Appraiser committed fraud????!!!!!

[broncoholic]

I have a long story to set up my question so please bear with me. Also, I'm brand new here!

Prior to purchasing a diamond engagement ring from an estate sale I took it to a local jewelry store to have it appraised. The jewelry store gave me a written appraisal that the ring was worth about $11,000 in its antique setting. Also, the written appraisal had this on it:

"We estimate the value as listed for insurance or other purposes at current retail value, excluding Federal and other taxes. In making this appraisal we DO NOT agree to purchase or replace the articles. The foregoing Appraisal is made with the understanding that the Appraiser assumes no liability with respect to any action that may be taken on the basis of this Appraisal."

I purchased the ring for $3,500 from the estate sale because of the value on the appraisal.

I later had the ring appraised by two different Graduate Gemologists. One appraised the ring at about $3,800 and the other appraised it at about $4,300.00.

Now I'm really mad! I would NEVER have purchased this ring from the estate sale if the local jewelry store had not appraised the ring at about $11,000.

When I confronted the local jewelry store about this he said he stood by his appraisal and that the appraisal also had a "waiver" - the part that says the Appraiser assumes no liability with respect to any action, blah, blah, blah, so I can't do anything about it anyway. Plus, he said that I still have a ring worth more than I paid for it so what's my problem? Oh, plus the jerk said that since I didn't buy the ring from him and he didn't have anything to do with the purchase or sale of the ring that I can't do anything to him. Is he right?

I feel like the local jewelry store committed fraud in this appraisal and I'm going to sue them for fraud to get the difference of what the ring is worth according to the Graduate Gemologists and what the local store appraised it at.
Thought/comments??

 

[diamondseeker2006]

If the local jeweler was not a graduate gemologist, then I am not sure that was a good choice for an appraisal. It is well known that the typical jewelry store valuations for insurance are overestimated. But I don''t think you could claim fraud. The person expressed their opinion on the value. I think you should have used a graduate gemologist to appraise it in the first place. At least it was still worth more than you paid! I wouldn''t buy anything unless I love it even if it is a good deal.

(Welcome to PS, by the way!)

 

[strmrdr]

you don''t have a case.
Even if you did getting past the disclaimer isn''t going too be easy.
You would have too prove intent to deceive.
Forget it.

Let me guess you wanted too resell it at a profit and then found out what a store would actually give you for it?
Did the other GG''s have a stake in setting a value?
Were any of the appraisers by an independent appraiser?

 

[Cleo]

Hello, and welcome to PS

I''m sorry you have joined under such unpleasant circumstances...

I can only offer you my opinion as a consumer (and staunch advocate of consumer rights).

I have to admit that I am baffled as to why the jeweller would appraise the jewellery at such an inflated value, if he stood to gain nothing from the sale of the ring. Unfortunately, if it can be shown that the jeweller''s appraisal was in fact truly independent (and that the jeweller did not gain financially from you buying the ring) I suspect this may go against you in any claim you make.

Perhaps the jeweller was simply not as experienced as the Graduate Gemologists in appraising the ring, and over-exaggerated the ring''s value for completely innocent reasons.

I wonder if I might ask why, after the initial appraisal and deciding to buy the ring, did you go on to have it appraised twice more by two GG''s? Most people would have been satisfied with the appraisal they had done before making the decision to buy..

I am sorry that you have been disappointed by your latest appraisals, but hope you can take some comfort in knowing that you have not lost money on buyng this ring, and that you paid a good price for it.

Please try not to let it spoil your enjoyment of a piece of jewellery which, presumably, you bought because you loved - rather than because of the difference between its apraised worth and the sum you paid.

Enjoy your ring, and perhaps use a different appraiser in future.

x x x

 

[neatfreak]

I agree with Storm...unfortunately you really wouldn't have a case here unless you can prove that they had something to gain by deceiving you and thus were intent on deceiving you.

It is well known that a lot of appraisals are inflated...and why would you bring it to someone who isn't even a GG to appraise it in the first place? I'm confused...

It still appraised for more than you paid for it, so why are you upset?

 

[Pandora II]

Appraisers can come up with odd results.

My grandmother has an 8ct sapphire ring - the sapphire is not great quality and is zoned and poor quality. Her insurance appraiser (not a jewellery expert) recommended she insure it for $20k. I reckon it would cost her about $3k max to replace it.

Drives me made that she has been paying mega-insurance premiums for years on it - but I am banned for telling her in case she''s upset...

As far as your case stands, you probably don''t have a leg to stand on I''m afraid.

 

[Kaleigh]

Going forward use an independent appraiser.

 

[purrfectpear]

Thoughts, comments?

There is nothing to litigate. Period.

Enjoy the fact that your ring is worth more than you paid.

 

[sklingem]

Well - it is sad that your purchase decision was ultimately based on "getting a deal" rather than buying the ring for what it was - a beautiful, maybe unique piece that you wanted to own and enjoy. Even more disturbing: You DID get a deal - but it was not good enough for you. If you wanted to buy the ring to resell it for profit you should have chosen an independent appraiser, as other people have mentioned (and reselling jewelry for profit is rather tough as you may see from other threads). But it was an engagement ring! So that really was not the issue, was it? Sorry - little sympathy here given the circumstances.

 

[broncoholic]

Thanks for all the input. It is an engagement ring that I gave to my brother to give to his girlfriend. I''m not at all savvy about buying rings and actually my father-in-law found the ring and told me to take it to the local jewelry store. I guess I''m just most upset about the fact that this guy''s appraisal was sooo much higher than it should have been.

After I bought the ring, my brother had it reset and then we noticed a flaw in the diamond that we didn''t see when it was in the antique setting. That''s why we took it to get appraised again. When the first appraiser said it was only worth about $4300 I thought maybe he was mistaken so I took it to the second GG after doing more research.

We did get a good deal and I wasn''t looking to resell the ring for a profit, I guess I just feel like the local jewelry guy duped me. He''s not a GG but I still relied on his appraisal but I guess I should have done more research and had it appraised by a GG first. It is a beautiful ring and my soon to be sister-in-law loves it & that''s all that really matters.

Thanks!

 

[diamondseeker2006]

Oh, good! I am so glad she likes the ring! That''s the important thing! I think it is hard to get a bargain at an estate sale because those appraisers usually know what they are doing when they put prices on things!

 

[Broosta]

I think that your local jewelry store had a more difficult job to value the ring as the diamond was still attached to the ring and so they would not have been able to weigh it on its own and therefore discover what carat diamond it is. He would have had to guess and the weight of a diamond is the greatest determining feature with regards to value.
The 2 other valuations were conducted on the loose diamond which they could weigh accurately.
Well actually I''m assuming they didn''t separate the diamond from the setting at the local jewelry store.

 

[denverappraiser]

That doesn’t sound like a terribly useful appraisal and it does seem that the person who authored may be unqualified but you would need to demonstrate some sort of damages as a result of your reliance on their words in order to build a legal case. It says it’s worth $11,000 for ‘insurance or other purposes at current retail value’. Since you aren’t insuring it, and you aren’t either buying or selling it in a retail environment, how does this apply to your situation? By the way, why are you confident that the second and third appraisals are more correct and the first is the one that’s in error? Were these appraisers more qualified than the first or is it just a matter of 2 out of 3 appraisers surveyed more or less agreeing? Were they also assigning a ‘retail’ value and do their reports give any more insight about what they mean by that?

Ps. Go Broncos.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Jewelry Appraisals in Denver