I was in the waiting room, waiting while our youngest son was having his wisdom teeth pulled. One of the dental assistants told me she was very nervous because she was buying her first home.
After congratulating her, I mentioned that I am a real estate appraiser and appreciate the anxiety of buying your first home. She asked me if I could offer some tips. So, I thought this might be a good topic to write about, and share some of the things I mentioned to her.
One thing that often catches first-time buyers off guard? The appraisal.
Let’s talk about what it is, why it matters, and what you should know before that clipboard (okay, tablet) shows up.
What Is an Appraisal?
An appraisal is an unbiased, supportable opinion of value, usually required by your lender to make sure the home you’re buying is worth what you’ve agreed to pay.
It’s not the same as a home inspection. Inspectors look for broken furnaces and leaky basements. Appraisers develop an opinion of value based on market changes, recent competing sales, the home’s condition, location, size, updates, and a range of other factors.
Think of it as a reality check before the bank agrees to loan a buyer the money to purchase the property.
The Appraised Value Can Make or Break the Deal
Let’s say you offer $250,000 on a home in Old Brooklyn. But the appraisal comes in at $240,000. Now what? The seller may agree to drop the price, or you will have to cover the $10,000 gap — you could be facing some tough decisions.
On the flip side, if the appraisal comes in at or above the contract price? You’re golden.
Don’t Trust the Zestimates
We get it. It’s tempting to think Zillow has it all figured out. Honestly, it still amazes me that so many people place such a high level of trust in Zestimates. Those online estimates don’t take into account the property. They don’t know the roof is new, or that the kitchen remodel was more “weekend warrior” than “custom craftsmanship.”
And in Cleveland, value can swing block by block — especially in places like Ohio City, the Detroit-Shoreway, Tremont, or even parts of South Euclid.
Appraisers use closed sales and a careful market analysis — not guesses — to support their opinion of value.
What Actually Affects Value?
Here’s what we’re looking at when we appraise a home:
Square footage and layout. Condition (original windows vs. new vinyl, functional vs. flashy) Updates (bathrooms, roofs, kitchens — ideally done professionally) Location and external influences, such as proximity to train tracks or a commercial property. Lot size and usability (a deep, sloped lot isn’t the same as a flat fenced yard)
Changes in the market also often have a significant impact on the value of a property. Therefore, a careful analysis of not only the overall housing market in an area, but also the prices of homes that compete with the one being appraised.
Who Picks the Appraiser?
Spoiler alert: If you’re taking out a loan, then it’s probably not you.
Your lender hires the appraiser either directly or through a third-party company called an appraisal management company (AMC) to ensure objectivity. That said, feel free to ask your lender when the appraisal is scheduled and how long it typically takes.
If the bank says you qualify for an appraisal waiver, you can always hire an appraiser to work for you to value the property. I highly recommend this option if the bank advises that an appraisal is not necessary.
You Can (and Should) See the Report
Generally, you’re entitled to a copy of the appraisal if you ask. It might look like a sea of charts, photos, and technical terms, but don’t let that scare you. Your agent — or even your appraiser, if you’re working with one independently — can help explain the highlights.
Sometimes it’s nice to know why your dream home appraised the way it did.
Low Appraisal? You’ve Got Options
If the value comes in lower than expected, it’s not the end of the road. You (and your agent) can:
Request a Reconsideration of Value, especially if there are better comps that the appraiser missed. And yes, we sometimes miss comparable sales. Verify factual accuracy (square footage, condition, updates). Renegotiate with the seller or cover the gap with cash.
Appraisers aren’t perfect. Therefore, there are no perfect appraisals. But we’re not trying to make or break a deal — we’re just trying to reflect the market based upon the best data we can find.
Final Thought: In a Hot Market, Expect Some Drama
In a fast-moving market, such as the one we’ve seen recently in many areas of Northeast Ohio, bidding wars can drive up contract prices faster than sales data can keep pace.
That doesn’t mean the appraiser is wrong — it just means the comps haven’t caught up yet. And sometimes the price gets bid up beyond what the market data supports.
If you’re stretching your budget, build in a little breathing room in case the appraisal comes in lower than expected.
Bottom Line:
An appraisal isn’t something to fear — but it is something to understand. If you’re buying your first home in Cleveland, having a solid handle on how value is determined can save you some severe stress (and maybe some cash).
If you have any questions about appraisals or local market trends, don’t hesitate to call me! And now on to some market data. If you’re a first-time home buyer, I hope this information is helpful to you!
CUYAHOGA COUNTY SINGLE-FAMILY HOUSING TRENDS
Here are some fresh stats for single-family homes in Cuyahoga County. Here are the key points from the data below:
- The median sales price in May 2025 was $240,000, representing a 5% increase over the prior year and continuing to trend higher.
- There are approximately. Two months of single-family inventory on the market, which is half a month higher than at this time last year.
- The median single-family list price in May was $250,000, representing a 6% increase over the same period last year.
- On average, selling a home in May 2025 took 16 days.
- On average, homes sell at 100% of their listing price.
- There were 2,182 total active listings in May, approximately 26% more than in May of 2024.
- Pending sales continue to fall! In May, there were 1,004 pending sales, 12% fewer than in May 2024, and the trend continued downward.
SOME THINGS TO MAKE YOU SMILE
And now for some fun! Would you try this challenge? I totally would!
It was pretty cool to watch Cleveland used for the filming of the new Superman movie! Here are some of the places in Cleveland you will see in the film.
LOCAL STUFF
I enjoyed some articles about the Greater Cleveland area. I like sharing these things with you and hope you enjoy them too. Just click on the article to be sent to that article.
Great Ohio Road Trips: Medina – Ohio Magazine
25 Great Hiking Trails to Conquer This Summer – Ohio Magazine
MORE BLOGS I RECOMMEND
If you enjoyed my blog, you might also enjoy some of my friends’ and colleagues’ blogs! Click their links below to check them out!
APPRAISAL TODAY by Ann O’Rourke
Housing Notes by Jonathan Miller
Sacramento Appraisal Blog by Ryan Lundquist
Real Value Blog and Podcast by Blaine Feyen
The Analogue Blog by George Dell
The Appraiser Coach Blog by Dustin Harris
Birmingham Appraisal Blog by Tom Horn
Thanks for being here! I hope you found something in this post that was beneficial to you!
Have a great long weekend!
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If you want to order a residential real property appraisal in Northeast Ohio, click here. I’d love to help you solve your value problem! I’ve been appraising properties in the following counties since 1998: Cuyahoga, Summit, Lake, Geauga, Portage, Medina, Lorain, and Stark.
* Some parts of this post were created using AI tools, with final edits, and opinions by me.
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Nice job. While the appraisal process seems somewhat hands-off for buyers, I think this nails the important topics for consideration.
Thanks, Ryan! I hope some buyers will find this information to be helpful!