Jewelry Appraisal – If you own inherited jewelry, there must be some emotional value attached to it. Some of you might be interested to safeguard this family heirloom for the upcoming generations, many others may divide it with the deceased’s estate and the other alternative may be to arrange a down payment for buying your first home. In simple words, this old piece of jewelry can be of great financial assistance at critical times.
No matter what you are planning to do with your inherited jewelry, the most important thing is to determine its adequate value. This means you should get a professional appraisal for the jewelry. There can be many other potential reasons for jewelry appraisals; some of you may require this for insurance purposes, few others might be willing to liquidate their inherited assets, others might be involved in divorce and it is time to know the actual value of the precious wedding band. Irrespective of the reason behind, it, you should do an appraisal with all your head and eyes open.
How to proceed ahead with jewelry appraisals?
If you are not much aware of the process involved in jewelry appraisal, it can be an overwhelming and intimidating thing for you. Therefore, before you begin, be assured that the ways professionals opt for jewelry appraisal are stress-free and painless.
Many business owners are even ready to offer on-site appraisals and you can do enough research about them online, even before letting them step afoot at your floor. Many people are even successful to acquire the desired appraisal via emails as well. Therefore, you can proceed ahead with the appraisal process without worrying about the details.
One of the biggest concerns about proceeding ahead with the jewelry appraisal process is finding the right people to handle the job. As anyone can claim to be a jewelry appraiser, without even requiring any state or federal licensing, it is important to be careful with the selection of the right professional. Most importantly, they must be equipped with the right equipment to evaluate your precious inherited jewelry items. At the same time, the appraiser must have a recognized qualification to lead the process. Having a gemological degree means the person is trained to identify and grade different gem materials.
Other than this, the jewelry owners need to collect enough information about different types of jewelry appraisals. This information may help them to make an adequate decision about the evaluation of a specific item. Below we have listed few details about different types of appraisals available for jewelry items:
Types of appraisals
Replacement value appraisal
This is one of the most commonly followed appraisal methods for insurance purposes. The value you are going to receive with this method is better defined as retail replacement value. It means this value can help you determine the cost of replacement for your precious jewelry. This replacement value can be usually higher than the resale value because it includes market fluctuations, insurance premiums, and many other factors in the process.
Fair market value appraisal
This kind of appraisal provides an estimate for selling the jewelry. This cost description is provided on the basis of the present condition of your jewelry and you can receive different estimates from multiple buyers for your precious gems. Note that this amount can be usually lower than the replacement value appraisal but may be suitable in many cases.
In case if you are interested to liquidate the jewelry on an urgent basis, whether due to estate liquidation or divorce-related issues, liquidation appraisal may be the best idea. However, these appraisals can lead to significantly lower values due to the immediate need to sell.
No matter what kind of appraisal you consider for your jewelry, it is always good to know that appraisals work independently, without following any standard procedure. Although they can charge whatever they find legitimate, you can still ask a few important questions before making the final deal. The most important thing that you need to understand is their fee structure.
Many appraisers prefer to follow a fee structure that is totally based on their certifications and education. They may charge more just because they have vast knowledge about the field. In some cases, the fee can be based on the size of the gem or diamond. However, many other professionals charge a flat fee for their service. It is also possible to find appraisers that charge a fee on an hourly basis.
The fact is that many inherited jewelry may have complicated structures that require more time for evaluation as compared to the simple gold band; therefore, the evaluation charges may vary accordingly. But make sure that the selected appraiser does not charge a fee based on percentage because this is an unethical process. If they do so, they will try to present a high value of appraisal to receive higher commissions.
Getting appraisal reports
When you get your inherited jewelry appraised, you may receive an appraisal report from experts. It is important to ensure that this appraisal report has all the necessary information to validate the process. First of all, the report must contain the name and contact details of the client along with the date of the appraisal. This is because the date of the appraisal is very important in the jewelry market that is fluctuating with each passing day.
At the same time, this report must contain information about the purpose of the appraisal because this is going to affect the deal depending upon whether you expect cash value, agreed value, or the replacement value. These reports also contain detailed information about the jewelry piece, type of setting, statement from an appraiser, photograph of the jewelry, and the ultimate value estimated during appraisal.
In order to receive a fair market value for your precious jewelry, it is important to hire licensed and experienced professionals to do jewelry appraisals. They may help you receive the appropriate value for the assets while making the best out of your time and efforts.