Selling a house For Sale by Owner (FSBO) in Tennessee can save you 2.8% to 5.97% in realtor commissions. But prepare for a lot of work, including filing the required paperwork and learning about your local market to make the most from your sale.
In Tennessee, the average commission rate is 5.26% to 5.97%. If you sell a house worth $200,257 — the median home value in Tennessee — that’s up to $11,961, which is a huge chunk of your potential profits.
Selling without a real estate agent, known as listing For Sale By Owner (FSBO), is a viable option for experienced home sellers who are willing to put in the time and effort.
However, selling FSBO has risks. Research shows that FSBO homes typically sell for about 6% less than those listed with agents. In addition, FSBO homes often take longer to sell, and are more likely to fall out of contract after accepting an offer — unless the homeowner is experienced and knowledgeable about the process.
In this article, we’ll explain everything you need to know to successfully sell your house without a realtor: the ins and outs of Tennessee realtor fees, paperwork, and tips to walk away with more from your sale.
JUMP TO SECTION
What FSBO Sellers in Tennessee Need to Know
Real estate laws, processes, and trends vary greatly across the country. Understanding the details of your market and getting accurate information can make a FSBO sale complicated.
We'll go into more details about what you need to do in Tennessee, but here's an overview of the state's laws and regulations.
Tennessee FSBO Overview
|Real estate attorney required?||No|
|Required state disclosures? (learn more)|
|FSBO yard sign allowed?||Yes|
|Competitive Buyer's Agent Commission (learn more)||2.37% to 2.77%|
Additionally, you'll need to know and understand all of your responsibilities as a FSBO seller, which include:
- Preparing your home by making necessary repairs, cleaning, and staging your home.
- Accurately and competitively pricing your home.
- Marketing your home by writing a listing description, taking high-quality photos, posting the listing on different sites (free and/or paid), and promoting your home on social media, in print ads, and via word of mouth.
- Vetting buyers to ensure they're qualified, from a financial perspective. Accepting an offer from an unqualified buyer will cause your sale to fall through and in Tennessee, 11% of mortgage applications are rejected.
- Negotiating the final price, contingencies, repair concessions, and other aspects of the purchase agreement.
- Properly filling out all necessary paperwork for a real estate transaction in Tennessee.
>> LEARN the steps of a FSBO sale
How to Price Your Home
Pricing strategy is often make-or-break for FSBO sellers. List your home for too little and you leave money on the table. Price it too high and the listing goes stale, forcing a price drop that could make buyers wary of the home.
To get an accurate idea of what your house is worth, look at comparable listings in your area.
For example, if you live in Nashville and think your house is worth about $287,000, search Zillow for active listings that are about $50,000 more and less than that. Analyze details about the houses and how they compare to yours. Ask yourself:
- Is the school district better or worse?
- Does it have the same number of bedrooms and bathrooms?
- Has the house been renovated more recently than yours?
- How do the neighborhoods and nearby amenities compare?
Answering these questions honestly will help you see if your price is in the right ballpark.
From there, be realistic about what pricing strategy will lead to higher offers. Here are some key pricing metrics that will help you decide the best listing price for your home and market:
State of the Tennessee Real Estate Market
|Median Home Value*||$200,257|
|Median Listing Price⁺||$299,950|
|Listing Price per sqft⁺||$134|
|% of Homes with Price Reduction⁺||18.87%|
|Median Sale Price^||$271,000|
|Pricing Advice for FSBO Sellers||Property values are about to rise, but don't get ahead of the game and overprice your house.|
How to List Your Tennessee Home for Sale by Owner
Once you've decided on a price, it's time to write a listing description that speaks to local buyers. Understanding their priorities will help you identify what features of your property to highlight in your listing and attract more interest.
