diff --git a/app/sim_test.go b/app/sim_test.go
index 94fa34e66e..f2a712cd72 100644
--- a/app/sim_test.go
+++ b/app/sim_test.go
@@ -318,7 +318,6 @@ func TestAppStateDeterminism(t *testing.T) {
 			appOptions.SetDefault(key, value)
 		}
 	}
-	appOptions.SetDefault(flags.FlagHome, t.TempDir()) // ensure a unique folder
 	appOptions.SetDefault(server.FlagInvCheckPeriod, simcli.FlagPeriodValue)
 
 	for i := 0; i < numSeeds; i++ {
@@ -331,6 +330,8 @@ func TestAppStateDeterminism(t *testing.T) {
 				logger = log.NewNopLogger()
 			}
 
+			appOptions.SetDefault(flags.FlagHome, t.TempDir()) // ensure a unique folder per run
+
 			db := dbm.NewMemDB()
 			app := NewWasmApp(logger, db, nil, true, appOptions, emptyWasmOpts, interBlockCacheOpt(), baseapp.SetChainID(SimAppChainID))