Appraisal report format/content: calling all appraisers

[mrssparkles]

I just thought it would be fabulous if there is a library or folder of some sort, for appraisers who post here, to post a sample of their report formats. I have visited several individual websites to look for sample reports, and thought it would be easier for everyone who is considering to consult an independent appraiser, to view some sample report formats, and decide for themselves what sort of information or style that suit them.

This should be be construed as self-advertising, I hope. I am a keen customer and probably a rather lazy one at that too

. I don''t think the appraisers should do a song and dance about their styles. I would imagine that posting their work pretty much leaves the decision to consumers like me.

Regards
Sylvia

 

[oldminer]

Appraisers who have taken the time to pay for their education have been given sample forms from which to create their own styles during educational sessions from the various major appraisal groups. Some appraisers now use forms and styles made available through three or four appraisal software firms such as Quantum Leap, Guide Appraisal Software, Carat, etc. These also cost money and take time to develop their individual styles. I've spent years and thousands on customer design pages and productivity methods to do our appraisal work in a unique way, although much of it looks like the same as the rest of the world.

The CONTENT of an appraisal is most important although we admit style and appearance matter for marketing purposes. All better appraisals of identical items have pretty much identical content. They may be worded a bit differently, but the net result is the same. The values of identical items may differ becuase the result of an appraisal is an opinion of value. Ultimately the correctness of the value is of paramount concern, but the description of the item appraised must be provided in a meaningful and accurate manner.

Maybe a few appraisers will post their forms here. I think many who do good work would not want their work product copied even if it is a compliment when someone else says your work is good enough to mimic. I have willingly allowed students of mine to mimic my appraisal work pages over the years, but I really encourage education and self styling of these pages rather than allwoing empty copying without complete understanding of the terminology involved.

There are some excellent books on appraising jewelry. More than a couple by Anna Miller and some excellent work by Cos Altobelli. These books fully describe what needs to be present in reports for those who can teach themselves without a mentor's coaching.

I do show working page samples of diamond grading reports on my website, but never thought it was appropriate to post a value appraisal report sample in an incomplete or partial way.

 

[denverappraiser]

I guess I’m a little different from most of the appraisers out there in that I don’t post a sample appraisal on my site for advertising purposes. It strikes me as somewhat like asking your lawyer for a sample of a contract or your doctor for a sample diagnosis. It would, of course, be fairly easy to do but would it really be all that helpful? I do understand that the shopping process for an appraiser can sometimes be difficult and I try to be very up front with my clients about what they can expect from their appraisal session but, in the end, I think the value is in the content, not the formatting that will make it worthwhile and the content is different for each and every assignment. The ease with which a bad appraiser can start with a good looking boilerplate tends to make this worse and it’s spectacularly easy to do. I suspect that what you're asking for would actually make this situation worse, not better. On request, I will show clients a sample report but I don’t think I would want to include one in the kind of system you are describing.

Neil Beaty
GG(GIA) ISA NAJA
Professional Appraisals in Denver

 

[oldminer]

We agree. Content is the real issue, not boilerplate or looks.

 

[mrssparkles]

Thank you, David & Neil for your replies.

I see your points of view now. It didn''t occur to me the risks of copycats lurking around, and I of course have ignored the necessity of appraisers protecting your "intellectual property". The appraisal report is your product

 

[strmrdr]

I can understand not wanting to make sample reports too available but it is a large issue for consumers.
Iv seen sample reports from a lot of appraisers and there is a large difference in the information included.
I think it would be a great resource to have available.

The reason I recomend Richard Sherwood first is on top of being helpfull, honest person and an all around good guy who is a top expert in his field his reports are the best iv seen.
Some other appraisers may offer the same level of reports but if they wont show that then they dont exist in my opinion when it comes to making a decision on who to use.
Consumers need reports that leave the insurance companies 0 wiggle room and Richard's do that.
Do yours?

So if anyone wondered why Richard is my first pick now you know the rest of the story.
If the rest of the appraisers want to move up lets see some sample reports :}

 

[Regular Guy]

A few comments, while this is your dime, Sylvia.

BTW, I've said as much before, and am sympathetic to this request.

1) Maybe uniquely, Dave Atlas, despite his protests about same, has sample appraisals at his website. Richard Sherwood is both good and bad...to the good -- having a good example of a sample appraisal here on Pricescope under the FAQ section, but...to the bad -- saying he has it at his website, and then presenting none. I think Denver used to present one, but doesn't seem to now. Rock Doc doesn't need to present a report, when you use him, he actually travels with you all the time following the appraisal, and so if the diamond is lost, he automatically starts looking for it, and finds it or repairs it. No, sorry, can't see a sample of his at his site, but if it's as long as his sessions, better look out.

And, these guys are among the best out there.

2) I found this most interesting...

Date: 12/23/2005 7:24:52 AM
Author: oldminer
Appraisers who have taken the time to pay for their education have been given sample forms from which to create their own styles during educational sessions from the various major appraisal groups. Some appraisers now use forms and styles made available through three or four appraisal software firms such as Quantum Leap, Guide Appraisal Software, Carat, etc. These also cost money and take time to develop their individual styles.

