Solon Move-Up Buyers: Understanding the True Cost of the Next House

If you're moving up to a bigger or better home in Solon, the purchase price is only part of what you need to plan for. A lot of move-up buyers get surprised by the full financial picture, and that surprise usually happens at the worst possible moment, either during the purchase or in the first year of owning the new home.

Let's start with property taxes. Solon sits in Cuyahoga County, and tax rates vary more than people expect across different neighborhoods and subdivision plats. A home at $750,000 might carry annual taxes of $10,000, or it might carry $14,000, depending on its tax valuation and any recent county reassessments. Before you fall in love with a home, get the actual tax bill, not the estimate that Zillow shows.

Next is the reality of Solon HOA fees. A lot of the newer neighborhoods and condo communities in Solon carry fees ranging from $200 to $700 per month. That's a meaningful addition to your monthly payment. Read the HOA financials, not just the rules. A healthy HOA with adequate reserves is an asset. An underfunded one is a future special assessment waiting to happen.

Maintenance costs scale with the home. A 4,000-square-foot home costs more to heat, cool, clean, and maintain than a 2,400-square-foot one. If you're moving from a smaller home, build an honest estimate into your monthly budget, figure 1% of the purchase price per year as a baseline for maintenance and repairs on most homes.

Finally, there's closing costs on the buy side. In Ohio, expect to budget roughly 2% to 3% of the purchase price for lender fees, title, and prepaid items. On a $700,000 home, that's $14,000 to $21,000 out of pocket at closing, in addition to your down payment.

None of this is meant to scare you off. It's meant to make sure you go into your move-up with a realistic budget. We help buyers work through all of this before they start shopping so they don't get blindsided. Give us a call at (216)373-7727 or visit www.21mike.com to get started.

Mike Ferrante | The Mike Team at LPT Realty | www.21mike.com | (216)373-7727