There are many reasons why you might need a jewellery appraisal. It may be that you need an appraisal for insurance purposes. Or, you may be liquidating some of your assets. Maybe you have gotten a divorce and need to know the value of your wedding band or engagement ring.
Whatever your reason, it is a good idea to start the process of jewellery appraisal with your eyes wide open and your head full of knowledge about the ins and outs of getting a jewellery appraisal, as well the different types of appraisals available.
Here are 6 things to know before getting a jewellery appraisal.
If you don’t know very much about what is involved with an appraisal, it can seem intimidating and overwhelming to be at the start of the process.
Before you begin, rest assured that there are ways to navigate jewellery appraisal that are painless and stress free. Many different businesses offer on site appraisal, and with today’s technology you can research the qualifications and reviews before you even set foot in the door.
Many people have successfully acquired an appraisal, either in person or with a secure Courier option.
So although it may be new territory, you can move forward with your appraisal assured that you do not have to do it all on your own.
When you get an appraisal, you will receive details and all pertinent information about your jewellery. The characteristics of your gem stone and documentation specific to your item.
Most appraisals are done for insurance purposes.
The value you receive is called the retail replacement value, and this value will tell you the cost of replacement for your jewellery in the event that something happens to your item.
The retail replacement value will be inflated and a much higher number than the resale value of your jewellery. First and foremost, this is due to the fact that the appraisal is an estimate of how much it will cost you to purchase a new replacement for your jewellery, as opposed to selling used jewellery. It’s also due to a number of factors, such as insurance premiums, market fluctuation, and the fact that the appraisals need to be valid for 10 years, during which the cost of replacing jewellery will increase.
A Fair Market Value appraisal gives you an estimate of what you would receive if you sold your jewellery. It takes into account the condition of the jewellery, and is meant to give the seller a feel for how much they could get from a willing buyer. This amount will be lower than a Replacement Value Appraisal.
If you need to quickly liquidate jewellery, whether due to a divorce or estate liquidation, you can get a Liquidation Appraisal. These appraisals are usually significantly lower, reflecting the immediate need to sell.
Did you ever consider that the document you receive from an appraiser could likely be used in a legal situation? You do not want an appraisal that will not hold its credibility when the time comes.
Therefore, you need an appraisal from someone who has the knowledge and experience to give you a credible evaluation of your property. Your appraiser should have gemological training and experience as well as an understanding of how jewellery is made. They should also have appraisal training and come recommended by references or reviews.
Asking all these questions will help you determine whether or not the appraiser is not only educated and experienced but also trustworthy and honorable.
However, if you only need an appraisal, there are a few things you need to know.
Because appraisers work independently, there is no standard. They can charge whatever they like. But there are considerations they should factor in, and you can ask them to break down their quote and tell you what those factors were that went into their decision of their fee.
You can expect to find the following items in a report from an appraiser:
It is important to note that the retail replacement value (which is for insurance purposes) will be inflated and a much higher number than the fair market value or resale value of your jewellery. This is due to a number of factors such as insurance premiums and market fluctuation. As well, the re-sale value will be even lower than (about 20-50% of) the fair market value. And this number is of course impossible to guarantee, as you only sell your jewellery if you find a buyer for it.
If you’re in need of jewellery appraisal, being in the know about the entire process will ensure that you get the best value of your jewellery. Knowing the right questions to ask and the expected qualifications of an appraiser will give you the assurance that you are choosing the best appraiser.
Seeking out an appraiser and having your jewellery appraised may take some time and effort on your part. But if you decide to sell your jewellery, or if your jewellery is ever stolen or lost, you will be glad you invested your time and energy into an accurate appraisal of your assets.
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