I looked at the 3 sample appraisal forms Dave suggests above, and see that for the most progressive among them, at least based on a quick look, only one...Guide...takes up pre-designated space to describe, not color, not clarity, but cut. And, it features only, in this case, the exposition one line description of the AGA cut from Dave's now old charts. The other two don't seem to give this even the one line, specifying ONLY color and clarity, variously helping the appraiser specify these.

I may not be a careful reader...did I miss more specificity there?

3) So, what are the constraining factors regarding this tiny little feature:

- Comparatively, how much does a "standard" master set cost?
- How much would it cost to get contemporary measuring equipment...sorry...some specificity will inevitably be necessary here. I'll make some presumptions:

---OGI - will be cost effective, and provide a useful ballpark?
---Basic sarin - will do the same, but at a greater cost?
---Better sarin - it will be helpful for this one to know the specs...as we want to have a class of machine that would provide a level of detail that would be specifically corrective to what GIA will provide...INCLUSIVE of measurement error. (i.e., this device should be good enough to be thought to give more accurate info that it is expected will be reported on the new GIA certificate, inconsideration of the fact that you won't be able to know their real recorded data).
---Helium - well...maybe no one has it besides Jonathan. How much is it?

- Education. When will appraisers be educated in the relative value of this, so that it does become more of a standard practice and included item?
- New GIA certs...will this represent an accountable factor leading to appraisers reporting more on cut than they do now?

- other....are there any other constraining factors, that help to explain the appraiser's standard of practice for not providing greater assistance with understanding the cut of a diamond or gem?

P.S. Happy holidays to all!

 

[oldminer]

"1) Maybe uniquely, Dave Atlas, despite his protests about same, has sample appraisals at his website."

Please note that the reports on my website are samples of diamond grading reports and not ones which include a dollar value. That particular kind of report is one that is not appropriate to publish in an incomplete manner. An appraiser won't allow publication of incomplete reports as it easily may lead to fraudulent, copycat work. Besides, I am not "protesting". I'm only saying I don't provide sample copies of work product which may be detrimental to the process. Very few firms have the array of equipment, expertise and devotion to customers that a handful of appraisers who participate regularly here make available to all their clients. I know of none who offer such complete reports that choose to avoid Internet work or Pricescope. The few that do it so well are ALL present and accounted for.

The best, brightest, most dedicated, and only moderately affluent group of appraisers is here already and all are pretty well prepared. We all cover the same ground. Yes, we cover it differently sometimes. Some paint it on a little thicker than others. Some use larger shovels and more paper. BUT, in the end, a complete description, an appropriate and accurate value, and as little wiggle room as humanly possible for any insurance company adjuster are the goals we all subscribe to. We charge differing fees because we take more or less time, have different overhead situations, feel differently about how valuable our services are, have hidden fees or single complete fees. You are playing with the top players on Pricescope. I don't want to make this into an ego trip, but there are MANY lesser appraisers out there who perform good quality work, but just are relatively unknown. Few of those lesser appraisers will have the tools Pricescopers seek out. Making comparisons to them is not something that can be done. They may charge less, but they probably will provide less. Some will have extensive resumes and give you lots of paperwork, but many still give 1 page reports and no real content.

 

[RockDoc]

Here is a Table of Content for my reports At least if gives one an idea of what an appraisal should have


Letter of Transmittal 2 pages

Cover Letter 2 pages Covers Function and Purpose

Terms & Conditions 2 pages reports also have date of report and date of valuation, as well as expiration date. (a reader might assume it is good eternally if it doesn''t expire. This is particularly important as new way to discover treatment of changes in grading standards are ammended, plus the values reported can change as well).

Cuiculum Vitae 6 pages

Statement of Independence ( usually 1 page, but might be more)

Backgournd and Introduction ( varies with each type of assignment)

Critical Assumptions ( varies with each report written narratively)

Description of Desireability and Market Coniditions

Disclosure of Material Facts Which Affects Risk for Insurance Company

Critical Assumptions

Insruments Used for Testing

Description of Property

Grading reports for stones

Other pertinent copies of documentations - Brilliance Scope date, Gemprint registeration, etc.

Definitions of Various Market Levels and which one(s) were used if a multi value report

Valuation Reports Value(s) Applicable to the Assignment

Photographs.

Face up photo(s) of gems loose
Face up and Side Photos of gems - mounted
Hearts and Arrows Images
Light Leakage Test Photos
Inclusion Photographs
Internal Photos ( showing strain if present)
Microscope Cam Photos
Fire Scope Photos
Desktop ASET PHOTOS ( recently added)

So, it is pretty easy to see how my reports get to be "small novels" , the average for replacement insurance being 28-38 pages.


Some are boilerplate, but much of the report is selectively and narratively written. Each item is different, and each insurance method of settlement of loss can be varied, and the valuation report needs to address this.

Like Neil and David, I have developed this over the years, and constantly improve it,and posting it on the internet, would not be the best idea.

