From Memphis to Knoxville, home prices have declined in several metros across the Volunteer State. A recent statement from a Fed official suggests the interest rates aren’t stabilizing anytime soon.
Amidst rising mortgage rates and a slowing housing market, this 7-step guide will help you sell a house in Tennessee.
📉 Tennessee Home Selling Stats
- # of Homes Sold are Dropping in Tennessee: The number of homes sold in Tennessee has dropped 17.3% from 9,060 in 2022 to 7,488 in July 2023.
- Mortgage Interest Rates are Still Rising: Interest rates for a 30-year fixed mortgage have more than doubled in 12 months. They are at 8.031% as of Aug 16, 2023.
- iBuyers are Not a Viable Option: iBuyers have either shut down or have suffered massive losses. Our analysis suggests that iBuyers will offer much less than Fair Market Value for your home in 2023 and 2024.
- Bottom Line: In 2023, more sellers are selling their homes by owner. Use FSBO websites to get maximum exposure via the MLS and to save thousands in commission – negating the decline in home prices.
Sell Your House in Tennessee in 7 Steps
Here are the 7 steps to selling real estate in Tennessee in 2023’s slowing housing market.
Step 1: Hire a Listing Agent (or Don’t)
Gone are the days when selling your house meant interviewing several agents and finding the best one for your needs. Today, some of the best FSBO sites and tech brokerages will match you with top agents and get you listed on the MLS fast.
And they will assist you in every step of the transaction with a Realtor’s expertise paired with useful and efficient technology.
You Have 4 Options to Sell Your Home in Tennessee:
✍️ Pro Tip: Sell Your Distressed Property to Cash Home Buyers
Tennessee cash home buyers typically offer 50% to 70% of the property’s Fair Market Value. They majorly deal in distressed and rental properties.
Step 2: Price Your Tennessee Home for Sale
Pricing your home competitively is critical for a successful sale. It is simple to arrive at a list price. Analyze the currently active and recently sold similar listings in your neighborhood. Refine the price further to nail down the exact list price.
In a hot sellers’ market, you can price your home up to 10% more than the neighborhood prices. Whereas in a buyer’s market, set your asking price slightly lower to beat the competition.
» How to Price Your Home for Sale: See how to nail down your list price in 6 steps!
Step 3: Hire a Pro Photographer
Professional photos can greatly impact the selling process by attracting more buyers. According to VHT Studio’s Analysis, homes photographed professionally sell 32% faster.
Hire professional Tennessee real estate photographers to create a portfolio of your house. A professional photographer can collate a portfolio that otherwise may not be possible if you take up the job.
Here are a few things you can do to ready your home for Tennessee real estate photography:
Step 4: List and Market Your Tennessee Property
Homes listed on the Multiple Listing Service (MLS) sell faster and for 13% more. If you are working with a Tennessee Realtor, they will do the MLS listing for you.
FSBO sellers can opt for a Flat Fee MLS service like Houzeo to list on the MLS. Houzeo will get you on the MLS for a small flat fee starting from $349. Your listing will be syndicated to 100+ real estate websites, giving your house the maximum exposure.
Apart from listing on the MLS, you may try some other unique ways to market your house. These may range from listing your house on Craigslist to sharing your Tennessee FSBO listings on social media.
» How to List on MLS in Tennessee: Here’s how to get an MLS without a Realtor.
The listing paperwork would mainly consist of the listing agreement and the Tennessee seller’s disclosure.
- Listing Agreement: A listing agreement will be signed between you and your local Tennessee real estate broker. It will allow your broker to list your property on the local Tennessee MLS and thereby find buyers for you as per your terms.
- Tennessee Seller’s Disclosure: Tennessee seller’s disclosure statement is a standard checklist form. It allows you to disclose material defects and features of the property. The seller’s disclosure provides information about the property that may negatively affect the value of the house.
Step 5: Manage Showings
Typically, Realtors host open houses or arrange private showings. If you are selling a house in Tennessee by owner you can use online tools to manage showings.
With an online showing tool, buyers, and buyer agents can request and schedule showings. For instance, with Houzeo Showings, buyers and buyer agents can choose a particular showing slot as stated by you. The tool also provides features like requesting, rescheduling, updating, and canceling showings.
Step 6: Review, Compare, and Negotiate Offers
With the right marketing strategy, you should have offers coming your way for your Tennessee home.
