Author: Laura

As we step into 2024, you may be thinking of buying a home or, maybe you’re wondering how the market is going to play out. In this blog post, we will describe the important factors that influence the real estate market and provide you with a clear understanding of the dynamics involved.

Economic Overview

As of today,  the economy is at an interesting juncture, with inflation and the Federal Reserve’s policies playing crucial roles. We’re currently seeing headline CPI (Consumer Price Index) at 3.1%, and the Federal government has a dual mandate to control inflation and sustain full employment. The expectation is that the Fed may cut rates multiple times in 2024 to counteract restrictive policies.

As stated by Housingwire.com, the housing market in 2024 reflects a delicate balance between growth and affordability. While home prices are on the rise, they are doing so at a more stable and controlled pace compared to the tumultuous increases seen during the pandemic. The increased inventory and climbing sales rates suggest a healthy market, but the lingering affordability crisis remains a concern.

Mortgage Rates and Recession

With the Fed likely to cut rates and inflation moderating, the direction of mortgage rates becomes pivotal. The expectation is that rates may trend down, possibly reaching the mid-5 % range. While a recession might be on the horizon, signs indicate a potential for a ‘soft landing’ rather than a severe downturn, given the resilience of employment and changing economic dynamics.

Inventory Forecast

In the real estate market, listings are a key factor influencing supply and demand. While 2024 is expected to start with higher inventory levels than 2023, the increase may not be substantial enough to alter the market dynamics significantly. Factors such as low interest rates and increased demand may drive more sellers to list their homes, but it’s unlikely to flood the market with new inventory.

Inventory Trends:

The year concluded with over 3,000 homes on the market for Northeast Ohio according to Redfin.com. Sellers are gradually re-entering the market, and the growth in new homes under contract is a positive sign for the market’s health.

Affordability Challenges Persist:

Despite positive market indicators, there is an ongoing affordability crisis, as many potential buyers are unable to afford homes due to high prices. While lower mortgage rates may make payments more affordable, they could also increase competition among buyers, driving up home prices.

Buyer Demand and Transactions:

Improved housing affordability, resulting from lower mortgage rates and moderate home price increases, is expected to boost buyer demand. However, the limited number of qualified buyers in the market may prevent a significant increase in transactions. Affordability continues to be a challenge, even with predicted wage growth.

Price Reductions and Market Normalization:

Price reductions are currently in the “normal range,” with 34.8% of homes on the U.S. market having taken a price cut. The expectation is for this percentage to fall in the coming months as fresh inventory enters the market in spring.

House Price Outlook for 2024:

We expect moderate house price growth, ranging between 3% and 5% in most areas across the United States. In November 2023, the median listing home price in Northeast Ohio was $119K, with a year-over-year increase of 1.3%. The median listing home price per square foot was $80, and the median home sold price was $105K, as reported by Realtor.com. While we may see more transactions and a slight increase in inventory, affordability constraints are likely to keep a lid on house prices.

Should You Buy a House in 2024?

To be prepared for buying a house in 2024, our agents suggest meeting the following:

1. Be debt-free.

2. Have an emergency fund covering 3–6 months of expenses.

3. Ensure your monthly house payment is 25% or less of your monthly take-home pay, based on a 15-year fixed-rate mortgage.

4. Have a down payment. While a 20% down payment is ideal to avoid private mortgage 

insurance (PMI), 5–10% is acceptable for first-time home buyers. However, be aware of the PMI costs. Avoid FHA and VA loans as they incur higher fees.

5. Be able to pay the closing costs upfront without using money from your down payment.

If you don’t meet these qualifications, it doesn’t matter if the market is favorable. Buying a home could become a burden instead of a blessing. Take your time to improve your financial position before purchasing a house the right way.

Future Outlook:

In conclusion, the housing market in 2024 shows cautious optimism, with signs of growth and stability. However, addressing the affordability crisis is vital for a more inclusive and sustainable real estate scenario.

