If you’ve finally taken the leap and decided to buy a house, there’s one factor that will uniquely affect your process: location. If you’re looking to buy a house in Nashville, it’s critical that you do your research into the Nashville-specific housing market.
Depending on where you’re looking to buy, the home market and buying process will change. So read on to discover what tips and tricks we recommend at Bungalo® that will help you purchase your dream home in Nashville, Tennessee.
Understanding the local housing market will help you determine the speed and process that you should adopt to meet your house hunting needs. For example, as the capital of Tennessee, Nashville is an incredibly popular location for home buying and renting. Filled with historical landmarks and diverse populations, the “Music City” housing market is in high demand.
In fact, WalletHub ranked Nashville as the 4th best real estate market in the U.S. based on growth in property value and the strength of the local economy. Meanwhile, U.S. News & World Report ranked Nashville as one of the best places to live in the U.S. due to its high desirability, value, job market and quality of life.
The facts show that people want to live in Nashville, which means that purchasing a home in this area will be competitive — especially if you have your sights set on a specific location. You’ll have to approach new listings with everything you need in order and be able to make a decision quickly.
This can be both a challenge and a benefit: As more buyers enter the market, you’ll need to take steps to stand out from the competition and successfully purchase your dream home. On the other hand, since properties are quickly listed and sold, your buying process will most likely be efficient and quick, instead of dragging on for weeks at a time.
Yet, before you throw yourself into the home buying process in Nashville, it’s important to consider first whether you want to buy or rent and, second, where in Nashville you want to focus your search.
When it comes to renting or buying, the right choice will be unique to each person looking for a home. There are plenty of advantages and disadvantages to each option, so let’s take a look at whether homeownership is best for you.
Purchasing a new home comes with a variety of benefits from greater privacy to being your own landlord. There are also the following financial advantages:
- Increased home value over time
- Predictable costs (if you have a fixed-rate mortgage)
- Tax deductions
- Improve your credit history
Typically, monthly rent payments are lower than comparable mortgage payments for most U.S. homeowners. However, WKRN reported that Nashville homeowners actually pay 7% less per month than renters.
This doesn’t mean that buying a home is necessarily the best option for you, though. Purchasing a home can also be a much bigger commitment than you’re ready for. Specifically, it ties you down to one place for at least a few years and ensures a long-term financial obligation to your mortgage.
As a home buyer, you have to be prepared for any and all financial costs, including down payment, closing and moving costs. Additionally, you take full responsibility for the maintenance and repair of your new home, which can create unforeseen financial costs.
The best benefit to renting is it’s less of a financial commitment. At least, in the short term.
Although Nashville’s average rent may not be cheaper than your average monthly payment as a homeowner, your rent sometimes covers utility costs, such as heat or hot water, which would otherwise make a bigger dent in your wallet. In this way, renting is a great option if you can’t afford the costs of homeownership.
Renting also makes it easier to relocate if you’re not completely sure about a specific area, building or home.
However, there are disadvantages:
- Rent will likely increase each year
- You don’t get tax deductions
- You have less control over your home
- No lasting investment in the property
Considering these factors, it’s best to go with the option that resonates most with your situation and your financial needs.
Nashville is a large city, so it’s essential that you narrow down the areas that fit what you’re looking for. Ask yourself these questions:
- What areas are in my budget?
- Do I want to be in a quieter or more active part of the city (Greater Nashville suburbs vs. downtown)?
- Do I prefer a specific commute for work?
Based on your answers, you should be able to pinpoint which areas to focus on — or you can discuss with a local real estate agent to find out where they’d recommend.
Once you’ve set out on your home search and found that perfect listing, it’s time to start the process of purchasing your Nashville home.
Remember, the Nashville real estate market is very competitive, so it’s important that you come in prepared and with a predetermined budget before you start searching. For additional guides on purchasing your first home, check out our blog.
Our recommended tips include:
- Set a firm budget and save
- Get preapproval for a mortgage
- Use a local real estate agent — with verified Nashville references!
- Make a cash offer, if possible
- Don’t be afraid to walk away from the sale
These five steps will help you stand out from the crowd of other home buyers and ensure an efficient process.
Bungalo is an all-in-one platform that guides new home buyers through every single step of the process, from search to closing. Besides offering you a transparent look into your local housing market, we also guarantee that every house on our platform is Bungalo Certified.
Our certification process ensures that every inch of your potential new home has been inspected and improved to meet professional standards. We also offer 90-day post-close protection, so that you can purchase your house with peace of mind.
If you’d like to see what’s currently listed in Nashville, take a look at what we have to offer. *This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Bungalo always encourages you to reach out to an advisor regarding your own situation.