Average Real Estate Commission in Tennessee: 2024 Data

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By Jon Stubbs Updated July 1, 2024

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How commission works | Commission calculator | Best ways to save | Methodology

📊 The data:


Our December 2023 survey of local agents found that the average real estate commission in Tennessee is 5.58%, which is higher than the national average of 5.49%. Calculate your estimated commission in Tennessee.

The average total real estate agent commission rate in Tennessee is 5.58% of the final sale price. Based on the latest median home sale price in Tennessee ($324,797), that translates to a total cost of roughly $18,124.

Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Tennessee, the average listing agent fee is 2.77%, while the average buyer’s agent fee is 2.82%.

Real estate agent commissions make up a significant portion of the closing costs for Tennessee home sellers. But you don't have to pay the full 5.58% to a traditional agent. If you're selling a home in Tennessee, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 33% on realtor fees, or about $5,964 on average.

Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.

How real estate commission works in Tennessee

Average listing commission 2.77%
Average buyer's agent commission 2.82%
Total average commission 5.58%
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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

Based on our research, the average real estate commission paid in Tennessee for listing agents is 2.77% of the final home price and 2.82% for buyer's agents, for a total of 5.58%.

» LEARN: How do real estate broker commissions work?

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.

If you want to decrease your realtor fees, Clever can connect you with a top local listing agent who charges just 1.5%. This will allow you to retain more money from the sale for yourself.

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

Who pays realtor fees in Tennessee?

When selling a home in Tennessee, the sales commissions for both the seller's and buyer's agents are deducted from the final sale price. These fees do not need to be prepaid.

The seller's agent earns their commission by providing services such as market analysis and handling the closing process. The buyer's agent makes their commission by bringing a qualified buyer who meets the purchase terms and closes on time.

The seller does not pay these commissions out of pocket. Similar to closing costs, the agents' fees are subtracted from the sale proceeds once the sale is completed.

Why do sellers pay the buyer's real estate agent commission?

Offering to cover the buyer's agent commission may attract more potential buyers to your listing.  

Paying this fee makes your home more enticing to buyers, since they won't have to pay their agent's commission upfront in addition to the down payment and closing costs - something many buyers can't afford.

When you make a competitive offer on the buyer's agent commission, real estate agents become more incentivized to showcase your property to their clients. This can increase your chances of getting multiple offers. Experts recommend advertising a buyer's agent commission within 0.5% of the local average, which is 2.82% in Tennessee.

Will the NAR lawsuit change how real estate commission works?

On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023. 

While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need. 

The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.

» READ MORE:

How to save on realtor fees in Tennessee

Commission rates are not set in stone. In fact, we found that while 2.77% is the average listing commission in Tennessee, rates typically fall between 1.50% and 4.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.

Listing commission range 1.50%– 4.00%
Buyer's agent commission 2.00%– 4.00%
Total commission range 3.50%– 8.00%
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» LEARN: What's the commission on a $1 million home?

Can I negotiate realtor commission in Tennessee?

Real estate commission is always negotiable. In Tennessee,  the 13 agents we surveyed said these were their most common reasons for agreeing to lower their commission.

Would you lower your commission for…? Agents who answered yes
Homeowners who also plan to buy with you 85%
Seller’s situation (e.g. divorce or death in the family) 77%
Homeowners who are repeat clients 77%
Homeowners with more than one property to sell 69%
High competition for clients 61%
Higher property values 46%
Periods of low housing inventory 38%
Homes expected to sell quickly 31%
Houses in excellent condition 23%
High buyer demand in the area 15%
Highly experienced home sellers 8%
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Negotiating realtor fees in Tennessee depends on two main 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
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While your personal situation may differ, real estate conditions in Tennessee will impact all home sellers in the area.

Generally in a seller's market, where sellers have more leverage than buyers, listing agents' jobs are easier so they may be more willing to reduce commissions. The opposite is often true in a buyer's market.

Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.

To gauge the current state of your local real estate market, look at these three factors:

  • Months of inventory 
  • Sale to list price ratio
  • Home value trends  

If all signs point to Tennessee being a seller’s market, you may be in a good position to negotiate a lower commission with your agent. If conditions are mixed or favor buyers, it may be harder to get your agent to accept a cheaper rate.

The current state of the Tennessee real estate market

Factor Trends Indication
Months of inventory There's 2.01 months of housing inventory on the market Seller's market
Sale-to-list ratio Homes are selling for 98.20% of their listing price Seller's market
Home values Home values have risen 16.52% year over year Seller's market
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» LEARN: See state-by-state average commission rates. How does your state compare?

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.

Discount 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.

Best for most sellers

Clever Real Estate

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4.9
Excellent

Listing Fee

1.5% ($3,000 min.)

Customer Rating

5.0 (2,627)

Availability

Nationwide

Overview

Pricing

Reviews

Contact

Overview: Those aiming to sell their homes in Tennessee will discover that Clever stands out as the premier choice for reducing commission costs without cutting corners on professional service.

✅ Benefits and features: Clever commands attention with striking commission discounts reaching as high as 50% compared to standard brokerage fees. Their acclaimed, cost-free matchmaking service offers a no-risk opportunity to assess potential realtor partnerships.

