Who pays what in Tennessee
Tennessee custom: seller pays transfer tax; the buyer may owe the 0.115% mortgage recordation tax on the loan amount.
Closing costs by county in Tennessee
Rates and medians vary widely inside Tennessee. County-level breakdowns: Davidson County (Nashville) — 0.75% effective property tax, median $470,000; Shelby County (Memphis) — 1.35% effective property tax, median $245,000; Knox County (Knoxville) — 0.60% effective property tax, median $360,000.
Watch the mortgage recordation tax
Tennessee charges $0.115 per $100 of mortgage debt (first $2,000 exempt) — about $350 on a $310K loan. It's small, but combined with title and attorney fees it catches buyers who budgeted only the 2% rule of thumb.
Negotiation levers in Tennessee
Three moves that actually work: (1) get Loan Estimates from 3 lenders — origination and points vary by thousands; (2) ask for seller concessions (3% conventional under 10% down, 6% above, 6% FHA) credited at closing; (3) close at month-end to shrink prepaid interest from ~30 days to ~2. In Tennessee, transfer-tax custom is negotiable too — everything is a contract term.
FAQ
How much are closing costs in Tennessee?
Budget 2–4% of the purchase price for buyer closing costs in Tennessee, plus your down payment. On the $390,000 median Tennessee home that's roughly $9,750–$15,600. TN transfer tax (0.37%) and mortgage tax (0.115%) are typically seller/buyer-split by negotiation; buyer-customary share shown as $0 here.
Does the buyer pay transfer tax in Tennessee?
No — Tennessee transfer taxes are seller-customary (or don't exist). TN transfer tax (0.37%) and mortgage tax (0.115%) are typically seller/buyer-split by negotiation; buyer-customary share shown as $0 here.
Can I roll closing costs into the loan in Tennessee?
Not directly, but you can trade a slightly higher rate for a lender credit that covers costs, or negotiate seller concessions. The break-even on a lender credit is typically 3–5 years — only worth it if you'll sell or refinance before then.
How much should I save to buy a house in Tennessee?
Down payment + closing costs + 2–3 months of reserves. On the Tennessee median $390,000 home with 10% down, that's roughly $50,700 before reserves — the calculator above gives your exact stack.
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