Average Real Estate Commission in Tennessee

By 

Bailey Peterson

Updated 

March 8th, 2021

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How commission works | Getting low rates | Low commission companies | Methodology

📊 The data: We polled local agents and found that the average real estate commission in Tennessee is 5.57%, which is higher than the national average of 5.45%.

For a house sold for $200,257, this rate translates to $11,154 in real estate agent commission costs.

Realtor commission is usually the largest cost that home sellers face, but the upside is that it also represents the biggest potential for savings.

» MORE: Learn how Clever can help you save on commission.

Below, we cover everything you need to know commission costs in Tennessee and also give you tips for getting low rates.

How real estate agent commission works in Tennessee

There are two real estate agents involved in a typical home sale:

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

The seller's and buyer's agent get paid a percentage of the home's final price when the sale is finalized. This payment is called real estate agent commission, and is baked into the sale price of a home and split between the two agents.

» LEARN: More about how real estate commissions work.

Based on our research, the average commission split in Tennessee has 53.83% of the commission going to the listing agent and 46.17% going to the buyer's agent.

Who pays for real estate commissions?

Home sellers are responsible for paying the real estate commission of both the agent representing them, as well as the agent representing whoever buys their home.

However, since the realtor commission is baked into the sales price you could say that the home buyer is paying — at least in-part — through a higher sales price.

» MORE: Who pays realtor commission.

How to save on real estate commission in Tennessee

💰Best ways to save

While there are a number of options for home sellers looking to save on commission, good options for most home sellers include:
  • Negotiating rates with a traditional realtor
  • Working with a low commission real estate company

» MORE: Options for saving on realtor commission

Now might be a good time to negotiate for a less-than-usual commission with your realtor.

In Tennessee, the median home values soared by more than 7% since 2019, and listings are moving quickly. The average house is on the market for just under a month before selling.

These favorable conditions are giving real estate agents quick opportunities to sell more houses with less effort, so they might be open to giving you a discount.

Below we cover how you can negotiate lower rates, and list some of our recommendations of low commission real estate companies that you should consider.

With Clever you can save on commission without negotiating… AND work with top agents!

Clever has pre-negotiated low commission rates, with top local agents across the country.

The result is that you can save thousands of dollars when you sell your home, without having to haggle over commission rates!

With a Clever agent, you get full service and only pay a listing commission of $3,000 or 1%.

Tips for negotiating realtor commission in Tennessee

Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.

Factor
You may have an easier time negotiating low rates if...
Your situation
  • You're selling a high-value home
  • You have a personal relationship with a realtor
  • You can offer a realtor repeat business
The Tennessee housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising

» LEARN: How you can negotiate lower commission rates.

While the personal factors that affect your ability to negotiate commission rates are unique to you, the local real estate market conditions will affect all home sellers in Tennessee.

In a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more inclined to offer lower commission rates. The opposite is true in a buyer's market.

📖Definitions

Months of inventory, is measured by dividing the homes listed for sale in the most recent month by the number of homes actually sold in that month. It is a key indicator of how much supply and demand there is for houses in a market.

Sale-to-list is calculated by dividing the median sale price by the median listing price in a given area. If homes in your area are generally selling for more than their listing price, that is a good indication that you are in a seller's market.

Home values rising in your area indicate that demand is growing. Whereas if this figure is falling, then it's more likely that homes in your area are becoming less desirable.

To judge the current state of the real estate market, you can look at three factors: months of inventory, sale to list price, and home value trends. Below, we've included a current breakdown of these factors in Tennessee.

Stats and facts: The current state of the Tennessee real estate market

Factor
Trends
Indication
Months of inventory
There's 0.9 months of housing inventory on the market
Seller's market
Sale-to-list price
Homes are selling for 99.00% of their listing price
Seller's market
Home value
Home values have risen/fallen 7.65% year over year
Seller's market

Low commission real estate companies in Tennessee

Home sellers looking to save money when selling their home should consider a low commission real estate company. To help you out, Clever has picked some of the top discount and flat-fee MLS services across the state:

Discount real estate brokers in Tennessee

Discount real estate brokers are companies that will list your home for a reduced commission percentage or flat rate. The catch is that the service might not be on-par with what you'd get from a top local agent.

