Land-Buying Mistakes to Steer Clear of in Tennessee in 2026

Buying land in Tennessee can still be one of the smartest ways to build long-term wealth—or the fastest way to inherit someone else’s problems. The state’s mix of mountains, river valleys, farmland, and fast-growing metro areas creates real opportunity, but it also creates land-buying traps that don’t show up in a quick drive-by.

Prices also make “winging it” a lot more expensive than it used to be. Tennessee farm real estate reached $5,710 per acre in 2024, a 10.7% increase from 2023, according to the USDA Land Values 2024 Summary. That same report shows cropland values hit $5,610 per acre in 2024 (up 10.9% from 2023) and pastureland averaged $5,360 per acre in 2024, per the USDA Land Values 2024 Summary.

And the climb didn’t stop there: Tennessee recorded a 7.7% increase in farm real estate values in 2025 and a 7.8% increase in cropland values in 2025, according to the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary Report. In a market moving that quickly, avoiding common mistakes matters as much as finding the “perfect” parcel.

Know Your Tennessee Market Before You Shop

Tennessee is not one market. A single “price per acre” can mislead you if you don’t anchor it to the county, zoning, access, utilities, and intended use.

Residential land, in particular, can vary wildly by metro. In 2024, residential land in Davidson County (Nashville area) ranges from $175,000 to $300,000 per acre, according to Mossy Oak Properties. In Shelby County (Memphis region), residential land averages $25,000 to $60,000 per acre in 2024, per Mossy Oak Properties. In Knox County (Knoxville region), residential land ranges from $40,000 to $100,000 per acre in 2024, also reported by Mossy Oak Properties.

Even outside the cities, “cheap land” can be a trap if you don’t understand usability. Rural Tennessee forested and recreational land ranges from $4,500 to $10,000 per acre in 2024, according to Mossy Oak Properties. That range often reflects access, terrain, timber value, restrictions, and whether you can realistically build.

1) Skipping the Land’s History (and Buying Hidden Risk)

Every property has a past, and that past can affect what you can build, farm, or insure today. When you skip basic historical due diligence, you risk paying premium prices for land with expensive limitations.

Check prior use and potential contamination

• Former agricultural use can leave behind herbicide or pesticide residues.
• Older industrial or commercial activity can create environmental cleanup risk.
• Illegal dumping and unpermitted fill can complicate building and financing.

Verify the story through county records, aerial imagery, neighbor knowledge, and—when warranted—an environmental professional.

Confirm ownership, liens, and encumbrances

Title issues can turn “great land” into a multi-year legal headache. Identify easements, deed restrictions, boundary disputes, liens, and any unusual access arrangements before you commit.

2) Ignoring Zoning, Land Use, and Future Development

Zoning dictates what you can do now—and what your neighbors can do later. Many buyers focus only on current permitted uses and miss the bigger risk: change.

Verify zoning and permitted uses in writing

• Counties and municipalities can have different rules for the same type of land.
• Minimum lot sizes, setbacks, and road frontage rules can block building plans.
• Some parcels require special approvals for subdividing, short-term rentals, or certain agricultural activities.

Research planned growth

Look beyond the property lines. Proposed road expansions, industrial projects, new subdivisions, or public works can reshape noise, traffic, drainage, and resale value—sometimes for the better, sometimes not.

3) Assuming Water Access, Water Quality, or Water Rights

Water can make or break land value—especially for homesites, livestock, or crop production. Do not assume a creek equals usable water or that a well will support your plans.

Confirm your water source

• Wells: Test quality and verify yield.
• Municipal water: Price out tap fees, line extensions, and monthly costs.
• Surface water: Understand usage limitations and any applicable rights or restrictions.

Evaluate flood behavior, not just flood maps

• Review FEMA maps as a starting point.
• Ask locals about real-world flooding patterns and road washouts.
• Assess elevation and drainage; “not in a flood zone” does not always mean “no flood risk.”

4) Overlooking Legal Access and Road Conditions

Land without reliable, legal access can be hard to finance, hard to insure, and hard to resell.

Confirm deeded access

• Ensure the parcel has recorded access to a public road.
• If access depends on an easement, get it documented, recorded, and reviewed.
• In hilly and mountainous areas, verify year-round drivability and maintenance responsibility.

Understand why frontage matters

Road frontage can influence subdivision options, driveway permits, visibility, and resale demand. It can also affect future risk if transportation projects change traffic patterns.

5) Underestimating Utility Availability (and the True Cost to Build)

In many rural areas, utilities are not “nearby” in any practical sense. Buyers often budget for the purchase price and forget the real cost of making land usable.

