(Closed) Ring cost vs appraisal

posted 6 years ago in Rings
Post # 16
Member
1341 posts
Bumble bee

You must have misunderstood what I said. I never said not to insure it for the appraised value. That’s the whole point of getting it apprised. I said that the retail value is usually much more than what we would pay if not buying from a retail store so if the appraisal is more than what you paid, it’s fine. Allows you to replace either getting it remade or from a store. I was saying to the OP that 5x seems extreme and perhaps she could have it reappraised before insuring as it doesn’t sound right. 

Post # 17
Member
4410 posts
Honey bee
  • Wedding: December 2010 - Savannah, GA

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mazzoffee:  Okay… You’re right.  I did misunderstand.  Thanks for clarifying.  That makes much more sense.  🙂

Post # 18
Member
1341 posts
Bumble bee

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Loribeth:  🙂 

Appraisals fascinate me as I’ve heard some doosies. I’d be interested to know either a) how they come up with an appraisal $ or b) if they are actually worth soooo much more, how a place can sell it so cheap. 

Post # 19
Member
4410 posts
Honey bee
  • Wedding: December 2010 - Savannah, GA

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mazzoffee:  Independent appraisals are usually much higher than retail for a lot of reasons. On my rings, the appraisal value was 3 times higher than what my husband paid. I don’t know how they come up with amounts. They examine the setting and the diamonds, measure the diamonds and estimate the weights, and determine quality. Then I imagine they compare that to the prices of similar rings and diamonds from several suppliers, and then take into consideration appreciation of future pricing. 

One thing to remember, when you insure your ring, you expect to get a brand new ring. You’re not expecting to get a used ring. However, your ring is actually considered used the moment it leaves the store. So technically, you are getting an upgrade of sorts, even if the ring looks exactly the same. 

As far as why the stores can sell them so cheaply… Well, they get them at a wholesale price and they get to determine the profit they want to make on them. We as buyers cannot get them at wholesale price, so the appraiser will almost always give you a higher price than retail knowing that when you lose your ring, most likely you will not shop for the best deal to replace it. 

Post # 20
Member
6387 posts
Bee Keeper

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jenuine88:  Often appraisals are higher as it gives you a ‘cushion’, and more flexibility, should anything happen to it and you  end to replace it. This is particularly the case if you’ve bought online/from an independent jeweller, as appraisals are often more in line with high street prices, which are often inflated. 

We paid $2850 for my ring and it’s appraised for just under $4600. That appraisal is about right as it was only through extensive shopping around and contacting multiple jewellers that I found someone to do it for such a good price; the average quote I got was $4k. So, should anything happen and my original jeweller not be in business, it would likely cost me over $4k to replace it, and thus the appraisal is pretty accurate. 

Post # 21
Member
6107 posts
Bee Keeper
  • Wedding: October 2013

 

jenuine88:  my ring appraised for $9,000 more than what we paid. I think it’s pretty common that the appraisal is way more.

Post # 22
Member
1 posts
Wannabee

 Hi I am just  inquiring how much it cost to have my ring valuated and how long it will take thanks Nikki 

Post # 23
Member
652 posts
Busy bee
  • Wedding: February 2018

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jenuine88 :  

i had my ring appraised recently and it was honestly ludicrous. It appraised for 10x more than what we paid for it not including the tax. In fact, the tax on the appraised value was more than we paid for it lol  

Insurance on it at that rate would have been more than double my annual car insurance premium. It was actually stupid. 

I took it to another appraiser and this was more reasonable but still 3x what we paid. The appraiser showed me how she came to the dollar amount and it was actually pretty neat. 

Post # 24
Member
1 posts
Wannabee

My last appraisal on my engagement ring was only slightly more than what we paid for it.  I just got an appraisal done at a different jeweler (4.5 years later), and they appraised it for $12,000 less than what the original appraisal was and less than what we paid for it.  This sounds fishy to me and looking for a second opinion at a different jeweler.

Has anyone else come across something like this?

Post # 25
Member
113 posts
Blushing bee
  • Wedding: February 2018

Not sure what is ‘normal’ here, but my appraisal was a few thousand higher than the actual cost.  I received an appraisal at the time of purchase.  I would only question it if it appraised for less than the actual cost.  

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