I’m going to be even harsher than Davide and WAY harsher than Laurie. I'm not unsympathetic to your problem and I agree that it a good cause and a tough bind. That said, here' goes.
Just from observation of the market, this will not be an easy item to sell. Pears are not particularly popular and ‘used’ engagement rings, especially from individual sellers, do not generally do will anyway. It’s still good parts, gold is gold, diamonds are diamonds etc. but I think you are unlikely to find a buyer who wants the ring as it sits.
Do not confuse retail replacement value, which is the price that the appraiser is expecting it to cost to custom make another one like it new and at retail, with resale value, which is the price that you can expect it to sell for in a particular market. I've no idea what your second appraiser means by 'wholesale' but I guarantee it's NOT what dealers will pay for goods like this from you or anyone else.
Market selection is a big deal. Competitive retail from Davides research in the diamond finder is about $2200 on the stone (that's top prices, par seems to be more like $1600). That’s for ‘certified’ stones coming from professional dealers who offer things like return policies, tradeups, ‘free’ repairs and the like. That’s the competition. One other important issue: These are ASKING prices. It’s a much more subtle issue to estimate if they’re actually getting them. They (and you) can ask whatever they want, that’s not the same as getting it. The reason people will buy from YOU is because you’re cheaper. That’s why they’re shopping on craigslist. How much cheaper? That’s the tricky question and that’s part of what your appraiser is supposed to be telling you. The appraisal you posted flat out says that it’s written by the selling jeweler and that it’s reporting a value that’s MORE than what the jeweler could get for it. They don’t bother to say how much more. That may or may not be useful for the purpose for which it’s intended (insurance) but it has no bearing whatever to your situation. The other one is even worse in terms of providing useful information. They don’t discuss the market aspect at all, they haven’t seen the merchandise at all, and they are producing a ‘wholesale’ value, whatever it is that they mean by that, based purely on 3rd party hearsay grading and with no thought whatever to what real buyers actually pay for things.
You didn’t list what sort of pricing you’re expecting but I’m guessing you need a reality check. I agree with Laurie that a competent appraisal would be a good place to start. The next step is going to be to decide your marketing plan. If I were advising a client, for example, I would almost certainly get it graded by a professional lab, either GIA or EGL-USA. There are some exceptions and which lab would not be chosen randomly. Clarity below I-1 or color below L are usually not worth the cost of the lab in terms of increased prices on resale and yes, both of these are possibilities. If you’re going to be directly selling to a dealer, it usually doesn’t help unless we’re talking about fairly high end stones (yours is not). This is one of the key questions for your appraiser. What is it? What can I reasonably expect to get for it? What is a marketing strategy that’s reasonably likely to get to that point with an acceptable amount of costs and in a reasonable amount of time?
I notice that the appraisal you have is from a NAJA member. If you can figure out who she is, you can probably look up her contact information on the NAJA website and call her up and ask her questions. She may or may not be able and/or willing to tell you much but it wouldn't hurt to ask.
Edited by denverappraiser, 04 September 2011 - 08:02 AM.
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), but if I can be of any assistance to you, let me know.
Ask Laurie to move this one over to 'the rock' since it's really a discussion about the process of selling more than it is about your particular diamond anyway. Maybe even change the title.