When navigating the 2024 housing market, consider economic factors, interest rates, and housing dynamics. Whether you’re buying, selling, or investing, understanding these trends will help you make informed decisions. Remember, real estate is local, so keep an eye on your market conditions.

Traditional mortgage loans, governed by renamed entities, often come with stringent requirements, leaving some potential homebuyers without viable options. In such cases, considering a nonqualified mortgage (non-QM) loan could be the key to unlocking homeownership. This post aims to provide insights into the world of non-traditional loan programs and their suitability for diverse financial situations.

Benefits of a Non-QM Loan:

Expanded Borrower Criteria:

According to CrossCountry Mortgage, Non-QM loans present opportunities for a broader spectrum of borrowers, including retirees, real estate investors, self-employed or gig workers, individuals with a high debt-to-income ratio, and those with credit history blemishes. If traditional loans prove elusive, a non-QM loan might be the solution to realizing your homeownership dreams.

Alternative Documentation:

Unlike traditional loans, non-QM loans allow for alternative income documentation beyond the standard W-2s, bank statements, pay stubs, and tax returns. This flexibility can be advantageous for borrowers with unique financial situations.

High-Interest Rates:

Since non-QM loans aren’t backed by entities like Fannie Mae, Freddie Mac, or government agencies, lenders assume more risk. Consequently, non-QM loans often carry higher interest rates compared to conventional mortgages. Prospective borrowers should be aware of this factor and assess its impact on monthly premiums.

Longer Loan Terms:

Bankrate.com points out that some non-QM loans come with loan periods exceeding the traditional 30 years. While this provides flexibility, it also means a more extended commitment and potentially higher overall costs for the homebuyer.

Eligibility Criteria for a Non-QM Loan:

Credit History:

Non-QM loans offer flexibility, with eligibility for borrowers with fair or poor credit scores. Some programs extend opportunities to those with credit scores as low as 580 or even 500, providing a lifeline to individuals with challenging credit histories.

Debt-to-Income Ratio:

Unlike traditional loans, non-QM loans can accommodate higher debt-to-income ratios, often exceeding the 43% limit. This makes homeownership possible for individuals with substantial debts that might otherwise disqualify them from traditional loans.

For The Consumer Financial Protection Bureau, Your debt-to-income ratio (DTI) is all your monthly debt payments divided by your gross monthly income. This number is one-way lenders measure your ability to manage the monthly payments to repay the money you plan to borrow.

Common Types of Non-QM Loans:

Non-QM loans come in many forms. Here are some of the most common types of non-QM loans according to CrossCountry Mortgages

Bank Statement Loans:

These loans rely on reviewing bank statements, requiring as little as two months’ worth for some lenders. This alternative documentation can be advantageous for self-employed or gig workers with irregular income.

Investor Cash-Flow Loan:

Ideal for real estate investors, this type of loan uses rental income as the primary qualification metric, bypassing the need for traditional income statements and tax returns.

Asset Depletion Loans:

Allowing borrowers to use liquid assets as collateral, asset depletion loans offer an alternative to relying solely on day-to-day income for mortgage approval.

Recent Credit Event Loans:

Designed for individuals who have experienced recent credit events like foreclosures or bankruptcies, these loans provide opportunities for those overcoming financial hardships, albeit with potentially less favorable terms.

Final Takeaway:

Non-QM loans offer a diverse range of options for prospective homebuyers who do not meet the criteria for traditional mortgages. Understanding the benefits, eligibility criteria, and common types of non-QM loans can empower individuals to make the best decision on your homeownership journey.

