Is there a reason an appraiser would charge more to appraise a larger stone?

[Gleam]

Just curious. I contacted an independent appraiser and he charges $75.00 for stones under 1 carat and $100 for stones over 1 carat. The extra $25 is NOT a big deal, especially after you''ve spent thousands for a diamond, but I''m just wondering if there''s a reason for this. Are larger stones harder to grade or something?

 

[stone-cold11]

maybe the insurance?

 

[denverappraiser]

I don’t do this but I’ve seriously considered changing.

Bigger stones take more time, there is more liability associated with screw ups as well as with simply taking possession of the item and the clients who want work done on bigger stones tend to be more inclined to spend a lot of time asking questions. The other common solution to this problem is to charge an hourly rate and the jobs that take longer pay more.

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

 

[elle_chris]

Date: 10/9/2009 7:58:50 PM
Author: denverappraiser
I don’t do this but I’ve seriously considered changing.

Bigger stones take more time, there is more liability associated with screw ups as well as with simply taking possession of the item and the clients who want work done on bigger stones tend to be more inclined to spend a lot of time asking questions. The other common solution to this problem is to charge an hourly rate and the jobs that take longer pay more.

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

Very true. My appraiser charged more for my 2 1/2 carat than my .50ct''s.

 

[WinkHPD]

I am so tempted to say, "Because you will pay it", but I wont...

Wink in a silly mood

 

[Sam82]

When I had my ring appraised, the price was determined by the carat. I didn''t know that was not the norm.

 

[kenny]

Owners of larger stones have more money.
That's got to factor in.

 

[Allison D.]

Appraisers of larger stones incur more risk in the event of loss or damage while in their possession.

 

[oldminer]

Appraisers may charge more for larger size stones (I do) because of several factors.

#1, We have to earn a living and buyers of smaller stones really can''t pay the same as those who can afford larger diamonds.
#2 There are costs attached to appraising which must be covered. More time is spent with larger diamonds. There is more financial liability for error. There is more risk of higher damage or loss. Clients seeking larger stone appraisals tend to want more complex information and to spend more time in the process.
#3 My fees are actually based on the time spent and I find I do spend more time on larger stones than smaller ones.
#4 People with larger diamonds are willing to pay more then those with small diamonds. It is smart marketing to charge more or less promotional fees to the most price sensitive segment of one''s market and to charge competitive, yet fair, fees to the somewhat more affluent segments of one''s market.


My theory is : I have a $100 minimum for diamond appraising. The upper limit is generally not above $200. If everyone would pay $150, I suppose it would work out the same, but I believe I would get few , if any, clients who would have only paid me $100 to be interested or willing to shell out $150.

The problem with giving folks a strictly time based fee for diamond appraising is the inability to give a solid estimate of my charges in advance. How do I know if they will have few or many questions before I do the work? People will generally select an appraiser who quotes a flat fee in competition with an open ended cost situation. Giving a solid estimate of charges has proven to be the best course of business over a number of years when it comes to diamond appraisal work. For general appraisal work for many items or large groups, I do charge hourly rates and it has nothing to do with the weight or size of the gemstones. I will give a firm estimate in advance, but I need to inspect the entire group before making such a firm quote. With distant clients this sort of estimation activity would be impossible, so the flat fee, based on weight makes good sense, to me.

 

[Modified Brilliant]

I''m all about being fair and reasonable. We charge an hourly rate.
Most professional appraisal firms (appraisers of furniture, art, etc) that I know in my area charge an hourly rate.
I am happy to give an estimated range of what an appraisal will cost based on the information that you provide.
Everyone seems fine with this. Fair and reasonable.


www.metrojewelryappraisers.com

 

[Gleam]

Thanks for chiming in, everyone. Why does it take longer to grade a larger stone? Just wondering again.

I figure that every businessman has the right to profit, be it my jeweler or my appraiser, so I don''t mind mark-ups. An extra charge to grade my 2.5 carat ring over a 0.5 carat ring isn''t anything to get upset over. I wouldn''t be deterred from using an appraiser because he charges more for large stones... as long as it''s not *too* much more.