WF and BGD appraisal question

[Laura27]

Hey guys, I have a quick question for those of you who own a WF or BGD ring. When you got your ring appraised did it appraise at a higher value than what you actually paid for it? I think I read that most of the time the appraisal is usually more than what was paid. But I was wondering how much more it appraised for? Just a tad bit more or was it a considerable amount. The reason I ask is because the FF has left all of the research up to me and when we finally get the ring and have it appraised I''m hoping he''ll be like, "wow, you did an awesome job!". LOL This probably seems like a silly question but he''s the type who usually investigates and researches everything before he makes a major purchase. He''s just super busy with work right now so I decided I would take this little project on and I''m really hoping that I can prove to him that I really did do my homework. (and I don''t want him to get pi$$ed thinking he overpaid for it)

 

[Gypsy]

Hi! I'm not understanding your question... okay I get the question, I guess it's your concern that I'm not understanding.

You bought a ring from WF or BGD.
Took it to some place to get appraised.
Didn't get raves, but instead you found out you got what you paid for.
And you are worried because your FF might think you didn't get the best deal out there.

So here are some thoughts.

Where did you go to get appraised? There is a drastic range of appraisers out there. There is very little industry regulation.

Typically an appraiser can take many factors into consideration. Including where you bought from. Online dealers have lower margins, your appraisal might reflect that if your appraiser knew you went online for the purchase. Because the theory is you went there intitally and if you had to replace the ring, that's where you'd go (with the same margins) again.

You don't want an inflated appraisal. While it may make you feel better, it will make your pocket lighter if you insure your ring to the appraisal amount. SO most reputable appraisers will try to give you a true and accurate value of your purchase based on the factors known to them... Certification of the stone, quality, color, characteristics, etc.

With Diamonds you want to get what you paid for. With WF or BGD you are going to a place not to get a steal, but to get what you pay for... not to pay for more than what you got. It sounds like your appraiser confirmed that. That's good. Very good.

Going to a place like BGD or WF isn't like going to a designer outlet. You aren't getting Tiffany 50% off. So you aren't going to appraisal for Tiffany price. What you are getting is comparable quality to Tiffany (and maybe superior, depending on your opinion) but it's still NOT Tiffany and isn't stamped Tiffany. So your appraisal isn't go to give you a Tiffany Value. Think of it like this: You see a Channel Suit and know of a GREAT seamstress who used to work for Channel, who gets you incredible fabrics, her work is impeccible, and it fits you perfectly, and you pay 50% less than you would at Channel. Now... try to sell that suit. It doesn't matter that it's just LIKE a Channel (or better), it's not Channel. No one is going to pay you the same price as they would for the Channel. So YES, you got A GREAT DEAL. But you got exactly what you paid for: An excellent suit. That's all you can ask for.

We can't help how your FF is going to feel. But maybe you both should adjust your expectations and understand that A) you got exactly what you paid for and B) what you paid for is what you wanted and C) you aren't going to be paying ridiculous insurance premiums because of an inflated appraisal.

ETA: Okay you haven't gotten in appraised yet. Okay. Got it. Well, first WHERE are you going to get it appraised (let's make sure you are going to a reputable appraiser) and second, let's make sure you understand what the goal is. If it's to make you feel like you got a steal? Well, it probably won't. If it's to confirm you got what you paid for? Well, that's the goal. Again, it's about adjusting expectations to realistic levels.

And welcome!

 

[Laura27]

Hey Gypsy! Thanks for the info. Sorry I wasn''t more clear with the questions. We actually haven''t even purchased the ring yet. I only asked this because I was talking to a friend yesterday who mentioned that her brother had bought a ring from Israel Diamond Supply in Tulsa and his ring appraised for much more than what he paid for it. I was just wanting to see if people that had bought from WF or BGD received an appraisal that was at what they paid for it or if it was higher and by how much. The boyfriend does have some reservations about buying online..(he doesn''t understand how you can be sure you''re getting the diamond that you paid for)...and I''ve tried explaining to him about certs and how some diamonds have a laser inscription on them and that these are very reputable businesses. So, I was just wanting to make sure that people that have bought from them were happy with their appraisals. I really have no doubts if I go with either that the appraisal will check out. My friend just got me to thinking, and I started wondering if the same would happen to us. I really hadn''t given it any thought and was just expecting what we get to appraise for what we paid for it. When we do get the ring I will have it appraised by one of the appraisers that is recommended here on PS. Thanks again for all the info. I did think it was better to get a higher appraisal but now I see that''s not the case. Thanks for clarifying!

 

[Lorelei]

Date: 6/8/2009 3:28:43 AM
Author: Laura27
Hey Gypsy! Thanks for the info. Sorry I wasn''t more clear with the questions. We actually haven''t even purchased the ring yet. I only asked this because I was talking to a friend yesterday who mentioned that her brother had bought a ring from Israel Diamond Supply in Tulsa and his ring appraised for much more than what he paid for it. I was just wanting to see if people that had bought from WF or BGD received an appraisal that was at what they paid for it or if it was higher and by how much. The boyfriend does have some reservations about buying online..(he doesn''t understand how you can be sure you''re getting the diamond that you paid for)...and I''ve tried explaining to him about certs and how some diamonds have a laser inscription on them and that these are very reputable businesses. So, I was just wanting to make sure that people that have bought from them were happy with their appraisals. I really have no doubts if I go with either that the appraisal will check out. My friend just got me to thinking, and I started wondering if the same would happen to us. I really hadn''t given it any thought and was just expecting what we get to appraise for what we paid for it. When we do get the ring I will have it appraised by one of the appraisers that is recommended here on PS. Thanks again for all the info. I did think it was better to get a higher appraisal but now I see that''s not the case. Thanks for clarifying!

This is common and these inflated appraisals are designed to appeal to the buyers '' feelgood'' factor. Most of the time they are not realistic, if a diamond was worth xxx amount on a very high appraisal, it would sell for that in the first place.

 

[oldminer]

Over the past few years I have accomodated to tiered levels of mark-up depending on where the diamond or ring was bought in order to report values closer to reality. There is no point in paying too much for insurance and the "feel good factor" is so very temporary. Insurance premiums last much longer than the "feel good". I''ve seen mark-ups continue to decline in most cases until the line between wholesale cost and retail has vanished with Internet purchases from most vendors. Either they buy right or they can''t compete.

The appraiser''s main value to the public is to confirm the quality and the price paid. Being too high or too low in making the estimates of quality or value may kill the deal or lessen the overall value of the report. We walk a fine line not to over or under estimate... However, being a bit high is better then being a bit low. A low report can turn a fair deal into a problem case while a slightly high report does no unintentional harm. I strive for qualitative accuracy and reasonable profit margins in reporting on diamonds. I find my reports tend to be about right on the qualitative aspects and on a bit on the high side for dollars. I listen to clients, as do all other appraisers who do this work. With experience one learns how to assure folks things are okay or to intervene for them when there are issues.

If you go to a good appraiser you can expect accurate grading and some room on pricing unless you spend the extra time to get to the lowest cost limits range, Recently, I have found it increasingly difficult to estimate the minimum cost of some individual diamonds as there is market turmoil behind the scenes. Regularity of wholesale cost was once something far easier to predict than it currently is.

 

[Laura27]

Thanks for the info Lorelei and David! I don''t know what I would do without this forum! You all are so great!