Keeping it real
For most clients, advice and a reality check are the primary services we can provide. I charge an hourly rate to provide a ‘resale consultation’ that may evolve into another type of assignment. I’ve learned it’s seldom a good idea to offer advice without first examining the property and understanding the seller’s needs and motives. If they are willing to make the trip to my office and understand that as a highly trained professional my time is worth paying for, they are much more willing to accept that my advice is grounded in fact. Free opinions are seldom worth the asking price. In addition, I’ve found few people actually know anything about what they’re trying to sell, and the opportunity to examine it first-hand makes my advice more credible.
The consultation always involves the aforementioned reality check/education in which I explain most jewellery is actually a depreciable asset that, much like a car, loses significant ‘value’ once it leaves the store. I explain the impact of the buyer’s motivation, as well as the importance of style, condition, and the chosen resale venue on the potential value of their property. We talk about the pros and cons of different methods of disposal, and which one may be most appropriate for their situation and jewellery. I provide a list of local retailers offering consignment services, contact information for auctioneers, etc. I also clean and inspect the jewellery for damage or other issues that could influence a potential buyer’s offer. In essence, we discuss the differences between replacement value, resale market value, and marketable cash value, as well as the ‘how to’ of selling pre-owned jewellery. All the while I do a delicate dance around the question, “How much is this worth?” If they insist on an answer, we must enter the realm of an appraisal.
It is my opinion that for most resale clients, the valuation of their jewellery is neither necessary nor desirable. Most buyers have already done price research on the Internet, and they are most concerned that the seller’s representation of quality and condition are accurate. In addition, in light of the public’s general ignorance of different types of appraisals, most buyers assume the value is inflated and will only offer a fraction of the amount shown in the appraisal. That means sometimes an appraisal can become an impediment to achieving the highest price.
By far, the most common services I provide for my resale clients involve qualitative analysis and authentication—they are less expensive than an appraisal and can provide much of the same reassurance to prospective buyers. I offer reports for identification/authentication, diamond and gemstone grading, qualitative analysis, and I can act as a liaison between the client and major laboratories or auction houses if necessary. Once the seller understands the reality of resale and adopts the buyer’s mindset, he or she appreciates a less costly, equally effective alternative to an appraisal. However, sometimes they still insist on an answer to ‘the question.’
