Average Real Estate Commission in Tennessee: 2025 Update

When selling a house in Tennessee, you'll pay an average of 5.54% of the home's sale price in realtor fees.

For context, if you sell a home that costs $240,000, you'd typically pay around $13,296 in realtor fees; $26,038 for a $470,000 home; and $43,766 for a $790,000 home.

Realtor commission is usually the largest cost you'll face when selling your home — but you don't have to pay the full 5.54%. You can use a low commission real estate broker to save on listing fees.

Clever Real Estate could help you save thousands on listing commission by pre-negotiating 1.5% listing fees with full-service Tennessee realtors from top brokerages.

On a typical Tennessee home, you'd pay just $11,300, up to 35% less than the average rates.

»SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!

How real estate commission works in Tennessee

There are usually two real estate agents involved in the real estate transactions of a home sale:

• The seller's agent (also called the listing agent), who represents the home seller
• The buyer's agent, who represents the person buying the home

The seller's agent earns their commission by determining an appropriate listing price and managing the closing process. 

The buyer's agent earns their commission by bringing a qualified buyer who agrees to the terms of the contract and completes the sale on time.

Sellers and buyers must negotiate realtor fees with their agents separately (as required by the 2024 NAR lawsuit settlement). The seller and buyer each sign a contract with their agent, promising to pay the agreed-upon commission. Sellers can offer to pay the buyer's agent commission to help the buyer afford the home.

Real estate commission calculator for Tennessee

Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Tennessee. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.

Who pays realtor fees in Tennessee?

The seller pays for at least their agent, and often covers the buyer's agent fees, as well. When selling a home in Tennessee, you don't need to pay the realtor fees upfront. Similar to closing costs, the real estate agent fees are deducted from the sale revenue when the home purchase is finalized.

When you offer to pay for the buyer's agent, you'll owe an average of 5.54% in commission, taken from the sale proceeds at closing. If you don't offer to pay for the buyer's agent, the buyer will owe their agent an average of 2.63% on top of the price of the home and closing costs.

Should sellers pay the buyer's real estate agent commission?

Sellers are not required to pay for the buyer's agent, but most listing agents will recommend you offer to cover this fee. Experts suggest offering a buyer's agent concession within 0.5% of the local norm, which is 2.63% in Tennessee.

Here are a few reasons to offer this concession during negotiations:

• It will likely attract more potential purchasers for your home.  
• Your home will be affordable to more buyers since they won't have to pay their agent's commission upfront in addition to the down payment and closing costs.
• Agents will be motivated to showcase your property to their clients, increasing your chances of securing multiple offers.

How to save on realtor fees in Tennessee

Commission rates are not set in stone. In fact, we found that while 2.91% is the average listing commission in Tennessee, rates are typically 2.40%–4.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.

» LEARN: See state-by-state average commission rates. How does your state compare?

How to negotiate real estate commission in Tennessee

Real estate commission is always negotiable. According to our survey of real estate agents, you'll likely have an easier time negotiating low rates if:

• You're selling a high value home
• You have a personal relationship with a realtor
• You can offer a realtor repeat business

The state of the housing market in Tennessee will also impact your ability to negotiate realtor fees.

In a seller's market, home sellers have more leverage than buyers. This makes listing agents' jobs more straightforward, so they may be open to reducing their fees. The opposite is often true in a buyer's market.

To assess the current state of your local real estate market, look at the months of inventory, sale-to-list price ratio, and home values.

If all factors indicate Tennessee is a seller's market, you may be in a good position to negotiate a lower rate with your agent. If market conditions are mixed or favor buyers, it may be tougher to get your realtor to accept a cheaper commission.

The current state of the Tennessee real estate market

Low-commission real estate companies in Tennessee 

Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low-commission real estate company.

Low commission real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.

Top 5 low commission real estate companies in Tennessee

» LEARN: How do discount real estate brokers offer lower fees?

How much do real estate agents make in Tennessee?

Even though the average total real estate commission is 5–6%, not all those fees go directly to the agents. In most cases, the agents must share as much as half of their commission with their sponsoring brokerage.

Let's say a home sells for $600,000 and each agent is earning 2.5%. Each agent would earn $15,000 at closing. However, since they would owe their brokerage half, their take-home pay would only be $7,500.

What do real estate agents do in Tennessee?

Homeowners continue to rely on real estate agents when selling. A recent Clever survey found that 88% of homeowners planning to sell within the next year intend to use a real estate agent and see them as an important part of the process.

The most important advantage of an agent is their ability to increase the home's sale price. Research by the National Association of Realtors indicates that homes sold with an agent typically sell for nearly $100,000 more than those sold by owner.[1]

Full-service real estate agents provide a wide range of helpful services, including:

• Providing comparative market analysis
• Developing pricing strategies
• Listing and marketing properties to attract buyers
• Negotiating offers and advising the seller on how to proceed
• Guiding sellers through the closing process

Next steps

Think you're ready to sell your home? Start by setting up some listing appointments with local agents. During these meetings, an agent will visit your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.

Here's why it's smart to sit down with a few agents before signing with one:

• It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business and will try to sell you on their service.
• You can compare pricing and features: Shopping around helps you find the best fit for your specific needs — in terms of fees, experience, and services provided.
• Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
• Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.

To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).

Clever has pre-negotiated low commission rates of only 1.5%, with Tennessee's top agents. Contact Clever today to find out how much you can save on commission!

Frequently asked questions

Methodology

We gathered our commission rate data from a survey of 734 of our partner agents. The survey asked about standard local rates for both listing and buying agents. These data points are averages based on responses we’ve received from 13 agents in Tennessee.

We also asked agents about when and why they're willing to negotiate real estate commissions. 

Additionally, we utilized the following data from Zillow and Realtor.com:

• Home values, list prices, and sale prices: Based on Zillow data as of February 2025
• Sale-to-list ratios: Based on Zillow data as of February 2025 (unless specified otherwise)
• Months of inventory: Based on Realtor.com data as of March 2025

Additional resources for Tennessee home sellers