Top Buyer Priorities in Tennessee
|Tennessee Buyer Priorities||Advice for FSBO Sellers|
|1. Listing Price||Be honest about your list price. Look at recent sales data in your area on Zillow or other real estate sites to find an accurate price point for homes of comparable size and condition to yours. Many real estate companies will also conduct an analysis for little to no charge.|
|2. Architectural Style of Home||In your listing description, talk about any unique architectural features that could set your home apart. If your home was built by a known architect, has original flooring or doors, or has any historical value, be sure to mention it. Also, point out what takes your house to the next level. For example, older homes can be beautiful, but energy inefficient. Highlight upgrades you made like new windows that will save buyers hundreds in heating costs.|
|3. Recent Renovations||Be specific about large updates you’ve made in the last 5 years, such as rewiring electric, putting in a new roof, or installing a new furnace. List exactly when the renovation was done, roughly how much it cost, and what its current condition is today. This will give buyers peace of mind that they won't have to worry about big issues any time soon|
Based on a 2020 Clever survey of 500+ real estate agents
When it comes to advertising and posting your listing, you have several options as a FSBO seller. Each choice has its own pros and cons as well as costs:
- For Sale By Owner yard sign: You can buy a sign from most hardware stores or online for $20-$50. Be sure to choose one that allows you to add your phone numbers so interested buyers can contact you for property information and showings.
- Craigslist: Posting your home on Craigslist is free and simple. Just go to the Tennessee page, find your city, and create a "real estate — by owner" listing.
- FSBO websites: There are multiple FSBO listing websites that allow you to post your home for free or a few hundred dollars. But each differs in how many photos you can include, how long the listing is live, and the changes you can make — do your research before choosing a for sale by owner site.
- Flat-Fee MLS companies: Flat-fee MLS services will list your house on your local Multiple Listing Service (MLS) for significantly less than a realtor. However, they provide few additional services unless you opt for their most expensive packages, which often cost more than using a discount brokerage.
If you choose to use a flat-fee MLS company, you'll have to offer a buyer's agent commission. The MLS is how real estate agents find homes for their clients, and typically a buyer's agent commission is included to incentivize these realtors to show the house to their clients.
List with a top agent for just $3,000 or 1%.
Sell your home for top dollar and save on commission.
How Realtor Commissions Work In Tennessee
Traditionally, both the buyer's agent and the listing agent are paid a commission by the homeowner. When sellers work with a realtor, they negotiate a commission as part of the listing agreement.
Based on the average commission rates in Tennessee, this typically ranges from 2.80% to 3.20% of the sale price.
In a typical sale, the seller also agrees to a commission rate for the realtor who brings the buyer to the table, which runs between 2.37% to 2.77%.
|Average Range in Tennessee*||Average Amount⁺|
|Listing Commission||2.80% to 3.20%||$7,000 to $8,000|
|Buyer Agent's Commission||2.37% to 2.77%||$5,932 to $6,932|
*Based on the average commission rates from a 2020 Clever survey of 500+ real estate agents
⁺Based on the median sale price in Tennessee (Redfin Data Center, May 2020)
As a FSBO seller, you automatically avoid paying a listing commission. However, there is a solid argument for offering a buyer's agent commission.
A buyer’s agent's commission is an incentive for realtors to show your house to their clients. If you don't offer a commission that is competitive compared to similar homes in your area, then your home could be shown less. Agents may prioritize taking buyers to homes with a commission.
The best way to avoid paying any commission fees is to sell to an unrepresented buyer. However, know that nearly 87% of buyers work with a realtor. If you decide not to offer a buyer's agent commission, you may severely restrict your pool of buyers.
>> LEARN how real estate commissions work
How Commission Costs Break Down in Tennessee
|Selling FSBO to a Represented Buyer||Selling FSBO to an Unrepresented Buyer||Listing with an Agent||Listing with a Discount Agent (learn more)|
*Based on the median sale price in Tennessee (Redfin Data Center, May 2020) and that FSBO homes sell for 6% less (Collateral Analytics, 2017)
⁺Based on the average commission rates in Tennessee from a 2020 Clever survey of 500+ real estate agents
Paperwork to Sell a House by Owner In Tennessee
Once you find a buyer for your house, it's time to start the closing process. In a typical real estate transaction, your agent will make sure you fill out all the necessary documents and forms. As a FSBO seller, you'll have to navigate the paperwork by yourself.
