Home Values in Tennessee
The median home value in Tennessee is $310,000. Nashville and suburbs (Williamson, Rutherford, Wilson counties) have seen 40-60% appreciation since 2020. Knoxville has also emerged as a top relocation destination. Memphis remains the state's most affordable major market.
What Drives Home Values in Tennessee?
Several Tennessee-specific factors influence home values beyond national trends:
- Property tax burden: At 0.66% (avg. $1,220/year), Tennessee's taxes are near the national average
- Assessment methodology: Tennessee assesses residential property at 25% of appraised value (commercial at 40%).
- Buyer exemptions: Tennessee's Property Tax Relief program provides reimbursements to qualifying low-income elderly, disabled, and disabled veteran homeowners for part of their property tax paid on their primary residence.
- Financing limits: Conforming loan limit is $726,200 — No Tennessee counties currently qualify for high-cost conforming limits.
Closing Cost Consideration
When estimating net proceeds from a home sale, account for closing costs and transfer taxes. Sellers in Tennessee typically pay 6-8% of the sale price in total transaction costs. Tennessee charges a transfer tax of $0.37/$100 of value (a deed tax), which is very low. Overall closing costs are among the lowest in the Southeast.
Frequently Asked Questions
What is the average home value in Tennessee?
The median home value in Tennessee is $310,000. Nashville and suburbs (Williamson, Rutherford, Wilson counties) have seen 40-60% appreciation since 2020. Knoxville has also emerged as a top relocation destination. Memphis remains the state's most affordable major market.
How do property taxes affect home values in Tennessee?
Tennessee's effective property tax rate is 0.66%, with an average annual bill of $1,220. This near-average tax burden has a neutral impact on Tennessee home values.
What is the conforming loan limit in Tennessee?
The conforming loan limit in Tennessee is $726,200. No Tennessee counties currently qualify for high-cost conforming limits. Buyers needing loans above this require jumbo financing.
How much are closing costs when selling a home in Tennessee?
Sellers typically pay 6-8% of sale price in total transaction costs. Tennessee charges a transfer tax of $0.37/$100 of value (a deed tax), which is very low. Overall closing costs are among the lowest in the Southeast. Buyers pay an additional $2,500 in closing costs.