Homeownership has been touted as one of the best investments a person can make. But how much do you know about Nashville real estate, and how does it affect you? Here are a few questions to consider.
Is buying a home a good investment?
Absolutely. Homeownership gives you a stake in the community, increases the value of the surrounding area, and gives you a place to live. The fact is, the value of the property where you live typically increases over time. But the single most important factor is that home values tend to go up faster than inflation. This means that, if you buy a home today, it’s likely to be worth more in the future than it is today.
Should I buy a fixer-upper to save some money?
Not necessarily. Home prices in Nashville are relatively affordable, but fixer-uppers can be more expensive to fix up than purchasing a move-in ready home. Also, fixer-uppers often take longer to sell, and they may cost more in closing costs.
Is it better to rent or buy?
For many, renting is the better option. Renting gives you flexibility, and lets you focus on building your income. But staying in an apartment can get expensive over time: Rent in Nashville is higher than the national average, and while rent does typically go down over time, it doesn’t go down as much as inflation.
How do I find a good real estate agent?
The National Association of REALTORS® recommends you interview at least three real estate agents, and “choose one you like and feel comfortable with.” Your real estate agent can answer any questions you have, and can help you find places you want to consider.
Should I buy in a new construction community?
New construction communities tend to sell faster and at higher prices than comparable resale homes. But many people prefer the stability of existing neighborhoods, and new construction communities are more volatile because demand for homes can rise and fall.
Do I need PMI?

What Questions Do Prospective Nashville Home Buyers Ask?
– Can I afford this house?
– How much house will I be able to afford?
– How do I get pre-qualified for a mortgage?
– Should I buy now, or wait until I retire?
– Should I rent or buy?
– What is my monthly payment?
– How long will it take me to save enough for a down payment?
– What kind of monthly payment can I expect?
– What is my mortgage interest rate?
– How can I make sure I’m getting a good interest rate?
– How should I choose a real estate agent?
– When should I hire a home inspector?
– When do I hire a home appraiser?
– If I buy a home, what are some of the costs I will incur?
– How do I find a good home inspector?
– What is an earnest money deposit?
– What should I do if I find problems with the house?
– What should I look for when shopping for a house?
– How do I get the best interest rate on a home loan?
– What is a mortgage escrow account?
– What is an escrow account?
– What is private mortgage insurance (PMI)?
– What is an impound account?
– What questions should I ask when buying a home?
– What is a home inspection?
– What is a double close?
– How can I negotiate the purchase price of a house?
– When should I apply for a home loan?
– What are the different types of home loans?
– When should I shop around for a mortgage?
– What should I know about escrow accounts?
– How can I avoid PMI?
– What is mortgage insurance?
– What are closing costs?

Are you thinking about buying a house in Nashville, TN? If so, you’re on the right track. Buying a home is an excellent investment, and right now is a great time to do it.
But before you dive in, it’s a good idea to familiarize yourself with some Nashville real estate terminology. That way, you’ll be less likely to run into surprises after you make an offer.
Here are some of the terms you’ll encounter as you search for Nashville homes for sale:
Appraiser. An appraiser is a third party who inspects a property to determine its value. The buyers’ lender will usually ask the appraiser to estimate the home’s value, and that opinion becomes part of the borrowers’ financing.
Base year. The base year for a home’s price is the calendar year in which it was constructed. For instance, if a home’s construction started in 2000, the base year is 2000. The base year affects the home’s value because construction costs typically increase over time. If a home’s value fell to 70 percent of its original value due to the base year, for example, the home’s price would have to be reduced to $70,000.
Commission. The commission is between 2.5 percent and 6 percent of the home’s sale price. However, it’s negotiable. Sellers may agree to pay a lower commission or to offer additional concessions to the buyer.
Closing agent. The closing agent is a title company that represents both parties at closing and is responsible for collecting fees and distributing funds from the buyer to the seller.
Hazard insurance. Hazard insurance, also known as homeowner’s insurance, protects the home’s owner against losses stemming from natural hazards like fire, windstorm, and hail. Homeowners who own a condo or townhouse are usually required to carry this type of insurance.