Should I get an Appraised?

[madvaz]

Just picked up my girlfriend ring this past weekend..The ring was appraised but I was curious to know if I should take it to get it appraised by a 3rd party? A few people have told that it was not worth the extra money and others have said it worth it..So confusing!

 

[AChiOAlumna]

It depends on your needs. What is the purpose of the 3rd appraisal? Is it for insurance purposes? Did the 2nd appraisal come in overinflated? Are you wanting to identify the center stone compared to your certificates?

If the 2nd appraisal was for insurance purposes and to your liking, then there''s really no other reason for another appraisal. If you''re trying to get additional information on the ring that wasn''t in your 2nd appraisal, then you might want the 3rd appraisal, but tell the appraiser what it is you''re looking for, so you don''t end up with the same information as the 2nd.

 

[madvaz]

The ring I got was appraised about $900 more than what I brought it for..I guess the reason to take the ring to a 3rd party is to be find out what the exact amount of the diamond is worth and for insurance..I''m just concern that spending another few hundred dollars is worth the time and effort. Thanks for your input!

 

[AChiOAlumna]

So was the 2nd appraisal written or oral? If it was written, then I''m guessing that you''ve already found out what the stone would be worth for insurance purposes and can use that 2nd appraisal.

If it was oral, or you don''t trust the results of the 2nd appraisal, then you''ll want to go for a third appraisal to get it written and for the entire ring, not just the center stone. If the entire ring is lost, you''ll want to know the replacement value for the whole ring, not just the center stone...does that make sense??

 

[madvaz]

The appraisal was written..i''m going to make sure if what it says state the vaule or the whole ring or just the center piece.

Thanks again

 

[RockDoc]

Do you really need an appraisal from another party....???

I''d say this depends on several factors.

First the consideration of spending more money on another opinion, is dependent on the price paid for the stone.

If it is a stone that cost you $900.00 and its appraised for $900.00 more, I''d be a little suspicous.

In the alternative, if you paid $ 5000.00 or more $900.00 more on an appraisal is a lot less "alarming".

As to the "exact" value,I think you''ll not be able to get this as exactly as you imagine. Diamonds are sold for one price. There is a range of sales prices, dependent on a lot of other factors. For example let''s say you bought a VS-1 - F color quality diamond of average cut proportions. This type of stone could be sold by a pawn shop at a low price, or be available from a Tiffany type store, and the prices would be very different. Also what affects value is why the appraisal was done ( insurance, resale, bankruptcy etc.). Commonly, apprasial values are defined for insurance purposes at "Retail Replacement Value". The appraisal should state further details about how the value was concluded.

The other consideration that you may base your decision on is if the report you have is genuinely independent and unbiased. A seller or a seller''s agent, doesn''t or may not have your interest at heart. I would want a person that worked for me, and had my interest as a consumer be the primary thrust of the assignment.

A third independent expert who gets paid by you, will give you more peace of mind in the accuracy and independence of the report.

Rockdoc

 

[madvaz]

Roc Doc..I got the ring for a total of about $4,000, and it was appraised at 4,900.00, so maybe you are right in that I should not really be concern. I was just curious to know why people say to get the ring appraised by a 3rd party just to make sure I''m not getting ripped off.

Is the apprasial I got from the store good enough? I''m still somewhat confused as to why I''m being told to go elsewhere to get the ring appraised?

 

[denverappraiser]

It will depend on what you are trying to learn from your appraiser. Unfortunately, ‘worth’ is not a fixed number and will vary from market to market. It’s a reasonable question to ask what a high end guild type store would charge to custom make a ring like the one you have but this is not the same question as asking what you can reasonably expect to receive from a pawn shop.

Many buyers are trying to decide if their dealer has given them complete and accurate information in the sales presentation. This is a valid concern and, if this is the case, a statement by the seller doesn’t really help very much. If you are satisfied that you got what you paid for and are seeking documentation for purposes of binding an insurance policy, seller supplied reports can often be entirely sufficient.

It’s a mistake to decide on the merits of an appraisal based on the bottom line number presented. Each appraisal should be addressing a specific question or ‘purpose’. If the purpose is to bind an insurance policy, the most important section is the description, not the price. In the case of a loss this description will be used as a purchase order to buy you a replacement. Read it carefully to be sure it contains all of the details that you consider important about your piece. The bottom line number is the maximum liability for the company. It’s doing no favors to make this higher than what will be required for the company to make a replacement because it increases your premiums without changing their behavior in the case of a loss.

Here are a few tips on getting good value from an appraiser.

Neil Beaty
GG(GIA) ISA NAJA
Independent Appraisals in Denver

 

[EdSkinner]

you don''t need to get it appraised. you already got an appraisal from the guy who sold it to you. What reason would he have to either pump up the price or just outright lie on his item that he sold you? Just take his or hers word on the quality and the prices on what will probally be the 3rd largest purchase you will make in your life. Ignorance is bliss.