Listing Fee

1% (minimum $3,000)

Clever Cash Back

0.5% on homes over $150,000

Avg. Customer Rating

4.8/5 (386 reviews)

Description
Locations
Pros & Cons
Reviews
  • Clever Real Estate is a nationwide, online concierge and agent matching service for sellers and buyers — learn more
  • Buyers and sellers are matched with multiple highly rated agents from major brands, such as Keller Williams, Century 21, Compass, RE/MAX, and more
  • Sellers choose a full-service agent and pay a flat, $3,000 fee — or just 1% for homes more than $350,000
  • Buyers may be eligible for 0.5% back after closing (in qualifying locations)

Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico

Pros
  • Listing fee of $3,000 (or 1% on homes >$350K) for a full-service agent
  • Sellers only pay once their home is sold
  • Partner Agents are top, local realtors with at least 5 years experience
  • Agent matches are customized and based on your specific situation
  • Eligible buyers receive 0.5% in Clever Cash Back
Cons
  • Sellers may not be matched with an agent from their preferred brokerage
  • While homes are listed on the MLS, there's no independent Clever listing site.







As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.

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Door Real Estate

Door Real Estate

Listing Fee

$5,000

Buyer Rebate

Up to $1,500

Avg. Customer Rating

4.8/5 stars (420 reviews)

Description
Locations
Pros & Cons
Reviews
  • Door.com is a discount real estate service and licensed brokerage in 10 U.S. states 
  • Sellers pay a flat $5,000 listing fee at closing for full-service listing assistance from a team of agents and specialists
  • Door's online portal allows sellers to manage their listing and get virtual support from Door's in-house team
  • Eligible buyers get up to $1,500 back at closing
CaliforniaOklahoma
ColoradoOregon
FloridaPennsylvania
GeorgiaTennessee
MassachusettsTexas
Pros
  • Sellers get full service for a flat $5,000 listing fee
  • Eligible buyers can get up to $1,500 back at closing
  • Online seller dashboard for managing your listing and centralized communication
  • Buyers get daily MLS email alerts




Cons
  • Other companies offer the same services at lower prices
  • Other companies may offer better value for buyers
  • Team-based approach vs dedicated agent may not be for everyone — learn more
  • Door agent will not attend showings on seller's behalf
  • Salaried agents could be less motivated to sell your home for top dollar

As of May 20, 2020, Door's average customer rating is 4.8/5 based on 420 reviews across Zillow, Google, Facebook, and Yelp.

  • Zillow: 4.9/5 (338 reviews)
  • Google: 4.2/5 (40 reviews*) 
  • Facebook: 4.4/5 (38 reviews)
  • Yelp: 4/5 (4 reviews*)
  • BBB: An A rating, not BBB accredited*

*Reviews are for Door’s Dallas, TX office. Reviews may vary by location. We recommend conducting your own research for customer reviews specific to your area.

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Listing Fee

$3,500

Buyer Rebate

N/A

Avg. Customer Rating

4.3/5 (115 reviews)

Description
Locations
Pros & Cons
Reviews
  • Redefy is a multi-state real estate franchise that offers flat-fee listing services for home sellers and standard services for home buyers
  • Redefy is currently available in select cities in Colorado, Florida, Georgia, Illinois, North Carolina, South Carolina, Tennessee, Texas, and Virginia
  • When you sell with Redefy, you'll pay a nonrefundable $500 fee up front, then $3,000 at closing, for a total fee of $3,500.
  • You should also expect to pay a buyer's agent commission. Rates vary, but 2.5-3% is typical nationwide
  • When you buy with Redefy, you'll get full service and support, but unlike some other discount services, Redefy doesn't offer built-in savings or rebates
  • Note: Each Redefy office is an individual franchisee, so experiences may vary considerably by location. Look up reviews specific to your local office for an accurate gauge of customers' experiences
Atlanta, GA
Jacksonville, FL
Augusta, GA
Knoxville, TN
Austin, TX
Memphis, TN
Charleston, SC
Miami, FL
Charlotte, NC
Nashville, TN
Chattanooga, TN
Norfolk, VA
Chesapeake, VA
Northern Colorado
Chicago, IL
Orlando, FL
Colorado Springs, CO
Raleigh, NC
Columbia, SC
Richmond, VA
Dallas, TX
Rock Hill, SC
Denver, CO
San Antonio, TX
Fort Mill, SC
Tampa, FL
Greenville, NC
Virginia Beach, VA
Houston, TX

ProsCons
  • Charges $500 non-refundable fee up front
  • Franchise model means service quality and/or experience may vary considerably by location
  • Redefy doesn't do open houses for its sellers
  • Limited availability — locations in only 29 U.S. cities (as of 4/10/2020)
  • No built-in commission rebates for buyers


*Homes valued over $1 million may pay a 1% listing fee — check with your local Redefy office.

