of proposing a week or so ago. But I''ve been second guessing myself since then. I bought the ring at a B&M store. I thought the price was a bit high, but they would not negotiate. Knowing that the other half loves the ring, I bought it anyway at their asking price. I went to an independent appraiser who gave me an appraisal about 1/3 below what I paid for it. Dismayed, I called the store, who has a 60 day return policy and expressed my concern. The store then proceeded to trash talk the appraiser I chose and stand firm on their pricing. I told them I planned to return it. A few hours later, the manager called back and in a somewhat condescending manner apologized and said that he feels strongly about their product and offered to pay for me to have a second appraisal done. I just got the second appraisal done and it came back at exactly what I paid for it. The second appraiser indicated that he knew which store it came from and what they sell it for and said that I should have paid about what they are asking for it. I was confused when I got an independent appraisal that far below the selling price. I''m even more confused now that I have two independent appraisals so far apart. At this point I''m highly frustrated and tired of running up and down the road and spending money and making up excused about where I have to go after work so that she won''t suspect anything. What''s up with independent appraisals??????

 

[oldminer]

"The second appraiser indicated that he knew which store it came from "

How did they know? Did you tell the appraiser? Did the retailer set you up with their own "independent" appraiser? Did the appraiser see an invoice? I think how the second appraiser found out who sold it and potentially how much you actually paid may be crucial to uunderstanding the situation. There may be some bias, favoritism or fear, but possibly nothing is wrong. Appraisal values vary according to the market selection. When I know a diamond is coming from the Internet, I use a lower mark-up to retail than from a B&M situation. Some B&M stores seem quite high by comparison sometimes and I have no comment on the disparity. It is apparent enough for anyone who cares. For those who wish to purchase at a store, they get personal, face to face services and probably expect to pay somewhat more for it. How much more or what that is worth is a matter of personal judgment these days. Diamonds of all sorts can be bought in stores and on-line and the pricing is all over the place.

If you can''t live with the deal you made, you have a return privilege. Return it and do it better on the second try. If you can put the price issue out of your mind, then let it go and get engaged. It probably is not as important a problem as it now seems to be. In the totality of life''s problems, overpaying a few bucks is not as big a deal as many other problems you''ll face.

Have you prices compared what you bought to what you could find in a Pricescope search? How much could you save by doing it all over again? Is it enough to justify the second effort? We can''t tell you, but you can make that determination by shopping another ten minutes on your own. It will give you food for thought.

 

[phoenixgirl]

Can you post the specifications of your ring and diamond?

 

[CluelessBuyer]

Oldminer, I didn't mention the jeweler. The IGI cert spelled out the store's special cut of diamond, so it really wasn't hard to google it and find out whose stone it was, I'm sure.

I did expect to pay a bit more for in-store, face-to-face service. My concern was with what I consider a huge difference that amounted to $2,500 between the $9,000 purchase price and $6,500 first appraisal. It just seems hard to fathom that appraisals can be so far apart. I'm a numbers guy, but I do understand that some of the value is emotional. But at the same time, I would hate to foolishly pay significantly too much for something knowing that our financial situations will soon be inextricably linked. I suppose I'm just trying to figure out if I should put any faith in either of these proposals at this point. This is nerveracking! I have compared prices, and comparable stones are in the $2,000 range. Thanks for your input, oldminer.

pheonixgirl, this ring is 1.28 ct cushion, I1, color - I, polish and symmetry both good, set in white gold w/ 54 diamonds on the side, .45 ct.

 

[girlie-girl]

So was the $9,000 purchase price for the setting and the center stone?

 

[denverappraiser]

The usual objective in an insurance replacement appraisal is to estimate what it would cost to replace the lost item with a new one purchased in the usual and customary market for that item. In the case of branded specialty cut stones, this means the price being charged by dealers in THAT cut. You paid a premium for it and it’s entirely reasonable that this is what you should expect in terms of a replacement. If that includes a $2500 ‘premium’, so be it. Without knowing the situation and the details of what you asked there’s no way for us to tell if you paid the going rate or not but this is the question being asked of your appraiser. Even a correct answer to the wrong question is doing you no favors so it's important to be sure that they are both answering the same thing before you can decide if one is right and the other wrong.

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