Chattanooga offers a unique blend of outdoor adventure, urban amenities, and Southern charm that’s attracting homebuyers from across the country. Whether you’re a local looking to put down roots or a newcomer drawn to the Scenic City’s quality of life, navigating the Chattanooga real estate market requires some specialized knowledge. Here’s your guide to the essential do’s and don’ts of buying a home in this thriving Tennessee gem.
The Do’s
DO Research Neighborhoods Thoroughly
Chattanooga’s neighborhoods each have distinct personalities and price points:
- North Shore: Known for its walkability, unique shops, and historic craftsman homes. Expect to pay a premium for the urban lifestyle and proximity to the river.
- St. Elmo: Located at the foot of Lookout Mountain, this historic district offers character homes and a tight-knit community feel with good access to outdoor activities.
- East Brainerd: Popular with families for its highly-rated schools and newer suburban developments. Gunbarrel Road hosts over 100 retail establishments. This includes a mix of national chains, local boutiques, restaurants, and service providers.
- Highland Park: This area continues to see significant revitalization, offering historic homes at (relatively) affordable prices compared to North Shore.
- Signal Mountain: If you’re looking for mountain views and don’t mind a commute, this suburban community offers larger lots and excellent schools.
- Southside: The arts district has seen tremendous growth with converted warehouses, new condos, and a vibrant restaurant scene.
DO Get Pre-Approved for a Mortgage
Chattanooga’s market has been competitive, with homes in desirable neighborhoods often receiving multiple offers. Having a pre-approval letter ready makes your offer stronger and shows sellers you’re serious. Local lenders like CMG and Benchmark Home Loans often understand the nuances of the Chattanooga market better than national chains.
DO Consider Flood Zones
Chattanooga sits in a river valley, and certain areas are prone to flooding. Areas near Chickamauga Lake, parts of East Ridge, and some properties along South Chickamauga Creek may require flood insurance. Check FEMA flood maps before making an offer, as flood insurance can significantly impact your monthly housing costs.
DO Budget for Property Taxes and Potential Increases
Hamilton County property taxes are relatively moderate compared to many metropolitan areas, but the county reassesses property values every four years. The most recent reassessment saw significant increases in many neighborhoods due to rising property values. Budget accordingly and be aware that growing areas may see tax increases as the city expands services.
DO Inspect for Foundation Issues
Chattanooga’s hilly terrain and clay soil can lead to foundation problems in some areas. Homes built on hillsides in areas like Lookout Mountain, Signal Mountain, and Missionary Ridge may require additional inspection by structural engineers. The investment is worth it to avoid costly repairs down the road.
The Don’ts
DON’T Ignore Commute Times
Chattanooga may be smaller than many cities, but rush hour traffic on I-24, Highway 27, and the ridges can add significant time to your commute. If you work downtown but buy in Ooltewah or Soddy-Daisy, be prepared for at least 30 minutes each way during peak times. Consider test-driving your potential commute before making an offer.
DON’T Skip Professional Inspections
The charm of Chattanooga’s older homes in neighborhoods like Highland Park, St. Elmo, and North Chattanooga comes with potential hidden issues. Knob-and-tube wiring, aging plumbing, and asbestos are common in pre-1960s homes. Always hire qualified inspectors who know what to look for in older Chattanooga properties.
DON’T Overlook Internet Access
While Chattanooga boasts some of the fastest internet in the country thanks to EPB’s fiber optic network, coverage isn’t universal. Some rural areas outside the city limits may not have access to high-speed internet. If you work from home, verify internet availability and speeds before purchasing.
DON’T Forget About Future Development
Chattanooga is growing rapidly. Areas like South Broad Street are slated for major development, including a potential new Lookouts stadium. While this could increase property values, it might also mean construction noise and changing neighborhood character. Research the city’s development plans for areas you’re considering.
DON’T Underestimate Seasonal Considerations
Chattanooga’s summers can be hot and humid, while winters bring occasional ice and snow, particularly in higher elevations like Signal Mountain and Lookout Mountain. Consider heating and cooling costs, as well as the practicality of steep driveways during winter months in mountainous areas.
Final Thoughts
The Chattanooga real estate market offers something for everyone, from historic urban neighborhoods to rural properties with mountain views. Working with a realtor who knows the area well can help you navigate the local quirks and find the perfect home in the Scenic City.
By following these do’s and don’ts, you’ll be well-equipped to make informed decisions as you search for your Chattanooga home. The city’s combination of outdoor lifestyle, growing economy, and Southern hospitality makes it a wonderful place to put down roots – just be sure to do your homework before signing on the dotted line.
Grace Frank is a seasoned real estate professional with over 25 years of experience in listing properties, negotiating challenging situations, and working with buyers. Our expertise is New Construction, Relocation, Existing Home Sales, Farm and Land Sales, Investment Listings, Sustainability, Investor Purchases up to $25M, and Commercial Listings and Sales.
For more information, contact the Grace Frank Group at (423) 355-1538 or email grace@gracefrankgroup.
Looking for property in the Chattanooga, Tennessee market? Search the latest listings at Chattanooga Property Search.
