Nanocrystalline barium titanate (8-10 nm crystallite size) was prepared at temperatures of 23-78 degrees C through reaction of a modified titanium alkoxide precursor in benzyl alcohol with barium hydroxide octahydrate. The room temperature formation of a perovskite phase from solution is associated with the use of benzyl alcohol as solvent medium. The formation mechanism was elucidated by studying the stability and interaction of each precursor with the solvent and with each other using various experimental characterization techniques. Density functional theory (DFT) computational models which agreed well with our experimental data could explain the formation of the solid phase. The stability of the Ti precursor was enhanced by steric hindrance exerted by phenylmethoxy ligands that originated from the benzyl alcohol solvent. Electron microscopy and X-ray diffraction indicated that the crystallite sizes were independent of the reaction temperature. Crystal growth was inhibited by the stabilizing phenylmethoxy groups present on the surface of the crystallites.