📊 The data: Our September 2024 survey of local agents found that the average real estate commission in Tennessee is 5.54%, which is higher than the national average of 5.32%. Calculate your estimated commission in Tennessee.
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; $26,592 for a $480,000 home; and $44,320 for a $800,000 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 discount broker to save on realtor fees.
Clever Real Estate could help you save thousands on commission by pre-negotiating 1.5% listing fees with full-service Tennessee realtors from top brokerages.
On a typcial Tennessee home, you'd pay just $11,500, up to 36% 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
| Average listing commission | 2.91% |
| Average buyer's agent commission | 2.63% |
| Total average commission | 5.54% |
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
In the past, home sellers usually paid agent fees for both their listing agent and the buyer's agent out of their sale proceeds.
However, since the 2024 NAR settlement, sellers and buyers are required to negotiate rates with their own agents separately.
In Tennessee the average listing agent fee is 2.91%, while the average buyer's agent fee is 2.63%.
» 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, you don't need to pay the realtor fees upfront. The listing agent fees are subtracted from the final sales price. If you offer to pay for the buyer's agent — a common concession offered by sellers — both the listing agent and buyer's agent fees would be taken from the final sales price at closing.
The seller's agent makes their fee by supplying services like market evaluation and managing the closing process. The buyer's agent makes their fee by bringing a qualified purchaser who meets the contract stipulations and completes the sale on time.
You don't have to pay these fees out of pocket. Similar to closing costs, the real estate agent fees are deducted from the sale revenue when the home purchase is finalized.
Why do sellers pay the buyer's real estate agent commission?
Offering to cover the buyer's agent fee will likely attract more potential purchasers for your home.
Offering this concession 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 — an expense many buyers struggle to afford.
When you make a competitive offer on the buyer's agent commission, real estate agents become more motivated to showcase your property to their clients. This can increase your chances of securing multiple offers. Experts recommend advertising a buyer's agent concession within 0.5% of the local norm, which is 2.63% in Tennessee.
The 2024 NAR lawsuit settlement explained
After losing a lawsuit over their practices in 2024, the National Association of Realtors agreed to change how real estate professionals do business.
As of August 2024, buyer's agents are required to sign an "agency agreement" before providing services to a buyer. This agreement has to specify what services the agent will provide, and how much they will get paid.
Real estate agents are no longer allowed to split commissions with one another. In the past, it was common for a listing agent to collect a 6% fee from the seller, and then split this fee with a buyer's agent who brought a buyer. Going forward, buyer's agents will have to negotiate their fee directly with the buyer they represent.
Learn more about how the lawsuit will impact buyers and sellers.
Will the NAR settlement change how real estate commission works?
Buyers may feel the most immediate impact from the NAR settlement changes. If the seller doesn't offer to pay for the buyer's agent at closing, the buyer could be on the hook for an extra 2–3% of the home's sale price. This may convince some buyers to skip hiring an agent and try to navigate the market themselves.
Many sellers may continue to offer to pay for the buyer's agent like they always have to help sell their home. However, a seller may decline to offer any concessions if they're in a competitive seller's market in which they have all the leverage.
Sellers overwhelmingly welcome the commission changes. A Clever Real Estate survey found that 94% of home sellers support the commission changes.
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.
| Listing commission range | 2.40%– 4.00% |
| Buyer's agent commission | 2.00%– 3.00% |
| Total commission range | 4.40%– 7.00% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in Tennessee?
Real estate commission is always negotiable. Nationwide, the 627 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 | 72% |
| Homeowners who are repeat clients | 70% |
| Homeowners with more than one property to sell | 67% |
| Seller’s situation (e.g. divorce or death in the family) | 48% |
| Higher property values | 47% |
| High competition for clients | 37% |
| Homes expected to sell quickly | 37% |
| Periods of low housing inventory | 23% |
| High buyer demand in the area | 22% |
| Houses in excellent condition | 19% |
| Highly experienced home sellers | 13% |
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 |
|
| The Tennessee housing market |
|
While your personal circumstances may vary, real estate conditions in Tennessee will impact all home sellers in the area.
Generally in a seller's market, in which home sellers have more leverage than buyers, listing agents' jobs are more straightforward, so they may be more open to reducing their fees. The opposite is often true in a buyer's market.
Not comfortable negotiating with a real estate agent? Avoid the awkward discussion and let Clever pre-negotiate a lower rate with a top local agent for you.
To assess the current state of your local real estate market, examine these three factors:
- Months of inventory
- Sale-to-list price ratio
- Home value movements
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
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 2.42 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 97.60% of their listing price | Buyer's market |
| Home values | Home values have risen 7.65% year over year | Seller's market |
» 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.
Listing Fee
Customer Rating
BBB Status
Editor's Take
Overview
Pros & cons
Clever Real Estate is the best option for most sellers looking for an agent. The company matches you with multiple experienced, full-service agents so you can find the right fit, and it offers a low 1.5% listing fee no matter which agent you choose.
Listing Fee
Customer Rating
BBB Status
Editor's Take
Overview
Pros & cons
Redfin is a reputable discount real estate brokerage that offers significant savings, particularly if you buy and sell with the brokerage. But watch out for high minimum fees, which vary by market and can be high in some areas. Redfin's agents also work with a lot of clients, and they don’t always have time to provide as much hands-on service as you may need.
Read the full Redfin review.
Listing Fee
Customer Rating
BBB Status
Editor's Take
At a Glance
Pros & cons
Ideal Agent is a solid option if you’re looking for a top agent. The company vets its realtors thoroughly, so you’ll likely get a quality agent. But you won't save as much on realtor fees as you could with other companies.
Read the full Ideal Agent review.
» 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 Realtor 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 realtors 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
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, during which 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!
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 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 August 2024
- Sale-to-list ratios: Based on Zillow data as of August 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September 2024