(C) Copyright 1985-2005 by Accurate Appraisal Consumers Gem Lab.

Rockdoc

 

[strmrdr]

wow
Thats a lot of info RockDoc.
Fits my theory of burying the claims adjuster with paperwork will get better results.

Like I said I understand why ya dont want to post them.
maybe there is a happy medium someplace in the middle.

 

[oldminer]

RockDoc:

As usual, well done.

 

[Regular Guy]

Bump

 

[RockDoc]

Hi Ira

I see you''ve bumped this thread.

Maybe an intersting questions to ask consumers is what is contained in the apprasial reports they''ve received and what information is reported?

Rockdoc

 

[Regular Guy]

Boo Yah!

Roc, I''m not at home, but I can tell you my report is put together in a bookletty fashion (there''s several pages, with a bad picture), reports on the primary diamond''s color and clarity, approximate weight, table & depth measurements, approx measurement, color and clarity of the two side stones, and an approximate price for replacement of the ring in its entirety (the appraisal was done set, based on our mutual agreement hastily made, in advance of our meeting), appropriate for submission to an insurer. In my case, since I wanted additional info on the nature of the cut, and since they were not quarreling with the presentation of crown & pavilion data I came in with, they ran that odd looking thing to them which was the HCA Cut Advisor report and included it in the appraisal report (though, poor girl, I see she''s no longer with the firm, and for all I know was booted out for it''s inclusion...I jest...I hope).

The driver for my bumping this thread today is both developed in my question above (particularly part 3), and also, it is driven further by a recent thread, where it is sort of clear that the bar is rising in the diamond world, where the determination of what is a good cut is becoming clearer to consumers, and I''m wondering what is happening in the world of appraisers that can suggest to us that your partnering with us will help us, showing that when the bar is being raised, you are providing appraising services that help to meet the need of that rising bar.

Although the science of pricing is I think pretty good, the science of helping the shopper optimize is not there...even if the determination to have a well cut stone is in place. Let''s say not everyone here is so focused as a recent poster, and cannot break out the criteria so well as Satriani, so that the question can be parsed as well as Denver Appraiser has articulated here:

"#18. I’m paying XYZ for this stone along with the following attributes that I consider valuable. My criteria is ABC and my concerns are 123. If I continue to shop, am I reasonably likely to come closer to my requirements for a lower price?"

In a world where AGS0 says quite a lot, and in less than a week, where GIA will begin to provide cut grades, although the presentation or format of an appraisal may not be the linchpin document that can help us specify or understand how any particular appraiser would help us understand when it is better to keep shopping, vs stop our search because we''ve done well finding the "one," when the world of nice options is becoming increasingly clear, so that it''s harder to do badly, if you''re using an appraiser to help you know when you''ve done as best as you can, unless they''ll tango with you, the language in an appraisal, as Sylvia has queried, is at least one resource we can use to see about the kind of messaging available to understand at least those circumstances we might be led to try again, and "go fish."

For readers here, and where the suggestion on Pricescope is made to see an independent appraiser, isn''t that sort of the basic idea...to confirm not only that that''s a diamond, but that that''s the one you want to go forward with?

I''d say, for discriminating shoppers, who really do want that kind of assistance from an appraiser, the odds are high that their local guy will not be able to help them, and the pro forma documents from third party services Dave presents above, that many appraisers pay good money to subscribe to, document this.

For even the best appraisers on this board, let alone anyone who reads this and will reply....is there either:

a) any text you would offer as an unspecified sample for a particularly reasonable stone you could demonstrate in your writing you might persuade a shopper who comes to you for your appraisal services, that would show your feelings of ambivalence towards the item?

or

b) any other way you would share with us how you would communicate at least some ambivalence about the object in question?

When the field for discriminating shoppers is getting pretty good, discerning the cream becomes an ever yet greater challenge. Thanks in advance for helping us understand how you can show us the way!

Warm regards this holiday season,

 

[RockDoc]

Ira

Happy New Year...

Is there a format that follows the above that I wrote?

Is the valuation, market level, and how it was estimated written in your report?


Anyone else besides Ira, going to participate?

Rockdoc

 

[strmrdr]

The one I had done by a local that was extremely disappointing.
But since i never insured it it doesnt really matter.
It was just the usual one line descriptions and an inflated value garbage report that cost me $25.

 

[RockDoc]

Storm

You of all people, prosumer that you are.... getting a $ 25.00 appraisal. I would think you''d know, that you get what you pay for ( at least most of the time, anyway)

As far as having insurance, I guess not buying it is ok if you want to aceept the risk of potentially have to reach in your pocket to replace it if you have a total or partial loss. But the insurance is generally far less expensive than other type of insurance..

Even an inexpensive "lousy" policy is better than none....

Rockdoc

 

[strmrdr]

Rockdoc,

that was before I found PS.
Im comfortable that I could replace it if I had too.
I bought on the secondary market at a very large discount.

Looking back on it I did expect more from the appraisal and was disappointing because it was less than promised.

I know a lot more now and would have saved the $25 but the rest of the ring for what I got was a good deal even knowing what I know now.