This process varies by state — here’s a quick breakdown of Tennessee’s requirements.
Required for All Tennessee Real Estate Sales
|2 Forms of ID||In most cases, a valid passport, driver's license, or other form of Tennessee-issued ID.|
|Copy of Purchase Agreement and Any Addendums||Copy of the original, signed sales agreement as well as any agreed upon changes.|
|Closing Statement||A detailed list of all the costs associated with the sale and who pays them. This is often prepared by your escrow agent or title company.|
|Signed Deed||To legally transfer your property, you'll need the deed that proves you're the rightful owner. At closing, you'll sign the deed over to the buyer.|
|Bill of Sale||This is basically a receipt that includes both your information and the buyer's. It will also list the final price of the home and what was included in the sale.|
|Affidavit of Title||A notarized document that states you own the home, that there are no liens on the property, that you are not simultaneously selling the home to someone else, etc.|
Possible Additional Documents
|Loan Payoff Information||If you have a mortgage on your home, you'll need documentation of exactly how much you still owe and any payoff fees. If you've already paid your mortgage in full, you'll need documentation proving that.|
|HOA Forms and Guidelines||If your home is part of an HOA, you'll need to give the buyer documentation on the HOA's Covenants, Codes, and Restrictions, financial history, required fees, approval process, etc.|
|Survey Results or Survey Affidavits||A survey (or an affidavit verifying a previous survey) proves exactly where the property lines are.|
|Home Inspection Results||If you had a pre-sale inspection, you'll want the results to compare to the buyer's inspection. If having a buyer inspection was part of the sales agreement, you should receive a copy of the results before closing.|
|Proof of Repairs or Renovations||Documentation proving any major repairs or changes to the house help verify its value. These receipts also provide the buyer with information about who to contact if they discover issues with the repairs in the future.|
|Home Warranty Information||The home warranty service agreement will explain what is covered, for how long, and any costs associated with the policy.|
|Copies of Relevant Wills, Trusts, or Power of Attorney Letters||If you are selling an inherited property, you'll need copies of all legal documents that passed ownership to you.|
|Relevant Affidavits (Name Affidavits, Non-Foreign Affidavit Under IRC 1445, etc.)||You may need additional affidavits like a name affidavit (which lists all of your or the buyer's previous names) or an affidavit proving you are not a foreign citizen and therefore exempt from certain property sales taxes.|
|Closing Disclosure||If your buyer is taking out a mortgage and you agreed to certain seller's concessions, you may need a copy of their closing disclosure to verify the lender approved your concessions.|
|Correction Statement and Agreement||In the event forms are lost or errors are discovered in the future, a correction statement and agreement requires you, the buyer, or their lender, to replace or fix those documents if need be.|
Tennessee Disclosure Forms
|Residential Property Condition Disclosure||The seller disclosure statement details any known issues with your home and its major appliances and systems.|
|Flood Zone Statement||With some mortgages (like federally backed ones), your buyer's lender might require information of the property's flood risk.|
|Lead-Based Paint Disclosure||Federal law requires that if your home was built before 1978, you disclose information about the dangers of lead-based paint to your buyer.|
|Waiver for Buyer to Forgo Their Right to Disclosures||If you're selling your home "as is", this waiver allows you to sell without giving your buyer a condition report.|
Many closing documents are legally binding agreements. Any errors can derail your sale and cost you thousands in fees or in costs to re-list your house.
To avoid an expensive mistake, consider hiring a real estate attorney. While this can cost $500-$5,000, an experienced lawyer can answer any questions you have along the way.
FSBO Pros and Cons
Before deciding to sell your home by owner, weigh all the pros and cons to make the right choice for your situation.
- More control: As a FSBO seller, you can decide the price, listing timeframe, showing schedule, marketing strategy, negotiation tactics, and more.