🏠 How it works: Clever forges connections between home sellers and esteemed real estate agents from well-known firms such as RE/MAX and Compass. Sellers are afforded an expansive selection of skilled agents, ensuring a match that aligns with their unique needs, all while paying a 1.5% listing fee.

Pros

  • Access to real estate agents from reputable brokerages, ensuring exceptional service
  • Exclusive 1.5% listing fee when you work with Clever
  • Choose from 100+ top Tennessee real estate agents

Cons

  • No guarantee that you’ll be able to work with a specific agent or brokerage you have in mind
  • Additional services such as professional staging, drone photos, and 3D tours may come at an additional cost (agents will provide a detailed breakdown during their listing presentation)

Fee structure

  • 1.5% listing fee ($3,000 minimum) at closing
  • 2–3% buyer’s agent commission at closing
Weighted avg. 5.0 2,627
Trustpilot 5.0 2,402
Google 4.8 225

Website: listwithclever.com
Phone: 1-833-225-3837
Hours: 8 a.m.–8 p.m. EST, 7 days a week
Address: 6358 Delmar Blvd, Suite 300, Saint Louis, MO 63130

Redfin Tennessee

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4.7
Very good

Listing Fee

1.5% ($3.500 min.)

Customer Rating

N/A*

Availability

Multi-state

Overview

Pricing

Reviews

Contact

Overview: For property owners in Tennessee considering the sale of their home, Redfin presents a service that's fairly cost-effective overall, although it should be noted that their minimum commission requirement may exceed that of competitors in the region.

✅ Benefits and features: With Redfin, selling your home comes with a competitive 1.5% listing fee. Even better, when you both purchase and sell your residence through Redfin within a single year, the listing charge is further reduced to a mere 1%. Furthermore, Redfin boasts an extensive network of discounted agents across Tennessee at your disposal.

🚩 Potential red flags: The business model embraced by Redfin may not align with every seller's expectations. Emphasizing a tech-forward and team-structured methodology, Redfin's process is significantly remote-centric, engaging you primarily with a Lead Agent along with a support team administratively. Also, Redfin has a minimum commission fee range of $2,000–4,500 in Tennessee. Depending on your location and your home’s value, you may pay more than the advertised 1.5% fee.

Pros

  • Significant savings on listing fees
  • Well-known brand with capable agents
  • Great for sellers who appreciate a technology-driven approach

Cons

  • May not be the best fit for those seeking a personalized, one-on-one agent experience
  • Higher minimum commission fees than other options in Tennessee
  • Limited availability in some Tennessee cities
  • Less agent selection than Clever

Fee structure

*Not enough available data at this time

Website: redfin.com
Phone: 1-844-759-7732
Hours: 8 a.m.–5 p.m. CST, 7 days a week
Address: 302 Innovation Dr, Suite 320, Franklin, TN 37067
Areas served: Bartlett, Chattanooga, Clarksville, Collierville, Franklin, Germantown, Knoxville, Memphis, Murfreesboro, Nashville, and more

One Percent Lists Midsouth

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4.1
Good

Listing Fee

1%

Customer Rating

5.0 (105)

Availability

Local

Overview

Pricing

Reviews

Contact

Overview: For those in Tennessee looking to cut costs on real estate commissions without sacrificing knowledge of the local market, 1% Lists Midsouth emerges as a strong contender.

✅ Benefits and features:  The brokerage stands out in providing an economical 1% listing fee, inviting a cost-effective closing experience for sellers. It's noteworthy that this firm requires no upfront payment, enhancing its appeal. Bolstering their reputation are the commendable testimonials from their clientele, affirming satisfaction with their services.

🚩 Potential red flags: However, it's important to be aware that 1% Lists Midsouth does not incorporate services like hosting open houses or the use of print advertising as part of its standard package. Additionally, ambiguities remain concerning the duration of MLS listings, presenting potential hold-ups or unforeseen expenses.

Pros

  • Low 1% listing fee
  • Positive customer reviews
  • Understanding of Tennessee real estate markets

Cons

  • Doesn't hold open houses
  • Unclear MLS listing period
  • No use of print media in marketing efforts

Fee structure

  • 1% listing fee at closing
  • 2–3% buyer's agent commission at closing
Weighted avg.  5.0 105
Google 5.0 16
Zillow 4.9 89

Website: 1percentlistsmidsouth.com
Phone: (901) 554-4376
Address: 7989 Goringwood Ln, Germantown, TN 38138
Areas served: Arlington, Bartlett, Collierville, Cordova, Fayette County, Germantown, Memphis, Millington, Tipton County, and the surrounding areas

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

Next steps

Thinking of selling your home but don't know where to start? Here are some next steps.

Start interviewing local agents

Set up some listing appointments, where an agent visits 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!

👋 Next Steps: Find an agent!

Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).

You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.

Ready to learn more? Click below to take our simple quiz and see your agent matches!

Methodology

We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents. 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 May 2024
  • Sale-to-list ratios: Based on Zillow data as of May 2024 (unless specified otherwise)
  • Months of inventory: Based on Realtor.com data as of May 2024

Additional resources for Tennessee home sellers

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