1. Disclaimer: The sample rates provided are for illustration purposes only and are not intended to provide mortgage or other financial advice specific to the circumstances of any individual and should not be relied upon in that regard. CrossCountry Mortgage, LLC cannot predict where rates will be in the future. The payment example does not include assessments. Actual payment obligations may be greater and may vary. Mortgage Insurance Premium (MIP) is required for all FHA loans and Private Mortgage Insurance (PMI) is required for all conventional loans where the LTV is greater than 80%. Rate(s), APR(s) and payment info is valid as of 12/14/2022 and assume a first lien position, 740 FICO score, 25-day rate lock, based on a single-family home. All terms are subject to change without notice. Loans are subject to underwriting guidelines and the applicant’s credit profiles, not all applicants will receive approval. Contact CrossCountry Mortgage, LLC for more information. Available for conventional, FHA, VA, and USDA loans only. Equal Housing Opportunity. All loans are subject to underwriting approval. Certain restrictions apply. ↩︎

• 2. Disclaimer: The information described was taken from the resource center of CrossCountry Mortgage LLC and Sean Hadley Personal NMLS265075 Branch NMLS1646021 Company NMLS3029

With inventory remaining relatively low across  Northeast Ohio, we’ve noticed homebuyers being more likely to head toward new construction opportunities. As one of our seasoned agents at The Young Team, Anna Lloyd,  aptly observes, “This shift is attributed to various factors, such as a desire for worry-free living, fewer options in the current housing market, and a strong preference for the modern conveniences offered by brand-new homes.”

The Appeal of Move-In-Ready Living

Buyers today are seeking the convenience of turnkey living. With fewer options in the existing housing inventory, many are opting for new constructions to avoid the hassle of renovations and updates. The prospect of moving into a home where everything is fresh and up-to-date is a powerful draw for those who value their time and want a seamless transition into their new living space.

Especially for the Greater Cleveland area, where the city offers you a strong economy and affordable living. According to NewHomeSource.com, there are 101 new communities in the area and more than 500 new homes listed. 

Features to Look for in New Constructions

What makes these new constructions so appealing? Our expert insights reveal that open layouts, modern and trending finishes, low maintenance requirements, and high efficiency are among the top features that buyers desire. These elements not only cater to contemporary aesthetics but also align with the practical preferences of today’s homeowners who seek both style and functionality.

According to redfin.com, there are over 2,000 people interested in moving to Ohio compared to those looking to move out. This could be attributed to the state’s better quality of living and affordability in home buying. With that being said, if we continue to see more buyers than there are pre-built homes for sale, new construction will continue to remain a popular option.

Ideal Buyers For New Construction Homes

Understanding the market is crucial, and our team sheds light on the types of buyers most likely to be drawn to new constructions. These include individuals not in a rush to move, experienced homeowners looking to design their long-term residence, and those accustomed to the ease of apartment living. For these buyers, the prospect of a new, customized home outweighs the potential challenges of older homes requiring more maintenance.

The Cost of Building a New Home

Insights from Houzeo.com point out that new construction often costs more than a move-in-ready home “Typically, you would spend 9 months to build your house. In case you don’t hire a contractor and choose to DIY, it can go up to 12 months.”

In Ohio, homeowners spend $372,480 to build a house on average, which is $137,280 more than the median sale price. Costly labor, supply chain challenges, and rising material expenses can significantly impact your budget. According to marketing experts at TheYoungTeam, historically, new construction has been more expensive than buying a pre-built home. However, we are seeing more builders offering incentives to buyers to level the playing field. These incentives may include special mortgage rates, buydowns, upfront money for home upgrades, down payments, or closing costs.

If you’re looking for a more affordable home, consider the option of purchasing a move-in-ready home.

Bottom Line

As Northeast Ohio’s market evolves, the trend toward new construction stands out as a reflection of changing buyer preferences and low pre-built home inventory. The appeal lies not only in the modern features and turnkey living but also in the opportunity for buyers to actively shape their long-term homes. Understanding the motivations behind this shift empowers both buyers and sellers in navigating the dynamic market with confidence.

To learn more about all our exciting developments and explore the opportunities they offer
visit our web or contact us.

