Why Most Nashville Buyers Overpay Without Realizing It — And How Jack Costigan Structures Offers to Win Below Market
Most buyers don’t realize they overpaid for their home when they sign the contract.
They realize it later.
It hits when they start renovating and discover hidden issues. When their monthly payment feels heavier than expected. When they try to sell years later and realize their margin is thin. Or when they see a similar home sell for less and can’t understand why.
Overpaying rarely feels like overpaying in the moment.
It feels like:
– “We didn’t want to lose it.”
– “This is just what homes cost now.”
– “The market is crazy.”
– “We can always refinance.”
Those aren’t strategies. They’re emotional justifications.
At The Costigan Group, we don’t approach buying like a race. We approach it like a financial decision with long-term consequences. Our job isn’t just to get you a house — it’s to make sure you don’t regret how you bought it.
That difference is everything.
The Problem: Most Buyers Only Negotiate One Thing
Most buyers think negotiation = price.
So they ask:
“Can we get $10,000 off?”
“Can they fix this?”
“Should we counter?”
That’s not real negotiation.
Real negotiation happens before the offer is ever written. It’s about understanding:
• Why the seller is selling
• How long the property has truly been exposed
• Whether demand is real or manufactured
• What leverage exists
• What risk exists
• What the seller is trying to avoid
Price is only one variable. We regularly save clients money through:
• Seller-paid closing costs
• Rate buydowns
• Inspection credits
• Repair concessions
• Possession flexibility
• Appraisal protection
• Timeline leverage
Most buyers never think about these. Most agents never explain them.
List Price Is Not Value
List price is a marketing tool.
It is designed to:
• Create urgency
• Attract attention
• Anchor perception
It is not a statement of value.
Two homes can be identical and sell for wildly different prices based on how they’re positioned, marketed, and perceived.
True cost includes:
• Purchase price
• Interest rate
• Closing costs
• Repairs
• Renovation risk
• Inspection risk
• Appraisal risk
• Time
• Future resale positioning
We don’t shop by sticker price.
We shop by structure.
Why Buyers Overpay in Nashville (Specifically)
Nashville is not one market. It’s dozens of micro-markets.
What works in East Nashville often fails in Green Hills. Brentwood behaves differently than Germantown. A new-build buyer behaves differently than a resale buyer. An investor behaves differently than a primary buyer.
Generic advice doesn’t work here.
Buyers overpay in Nashville because:
1. They Confuse Urgency With Value
Strong marketing creates urgency.
Urgency is not the same as value.
Great photography, video, staging, and pricing psychology can make a home feel rare — even when it isn’t.
We break that illusion down with data.
2. They Buy Emotionally
Emotion isn’t bad — but emotional decision-making is expensive.
Once buyers fall in love, logic collapses:
“What if we lose it?”
“We’ve already toured 20 homes.”
“This one feels right.”
Our job is to preserve the excitement while protecting the math.
3. They Don’t Understand Seller Pressure
Every seller has pressure. They just don’t advertise it.
We look for:
• Relocation timelines
• New construction closings
• Carrying fatigue
• Vacancy costs
• Divorce or family transitions
• Failed escrows
• Tax deadlines
Pressure is leverage.
We find it.
4. They Rush
Speed feels productive. It often isn’t.
Rushed decisions remove leverage.
We slow things down so clients don’t make expensive mistakes.
How We Actually Help Buyers Win Below Market
We don’t submit offers. We design them.
Here’s what that means.
Step 1: We Analyze the Listing Like a Business Case
Before we ever talk about numbers, we analyze:
• Days on market vs neighborhood norms
• Price history
• Showing behavior
• Online engagement
• Open house activity
• Listing language
• Visual positioning
• Competing inventory
• Failed contracts
Listings tell stories.
We read them.
Step 2: We Identify Leverage
We don’t ask, “What does the seller want?”
We ask:
• What do they need?
• What are they afraid of?
• What’s costing them money?
Those answers shape the entire offer.
Step 3: We Structure for Certainty, Not Just Price
Sellers rarely choose the highest number.
They choose the offer that feels safest.
We structure offers to feel:
• Clean
• Organized
• Thoughtful
• Certain
Certainty wins.
Step 4: We Use Inspection Leverage Intelligently
Inspection isn’t about nitpicking.
It’s about prioritizing:
• Structural risk
• Mechanical risk
• Insurance risk
• Financing risk
• Resale risk
We don’t blow deals up.
We extract value without damaging trust.
Step 5: We Use Creative Tools Most Agents Ignore
Most agents only know how to change the price.
We use:
• Seller-paid rate buydowns
• Closing cost credits
• Possession strategies
• Flexible timelines
• Appraisal protections
These often save more money than a price cut.
Step 6: We Tell Clients When to Walk Away
This is the part most agents won’t do.
If a home is overpriced, risky, or emotionally driven, we say so.
Our job isn’t to “win” every house.
Our job is to protect your future.
Buying a Home Is No Longer a Lifestyle Decision
It’s a financial one.
Homes are now:
• Assets
• Liabilities
• Stores of wealth
• Risk vehicles
How you buy matters just as much as what you buy.
Final Thoughts
Most buyers don’t overpay because they’re careless.
They overpay because no one ever showed them a better way.
They were told:
“This is normal.”
“This is the market.”
“This is how it works now.”
That’s not strategy.
That’s surrender.
At The Costigan Group, we believe buying should feel exciting — not reckless. Confident — not rushed. Strategic — not emotional.
Our job is to protect your leverage, your capital, and your future options.
Because you don’t just live in your home.
You store wealth in it.
And how you buy determines what that wealth becomes.
Frequently Asked Questions
1. Why do buyers overpay for homes in Nashville?
Most buyers overpay because they focus only on list price instead of total acquisition cost, emotional decision-making, and missing leverage points like terms, credits, and seller pressure.
2. Is it still possible to buy a home below market value in Nashville?
Yes — but it requires understanding seller motivation, structuring offers strategically, and using leverage beyond just price.
3. What makes your buyer strategy different?
We analyze pressure, risk, and psychology before we ever talk about numbers. Most agents only negotiate price; we negotiate the entire structure of the deal.
4. Do sellers really accept lower offers?
Yes — when the offer feels safer, clearer, and more certain. Most sellers choose certainty over the highest number.
5. How important is timing in negotiations?
Extremely. Timing affects leverage, seller psychology, and willingness to concede more than most buyers realize.
6. Is overpaying only about price?
No. Buyers often overpay through bad terms, excessive risk, repair exposure, appraisal gaps, and future resale problems.
7. Why does micro-market knowledge matter in Nashville?
Nashville is dozens of micro-markets, each with different buyer behavior, inventory pressure, and negotiation dynamics.
Jack Costigan is a top-producing Realtor® and founder of The Costigan Group at Compass Nashville, specializing in short-term rental, investment, luxury, relocation, and residential real estate across Greater Nashville and Middle Tennessee. Known for his data-driven strategy, modern marketing approach, and high-touch client experience, Jack advises homeowners, professionals, and investors on identifying and executing high-performing real estate opportunities.
