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:
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» 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.
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 |
|
The Tennessee housing market |
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» 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.
Clever
Clever Real EstateListing Fee
1% (minimum $3,000)
Clever Cash Back
0.5% on homes over $150,000
Avg. Customer Rating
4.8/5 (386 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
| Cons
|
As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.
- Trustpilot: 4.8/5 (379 reviews)
- BBB: An A rating
Door Real Estate
Door Real EstateListing Fee
$5,000
Buyer Rebate
Up to $1,500
Avg. Customer Rating
4.8/5 stars (420 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
| California | Oklahoma |
| Colorado | Oregon |
| Florida | Pennsylvania |
| Georgia | Tennessee |
| Massachusetts | Texas |
Pros
| Cons
|
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.
Redefy
Redefy Real EstateListing Fee
$3,500
Buyer Rebate
N/A
Avg. Customer Rating
4.3/5 (115 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 |
Pros
| Cons
|
*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.
- Yelp*: 4.5/5 (30 reviews)
- Google*: 4.5/5 (59 reviews)
- Facebook: 3.8/5 (26 reviews)
- Better Business Bureau*: A+
*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.
» 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 PropertiesPrice Range
$99-395
Number of Photos
10-30
Listing Term
3-6 months
- 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
| $179 - By Owner Basic Plus package
|
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.
ResultsMLS
ResultsMLSPrice Range
$379-999
Number of Photos
10-max allowed
Listing Term
6-12 months
- 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
| $499 - Gold Showcase Package
$999 - Platinum Package
|
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.
» 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