Euclid Home Appraisal Process

Engagement

The process begins with a property owner, buyer, lender, or other interested party requesting an appraisal. The appraiser is engaged to assess the property's value for a specific purpose, such as a mortgage, sale, refinancing, or legal matters.

Property Inspection

The appraiser visits the property to conduct an on-site inspection. During this visit, they evaluate the property's condition, size, layout, features, and any unique characteristics that could affect its value. They also take note of any improvements or repairs needed.

Data Collection

The appraiser gathers relevant data about the property and its surroundings, including recent comparable sales (comps) in the area. These comps are properties similar to the subject property that have recently sold, providing a benchmark for assessing value.

Market Analysis

Using the collected data, the appraiser performs a market analysis to compare the subject property to the recent sales of comparable properties. This analysis helps determine the property's market value based on current market trends and conditions.

Approach To Value

Appraisers typically use three approaches to determine value: the Sales Comparison Approach, the Cost Approach, and the Income Approach. The Sales Comparison Approach is most common for residential properties and involves comparing the subject property to recent sales of similar properties.

Adjustments

In the Sales Comparison Approach, adjustments are made to the comps to account for differences between them and the subject property. These adjustments consider factors like size, location, condition, and amenities to create a more accurate comparison.

Value Determination 

After analyzing the data, making adjustments, and applying the chosen approach, the appraiser arrives at a final opinion of value for the subject property. This value represents an estimate of what the property would sell for in the current market.

Appraisal Report

The appraiser compiles their findings into a comprehensive appraisal report. This report includes details about the property, the appraiser's methodology, data used, comparables, adjustments, and the final estimated value. The report is submitted to the client who requested the appraisal, whether it's a lender, homeowner, buyer, or other party.