Are you thinking of buying a home in Tennessee? Tennessee Real Estate can be a unique market. We have high demand and more often than not low inventory. However do not be discouraged, we can provide you with expert advice for buying a home in Tennessee. I will emphasize that this is a Tennessee-specific home buying process. We will journey together on a few topics within and provide you the essential tips for buying a home in Tennessee and avoiding homebuyer mistakes.
Tennessee Mortgage Options
The first step is to find out what you can/want to buy. To help figure out an approximate of monthly payments, check out our Simple Mortgage Calculator. You do this by getting a mortgage. Mortgages are typically not specific to the state, but rather the federal government. Financing options for Tennessee home buyers are usually within 4 types of loans. Let’s walk through the different types of loans. The most common types of loans are FHA, Conventional, VA, and USDA. Now these loans are based on your qualifications. It mostly reflects on your Debt to Income (DTI) Ratio and Credit Score. The most effective way to go about this is to speak to a mortgage broker. For more information on loans and what you can approve for, feel free to check out our page specifically on Getting A Loan.
Choosing A Real Estate Agent in Tennessee
Within the natural progression of the process, it is ideal that you communicate with a real estate agent prior or during the time you are working on your home loan. So these first two items can go in either order of first and second or be done simultaneously. The key factors that you should be looking for when you are discussing working with a real estate agent in Tennessee is communication. I would say that most real estate agents are good and some are great. The major differences are really based on the client’s expectations. It is not that the agent is good or bad, but rather the relationship between agent and client. We always suggest that you have questions ready to provide the agent. We have a list of questions we suggest, but also make sure to add some more questions of your own. Here is a list of questions you should be asking real estate agents.
- If you have any one skill that makes you stand out, what would it be?
- What does your availability look like?
- How far do you travel to show homes?
- How much notice do you typically need to show a home?
- Are you an individual agent or on a team?
- Are you available on weekends?
- Is there a particular price point you work best with?
- What is your niche within real estate?
Tennessee Property Buying
Once you have selected your agent and lender, you will go on the House Hunt. To find properties that are within your parameters email us asking for a custom list of homes. This proccess can be a rollercoaster of emotions. Some homes you will love and others you will hate. Some will impress and some will disappoint. Through the ups and downs, the most important factor is to know what you want. Make a list of non-negotiable items the home must have and a list of wants. It is also just as important to make a list of dislikes and absolute “no”. The best way to come up with these lists is to look around at your current home. What are the things you like and dislike? What are things you wish you had? After completing those lists, it will be easier to find the right home for you. Remember that preparation is key in this process and will make your home buying experience much more enjoyable.
Negotiating Home Prices In Tennessee
So now that you have found your perfect home, we need to get into the meat and potatoes of this. The negotiations! This is key as this will get you to the closing table or not go under contract at all. The question I have my clients ask themselves when preparing for negotiations is, “what would be the thing that if you didn’t get you would walk away. That is not where we end, but simply where we start. Within this process we need to know what is the absolute worst case scenario and then approach negotiations from there. Furthermore, if you break down the needs and wants of this particular home, you can approach the negotiation with a strong foundation. Most people aren’t prepared to know what they can or cannot do. By being prepared you are simply staying one step ahead. As mentioned previously, it is all about planning and processes. We hadn’t mentioned processes until now, but that is a key factor. The what is on you, but the how is usually on the agent. As an industry professional and a real estate agent, it is our job to know how to approach these negotiations for our clients. While I have extensively studied different negotiating techniques, my preferred method is leverage. I leverage one thing for another. Other agents may have different techniques that work for them. The key is that no matter what the agent does, it ultimately benefits you!
Tennessee Home Inspection Process
After you have selected the home and negotiations are complete, you should always get a home inspection on the home. Home inspections are performed by a private company that has your best interest. This is not the same as an appraisal inspection. The major difference is that the home inspection is done for you and the appraisal inspection is done for the lender. So while there may be some overlapping interests, the goal is to satisfy and protect a different party. With that said, I always suggest to clients that they make a list of concerns they might have had when viewing the home and pass that to the home inspector. By having a home inspection checklist you inevitably will be sure about concerns you might have. To emphasize how important home inspections are, the state of Tennessee has a document that is specifically to address this within your contract documents. Feel free to find out more about home inspection by downloading the Tennessee state document RF 712 Importance of Inspections and Property Survey.
Tennessee Home Closing Process
So the day has come… you will soon be the new owner of your future home. Closings in Tennessee are very similar to most other places. This is usually a closing where both parties got to the same title company to close or where each party (buyer and seller) closes at their own title company. This can look like a title office or attorney’s office. In any event, the process is pretty much the same. Information becomes verified for recording and money is distributed. A lot goes on behind the scenes, but the most important thing is to make sure that your title officer or closing attorney explains everything you are signing. Take your time and do not allow anyone to go faster than you are comfortable with. Most of the information you already know, but it’s always good to get that second look.
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