In 2023 in Tennessee, the average price of a single-family home is around $360,000.
This price has drastically gone up in the past few years, so you’ll need to make sure that you spend time buying the right home for you.
Keep reading for some of our top tips on buying a house in Tennessee to ensure that you get your money’s worth.
1. Save for a Down Payment
The first step you’ll need to take before buying a home is to save for a down payment. Many people buying homes in Tennessee will be paying with cash, so you’ll need to have money for a down payment to make your offer more competitive.
You don’t need to be a millionaire, but you should have enough money to make the seller consider your offer. You may also want to have at least 20% of the down payment to avoid having to pay mortgage insurance.
2. Find a Real Estate Agent
Tennessee real estate can be competitive, but having the right real estate agent on your side can be helpful. Your agent will be able to help you find properties, make an offer, negotiate a contract, and successfully close on a home.
They’ll also have connections with property management companies and inspectors to make the process even easier.
3. Decide on a Mortgage Type
You’ll also need to decide what type of mortgage you need to take out. Most of them are conventional loans that will let you qualify with only 3% of the down payment.
However, you can also get an FHA loan from the Federal Housing Administration. If you’re a veteran, you can apply for a VA loan and not worry about putting any money down.
If you’re living in a rural or suburban area, you can also get a USDA loan. You’ll also need to decide if you want a 10, 15, 20, or 30-year mortgage.
4. Get Pre-Approved
Once you’ve decided on the type of mortgage, you’ll need to be pre-approved. Work with a lender to get pre-approved, and you’ll need to provide documents on all of your finances.
When you get pre-approved, this will show the buyer that you’re actually interested in buying their home. However, the pre-approval only lasts for ninety days, and then you’ll need to update it.
5. Start House Hunting
After you’ve done the legwork, you’ll need to start scouting the Tennesee housing market. Look at different types of homes and make a list of what you want and don’t want in a home.
You’ll also need to time your house hunt. In Tennesee, June is normally the best month for home sales. When you search this month, you might have a wider selection of houses to choose from, but you’ll also be going against more competition.
However, December is normally the slowest season.
6. Decide on a Neighborhood
You’ll also want to decide what neighborhood you want to live in. You should check out some of the communities that you’re interested in.
You will want to decide if the home or the location is more important to you, but make a list of some neighborhoods that you want to check out.
7. Make an Offer
Next, you’ll need to make an offer on the home that you find. The real estate agent can help you write a compelling offer that convinces the homeowner to sell the house to you.
Some homes are on the market longer than others, but if you’re looking in June, then the home may not be on the market for very long.
You’ll need to be able to make quick decisions to get your offer accepted.
8. Do Your Research
While you need to act fast, you should still do your research to ensure that you’re not rushing into a bad offer. For example, if you’re buying in Nashville, you may want to check the flood maps.
The rivers, streams, and creeks can flood often, and they constantly need to be redrawn to ensure that you know if your home is in a flood zone.
You’ll also want to check out the school zones. You may want to be in a Brentwood school zone, but if you live in Brentwood in Davidson County, you’ll end up being zoned for Metro schools.
9. Get an Inspection
Lastly, get an inspection on the home before you purchase it. Tennessee law requires that sellers have to inform buyers of any known issues before they purchase the property.
However, there are still some problems that may go unnoticed, so it’s best to get your own inspection. For example, you should have someone do a pest inspection and radon testing.
You can actually get a free radon test kit from the Tennesee Department of Environment and Conservation. You can get one of these each January. The level of radon can go up each year, so if the home seller hasn’t done one recently, it’s best to do your own.
Pest inspections aren’t necessary, but getting one can prevent you from walking into a bad infestation, like termites. Termites can cause structural damage to the home, and for a while, they can often go unnoticed.
Discover More About Buying a House in Tennessee
These are only a few tips on buying a house in Tennessee, but having the right realtor will help you navigate the process.
Becoming a new homeowner can be confusing and challenging, but we’ve got you covered.
If you’re interested in more homeowner tips, check out our other articles!
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