Monday, April 4, 2022 / by Paul Acosta
Top 5 Residential Property Types in Nashville
Buying a home is one of the most important decisions you will make in your life. In every real estate market, like Nashville, there are always some property types that take the lead in being of interest to home buyers like yourself.
It is critical that you make decisions for your real estate investment using several factors besides just your budget and the property's location. Each property type requires you, as an informed buyer, to apply a different mindset to each based not only on present circumstances but also on future outlook.
There is no one golden rule in real estate. What makes sense as an investment to someone could be wildly different from someone else. However, with some basic understanding of the details behind each property type, you can begin to simplify your search during the buying process.
Nashville's Top Residential Properties
Below we discuss the top 5 residential property types in the Nashville real estate market currently being considered and transacted based on sales data. Our intention with this list is not to embark on an in-depth explanation of each property type. Instead, we hope you use this list to understand the basic pros and cons to help you narrow down your options and make buying a home in Nashville a little easier.
1: Single-Family Homes
These properties are the most typical listings you would encounter on your search and can usually be found all around Nashville. Since the downtown Nashville area is relatively small compared to other cities, single-family homes abound all around the tall high-rises you can see sprouting all over the city limits.
If gardening or backyard entertaining is a must, then single-family homes are your best bet as an investment property. However, these can get a little pricey in suburban areas, but it is because you will typically enjoy more private land ownership.
2: Condominiums (Condos)
This trendy type of property is prevalent in Nashville because of the great amenities and common areas you will be able to enjoy as an owner when you join a condo community.
Although this type of property is usually one of the cheapest options when buying real estate in Nashville, you must do your due diligence as an owner. Most communities have rules and standards you must follow and maintenance you must complete regularly. Plus, regulations differ in terms of taxes and insurance.
3: Luxury Homes
Two main categories make a residential home fall unto this type of property:
1. Based on location or lot size
2. Based on the design
You can find these types of properties spread throughout Nashville and surrounding counties. Some of the most popular luxury zones include Bellevue, Belle Meade, Green Hills, Brentwood, and Franklin. However, you can find a luxury property in Nashville just about anywhere during your drive around the city.
But no matter which category they fall into, you can expect luxury homes to be one of the most expensive types of properties you will find in the Nashville real estate market.
4: Multi-Family Homes (Duplex / Triplex / Fourplex)
To be considered a residential property, multi-family dwellings must be four or fewer units attached to the same building. Any more than that, and it is considered a commercial property (i.e., apartment complexes, condominiums, etc.)
This type of property has become very popular in Nashville, with most owned by a single owner that has rented out the other units in the building. Although they tend to be smaller than single-home properties, a multi-family home can be an excellent investment if the buyer exercises due diligence during the search and purchasing process. It is recommended for buyers to employ the services of a real estate agent knowledgeable of the area to find a property worth being considered a good investment.
Finally, we have townhomes or townhouses, single-family homes that share a wall with other units.
Also known as row houses, you can find this type of property anywhere in Nashville. Some of the most popular ones are located near city parks and venues, with several now showcasing their very own version of a mini-town where you can walk or hop on a golf cart and go to a grocery store or other shops within the community.
While you might enjoy more privacy and space than living in a condominium, townhomes may not include as many amenities as condo communities. They also might demand steep Homeowner Association (HOA) fees for maintenance and upkeep.
No matter which property you decide to invest your hard-earned money in, living in Nashville continues to be one of the best decisions you can make for yourself and your family.
However, because of the many intricacies and particular situations you can expect to encounter during your search, joining forces with a dependable agent experienced in the Nashville real estate market could be the best decision to protect your investment.