How to Buy a Home in Ohio in 2025

In 2025, Ohio’s housing market presents a unique opportunity for home buyers. Homes sold with a price drop have increased 19.9% Y.O.Y., creating a more balanced market.

This guide provides a detailed plan for buying a home in Ohio, navigating its challenges while leveraging its benefits.

Current Ohio Housing Market Overview

The Ohio housing market takes a shift in 2025. Buyers have more leverage with a 37-day median market time and 16.91% inventory growth. The median home sale price has reached $253,900, with a 13.01% decrease in the average number of homes sold above the listed price.

How to Buy a Home in Ohio: 7 Steps

Step 1: Figure Out Your Finances

Before searching for homes for sale in Ohio, set a clear budget. The state’s cost of living requires careful financial planning beyond typical home-buying expenses.

When determining how much house you can afford in Ohio, consider several key costs. The state’s effective property tax rate averages about 1.52%, lower than New York but higher than California.

Closing costs generally run 2–5% of the purchase price, and homeowners’ insurance is standard, though buyers should assess flood risk in certain areas.

Get Your Down Payment Ready

In Ohio, FHA loans typically require credit scores between 640 and 660, while conventional loans usually need at least 640. Down payment assistance programs can cover about 3% for conventional loans and 3.5% for FHA, VA, and USDA loans.

Get Pre-Approved for a Mortgage

In Ohio, the average 30-year fixed mortgage rate is around 6.0%, with 15-year fixed rates near 5.25%. Buyers should provide lenders with income proof, credit history, bank statements, and ID to get pre-approved. Obtaining pre-approval strengthens your position compared to a simple pre-qualification.

Step 2: Find Your Dream Home in Ohio

With a set budget, you can find your dream home faster. Houzeo, Ohio’s best home buying website, allows you to browse through the latest listings with smart filters for price, ZIP code, schools, etc.

Whether you are looking for homes for sale in Columbus, Cincinnati, or Cleveland, the best place to buy in Ohio depends on your priorities:

• Columbus: steady price growth with more inventory, giving buyers increased choice and moderating competition
• Cincinnati: robust market with rising prices, rapid sales, and higher buyer options due to increasing inventory.
• Cleveland: among the most affordable, with prices rising steadily and strong potential for both buyers and investors.

Step 3: Make an Offer That Wins

Ohio’s housing market has about 3.5 months of inventory, and rising prices create moderate competition among buyers. Include an earnest money deposit, typically 1–3% of the purchase price, with your offer. Be sure to add financing and home inspection contingencies to protect your interests.

Step 4: The Crucial Due Diligence Period

In Ohio, the inspection contingency period usually lasts 7–10 days. General home inspections take 2–4 hours, and buyers should also schedule specialized tests commonly required in the state, including radon testing, termite inspections, sewer scopes, and mold assessments.

Step 5: Secure Your Financing and Insurance

After the appraisal, which typically takes 7–10 days, final mortgage underwriting in Ohio usually lasts about 7–14 days. Homeowners insurance is standard, but buyers should assess whether flood insurance is needed based on the property’s location.

Step 6: Prepare for Closing Day

In Ohio, buyers should review their Closing Disclosure at least three business days before closing. Closing costs typically range from 2–5% of the purchase price and include lender fees, title insurance, and local taxes.

Unlike some states, Ohio does not require an attorney at closing, which can help reduce costs and shorten the timeline.

Step 7: Welcome Home!

Seniors and disabled veterans in Ohio may qualify for a Homestead Exemption, saving property taxes on up to $28,000 or $56,000 of market value, respectively. Buyers can also benefit from additional homeowner perks and tax credits offered through OHFA programs.

Tips for Ohio Homebuyers: Do’s and Don’ts

Do’s

• Do get pre-approved before house hunting to set a realistic budget.
• Do use local real estate experts familiar with Ohio neighborhoods.
• Do schedule all essential inspections, especially radon testing.
• Do compare mortgage lenders and take advantage of OHFA assistance programs.

Don’ts

• Don’t skip the inspection or accept “as-is” without due diligence.
• Don’t overextend your budget ignoring taxes, insurance, and HOA fees.
• Don’t overlook neighborhoods with declining inventory and favorable price trends, like Columbus suburbs under $300K.
• Don’t assume you need an attorney for closing—it’s optional in Ohio.

Conclusion

Buying a home in Ohio in 2025 requires clear financial preparation and local market knowledge. Rising prices and moderate inventory make preparation essential, but OHFA programs and a robust range of options across the state help buyers make confident moves.

Start with mortgage pre-approval, leverage Ohio’s homebuyer programs, and follow each step carefully to secure your Ohio home.

Frequently Asked Questions