The next step would be to compare the offers. Most house sellers go with the highest bid. But here are additional factors you must weigh before settling on an offer:
- Is the buyer making a cash offer on your house?
- Has the buyer applied for a mortgage? Are they pre-approved or just pre-qualified?
- Is the buyer willing to waive off some contingencies like home appraisal?
- Are buyers offering to negotiate the closing costs?
Keep these questions in mind when comparing offers. Typically, real estate brokers do such negotiations for you. As a For Sale By Owner seller, you can use offer management tools like Houzeo Offers. With Houzeo Offers you can make counter offers, call for the best offer, and a lot more.
» Highest and Best Offer: Is it a smart move in multiple offer situations?
Step 7: Close the Sale
Pay Home Selling Taxes in Tennessee
You will very likely pay the following taxes while selling your house in Tennessee:
- Transfer Tax: Transfer tax is a one-time fee (generally costs less than 1%) that sellers pay at the time of transferring the ownership between the two parties. You need to pay this tax to the local government body in your area.
- Property Tax: Property tax varies by county, but you will pay approximately 1% of the total home sale value to the government as property tax. You can claim a rebate if you have paid your property tax a year in advance. If you have not paid the tax, then you need to pay the pending amount.
Pay the Tennessee Seller Closing Costs
Seller and buyers both pay separate closing costs at closing. Closing costs for a seller in Tennessee usually consist of HOA fees, escrow fees, real estate attorney fees, and home warranty fees.
Additionally, you need to pay the commissions for both the listing and the buyer agent, which could add up to 6%. If you offer seller concessions, you might cover some buyer’s closing costs in Tennessee.
Sign Documents Needed to Sell a House in Tennessee
This is the final step in your selling your house in Tennessee. It usually consists of signing the escrow and title documents. Additionally, you will sign the deed and the closing disclosure.
After signing all the documents, the new homeowner’s name is registered in the public record. The buyer signs a check or makes a wire transfer of the sale amount, and your home is sold.
» Paperwork for Selling a House: Everything you need to know.
Tips to Sell a House in Tennessee in 2023
The above steps will help you prepare your home for sale. To ensure you sell your home successfully, follow these fool-proof tips to guarantee a smooth sale in 2023:
- Work with an Agent or go FSBO: The house-selling process will differ based on which option you choose. You will get hand-holding if you choose to go with an agent. However, by selling your home yourself, you can save on high seller commissions.
- Use Advanced Tech Tools: Learn to manage the sale of your home using Showing Management and Offer Management tools. These tools will help you track the progress of the sale and take the next step on time.
- Provide Seller Concessions: Due to the high mortgage rates, home buyers are not motivated to purchase homes. As a house seller, you can offer seller concessions to assist an interested home shopper.
» Tips for Selling Your Home: Check these 9 powerful tricks to sell your home in Tennessee in 2023!
Selling a home in Tennessee can be daunting if you do not find the right real estate agent. But, hiring a real estate agent will cost you a 3% commission.
If you are looking to save thousands in Tennessee real estate commission, sell your house with Houzeo.com.
Houzeo real estate is a tech-centric For Sale By Owner website and real estate platform that gives you access to tools only real estate agents have. Here’s how Houzeo works to maximize your savings and exposure.
» Should I Sell My House Now? : Explore if you should sell now or wait for a year.
Eager to Know More?
We’ve got you covered. Check out the following video to understand why Houzeo is one of the best for sale by owner websites in the U.S.
What is Houzeo?
An overview of what the platform is all about
Frequently Asked Questions
1. What are typical closing costs for sellers in Tennessee?
Home sellers in Tennessee typically pay closing costs that include HOA fees, escrow fees, real estate attorney fees, and home warranty fees.
2. How to sell a house in Tennessee in 2023?
If you want to sell your home in 2023, you must list your home on MLS for max exposure. Additionally, you should offer a competitive price and buyer agent commission to increase the chances of selling your home. List with Houzeo without a Realtor and save thousands on seller commissions!
3. Who pays title insurance at closing in Tennessee?
4. Is it a good time to sell a house in Tennessee?
Mortgage rates are on the rise. As a result, home prices are declining, and you may have to settle for less than the asking price. So, if you are ready to sell your house in Tennessee, now is the best time to start. We recommend research the best time to sell a home in Tennessee to maximize your net proceeds.
- Net Listing Agreement: Learn how this agreement can benefit you in your house-selling process.
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