Price Question: Retail Price v. Replacement Value

[JDMWDC]

I found a ring I really like for my gf, it is antique from ~1925.

The appraisal says it has an est. retail replacement value of $10,242. I paid $10,000. It was originally listed for $10,484.

(The numbers are made up - though close - but the % differences are the same)

I'm still within my window where I can return it, but let me ask the general wisdom of the board:

Did I overpay? I realize that's a bit subjective so I guess what I'm asking is, is this normal? I always feel like the replacement value which is probably for insurance purposes would probably OVERESTIMATE the price of the ring if anything. And additionally you can haggle with dealers (but maybe they inflate knowing you'll haggle). I'm trying not to parallel buying a ring with buying a car because cars (especially "options") are quite a bit overpriced compared to production costs.

Thanks for your input guys and gals!

 

[JDMWDC]

Wow i just realized the retail replacement value was for the center stone only. So probably is a good deal after all.

This thread is now a monument to my lack of knowledge.

 

[diamondseeker2006]

Wait, who did the appraisal? And tell us the specs on the diamond and post pictures, if at all possible.

You definitely should expect to buy an old ring for less than the equivalent new would cost in most cases.

 

[denverappraiser]

Appraisals can vary dramatically from one to the next. If you weren't the client here, seek out an appraisal of your own. If you were the client, talk to the appraiser about their definition of value. Usually 'replacement' value means the estimated cost to replace it with another one like it new at a specialty jewelry store. 'Retail' means some sort of fantasy of what the asking price should be before discounting. The definition being used should be included in the body of the appraisal report.