Photo Credit: Curtis Adams | Pexels
2024 has been a rather tumultuous year for the housing market across the United States, with little movement in homeownership during the first eight months of the year. CNN reported in September 2024 that home turnover was at a record low, thanks to a combination of both record-high home prices and elevated mortgage rates. But like any other year, these factors can vary greatly throughout the U.S. and can change over time. Organizations like TN Realtors track such changes throughout the year, which provides them with unique insights into the current state of the housing market—which is one of constant change. Such change is something to keep in mind as you consider how to approach buying and selling a house in 2025.
For Tennessee homeowners and potential homeowners alike, there are many different factors to consider when it comes to buying and selling a house—especially as you head into a new year when home prices are expected to increase at a slower pace than in previous years. And with cities like Knoxville, Tennessee predicted to be a top 10 performing housing hotspot by the National Association of Realtors in 2025, it can feel daunting to consider stepping into the housing market as a buyer or seller.
To help get you started on the home buying and selling process in Tennessee for 2025, here are some tips and tricks.
Tips for Tennessee Home Sellers
1. Start the process early.
When it comes to selling your home in the new year, you can never start too early—especially if you want to sell in a timely manner. Be sure to reach out to a certified REALTOR® in Tennessee at the beginning of the year to start the process. Initial steps to take with your real estate agent will typically include evaluating the condition of your home, figuring out any home repairs or updates that should be considered before selling, and determining what kind of price to list your home at.
2. Begin getting your home ready for market.
Connecting with a real estate agent is the kickoff to the selling process. Next, you’ll want to focus on getting your home in shape for the current market. This will include ensuring that your home is as appealing as possible to potential buyers. Sellers can do this by investing in relevant home updates and repairs, cleaning a house thoroughly, and taking photos that portray a house as welcoming. Home preparation can be carried out by the homeowner, by professionals, or a mix of both—depending on your budget and the current state of your home.
Consider what you feel confident handling on your own and what you may want additional assistance for. Things like professional staging and photography may help to increase the appeal of your home.
3. Carefully consider all offers placed.
It is very tempting to accept the highest bid placed on your home—especially when Tennessee home sales prices are expected to rise. But it can be beneficial to compare all the offers you receive. Price is an important factor, but other factors include the buyer’s financing method, the number of expected contingencies, and the closing time frame. For example, you may prefer a buyer who provides a cash offer over someone who will be taking out a mortgage. A buyer’s financing method may impact the final price they offer, but you may prefer one method over another.
Tips for Tennessee Home Buyers
1. Determine what your budget is and where you stand financially.
Starting the process of looking for a home to buy is a costly one, whether the market is up or down. Before starting to look at homes, be sure to sit down and figure out what your overall budget is. This will help you understand where you are financially and allow you to set realistic expectations for your home-buying journey. Factors that may impact your budget include a down payment, closing costs, and move-in expenses. While these factors are difficult to know the final number for, do your best to estimate what a general range of these costs will be so you can have a working idea of what to expect when it comes to purchasing your home.
Online tools like mortgage calculators can be useful in determining a general range of costs, and you can speak directly with your realtor for an idea of what your budget may realistically get at the time you begin house hunting.
2. View multiple houses for a variety of options.
In November 2024, Tennessee had 38,439 housing listings available—a 5.5% increase year over year. And with housing listings expected to continue to increase in 2025, homebuyers can expect to have a variety of choices. You and your realtor will have already narrowed down what you’re looking for in a home, so take time to view multiple houses that fit your unique parameters to find the best option for you. There may even be properties that fit what you are looking for that are available but not actively listed. Your realtor should be able to help find such properties for you to view.
Photo Credit: Darin Phillips | Pexels
3. When considering houses to purchase, be sure to carefully inspect the home.
Tennessee home buyers should be sure to take a close look at any home they’re considering purchasing in 2025. A standard part of the home buying process includes a professional home inspection, where a home inspector will accompany a potential buyer and their realtor around a property to help identify any major points of concern such as structural issues, safety concerns and home systems like heating and plumbing. But buyers can also inspect homes they’re touring even before a formal home inspection by keeping an eye out for potential issues around the property and details that may be deal breakers. This can include everything from potential water damage to the layout of the home itself—details such as these can impact your ultimate decision to make an offer on a home.
Buyers and sellers have plenty of opportunities in 2025. Home sales are predicted to rise all over the country, with cities like Knoxville, Greeneville and Johnson City expected to have a large home value increase, while available properties in the state will also provide more house choices. Whether you are entering the 2025 Tennessee housing market as a buyer or seller, there is potential for both sides of the home market in the new year, no matter what your plans are.