- No competition with other clients: Some agents take on more clients than they can handle, which could mean not getting the attention you need to meet your home-selling goals.
- Lower commission: As a FSBO seller, you could sell your home without paying any commissions. Based on Tennessee's average commission rates, that could leave 2.80% to 5.97% of your sale price in your pocket. Even if your buyer has an agent, you'll still avoid paying 2.80% to 3.20% in listing commissions.
- No MLS access: Unless you pay for a flat-fee MLS service, your home won't be on the local MLS. Most agents use MLSes (not Zillow and Trulia) to find properties for their clients and most buyers work with a realtor. So if you're not on the MLS, fewer buyers will see your listing.
- Risks of inaccurate pricing: Many FSBO sellers find it difficult to be objective when pricing their house and list for too much. If you make this mistake, you won't attract buyers and the listing will become stale. Eventually, you could be forced to accept a low offer or take your home off the market and relist with an agent.
- Safety issues: As a FSBO seller, it will be your responsibility to show your home to prospective buyers. Not everyone is comfortable being alone with strangers in their homes since incidents such as theft or harassment can occur. Make sure to gauge your own comfort levels before deciding to sell FSBO.
- More work and stress: Selling a home is a full-time job. Trying to cram all the steps and responsibilities into your schedule is a hassle many FSBO sellers aren't prepared for.
FSBO Alternatives to Consider
If saving money is your main reason for selling your home by owner, there are alternatives. Consider the following lower-cost options (listed from least expensive to most):
Flat-Fee MLS Services in Tennessee
As mentioned before, a flat-fee MLS service will post your listing on the local MLS, usually for a low, upfront fee. In Tennessee, this will typically cost you a couple hundred dollars.
Here are some Tennessee flat-fee MLS companies to compare:
Number of Photos
- 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
- 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
- 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.
Number of Photos
- Tennessee Flat Fee MLS is a local affiliate of Brokerless, a nationwide, flat-fee referral service that connects sellers with local brokers
- Set your own buyer’s agent commission
- Free status changes and access to listing
- No built-in home valuation or pricing consultation
- Listing is live within 24-48 hours of submission of all necessary paperwork
- No additional fees at closing
$99 - MLS By Owner
- 6-month listing on the MLS
- 6-month premium listing on Realtor.com
- 6 photos
- Listing syndicated to Zillow, Trulia, MSN, and more
- Set your own buyer’s agent commission
- Provides state required forms and disclosures (downloads)
- Free status changes
- Buyer leads are forwarded to you
$129 - Premium MLS
- Same as Basic package, plus:
- 25 photos
$179 - Premium Plus MLS
- Same as Premium package, plus:
- 12-month listing on the MLS
- Free status changes
- Buyer leads are forwarded to you
- Includes premium listing on Realtor.com
- No listing options beyond 6 months
- No home valuation or pricing consultation available
- FSBO signs are not permitted on MLS listed property
As of August 10, 2020, Tennessee Flat Fee MLS does not have any independent third party reviews. However, parent company Brokerless has an A+ rating on the Better Business Bureau.
Number of Photos
- 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
- 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
- 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.
Clever Real Estate
Clever is a nationwide real estate service that connects sellers with top, local agents. You pay Clever nothing and only pay your full-service agent $3,000 (or 1% on homes over $350,000) if and when your home sells.
1% (minimum $3,000)
Up to 1%
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 up to 1% back at closing (in qualifying locations)
Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico
As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.
>> LEARN more about Clever Real Estate
Discount Real Estate Services in Tennessee
While pricing and services vary, discount real estate companies will help you sell your house for less than a traditional realtor. In most cases, you'll still need to offer a competitive buyer's agent commission, but you'll save on listing fees.
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|
*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.
