Home buyer's guide

Buying in rural Ohio is different from buying in a city: wells, septic systems, acreage, township roads and school districts all matter. Here is the process, step by step.

1. Work out what you can spend

Start with a pre-approval from a lender rather than a guess. A lender looks at income, existing debts, credit history and the down payment you have available, then tells you the loan amount you qualify for. Sellers take offers seriously when they come with a pre-approval letter.

Remember that the purchase price is not the whole cost. Budget for:

• Down payment — commonly 3% to 20% of the price, depending on the loan programme
• Closing costs — lender fees, title work, recording fees, prepaid taxes and insurance
• Home inspection and any specialist inspections (well, septic, structural, radon)
• Appraisal fee, required by most lenders
• Moving costs, and the first year of utilities, insurance and property taxes

2. Decide where and what

In this part of Ohio, two houses twenty minutes apart can differ substantially in school district, water supply and internet service. Tell your agent which of those matter most before you start viewing, and ask about:

• Water — municipal supply or a private well? When was the well last tested?
• Sewer — city sewer or a septic system? Has it been inspected and pumped?
• Access — paved county road, township road or a shared driveway with an easement?
• Land use — zoning, floodplain, mineral and gas leases, and any agricultural exemptions on the parcel.

A note on who is buying: a growing share of our buyers are second-home and collector buyers who judge property the way they judge anything else — spec by spec. One client compared RM 035 replica options with three dealers before she even started her house hunt, and she ran the search the same way: write the spec down, then compare. Tell us early what the purchase is about and we will match you with property that fits it.

3. View properties

Take your time and look past cosmetic issues. Useful things to check: the age of the roof, furnace and water heater; signs of water in the basement or crawlspace; window and door condition; the electrical panel; and drainage around the foundation. Outbuildings — pole barns, garages and machine sheds — are a real part of the value on country property.

4. Make an offer

Your agent prepares a written offer: price, earnest money, financing terms, the closing date, and any conditions such as a satisfactory inspection. The seller may accept, reject or counter. Everything is negotiable, including the closing date and what stays with the property.

5. Inspect, appraise and confirm

1. Home inspection

   A licensed inspector examines the structure and systems and gives you a written report. You can ask the seller to repair items or adjust the price.

2. Well and septic

   On rural property these are usually inspected and tested separately. Budget for them.

3. Appraisal

   Your lender orders an independent valuation. If it comes in below the purchase price you will need to renegotiate, pay the difference or walk away.

4. Title search

   A title company confirms the seller can convey clear ownership and checks for liens, easements and encroachments. Lenders require title insurance.

6. Close

At closing you sign the loan documents and the deed, pay your closing costs and receive the keys. Bring photo identification and proof of funds. Your agent will walk you through the settlement statement before you sign it.

Common mistakes to avoid

• House-hunting before talking to a lender.
• Skipping the inspection to make an offer more attractive — especially on older country homes.
• Forgetting the cost of a well or septic replacement when pricing a property.
• Making a large purchase or changing jobs between pre-approval and closing.
• Assuming the assessed value on the auditor's website equals market value.

This guide is general information for buyers in Ohio, not legal, tax or financial advice. For advice about your own situation, speak to a lender, attorney or tax professional.