When embarking on the exciting journey of finding a new home, it’s crucial to evaluate various aspects to guarantee a wise investment. From assessing the structural integrity of the home to taking into account the desirability and compatibility of the neighborhood, all of these factors and more will help guide you to making a smart investment in your future home. 

Let’s explore these details so you can ensure that your new home will meet your needs while holding long-term value and satisfaction.

1. Structural Issues

According to Money.com “The right house should be determined by more than just a nice coat of paint and some neat landscaping. The bones of the house need to be solid as well to ensure your dream home doesn’t turn into a nightmare.”

When searching for a new home, follow these protocols to stay ahead of the game:

House Foundation

Signs of potential foundation issues should not be taken lightly, as they can lead to more serious problems if left unaddressed. Keep an eye out for exterior and interior wall cracks, uneven or spongy floors, cracked floor tiles, gaps between walls and door or window frames, bowed walls, sinking ground or weeds around the foundation, as well as moisture in the basement or signs of water damage. Identifying and resolving these issues early on can save you from costly repairs down the line, ensuring the longevity and safety of your future home.

Roof

When evaluating a property, it’s important to ask about the age, material, and last inspection date of the roof. Additionally, inquire about the availability of a roof certification letter and any history of damage that may have occurred. These details will provide valuable insights into the condition and maintenance of the roof, helping to inform your decision-making process.

Basement

When inspecting the basement, look out for signs of water damage. Keep an eye out for stains, dampness, pooling water, mold, or any unpleasant damp smell that may indicate moisture issues. Identifying these warning signs early on can help prevent further damage and ensure a safe and healthy environment.   

Attic

When inspecting the attic, look out for signs of pests, such as droppings or chewed materials. Additionally, assess the condition of the insulation to ensure it is not wet or damaged. Keep an eye out for any mold stains, as well as signs of improper ventilation, which can lead to moisture buildup. Lastly, check for any leaks from pipes that may be causing water damage. Taking the time to thoroughly examine these aspects will help ensure the attic is in good condition.

2. Plumbing

 Functionality

It is important to thoroughly check various components related to water supply and drainage. This includes inspecting the water heater, faucets, toilets, sewage lines, and drains for any potential issues that may arise. 

Mold

   Remain diligent in inspecting dark and damp areas for the presence of mold. It is advised to carefully examine different locations for any signs of water stains. 

Flooding

Floods occur naturally and can happen almost anywhere, especially if you’re near a water source like Lake Erie or a large pond. They may not even be near a body of water, although river and coastal flooding are two of the most common types. Heavy rains, poor drainage, and even nearby construction projects can put you at risk for flood damage. 

According to FEMA.com, when buying a home, it is advisable to review and understand Flood maps, to have a better perspective of the zone you’re looking for in your forever home.

 “Flood maps show how likely it is for an area to flood. Any place with a 1% chance or higher chance of experiencing a flood each year is considered to have a high risk. Those areas have at least a one-in-four chance of flooding during a 30-year mortgage.”

3. HVAC

Heating, Ventilation, and Cooling Systems

Before purchasing a house, it’s important to make sure that all heating, cooling, and ventilation systems are in good working order. This applies to both newly constructed and older homes. If there are any issues, you may be able to negotiate with the seller to fix them before finalizing the purchase. 

4. Neighborhood Considerations:

Decide on Location

When it comes to finding the perfect neighborhood in the Greater Cleveland area, it’s important to consider your preferences. Whether you’re looking for a vibrant urban setting or a tranquil suburban area with a strong sense of community, Ohio has it all..

Ask yourself the following questions:

• Which location appeals to you most? Do you have a preferred suburb or neighborhood in mind? 

• What style of house are you seeking? Are there any specific requirements?

• What are the essential features you desire in your new home?

• Are you in need of a home suitable for hosting guests and entertaining?

• Have you established your price range or consulted with a lender to determine the most suitable budget?

• What hobbies or activities do you enjoy that you’d like to be near?