1-1.5% (min. fees apply)
Avg. $1,500 (where availabe)
Avg. Customer Rating
3.2/5 (243 reviews)
- Redfin is an online listing portal and multi-state real estate brokerage operating in 80+ markets across the United States
- Sellers get full service and support from a Redfin agent for a reduced listing fee (rates and minimums vary by location)
- Redfin agents are salaried. Since they do not work on commission, there is no incentive to get sellers the highest sale price — learn more
- RedfinNow — Redfin's iBuyer program — makes all-cash offers on qualifying homes in 10 markets for a 7% service fee (but no additional commission)
- Buyers in select markets might be eligible for a home buyer rebate — learn more
|Atlanta||Inland Empire*||Palm Springs|
|Boston||Lake Tahoe||Portland, OR^|
|Charlotte||Little Rock^||Rhode Island|
|Cleveland^||Louisville^||Salt Lake City|
|Des Moines^||Nebraska^||South Carolina|
|Detroit||New Jersey||South Texas^|
|El Paso^||New Mexico||Spokane|
|Flagstaff||New York City||St. Louis^|
|Fort Myers||Northeast Virginia||Tampa|
|Grand Rapids||Northern New England||Tucson^|
|Hampton Roads||Oklahoma^||Washington, D.C.|
|Hawaii||Orange County, CA*||Wisconsin^|
*Also a RedfinNow location
^No home buyer rebate available
As of May 20, 2020, Redfin's average customer rating is 3.2/5 based on 235 reviews across Yelp, Google, and Consumer Affairs.
*These reviews are for Redfin's Seattle, WA office. Reviews may vary by location.
>> LEARN about discount real estate services
iBuyers will buy qualifying homes for cash, meaning you avoid realtor fees — and the stress of listing on the open market entirely. While these companies make fair-market offers, they will deduct any required repairs after an on-site visit. They also charge a service fee typically ranging between 6-14%.
>> LEARN about iBuyers
5 Tips for Selling Your Home Without a Realtor in Tennessee
Pulling off a FSBO sale successfully is a difficult feat to accomplish. Here are some helpful tips from Clever CEO and real estate investor Ben Mizes, who has experience listing homes without an agent.
1. Make Minor Repairs
Small upgrades and repairs can do a lot to sway potential buyers. The key is knowing how and where to spend your money to get higher offers. Simple DIY projects like a fresh coat of paint or new cabinet pulls have a high return on investment, whereas pricier improvements like adding a new bedroom may not.
Overall, the most important factor is knowing where the line is between necessary and over-the-top. You want your house to meet buyers' expectations.
"If your kitchen is a disaster, spending more money on a remodel to get it in solid condition will pay off in the end," said Mizes. "But spending money on high-end features to take it from good to extravagant will be a waste."
Also consider how valuable specific repairs are to buyers in your area. Focus on upgrades that have a higher cost recuperation in your region.
Home Repairs with Highest Resale Value in Tennessee
|Top Upgrades||Avg. Repair Cost||Avg. Resale Value||Cost Recouped|
|Garage Door Replacement||$3,543||$4,703||133%|
|Siding Replacement (Vinyl)||$12,694||$15,351||121%|
|Siding Replacement (Fiber-Cement)||$15,024||$14,893||99%|
Based on regional data from Remodeling (May 2020)
2. Price Your Tennessee Home Competitively
In order to sell a home without a real estate agent, you'll need to price it competitively. Set too high of a listing price, and you'll limit your buyer pool. But if you price it too low, you'll leave money on the table.
Conduct research on Zillow or Neighborhood Scout to find out the prices of homes recently sold in your area. Compare their information, such as whether or not they had a garage or central air, to your homes, and try to assign a value to the features your house possesses and lacks. Essentially, you're trying to pull together the information in a comparative market analysis, which is what agents use to competitively price a home.
You'll also need to look at how long comparable homes stayed on the market or if they had to drop the price. This will help you determine where the line is for pricing too high in your area.
3. Stage and Market Your Home
You can hire a staging company to rearrange furniture and clean up, or you can go it on your own. A professional photographer is a must, however, as high-quality photos can sell your home 32% faster. Homes with more (and better) photos spend fewer days on the market. Most realtors pay this expense out of their own pocket.
