Question about appraisals

[stretch123]

My husband recently bought me a pair of diamond stud earrings for our wedding anniversary. I just had them appraised and they appraised for about $700 less than what my husband paid for them in the store. Does this mean that the store sold it for a higher price or maybe the appraisal came out low? I realize that diamonds have a big mark-up but the appraisal coming out for less did not make me happy. I would have been happier if it would have come out even or a little higher.

 

[JulieN]

Usually appraisals are over the retail price, it's not uncommon to find the appraisal value to be 2 times more.

If you use the Pricescope your diamond at the top, you can see the pricing of similar stones.

 

[RockDoc]

Hopefully you went to an appraiser who is qualified.

Did you discuss the details of how the value was determined, or why his valuation was $ 700.00 less?

Does the appraiser also sell jewelry?

There are many values an item may have, depending on the "market" in which they are sold. A sample would be the difference between what a pawn shop or flea market would sell the item for, and if the same, comparable item would be sold by Tiffany or one of the 5th Ave type stores. Understandibly, there would be difference in the price charged. Neither would be "wrong" or "right", but there would be a variance. The value of an item offered by retailers vary. i.e if you went to 5 different car dealers to get prices on a new car ( comparing the exact same equipment, model etc.) you most likely get 5 different prices. Prices charged by retailers for almost every product have a range.

Secondly, it depends on the function and purpose of the appraisal, and hopefully you''re appraiser is educated enough to understand the differences. Was the appraisal that you requested to get insurance coverage or to see if you "got what you paid for"?

In a professionally, properly competed appraisal report the methodology of how the appraiser analyzed the market should be included in it, along with why the appraisal was done.

I''d advise you to ask the appraiser questions as to why he valued the item for less. Depending upon what he tells you, you might consider going back to the store where they were purchased and negotiating a lower price, or returning them.

If the appraisal is written on only one or two pages, it probably has not been prepared by someone who is highly credentialed in valuation.

Rockdoc

 

[denverappraiser]

Carefully reread the description section of the report to make sure that the value conclusion is the only area where there is a difference. Differences in weight, clarity, color, cutting or several of these things can easily result in a $700 difference in the bottom line. Feel free to call up the appraiser and discuss it with them if you don’t understand something about either their report or their service. Communicating clearly to the client is part of a good appraisal practice.

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