Hi:
I have a wedding ring I am currently trying to sell which was purchased in 1983 at one of the Bailey, Banks & Biddle stores in Chicago. At the time of purchase, they appraised the item at $4,738.00 for insurance purposes. I have the signed documentation (including a photo) that they provided.
I am assuming that this appraisal would have to be fairly close to the purchase price, but maybe I am wrong.
In any case, I took the ring to 2 reputable estate appraisal firms here in San Francisco. The first was Butterfield and Butterfield, who estimated its worth at $1,000 to $1,250.
However, having taken other items to Butterfield's, I know from experience that their "auction value" estimates are extremely low. (Private sales of items I have taken there generally bring 3 to 5 times the Butterfield's estimate.)
So I went to another appraiser. He and his partners are very well-respected estate buyers. Initially, I described the ring over the phone and, based on a verbatim reading of the B B & B appraisal, he came up with an estimate of $1,250 to $1,500. However, after he examined it, his price came down to a mere $750.00.
If you do the math, this is 16% of the original appraised value. This does not take into account the inflation rate between 1983 and today. Furthermore, it was my understanding that diamonds do NOT depreciate in value, but rather the opposite is true.
I would like to know if Bailey Banks & Biddle or any jeweler, for that matter, can be held accountable in any way for their appraisal. Should I approach them with the issue, and if so, how?
Thanks for your help,
Carol
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Appraisals - will a merchant stand by the appraise
Started by Guest_Guest_*, Sep 14 2002 06:47 AM
3 replies to this topic
#2
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- A-List Jeweler
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- 1,790 posts
Ideal Diamond
Posted 16 September 2002 - 02:39 PM
It depends on the type of appraisal that was done.
There are different values depending on if you are trying to sell an item orinsure it for retail replacement value.
Maybe you are getting cash values (liquidating) now where as you had a retail replace value before.
You need to specify the reason that you want the appraisal. It would be hard to believe that anyone can give you an accurate appraisal just over the phone without actually looking at the piece.
Jan
There are different values depending on if you are trying to sell an item orinsure it for retail replacement value.
Maybe you are getting cash values (liquidating) now where as you had a retail replace value before.
You need to specify the reason that you want the appraisal. It would be hard to believe that anyone can give you an accurate appraisal just over the phone without actually looking at the piece.
Jan
Jan
For those that want to know the truth about diamonds, just ask.
dbof.com
For those that want to know the truth about diamonds, just ask.
dbof.com
#3 Guest_Guest_*
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- Guests
Posted 16 September 2002 - 05:27 PM
Hi:
The appraisal of the ring states it is "for insurance purposes", but I believe the company who did that appraisal actually sold the ring to my mom at the time the appraisal was done. So the insurance price and the retail price should have been the same.
My problem is the HUGE decrease in value over the last 13 years. One dealer was willing to offer $1,000, another $750. HOw can the value have gone down that much? That is 16% of the purchase price 13 years ago. Seems to me it should have held its value or increased due to inflation.
What do you think the dealer that sold the ring (and, I believe, made the ring) would appraise it at now? I realize that there is a 300% or more mark-up on jewelry, but this over 600%. Shouldn't the jeweler who did the appraisal give me a more favorable settlement so that it doesn't look like they over-priced the ring at the time of the original sale and subsequent appraisal in 1988?
Whew! I'm confusing myself.
Thanks
Carol
The appraisal of the ring states it is "for insurance purposes", but I believe the company who did that appraisal actually sold the ring to my mom at the time the appraisal was done. So the insurance price and the retail price should have been the same.
My problem is the HUGE decrease in value over the last 13 years. One dealer was willing to offer $1,000, another $750. HOw can the value have gone down that much? That is 16% of the purchase price 13 years ago. Seems to me it should have held its value or increased due to inflation.
What do you think the dealer that sold the ring (and, I believe, made the ring) would appraise it at now? I realize that there is a 300% or more mark-up on jewelry, but this over 600%. Shouldn't the jeweler who did the appraisal give me a more favorable settlement so that it doesn't look like they over-priced the ring at the time of the original sale and subsequent appraisal in 1988?
Whew! I'm confusing myself.
Thanks
Carol
#4
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- A-List Jeweler
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- 1,790 posts
Ideal Diamond
Posted 17 September 2002 - 04:18 AM
Hi Carol,
The prices for diamonds have gone up over the last 13 years, The margins however have gone down with the advent of the internet and online selling. But somehow I think that you might have not gotten a proper appraisal 13 years ago.
When getting an appraisal it is best to have it done with an independent appraiser so that there is no conflict of interest in inflating the appraisal to make it seem like you got a bargain.
Also with an inflated appraisal you may have been overpaying for premiums for 13 years as well.
Look for appraisers with ISA, ASA, NAJA after their name. These are people that have taken appraisal courses as well as gemological training.
Jan
The prices for diamonds have gone up over the last 13 years, The margins however have gone down with the advent of the internet and online selling. But somehow I think that you might have not gotten a proper appraisal 13 years ago.
When getting an appraisal it is best to have it done with an independent appraiser so that there is no conflict of interest in inflating the appraisal to make it seem like you got a bargain.
Also with an inflated appraisal you may have been overpaying for premiums for 13 years as well.
Look for appraisers with ISA, ASA, NAJA after their name. These are people that have taken appraisal courses as well as gemological training.
Jan
Jan
For those that want to know the truth about diamonds, just ask.
dbof.com
For those that want to know the truth about diamonds, just ask.
dbof.com