5. House Size and Style

When searching for the ideal home, pay attention to both the style and size that fits with your lifestyle. Consider the architectural style that resonates with your aesthetic preferences—whether it’s the timeless charm of a colonial design, the modern lines of a contemporary build, or the coziness of a cottage-style home. 

Equally important is evaluating the size of the property to meet your functional needs. Assess the layout, number of bedrooms, and overall space to ensure it aligns with your present requirements and accommodates potential future growth. 

Striking a balance between style and size ensures that your new home not only reflects your taste but also provides the practicality and comfort needed for a fulfilling living experience.

Cleveland stands out as one of the most attractive cities to relocate to, with a wide array of housing options. From charming colonial suburbs to upscale new constructions and apartment buildings, there’s something to cater to every taste and lifestyle.

Price

When considering a home purchase, price is a crucial factor to take into account. It’s important to focus your search on neighborhoods that align with your budget, particularly if repairs or renovations are required. By being realistic about your financial limitations, you can make a more informed decision and ensure that your investment aligns with your overall financial goals.

Noise Levels

Taking into account the impact of noise, it is important to evaluate various potential sources. These may include factors such as traffic, nearby recreational facilities, bars, neighboring properties, or ongoing construction sites. 

6. Renovation Needs

 Bad Layout

When looking for a new home, it’s important to keep an eye out for layout issues that you may want to change. A well-designed layout can greatly enhance the functionality and livability of a home, making it a more enjoyable space to live in. So, be sure to consider the layout when making your decision!

Repairs

When assessing the need for necessary repairs and unusual cosmetic enhancements, it is important to carefully examine the current condition of the property in question. This includes thoroughly inspecting all components, systems, and structural elements to identify any areas that require attention. Additionally, considering the overall aesthetic appeal and potential enhancements can contribute.

7. Before Buying a New Home: Find a Real Estate Agent

You can make this process less stressful by partnering with a realtor who is honest, trustworthy, and will always act in your best interest. Additionally, having a deep knowledge of neighborhoods is crucial. An agent who understands the ins and outs of different areas can provide invaluable insights to help you make informed decisions. 

Detailed contract knowledge is also essential to ensure that all agreements are clear and fair. Effective communication skills are a must as well, as you want an agent who will keep you informed every step of the way. 

Finally, experience is invaluable. Look for an agent with a proven track record who can navigate any challenges that may arise with confidence and expertise.

According to Forbes.com “An experienced real estate agent helps you evaluate homes on the market and guides you through the buying process. They will make sure you view homes that meet your criteria and act as an intermediary with the seller and their agent to help you get the best deal.”

Bottom line

Embarking on the homebuying journey demands a vigilant approach. From scrutinizing structural elements like foundations to assessing neighborhood considerations, each step is pivotal in securing a wise investment. 

The quest for the perfect home involves not just physical aspects but also personal preferences, lifestyle choices, and budget constraints. Engaging in a thorough examination of potential noise levels and renovation needs adds another layer of consideration. 

As you navigate this significant decision, partnering with a knowledgeable and trustworthy real estate agent becomes a key asset, providing the guidance needed to make informed choices and ensuring a less stressful homebuying experience. 

If you’re planning to buy a home, we’ve got you covered with some helpful tips. From setting realistic down payment goals to boosting your credit score and trimming expenses, here we’ll guide you through the process. Get ready to embark on your homeownership journey in the Greater Cleveland Area with discipline and consistency in your savings efforts. 

As stated by Investopedia.com, “The down payment impacts your mortgage type, the amount of your loan, and the loan’s terms and conditions. Under the above, a larger down payment will give you a lower loan-to-value ratio, or LTV, and you may qualify for lower interest rates.”

The average first-time home buyer pays 6% upfront and finances the balance. Common down payments range from 3% to 20% of the purchase price. The ideal down payment amount depends on individual circumstances

Get ready to turn your dream of owning a home into a reality!

