Vacant Property in Downtown Chattanooga, Chattanooga

Tennessee's transaction costs are low compared with most states. The state recordation transfer tax is $0.37 per $100 of the sale price or property value (about 0.37%), under T.C.A. 67-4-409 — and under the statute it is paid by the grantee (the buyer) — the buyer typically pays it, not the seller. There is no separate state or local documentary transfer tax on top of that. In a direct cash sale, sellers commonly pay no agent commission at all, which is where the largest traditional cost (often 5-6%) disappears.

The Tennessee Residential Property Disclosure Act (T.C.A. 66-5-201 and following) requires most home sellers to give buyers a written condition disclosure. But the law has meaningful exceptions: T.C.A. 66-5-209 exempts categories such as court-ordered transfers, foreclosure-related transfers, and transfers by estate fiduciaries, and the Act also lets a seller provide a disclaimer instead of a disclosure when the buyer agrees — the classic as-is sale. Experienced investors buy as-is routinely and expect problems, so a Tennessee seller with a house that would scare retail buyers does not have to fix it or paper over it. Honesty still matters: intentionally concealing a known defect can create liability regardless of the form used.

Taxes on your proceeds are simpler in Tennessee than almost anywhere: there is no state income tax, so the state takes nothing from your gain. Federal capital gains rules still apply, but if the home was your primary residence for at least two of the last five years, you can typically exclude up to $250,000 of gain ($500,000 for a married couple) from federal tax. Investment properties follow different rules, including depreciation recapture — worth a conversation with a tax professional before closing.

One caution about the cash-buyer market: Tennessee permits real estate wholesaling — where an operator puts your house under contract and then assigns that contract to someone else — provided proper disclosures are made. A wholesaler's offer is only as solid as the end buyer they can find, and deals can collapse late. Before signing, ask any buyer directly: Are you purchasing this property yourself, and can you show proof of funds? EasyOffer makes offers as a direct buyer. Whoever you sell to, verify the earnest money is real, the closing date is in writing, and the contract has no escape clauses you do not understand — a real estate attorney can review a contract for a modest flat fee.