How to Buy a House in Tennessee
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$335,560
Closing Costs
$14,751
4.4% of price
Property Tax Rate
0.49%
$1,317/yr median
Days on Market
35
Median
FHA Loan Limit
$472,030
Attorney Required
No
Foreclosure Type
Non-Judicial
Transfer Tax
0.37%
$0.37 per $100
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Key Facts About Buying in Tennessee
- ✓No state income tax
- ✓Nashville and Memphis are hot markets
- ✓Low property tax rate at 0.71%
- ✓Non-judicial foreclosure state
The Home Buying Process in Tennessee
Buying a home in Tennessee follows a 10-step process. Tennessee does not require an attorney at closing, though you may choose to hire one.
1
Check Your Credit Score & Finances
2
Get Pre-Approved for a Mortgage
3
Find a Real Estate Agent
4
Search for Homes & Make an Offer
5
Get a Home Inspection
6
Secure Your Financing
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First-Time Buyer Programs in Tennessee
THDA Great Choice Home Loan
Below-market rate with assistance
Below-market rates + up to $7,500 DPAIncome: Up to $97,000
Cost of Buying a Home in Tennessee
| Down Payment (3.5% FHA) | $11,745 |
| Down Payment (20% Conventional) | $67,112 |
| Average Closing Costs | $14,751 |
| Transfer Tax | $1,242 |
| Annual Property Tax (est.) | $1,644/yr |
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Legal & Regulatory Details in Tennessee
Homestead Exemption
Available
Up to $5,000
Licensing Authority
Tennessee Real Estate Commission
Tennessee Real Estate Law Overview
| Conveyance Document | Warranty or quitclaim deed |
| Security Instrument | Deed of trust; mortgage sometimes used |
| Foreclosure Process | Non-Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | Yes |
| Redemption After Sale | Conditional |
| Reinstatement Available | Limited |
| Seller Disclosures | A disclosure statement is required unless waived; it suggests that buyers obtain an inspection. Sellers must disclose structural problems, environmental hazards, system failures and legal issues such as liens and boundary disputes but need disclose only known defects and not psychological events. |