1. Determine Your Goal:

The first step to purchasing a home is to go through the pre-approval process. By doing so you will review your current financial situation and debt capacity so you can estimate how much home is right for you.

Research Online: The next step would be to start exploring what the inventory is like in the Greater Cleveland area. Websites like Explore Greater Cleveland can provide valuable insights into current market trends, property values, and potential neighborhoods. 

Understanding the local market will help you set a realistic down payment goal based on the type of home you aspire to own. 

2. Choose the Right Savings Vehicle:

 Dedicated Savings Account: Opt for a savings account specifically earmarked for your home down payment. Consider local banks or credit unions that offer higher interest rates on savings accounts. Some financial institutions may even have special accounts designed for homebuyers. 

High-Yield Savings Account: According to Investopedia.com it is advisable to shop around for the best rates and features that align with your savings goals. “The interest rates on high-yield savings accounts can be 10 to 12 times higher than traditional savings account returns.”

3. Consider a Joint House Fund:

Collaborative Savings: If you’re married or in a committed partnership, combining your financial resources can expedite your down payment savings. Establish a joint house fund where both partners contribute a set amount each month. This collaborative effort not only accelerates your savings but also fosters teamwork and shared financial goals.

According to thebalancemoney.com “In any case, there’s no wrong way to customize your banking and bill paying, so long as it’s fair, transparent, and sustainable for both parties.”

4. Automate Your Savings: 

By using automatic transfers, you can reduce the temptation to overspend and make it easier to stay on track with your savings plan. Even a small amount saved each month will add up quickly and keep you motivated to reach your goal.

5. Boost Your Credit Score:

Check and Improve Credit: Obtain a yield savings account or CD (certificate of deposit). These special accounts are designed for homebuyers and offer higher rates of return than traditional savings accounts. 

Investopedia.com suggests “identifying a bank that offers competitive yields with minimal restrictions” when choosing this account type. Continue with asking for a copy of your credit report from major credit bureaus and thoroughly review it for any inaccuracies. Resolving discrepancies can have a positive impact on your credit score. 

To enhance your score, prioritize timely bill payments, reduce credit card balances, and avoid incurring new debt. A higher credit score not only increases your likelihood of mortgage approval but also qualifies you for lower interest rates.

6. Trim Your Expenses:

Evaluate Monthly Budget: Conduct a thorough review of your monthly expenses to identify areas where you can cut back. This might involve reassessing discretionary spending, such as dining out or entertainment expenses. Look for more cost-effective alternatives for everyday purchases and consider negotiating bills or switching to budget-friendly options. Redirect the savings from these adjustments into your dedicated down payment fund.

By implementing these detailed strategies, you’ll be better equipped to navigate the path to homeownership in the Greater Cleveland Area. Remember, discipline and consistency in your savings efforts will bring you closer to realizing your dream of owning a home.

Final Takeaway:

In conclusion, by following these helpful tips and staying disciplined in your savings efforts, you can turn your dream of owning a home in the Greater Cleveland Area into a reality.

•  Set realistic down payment goals
• Boost your credit score
• Trim expenses
• Automate your savings 

With determination and consistency, you’ll be well-equipped to navigate the path to homeownership. Get ready to embark on this exciting journey and make your dream come true!

Becoming a homeowner in Northeast Ohio has its particularities in terms of costs for homeownership. While owning a house comes with its expenses in every other state, it’s relevant to consider these home costs when making the transition from renting to homeownership in the Buckeye State.

Down Payment: 

The down payment is a crucial component when venturing into homeownership, and for first-time buyers, an FHA (Federal Housing Administration) loan can be a valuable resource. 

Understanding the Down Payment: 

The down payment is a percentage of the home’s purchase price that the buyer pays upfront. Traditionally, a 20% down payment has been considered standard, but FHA loans provide an alternative for first-time homebuyers with more flexible down payment requirements.