Then you'll need to describe your home, emphasizing its best features, in a listing description for local and online advertising forums. If people express interest in seeing your home, expect to leave work early and drive home to let them in. You'll be giving up your weekends, most likely, and unable to go do something fun while an agent presents your home.
>> LEARN how much it costs to stage a home
4. Prepare for Showings
Organization is key when showing your home to potential buyers. You'll need a good system for scheduling showings and saving buyers' and agents’ contact information. You'll want to be flexible and try to show your house at buyers’ convenience.
Keep the home clean and decluttered at all times. The last thing you want is to scramble around with a vacuum after a buyer calls for a last-minute showing.
Also, focus on creating a homey atmosphere for buyers. You want to make a great first impression on as many buyers as possible, so add little touches that speak to most people.
"Bake cookies or light scented candles before a showing," advises Mizes. "Smell plays a huge part in how buyers will perceive and remember your house. Use comforting scents to your advantage so they feel at home the moment they walk through the door."
5. Negotiate for the Best Possible Price
Negotiations are about deciding more than the final sale price. You and the buyer (or their agent) will also have to agree upon contract contingencies, how closing costs are divided, the timeline, and more.
To gain the upper hand, get creative with the seller concessions you offer a buyer. While they might cost you a little more at closing, concessions sweeten the deal for buyers and could lead to a higher final sale price.
The most popular concessions vary from market to market. Knowing what works with buyers in your area will help you strengthen your offer.
For example, a 2020 Clever survey of over 500 real estate professionals found that in Tennessee, sellers often cover 2.72% to 3.53% of buyers' closing costs. On a home of median value, that equates to $5,269 to $6,838, but can help you close the deal sooner and for more money.
You should also consider offering these popular seller concessions:
Most Common Seller Concessions in Tennessee
|Concession||Benefits of Offering Concession|
|Home Warranty||If your home has major appliances or systems that are on their last leg, a home warranty can give buyers peace of mind. A warranty will cover possible issues and is typically less expensive than paying for the repairs (or accepting a lower offer from a wary buyer).|
|Repair Credits||If your home needs repairs, a buyer may request that you fix the issues, or you can offer repair credits. Repair credits allow you to close the deal and avoid the hassle of handling renovations. Once they own the house, the buyer oversees the project and, since the concession is a set amount, you pay nothing else if the repairs go over budget.|
|Attorney Fees||Some buyers want an attorney to help them review the contracts — especially if they don't have a realtor. By offering to pay for the attorney’s fee, you can sweeten the deal for your buyer because a professional will be looking out for their interests.|
Conclusion: Is FSBO Right for You?
FSBO isn't a perfect fit for everyone. But now that you know what awaits, if you're feeling confident about all the steps and possible challenges, you might be ready to sell without a realtor.
Remember, to succeed at selling a house by owner you'll need to:
- Make a plan: From getting photos of your property to lining up the correct paperwork, there’ll be a lot on your FSBO to-do list. Work out a schedule for when you need to accomplish everything so you can find a buyer and close in a timeframe that works for you.
- Get ready to hustle: Attracting qualified buyers is hard work. You'll need a great listing description and a killer marketing strategy to generate interest. Also, prepare to spend a considerable amount of your time fielding calls from prospective buyers, handling showings, hosting open houses, and more.
- Make smart investments: Even though your main goal as a FSBO seller is saving money, spending some money on small upgrades or repairs can lead to higher offers and a faster sale. Also, consider paying for a flat-fee MLS service to list your home on the local MLS to reach more buyers.
- Seek some professional advice: You don't have to sign a listing contract to talk to a realtor. Professional agents understand that smart sellers weigh their options; they'll be willing to meet for a free consultation. After seeing your home and looking at comps, they might notice issues or advantages you overlooked. Once you've heard their advice, if you still want to sell by owner, you can do so confidently because you thoroughly explored all your choices.
If you'd like some professional guidance with no strings attached, Clever can help. Fill out your basic info below to connect with a top, local realtor for a no-obligation consultation.
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