WGNS spoke to Realtor David Estes with Parks Realty about the housing market locally. Estes recalled what a home with 3-bedrooms and a 2-car garage once sold for in the Murfreesboro area in 1995 and what the price looks like in 2022…
Today, the average Rutherford County home listing rings in at…
This means that pricing for a 2,500 square foot home with a 2-car garage typically starts at around $527,500. Of course, that price can vary depending on what neighborhood the home is in. Other factors that may change the price can be features like a three-car garage, as opposed to a two-car garage.
WGNS asked Estes why homes are selling for more than the asking price or more than the appraised value in the Murfreesboro area…
This is where things get tricky, because the majority of families only have enough funds saved up to cover the cost of a down payment and are borrowing the remainder of the cost from their bank...
In summary, if a home is listed at $527,500 and your bank is requiring a down payment of 10%, you will have to have $52,750 to cover the down payment. If you offer $40,000 over the asking price and your offer is accepted, then you will have to have $92,750 in hand if you want the bank to move forward with a loan that requires a 10% down payment. Once approved, your new mortgage payment would be $2,168 per month. If you factor in taxes and insurance, that monthly payment could reach $2,676.33 or more.
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More Highlights of Home Sales in Rutherford County
Larger Home Lots Often Equal Larger Price
Another feature that most homes lack in the Murfreesboro area is land or larger lots. One reason that new homes are built on smaller lots is because the cost of land has gone up as there is less land available as Rutherford County grows.
Snapshot of Today’s Real Estate
Between 1995 and 1997, what homeowners once called a starter home, would have sold for $80,000 to $85,000, and that is without a garage in many cases. In 2022, the same house would sell for around $300,000. Most would comment, $300,000 is not a viable starter home price that can be afforded by the average first time home buyer.
If you had an 1,800 square foot home with 3-bedrooms, 2-bathrooms and the added luxury of a 2-car garage, you could have sold it for a starting price of $110,000 in the 1990’s. If you are fortunate enough to find one of those homes today (2022), you can expect to pay $400,000 or more for that same home in Murfreesboro, especially if it is in a nice, older neighborhood. That $400k price could be much higher if you have to offer funds over the asking price.
Average Prices in Rutherford County
Currently, it appears as if a lot of homes are selling at prices between $211 and $250 pr square foot, depending on lot size, among other factors. Of course, depending on how custom the homes is, that cost per square foot could easily increase to $275 or more.
2020: Avg. Cost of Rutherford County, TN home per sq. ft. at closing was $140
2021: Avg. Cost of Rutherford County, TN per sq. ft. at closing was $197 (November 2021)
2022: Avg. Cost of Rutherford County, TN home listed comes in at $211 per sq. ft. (Jan. 3, 2022)