Making A Sale Contingent On An Independent Appraisal

[katrina_33]

Hello All,

BF and I are going to a vendor in the jewelry district tomorrow to look at an EGL certed stone that sounds great (in theory). I''ve run the numbers based on the crown and pavillion % on the cert and it got an ex/ex/ex/vg on the HCA. With a GIA or AGS cert, I wouldn''t worry about it, but with an EGL stone, I want to make the sale contingent on an independent appraisal. How exactly does this work, logistically? Would we pay the whole asking price for the stone (via credit card, I assume, for safety) but with some kind of doc saying that if it doesn''t appraise as the color and clarity the EGL cert represents it as, we can return for a 100% refund? What if it appraises at a lower color / clarity and we still want it, but just want to negotiate a new rate based on the revised specs? Is there a way not to pay in full for the stone, but just leave some kind of security deposit so we are allowed to physically take it to any appraiser, and then opt to buy it or not after appraisal? Or will the vendor send it to the appraiser directly and not trust us to take it (vendor and appraiser will be within walking distance from one another). Will we get to hang onto it for a few days before the sale is final to examine it out in real life, or will we have to arrange to pick the stone up the day of appraisal and bring it right back? I am just not sure what to expect or ask for. Hopefully the vendor does contingent sales routinely and has some system in place, but if not, I just want to be prepared.

I''ll check out their return policy, I guess this is all moot if I can return for 100% refund within X days for any reason, but that just makes me a little more nervous than not making the sale until after the appraisal. I''d hate to have some sort of squabble over a return, rather just wait until appraisal to decide whether we want to buy it!

Thanks so much for answering my question! Hopefully I''ll have a whole ring to show (FINALLY) by Christmas, and hopefully the ball really starts rolling tomorrow!

 

[denverappraiser]

It''s easy,

Get a return period of say 7 days where you have the right to return it for ANY reason as long as you haven''t damaged it. It doesn''t matter if the problem is something your appraiser said, something from your brother-in-law or something from your astrologer. If you decide that you don''t like it, the deal is done with a 100% refund. If, when you return it, you want to try and buy it for a lower price, negotiate away. Naturally, they will have the opportunity to decline any offer you make. Don''t hold your breath for this one but you can always ask.

Many independent appraisers get pretty busy at this time of year. Make sure you''ve got a long enough return period that you have time to make an appointment with your chosen appraiser. If it''s short, it may be a good idea to schedule the appraisal appointment before you hand over the plastic. Make sure to choose an appraiser that isn''t in the business of buying or selling diamonds on the side and choose an appraiser who is working for you, not for the seller. I usually prefer if my clients don''t even tell me who the seller is until after we''ve finished with the appraisal session.

Neil Baety
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[katrina_33]

Thanks, that all makes a lot of sense!

I was going to use Charles Carmona, or Patrick Davis / Paul Thompson, or Jennifer Thornton Davis, none of whom sell jewelry, to my knowledge. Just depends on who could see me in the tight time frame, I guess. I wasn''t going to show them the EGL cert first, or tell either the seller which appraiser I was using, or vice versa.

Thanks for your advice, and here''s hoping the process goes smoothly (if I even like the stone when I see it that is!)

 

[katrina_33]

P.S. - just curious - I know that internet vendors basically have to have a pretty comprehensive return policy because their customers are buying sight unseen, but does your average LA Jewelry District vendor have a decent (7 day+) no questions asked full refund return policy? Just wondering if what I''m expecting is totally standard, and something a lot of vendors probably offer anyhow, or whether it''s some kind of special demand?

 

[RockDoc]

Here I disagree with Neil within practical limits.


I don''t believe it is prudent to pay for the stone for the following reasons, until you are SURE you want to purchase it.


1. I would adivse that you don''t take possession of the stone. If you are not an "expert" in handling them, you could unitntenally chip, bruise of otherwise get stuck with it, if the seller won''t return your money.

2. If you have the seller send it to a reputable appraiser, and you don''t take possession of it, you have drastecially reduced the "risk" of not getting a refund or being responsible for any accusations of substuting the stone etc.

3. It is very common for sellers to limit what you can return a stone for. If there is a sales slip, carefully read the terms and conditions on it. Even if the sale person claims you can get a full refund, the sales slip may have conditions on it stating that the stone must be more than 1 grade off etc.

4. If the stone is sent to an appraiser, you don''t risk much since you haven''t paid anything up front.

5. Most of the Pricescope appraisers are considered responsible people and many of the P Scope vendors will be happy to send the stone to the appraiser of your choice, without paying much of anything up front ( perhaps they will want a reasonable deposit to cover their shipping expense, but at least you''re not advancing a lot of money.

6. If you''re buying the stone locally, and you take delivery of it in the state where the seller is, you''ll probably have to pay sales tax on the amount of the sale. If you buy it from an out of state internet vendor and he ships it out of state to you, you''ll most likely avoid having to pay the sales tax, which, if the purchase is a significant amount, could cover the cost of the appraiser and the shipping.

7. In choosing an apprasier, I''d also suggest that you choose one with the Gemprint system, so the diamond can be "fingerprinted" so there is no questions that the stone has been substituted. Neil and I both have this system. See www.gemprint.com for more information on this.


But if you do elect to pay for the stone in advance, and go to a local appraiser, at least use a credit card payment as if the merchant gives you any trouble with the refund, you can dispute the charge.

Neil is a highly respected professional, and what he has written is not incorrect, I just take a more conservative viewpoint than his.

Hope this helps

Rockdoc

 

[moolman]

Hi,
I had my diamond appraised by Charles Carmona in downtown LA. I didn''t want to pay for it so the jeweler and I went together to see him. Carmona can only verify the cert, at least 6 months ago, he did not have anything that can tell you the quality of the cut.

Alex

 

[Richard Sherwood]

Just make the sale contingent upon the ring appraising out to your satisfaction with the appraiser of your choice.

It's a reasonable request, which most vendors will honor if done within an expedient time frame.

If you like the ring, but it doesn't appraise out as you hoped, make a lower offer.

You are the buyer, and as such you are in total control. "I will give you my money, if "..................".

 

[katrina_33]

Thanks all. If we end up buying an in house stone from a PS vendor, I wouldn''t even really feel the need to get an appraisal unless I needed it later for insurance. If a stone is AGS or GIA certified, I would just go by my eyes beyond that and not be concerned that the cert was off and that the stone was priced as something other than it is.

If I end up liking an EGL certified stone downtown though, I will definitely need to make the sale contingent just on the color and clarity being backed up with another opinion. It seems kind of weird to walk over to an appraiser with the vendor, because what if they know each other or something (they probably do, actually, small 4 blocks in LA!) But if that''s how we can avoid plunking all of that $ down, then that might be what we have to do. Shipping would make the whole thing easier, but it seems silly to ship a stone a few blocks, and so it becomes an issue of who walks it over. Walking it over myself, whether we''d paid in full for it or not, would probably make me a little nervous. But walking it over with them would seem a little weird as well...

I''ll just see what they have to say tomorrow!

Thanks!

 

[LAJennifer]

How did this turn out? Which appraiser did you end up using?