Validate utilities before you close

• Electric: Confirm distance to the nearest line and extension costs.
• Water/sewer: Determine whether you’ll need a well and septic.
• Internet/cell: Test coverage on-site; confirm providers and realistic speeds.

Budget for the full connection cost

Terrain, rock, permitting, and long distances can quickly turn “affordable acreage” into an expensive project.

6) Misjudging Property Taxes and Missing Agricultural Tax Options

Taxes may look manageable at first glance, but assessments change, and land use changes can trigger surprises.

Review local assessments and trends

• Confirm current taxes and how the county assesses land.
• Ask whether reassessment is likely after purchase, subdivision, or improvements.
• Look for year-over-year increases that could affect long-term holding costs.

Understand “Greenbelt” implications before you rely on it

Agricultural programs may reduce taxes when you qualify, but changing use or failing to maintain eligibility can create rollback taxes. Treat this as a planning issue, not an afterthought.

7) Ignoring Environmental and Geologic Risks

Tennessee’s landscape is part of the appeal—but it also brings region-specific hazards that buyers routinely miss.

• Karst terrain: Sinkholes can affect stability, septic feasibility, and build costs.
• Radon: Levels vary; testing is the only way to know.
• Wildlife and habitat: Snakes and other wildlife can influence land management and development plans.

8) Not Planning for Resale (Even If You Think It’s “Forever”)

Your plans can change. A smart purchase includes a realistic exit strategy—especially with raw land, which can take longer to sell and requires different marketing than a home.

Evaluate the long-term path of the area

• Track population and job growth signals that influence demand.
• Compare land sales trends by use type (residential vs. cropland vs. pasture vs. recreational).

Keep liquidity in mind

Raw land often has a smaller buyer pool than improved property. Features like legal access, clear title, survey documentation, and utility feasibility can dramatically improve resale speed and price.

9) Negotiating Without Solid Comparables

Land pricing is not as standardized as home pricing. Two parcels with the same acreage can differ massively due to access, topography, zoning, and build feasibility.

• Use closed sales—not asking prices—whenever possible.
• Compare parcels with similar access, utility proximity, and permitted use.
• Factor in time on market as a signal of overpricing or hidden issues.

10) Trying to Do It All Without Professionals

Going “DIY” can work only when your due diligence is professional-grade. For most buyers, the cost of help is lower than the cost of one major mistake.

Use an attorney when complexity is high

Tennessee doesn’t require an attorney for every transaction, but a real estate attorney can help review contracts, identify title risks, and clarify easements or restrictions.

Order a professional survey

• Confirm boundaries and acreage.
• Identify easements and encroachments.
• Spot terrain issues that can affect building, roads, and drainage.

Final Thoughts

Tennessee land can be an excellent lifestyle move and a strong long-term asset—but today’s pricing and competition leave less room for error. With farm real estate at $5,710 per acre in 2024 (up 10.7% from 2023), cropland at $5,610 per acre (up 10.9%), and pastureland averaging $5,360, buyers need disciplined due diligence, not gut feelings, according to the USDA Land Values 2024 Summary. Add the 2025 increases—7.7% for farm real estate and 7.8% for cropland—and it’s clear the market rewards prepared buyers, per the USDA National Agricultural Statistics Service (NASS) Land Values 2025 Summary Report.

Slow down, verify the fundamentals (title, access, zoning, water, utilities), and price the land based on what you can actually do with it. That’s how you protect your budget now—and your resale value later.

Frequently Asked Questions (FAQs)

Do I need a real estate agent to buy land in Tennessee?

No, but an agent who specializes in land can help you interpret zoning, access, comparable sales, and due diligence items that are easy to miss with raw acreage.

What’s the difference between a perc test and a soil test—and do I need them?

A perc test measures how quickly water drains through soil to determine septic feasibility. A soil test evaluates composition and nutrients, which helps with farming, landscaping, and some building decisions. If the parcel won’t connect to sewer, a perc test is often critical before you plan a homesite.

How do Tennessee property taxes compare to other states?

Tennessee often appears lower than many states, but rates and assessments vary by county and city. Always verify the specific parcel’s current taxes, assessment method, and the likelihood of reassessment after purchase or improvements.

Are there restrictions on what I can do with my land?

Yes. Zoning, deed restrictions, HOA rules (when applicable), easements, and environmental constraints can limit structures, land uses, animals, and future subdividing. Confirm these before closing.

How long does it typically take to close on land in Tennessee?

Many transactions close in 30–90 days depending on financing, title complexity, survey timing, and due diligence results. Cash deals can close faster when title and access are clean, but problems like boundary disputes or unrecorded easements can extend timelines significantly.