Closing Costs: A Closer Look

Outside of the purchase price for a home, there are other costs associated with the transaction that a buyer is expected to cover. Here’s a breakdown:

Components of Closing Costs:

Loan Origination Fees: Charged by the lender for processing the loan application.

Appraisal Fees: Covers the cost of a professional appraisal to assess the property’s market value.

Title Search and Insurance: Ensures a clear title and protects against any potential legal issues.

Home Inspection Fees: Although separate from the initial home inspection cost, additional inspections may be required during the closing process.

Escrow Fees: The cost associated with the escrow service that facilitates the transaction by holding funds and documents until all conditions are met.

Estimating Closing Costs:

Rule of Thumb: While closing costs can vary, a general estimate is around 2% to 5% of the home’s purchase price. For a $200,000 home, this would equate to $4,000 to $10,000 in closing costs. However, this can fluctuate based on factors such as the loan amount, location, and specific transaction details.

 Negotiating Closing Costs:

 Lender Credits: In some cases, lenders may offer credits to offset closing costs, but this can impact the overall mortgage terms.

Seller Contributions: Buyers can negotiate with sellers to cover a portion of the closing costs, which is a common practice in real estate transactions.

The following tips can help you save some money in closing costs. Read the full post here

Preparation and Transparency:

Good Faith Estimate: Lenders are required to provide a Good Faith Estimate (GFE) detailing the expected closing costs within three days of the loan application. Reviewing this document helps buyers anticipate and plan for these expenses.

Closing Cost Assistance Programs:

Local and State Programs: Some regions offer assistance programs to help homebuyers with closing costs, especially for first-time buyers. Researching and exploring these programs can provide additional financial support.

Pro Tip: Build an Emergency Fund
As a homeowner, unforeseen circumstances can happen, like major repairs or financial setbacks. An emergency fund can ensure that you’re prepared for unexpected expenses without compromising financial stability. The general rule of thumb is to have 3-6 months’ worth of living expenses saved and reserved for when an emergency arises.

Moving Beyond the Purchase:

Mortgage Insurance: A Post-Purchase Necessity

Post-purchase, homeowners often need mortgage insurance. This additional cost safeguards your investment and provides financial protection in the event of unforeseen circumstances.

As stated by CrossCountry Mortgage, mortgage insurance is the contract that insures the lender against loss caused by a borrower’s default on a government mortgage or conventional mortgage. Mortgage insurance can be issued by a private company or by a government agency.

Your lender will typically include this in your monthly payment breakdown. If not, be sure to inquire how much it will cost to budget accordingly. 

Property Taxes: Understanding Your Obligations

Being aware of property tax obligations is crucial. These taxes contribute to community services and infrastructure, and understanding the local rates is essential for financial planning.

Insurance: Tailoring Coverage to Your Location

Home insurance costs vary based on location and additional coverage needs, such as flood insurance. Tailoring your insurance policy ensures comprehensive protection for your property.

According to MarketWatch.com, buyers should base their insurance decisions on thorough comparisons of plans, benefits, coverage, discounts, customer reviews, and third-party ratings to make an informed choice.

HOA Fees: Community Living Responsibilities

Homeowner Association (HOA) fees contribute to community maintenance and shared amenities. They differ per community, so it is important to inquire about HOA fees early. Understanding and budgeting for these fees is essential for a smooth homeownership experience.

Maintenance: Setting Aside for the Future

 Allocate approximately 1% of the total home price for ongoing maintenance. This proactive step ensures that your property remains in optimal condition, avoiding costly repairs in the long run.

learn what tasks we recommend to homeowners to keep their property in great condition

Final Takeaway:

Owning a home in Northeast Ohio comes with its set of costs, both upfront and ongoing. Being well-informed about these expenses empowers you to make sound financial decisions and enjoy a seamless transition into homeownership.

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Whenever you need a pro to tackle your home maintenance projects, don’t forget to take a peek at our 

Verified Vendors List for Northeast Ohio.

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Reach out to us today and get the real value of your home!