$1,200 for water heater + install. Thought Tennessee was cheap to love. What u got 1000 gallon seems high. Gas or electric?
Gas.  Tankless -- little bigger than a Haliburton briefcase.  Holds no water just pumps it through on demand at 105-140 degrees on demand.
The tanked ones are $500 for mid grade.  Tankless about a thou plus brass valve kit, some copper and a few other pieces. 
plumbers make bank.  Install is about 3 hours tops.  Every one of the 8 guys I called want $1200-$1500 for install labor.  
ima do it myself.  Water in, water out.  Relief valve, venting.  Gas connect.  Ain't  that hard.
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