{"id":20952,"date":"2020-12-31T15:36:56","date_gmt":"2020-12-31T23:36:56","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=20952"},"modified":"2024-03-20T11:37:51","modified_gmt":"2024-03-20T18:37:51","slug":"buyer-buy-house-savannah","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-buy-house-savannah\/","title":{"rendered":"How to Buy a House in Savannah: The Hostess City of the South"},"content":{"rendered":"

You\u2019d expect the oldest city in Georgia to cultivate a reputation for lush flora, beautiful architecture, and rich history, which is why Savannah is known as \u201cThe Hostess City of the South.\u201d It\u2019s a popular tourist destination and one of the most-visited cities in the South, collecting 14.8 million visitors<\/a> in 2019. Some of those visitors inevitably decide to stay. With 144,464 residents calling Savannah home<\/a> as of July 2019, this coastal city has seen a slow but steady population increase of 5.5% from 2009 to 2019. The city\u2019s beauty, job opportunities in big industries like manufacturing \u2014 where employment has grown by 24% over the past decade<\/a> \u2014 are significant factors driving people to the Hostess City. This means that houses in Savannah are in high demand and low supply, so when you\u2019re ready to buy a house in Savannah, you need to act fast. Historically low interest rates<\/a> and a lower cost of living are also enticing prospective homebuyers to make the move as of December 2020.<\/p>\n

\u201cWhen a house is priced properly and they love it, they need to be swift. They can\u2019t sit on the fence for three or four days right now because the house will be gone,\u201d said Jessica Arledge<\/a>, a real estate agent with 11 years of experience who works with 76% more single-family homes than the average Savannah<\/a> agent, and who was a featured agent in Top Agent Magazine<\/i>‘s 2017 Georgia and National editions.<\/p>\n

After speaking with the local experts, we\u2019ve pieced together this comprehensive guide on where to look, the challenges you might face, and everything else you need to buy a house in Savannah and navigate the city like a local.<\/p>\n

\"An<\/a>
<\/a> Source: (Seth Doyle \/ Unsplash)<\/figcaption><\/figure>\n

Start with your budget in Savannah<\/h2>\n

Although the cost of living in Savannah is lower than the national average and significantly less expensive when compared to most major metropolitan areas, these numbers have been rising due to job growth, lack of land for new developments, and a higher quality of life.<\/p>\n

As of November 2020, Savannah\u2019s median home price was $267,800<\/a>, but that number increases the closer you get to the coast. Homes on nearby Tybee Island sit at $471,000<\/a>, which is up 8.6% over December 2019. The demand for real estate in Savannah has been driving up rental prices as well. The average rent for an apartment is $1,152<\/a> in October 2020, a 4% increase compared to the year before.<\/p>\n

The appreciation rates<\/a> for real estate in Savannah have been remarkable over the past decade and remain a top contender in the U.S. housing market, making real estate in Savannah a great potential long-term investment<\/a>. From 2014 to 2019, home prices in Savannah increased by 30.76%<\/a>.<\/p>\n

When determining your budget, expect to pay more for utilities (air conditioning is a must!); purchasing flood insurance, no matter what FEMA flood zone<\/a> you live in, is also highly encouraged.<\/p>\n

If you need help figuring out how much house you can afford, use HomeLight\u2019s home affordability calculator<\/a>. Having a target price in mind makes house hunting a little less stressful.<\/p>\n

Insurance premiums<\/h3>\n

Homeowners\u2019 insurance<\/a> rates in Savannah depend on many varying factors but do tend to be higher than the state and national average.<\/p>\n

Tom McDonald, recognized for his exceptional efforts in increasing awareness of flood issues and awarded as the best in his profession, is Savannah\u2019s permitting and floodplain administrator and has been working for the city for more than 30 years.<\/p>\n

McDonald advises all homeowners and renters living in Savannah to purchase flood insurance. The city is located in a flat, low-lying coastal region, and with 1,700 structures known to flood in the past \u2014 and with 35% of those flooded structures located in a low-risk FEMA flood X Zone \u2014 there\u2019s always<\/i> a risk of flooding in Savannah<\/a>.<\/p>\n

Flood insurance premiums<\/a> for single-family homes vary depending on finished floor elevation, the year it was built, the FEMA flood zone, whether or not the structure has an elevation certificate, and more. The annual price ranges from $425 up to $2,173, with a surcharge and annual increase from $25 to no more than 18%.<\/p>\n

