The process of purchasing a house in Ohio can be thrilling and overwhelming, especially when it’s your first. With its mix of bustling cities, small suburbs and affordable housing, Ohio has something to offer everyone; however, you should be aware of what makes purchasing property in Ohio unique, before signing any paperwork.
Being well informed about local market trends, taxes and neighborhood concerns can make a significant difference in reaching the correct decision and avoiding an expensive mistake.
1. Understand the Ohio Real Estate Market
The housing market in Ohio varies significantly, depending on the city or region. Columbus and Cincinnati houses, for example, have higher sales, since people are developing more jobs and the population is increasing.
The average cost of a home in Ohio is generally lower than the national average, allowing a greater number of buyers to afford them; however, local demand can also lead to bidding wars, especially for ready-to-move-in houses in preferred school districts.
Pro tip: Finding an agent familiar with the local real estate market can assist you greatly. They are able to inform you on the current trends and help you secure a competitive price.
2. Know Your Budget and Financing Options
It is essential to have a realistic budget, before you start touring homes. Look beyond the listing price, taking into consideration closing costs, insurance, maintenance and property taxes.
Key Financing Options in Ohio:
- Conventional Loans: Ideal in the case of buyers whose credit scores are excellent and whose income is stable
- FHA Loans: Popular among first-time buyers, with lower down payments
- VA Loans: Available to all active duty military and eligible veterans
- USDA Loans: Intended to be used by rural home buyers, allowing them to forego a down payment in some parts of Ohio
Securing pre-approval is a big plus. It demonstrates to sellers that you are serious and helps you know just how large an offer you can afford to make.
3. Consider Ohio’s Property Taxes and Insurance
Ohio property taxes can vary significantly from one county to another. Make sure to check the local tax rates in your target area and factor them into your monthly mortgage payment.
Homeowners insurance (which is required) will be slightly higher in areas in which storms, flooding or harsh winter weather are common.
Pro tip: Have your real estate agent or lender give you an estimate of the annual cost of property tax and insurance, before you sign your offer.
4. Consider the Cost of Living and Utilities
The cost of living in Ohio is relatively low, when compared to most other states in the U.S.; but even within the state, costs may differ, based on your location. Larger cities may incur higher utility and transportation expenses, while smaller towns in rural areas often offer lower priced homes and living costs.
The cost of heating during winter can increase rapidly, particularly in older houses. Before buying, it is a good idea to inspect the HVAC system and insulation.
Pro tip: Inquire with the seller/agent about the history of the home’s utility costs, to get an accurate expectation.
5. Research Neighborhoods and School Districts
One of the most critical considerations when purchasing a home is its location. Neighborhoods in Ohio vary radically, even within the same city. Take into account the surrounding facilities, travel time, crime levels and neighborhood atmosphere.
School districts play a key role in home value and satisfaction for families. Regions with high ranking school districts are more likely to retain property value over time.
Visit the neighborhood at various times of the day, to get a feel for its atmosphere. Ask locals about the area, if you are able to; they may provide honest answers to questions about safety, traffic and other factors.
6. Do not Skip the Home Inspection
Ohio’s weather may cause some damage to houses, particularly older ones. You should have a professional home inspection done, before you make your final purchase. Potential problems that may be discovered include:
- Damage to the roof, due to too much snow or a storm
- Poor drainage or flooding of the basement
- Obsolete plumbing or electrical system
- Construction or underpinning problems
The step-by-step inspection report helps you negotiate for repairs (or funds to cover them) before a closing. Omission of this step may result in costly surprises in the future.
7. Be Prepared for Seasonal Weather
There are four different seasons in Ohio, and each has its challenges for homeowners. The winters are cold and snowy, and summers are hot and humid. Be sure to prepare the property for both.
When purchasing during the winter season, ensure that the property has good insulation, an efficient heating system and no ice formation. During the summer check the air conditioning and ventilation.
Pro tip: Require maintenance records for HVAC systems, roofs and gutters. Preventive care is a top priority in Ohio’s ever changing climate.
8. Explore First-Time Buyer Assistance Programs
Ohio provides a number of state and local programs to benefit first-time home buyers. These include:
- OHFA (Ohio Housing Finance Agency) Loans: Provide down payment and reduction of interest rates
- Public Service Worker Grants: Special programs eligible to first responders, teachers and nurses
- County or City Grants: Local incentive programs on homeownership, available in some municipalities
These programs can significantly decrease initial costs and help you become a homeowner.
Conclusion
Purchasing a house in Ohio is a time of excitement, filled with opportunity and promise; however, it is important to arm yourself with knowledge about the process. All of the steps discussed above are essential to understanding market trends, available financing options, taxation, weather and community living.
Patience, thorough research and collaboration with established local real estate agents will help. Purchasing a home in Ohio is a long-term investment that will ultimately pay off. Contact Jill Team today, for professional guidance on buying a house in Ohio.