What Every First-Time Buyer Should Know About Hidden Expenses
You’ve saved up for a down payment and found the perfect home in Cincinnati—but before you make an offer, it’s important to understand the true cost of buying a home. Many first-time buyers are surprised to learn that the listing price is only part of the expense. From closing costs to ongoing maintenance, there are several other costs to budget for.
As a local Realtor, I believe in transparency. Here’s a detailed look at what it really costs to buy a home in Cincinnati, Ohio—so you can move forward with confidence and clarity.
1. 🏦 Down Payment
What it is: A percentage of the home’s purchase price paid upfront.
Typical range: 3%–20% of the home price, depending on your loan type.
For example:
- FHA loans: 3.5% minimum down
- Conventional loans: 5–20% depending on credit and lender
- VA loans: 0% down (for qualified veterans)
💡 Pro Tip: The more you put down, the lower your monthly mortgage payments.
2. 📑 Closing Costs
What it is: Fees and expenses paid at closing (on top of the down payment).
Typical range in Cincinnati: 2%–5% of the purchase price.
Includes:
- Loan origination fees
- Title insurance and title search
- Appraisal and inspection fees
- Property taxes (prorated)
- Recording fees
- Attorney or escrow services
Example: On a $250,000 home, expect to pay $5,000–$12,500 in closing costs.
3. 🧰 Home Inspection and Appraisal
Home Inspection:
- Not required by lenders, but strongly recommended
- Costs between $350–$600
- Can uncover issues that may help you negotiate repairs
Appraisal:
- Required by lenders to confirm the home’s value
- Costs around $400–$600
💡 Tip: I always recommend hiring a trusted, local inspector for peace of mind.
4. 🏠 Homeowners Insurance
What it is: Protects your home from damage, theft, and liability.
Average cost in Ohio: $1,200–$1,800/year (or $100–$150/month)
Your lender will require proof of insurance before closing. Rates depend on your home’s age, size, location, and more.
5. 💰 Property Taxes
Property taxes vary by location and home value. In Cincinnati, average effective property tax rates are around 1.5% of your home’s assessed value.
Example:
- $250,000 home x 1.5% = $3,750/year
- Usually paid monthly as part of your mortgage escrow
6. 🧽 Moving and Set-Up Costs
Don’t forget the final stretch!
Moving expenses may include:
- Hiring movers or renting a truck
- Utility deposits (electric, gas, internet, etc.)
- Furniture, appliances, or home updates
💡 Pro Tip: Budget $1,000–$3,000 depending on your situation.
7. 🔧 Ongoing Maintenance
Once you’re a homeowner, you’re responsible for upkeep.
General rule of thumb:
Budget 1%–2% of your home’s value each year for maintenance.
That’s about $2,000–$5,000 annually for a $250,000 home.
This may include:
- HVAC service
- Roof repairs
- Plumbing/electrical fixes
- Lawn care, snow removal, etc.
Final Thoughts: Plan Smart, Buy Smart
Buying a home is one of the biggest investments you’ll make—and knowing all the costs ahead of time will help you make better financial decisions. As your Realtor, I’ll walk you through every number and help you avoid surprises.
📞 Have questions about homeownership costs in Cincinnati?
Let’s chat! I’m happy to offer a free consultation to break down your budget, loan options, and everything else that goes into buying your first home.