Tennessee Home Sales Figures 2020
Buying a home is already stressful – from shopping for the right needs of you and your family, school district consideration, neighborhood, property taxes, and of course price. The middle Tennessee housing market remains one of the hottest markets in the U.S. The Greater Nashville REALTORS tracks home sales in the Middle Tennessee area each month. Looking at the data, the 2020 data shows a downward trend of days on the market from a peak of 40 in January to 31 in May. However, what many future homebuyers should be keenly aware of is that the trend continues to decline through the remainder of the year with a low of 24 days in November.
Why So Many People are Moving to Nashville
One of the most overlooked pieces of the puzzle is home insurance considerations. As you search for a new home, the characteristics of the house – square footage, location, condition – will affect the cost but these factors also affect the insurance premiums.
While house hunting, it is critical to not only talk to your mortgage loan officer early in the process but also to your local insurance agent to address key factors before signing on the dotted line.
5 Factors that Affect Home Insurance Rates when Buying a New House
1. Quality and location of the fire department, hydrants
Homes located near fire departments usually cost less to insure. Nearby fire hydrants also play a factor in reducing insurance premiums
2. Age of the home
Middle Tennessee is home to beautiful, historic homes. Original wood floors, high ceilings, and ornate features are eye-pleasing, but buyers must be aware these same features may add additional insurance expenses.
3. Risk of flooding
2010 reported a historic flood in our area. Damage from flooding is NOT covered by standard homeowner’s insurance policies. Talking to a local agent can help you determine whether you should purchase a separate flood insurance policy.
4. Swimming pool, hot tub, or other special features
Homeowners with a swimming pool or other special features MUST understand how the liability coverage of your policy works. Guests injured at your pool may result in medical or legal expenses. A local agent may recommend an umbrella policy to provide added protection.
5. Condition of the roof
New roofs are expensive. Check the age of the current roof, condition, and materials used. Asking these questions may have an impact on premiums while avoiding expensive repairs and replacements.
Acquiring Insurance Premium Estimates
Our best advice when buying a home is to get your partners involved early. Lenders will secure the financing for your home, but do not wait on the homeowner’s insurance discussions. If you are considering multiple homes, get insurance estimates on each. The premium costs considerations may be a determining factor between two equally appealing homes.
Stress is a natural part of the buying process, but it should not leave you paralyzed with fear of making the wrong decision. Preparation will help you be better informed, pick the right home, and save money in the process.