As of May 20, 2020, Redefy's third-party reviews for its main Denver office average a 4.3/5 rating across Yelp, Google, and Facebook. See the breakdown below.


*These reviews are for Redefy's main Aurora, CO office. Reviews vary considerably by location. We recommend conducting your own research for customer reviews specific to your area.

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» MORE: About discount real estate brokers.

Flat-fee MLS listing services Tennessee

Flat-fee MLS listing services offer to post your home on your local MLS for a low rate often around $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, this might not be a good option for you.

Martin Properties

Martin Properties

Price Range

$99-395

Number of Photos

10-30

Listing Term

3-6 months

Description
Pricing
Pros & Cons
Reviews
  • Martin Properties is a licensed real estate brokerage in Tennessee that specializes in flat-fee MLS listings
  • Direct telephone access to broker for advice
  • Set your own buyer’s commission
  • Cancel anytime for free
  • Listing is active within 24-48 hours after submitting necessary paperwork
  • Additional a-la-carte options include videos, photo captions, a 26-week action plan, and signs
$99 - By Owner MLS Basic package
  • 3-month listing on the MLS
  • Listing should automatically be syndicated to Realtor.com, Zillow, Trulia, and more (but broker offers no guarantees)
  • 10 photos
  • Internet marketing
  • Add open house on MLS
  • Buyer leads are forwarded to you
  • Free initial changes to listing

$179 - By Owner Basic Plus package
  • Same as By Owner MLS Basic package, plus:
  • 24 photos
  • Unlimited changes to your listing
$295 - MLS Silver package
  • Same as By Owner Basic Plus package, plus:
  • 6-month listing on the MLS
$395 - MLS Gold package
  • Same as MLS Silver package, plus:
  • 30 photos
  • Photo captions and unbranded video

Additional broker assistance for selling help, advice, offer reviews, etc. is available for $395

Pros

  • Direct telephone access to broker for advice (advice may be limited by level of service)
  • Cancel anytime
  • Buyer leads are forwarded to you
  • Free listing changes

Cons

  • Additional broker advice lives behind a paywall
  • No built-in home valuation or pricing support

As of August 17, 2020, Martin Properties has an average rating of 4.5/5 based on 13 reviews across Google and Facebook.

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ResultsMLS

ResultsMLS

Price Range

$379-999

Number of Photos

10-max allowed

Listing Term

6-12 months

Description
Pricing
Pros & Cons
Reviews
  • ResultsMLS is a licensed, Tennessee real estate brokerage that specializes in flat-fee MLS listing services
  • Provides contracts, addendums, and disclosures (downloads)
  • Built-in comparative market analysis (CMA)
  • Money-back guarantee
  • Professional photography, contract review, negotiation support, and open houses are available for an additional fee
  • Listing is live within 48 hours after the completion of necessary paperwork
  • Price changes are free, but changes to description or photos are $25 each
  • Cancel any time (no refunds)
$379 - Silver Basic Package
  • 6-month listing on the MLS
  • 10 photos
  • Listing syndicated to Realtor.com, Zillow, Trulia, and more
  • Email, text, and live chat support
  • Printable color flyer
  • Buyer leads contact you directly
  • Double-sided yard sign
  • Door key lockbox
  • Showing service access
  • CMA available upon request
  • Personal property website
  • 5 free listing changes




$499 - Gold Showcase Package
  • Same as Silver Basic package, plus:
  • 12-month listing on the MLS
  • 25 photos
  • 10 free listing changes

$999 - Platinum Package
  • Same as Gold Showcase, plus:
  • Billed monthly in $99 installments (minimum of $600 required if cancelled early)
  • Full support
  • Professional photography
  • Contract review and negotiations
  • Open houses
  • Unlimited listing changes


Pros

  • Buyer leads contact you directly
  • Showing service access
  • CMA available upon request
  • Includes yard sign, flyers, and lockbox
  • Money-back guarantee — but only if you hire one of ResultsMLS’s local, full-service partner agents instead

Cons

  • Minimum fee is $600 if you cancel Platinum package early
  • No built-in contract/paperwork review or support

As of August 11, 2020, ResultsMLS has an average rating of 4.5/5 based on 14 reviews on Yelp.

SHOW MORE

» MORE: About flat-fee MLS services.

Methodology

Data on commission rates is based on a survey of 554 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area.

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

  • Home values, list prices, and sale prices: Based on Zillow data as of September, 2020
  • Sale prices and sale-to-list ratios: Based on Redfin data as of September, 2020 (unless specified otherwise)
  • Months of inventory: Based on Realtor.com data as of September, 2020

Additional resources for Tennessee home sellers