What it costs to buy a home in Murfreesboro, TN

What It Really Costs to Buy a Home in Murfreesboro, TN

Buying a house is more than just paying the list price. Especially in a growing market like Murfreesboro, smart buyers need to anticipate all the expenses—some obvious, some hidden. Here’s a breakdown of what it REALLY costs to buy a home here.

1. Upfront Costs Before Closing

• Down Payment
  With an FHA loan, you’ll need at least 3.5% down. On a $340,000 home, that’s about $11,900.

• Earnest Money Deposit
  Most buyers in Murfreesboro put down $1,000–$2,000 in earnest money. This is credited back to you at closing and applied toward your down payment or closing costs.

• Home Inspection & Pest Inspection
  Expect about $375–$800 combined, depending on the size and age of the home.

2. Closing Costs

Closing costs in Tennessee usually run 2%–5% of the purchase price. For a $340,000 home, that’s $6,800–$17,000. These costs include things like:

• Loan origination & underwriting

• Appraisal

• Title search & insurance

• Attorney & recording fees

• Prepaid homeowner’s insurance and property taxes

3. Seller-Paid Closing Costs

Here’s where good negotiation comes in. In Tennessee, it’s common for sellers to contribute toward a buyer’s closing costs. With FHA loans, sellers are allowed to pay up to 6% of the purchase price toward your costs.

That means on a $340,000 home, the seller could potentially cover more than $20,000 of your expenses—taking a big chunk out of what you owe at closing.

This can make the difference between needing $25,000+ out of pocket and coming to closing with much less.

4. Hidden & Ongoing Costs

• Repairs & Maintenance: Even if your inspection is clean, budget a few thousand for updates or surprises.

• HOA Fees: Some Murfreesboro neighborhoods have dues of $200–$300/month.

• Utilities & Setup Fees: Moving in often means deposits or service fees.

The Bottom Line

Buying a home in Murfreesboro takes planning, but it’s more achievable than many think—especially with seller-paid closing costs and down payment assistance programs.

Instead of spending thousands each year on rent, homeownership lets you build equity, gain tax advantages, and invest in your future.