Homeowner\u2019s insurance in Georgia is 11% higher than the national average; Savannah\u2019s premiums are the highest in the state, with an average rate of $2,817<\/a>. When shopping for homeowner\u2019s insurance, Arledge recommends that homebuyers ask about the named storm deductible.<\/p>\n

After a damaging hurricane<\/a>, some homeowners were hit with very high deductibles<\/a> because they didn\u2019t realize that the insurance company was charging thousands more for a \u201cnamed storm\u201d than for regular wind damage.<\/p>\n

Know the housing in Savannah<\/h2>\n

The Hostess City is known for its downtown Historic District, where visitors come to admire the diverse architectural styles while taking a stroll down the cobblestone streets, shaded by a canopy of Spanish moss-covered foliage.<\/p>\n

There\u2019s much more to Savannah\u2019s history \u2014 in fact, there are 13 unique historical districts scattered throughout the city and Chatham County, with home styles ranging from ornate Victorian, Greek Revival, Classic Federal, Georgian Colonial, and many more.<\/p>\n

At the beginning of the 20th century after an economic crash<\/a>, many historic properties were abandoned and fell into disrepair. Over the past 60 years, the Historic Savannah Foundation (HSF) has repaired more than 400 properties throughout the city.<\/p>\n

Preservation ordinances are in place to maintain the quality and character of certain neighborhoods and to prevent any inappropriate alterations.<\/p>\n

The properties in these districts are in high demand, and preservation and rehabilitation of these neighborhoods has made a significant impact on the value of homes. After the Great Recession, almost every historic district outperformed the market with some appreciation rates averaging over 50%, according to HSF’s Beyond Tourism report<\/a>.<\/p>\n

Although there are restrictions, you can still update a historic home. \u201cThere\u2019s a lot of renovation going on in some of the older properties, which is really fun, because people will go in and really personalize the home,\u201d says Arledge.<\/p>\n

She also said that to attract buyers, more and more renovated homes<\/a> are coming with trending features, such as open floor plans, quartz and granite countertops<\/a> in bathrooms and kitchens, and double vanities.<\/p>\n

Look out for these common problems<\/h3>\n

Because of Savannah\u2019s subtropical climate, characterized by hot and humid summers and short, mild winters, be prepared to deal with bugs<\/a>.<\/p>\n

\u201cIn Georgia, they say there are homes that have had termites and homes that are going to get termites,\u201d warns Arledge. Her biggest tip? Get a termite bond on your property, and keep the termite bond while you own the house.<\/p>\n

Buyers need to make sure they get a home inspection<\/a>. Because of the hot weather, a common issue is a cracked plumbing vent boot on roofs. The cracked boot leads to bigger problems such as allowing water to leak into the house.<\/p>\n

Another problem that buyers need to look for is any sign of flood damage on the property. According to McDonald, 100% of Savannah is at risk of flooding. When a rain event occurs, the city\u2019s undersized storm pipes get clogged, and when water is not absorbing into the ground fast enough, there\u2019s flooding.<\/p>\n

McDonald says that those looking to buy or build should spend some time investigating the area first. Make sure the lot isn\u2019t at the bottom of a hill, and that the home is built using flood damage-resistant materials.<\/p>\n

\u201cMy number one advice is to elevate your house,\u201d says McDonald. The city does have a flood damage prevention ordinance that requires homes in areas that are known to flood to have a certain elevation above the flood hazard level.<\/p>\n

\"Houses<\/a>
<\/a> Source: (Reynaldo Rivera \/ Unsplash)<\/figcaption><\/figure>\n

Get the lay of the land in Savannah<\/h2>\n

\u201cThere\u2019s absolutely no excuse to be bored if you live in Savannah,\u201d says Arledge. The five miles of white sand beaches on nearby Tybee Island, food festivals, beautiful parks and squares, historical architecture, and a thriving downtown arts scene make it easy to see why!<\/p>\n

Here are a few of Savannah\u2019s most well-known neighborhoods.<\/p>\n

Downtown Historic District<\/h4>\n

The 2.5-square-mile downtown Historic District is considered the heart of Savannah, with stunning restored 18th-century homes in varying styles, tall oak trees<\/a> draped in moss, a beautiful waterfront view along the Savannah River, and the city\u2019s iconic squares. There\u2019s plenty to do in the downtown area, such as:<\/p>\n