How Much Does It Cost to Buy a House in Tennessee?

Jon Stubbs's Photo
By Jon Stubbs Updated May 17, 2024

SHARE

Purchasing a home in Tennessee can be expensive. On average, you'll spend between $26,505 and $90,578 in buying costs based on the median home value of $317,482.

These aren't the only costs involved with buying a home! You also have to think about ongoing homeownership costs. These range from $1,244 to $1,456 per month.

If you're looking for a way to cut down on some of your home buying costs, we recommend working with Clever Real Estate. Clever can help you compare expert agents in your local area, no strings attached. We'll help you find a knowledgeable realtor from a well-known brokerage that can use their expertise to lower your cost burden.

Clever will connect you with a top local agent and send you a check after closing. Contact Clever for full-service realtor recommendations.

Average closing costs in Tennessee

Expense Amount
Earnest money deposit (1-3%) $3,175 to $9,524
Down payment (3.5-20%) $11,112 to $63,496
Cash reserves $3,397 to $5,095
Closing costs (2.26%) $7,160
Inspection $206
Appraisal $206
Moving $1,250 to $4,890
Total $26,505 to $90,578
Show more

Buyer closing costs in Tennessee

While the other costs to buy a house in Tennessee are pretty transparent, Tennessee closing costs are a bit more nuanced. They're actually a series of smaller costs lumped together into one total. Here's a breakdown of all of the Tennessee closing costs you'll likely pay when buying a home.

Closing cost Amount
Closing fee $317
Recording fee $95
Title service fees $846
Origination fee $1,587
Underwriting fee $600
Discount points $2,540 per point
Lender's title insurance Typically paid by seller
Owner's title insurance Typically paid by seller
Prorated property tax Varies
Recordation Tax 0.37%
Total $7,160
Show more

Does the buyer or seller pay closing costs in Tennessee?

The seller typically pays the bulk of the closing costs in Tennessee. The seller is responsible for costs like title insurance, real estate transfer tax, and recording fees. The seller also pays their listing agent.

Traditionally, the seller has covered the buyer's agent fees as well. However, a November 2023 lawsuit decision against the National Association of Realtors makes it likely that buyers will be responsible for their own agent's fees going forward.

Will the NAR lawsuit change how real estate commission works?

On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023. 

While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need. 

The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.

» READ MORE:

Keep in mind, closing costs are often negotiable. Motivated sellers will sometimes agree to pay for some of the buyer's closing costs. However, to win the negotiation battle, you'll need a great agent who can work out a deal with the seller. Clever can match you with a top agent in your area that can get the seller to shoulder more of the above costs.

Contact us at Clever for top agent recommendations.

Cost to buy a house in Tennessee calculator

Ongoing costs of homeownership in Tennessee

Unfortunately, the cost to buy a house is just the beginning. After closing, you'll officially own the home and begin paying for the ongoing costs of homeownership.

Besides the expenses outlined above, you'll also want to consider private mortgage insurance (PMI) and homeowner's association (HOA) fees.

  • If you pay less than 20% as a down payment on your house, you'll probably have to pay PMI monthly until you get to 20% equity. For the average Tennessee homeowner, this is between $138 to $467 a month.
  • Some neighborhoods have HOA fees for the care and maintenance of common areas. The national average is around $250 per month.

» MORE: The true cost of homeownership

Top ways to save money when buying a house in Tennessee

1. Look into better financing options

Paying off debts and getting your credit in the best shape possible before applying for a loan will help you get a better interest rate, which will lower your monthly payments for the life of the loan.

You can also shop around to compare lenders so you get the lowest fees and interest rates available. It may be a good idea to enlist the help of a mortgage broker if you're not sure how to go about vetting lenders.

2. Participate in home buyer programs in Tennessee

The Tennessee Housing Development Agency has a number of home buyer programs that can help make buying easy. These come either in the form of low fixed-rate loans or down payment and closing cost assistance and are available to income-eligible buyers in Tennessee.

The non-profit Habitat for Humanity is also an option, as it offers low income buyers the chance at an affordable home in exchange for “sweat equity,” such as volunteering or construction-work. There are also a number of localized programs you may be eligible for — check the HUD’s website for more information.

» MORE: First-time home buyer programs everyone should know about

3. Partner with an expert agent

Having an expert agent on your side can ensure you win the negotiating battle with the seller.

Clever can help match you with a knowledgeable, hyper-local agent that knows the ins and outs of how to save you money on your local fees. And best of all, our service is totally free!

👋 Find your perfect agent now!

Finding a great local realtor is the first step in making your home buying dreams a reality. Our free service matches you with top agents from trusted brands like Keller Williams and RE/MAX.

Enter your zip code to request hand-picked agent matches in minutes. Compare your options until you find the perfect fit, or walk away with no obligation. Try Clever's free service today!

Methodology

The Clever team of researchers gathered data for property taxes, transfer taxes, and recording fees using publicly available information. We found average costs for attorney fees, title insurance, and other services by requesting quotes from local providers. 

Home values are based on Zillow data as of March 2024.

Related links

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

Better real estate agents at a better rate

Enter your zip code to see if Clever has a partner agent in your area
If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent.