Average seller closing costs in Tennessee are 3.09% of the home's purchase price.
Typical seller closing costs in Tennessee include the title and closing service fees, owner's title insurance policy, real estate transfer tax, and recording fees. Other closing costs for sellers in Tennessee may include include buyer incentives, a prorated property tax bill, and real estate attorney fees.
Who pays closing costs in Tennessee?
Sellers are usually responsible for most of, but not all the closing costs. Buyer closing costs include mortgage-related costs such as a loan origination fee and other lender-related fees, private mortgage insurance, the down payment, an appraisal fee, and a home inspection fee. Learn more about who pays closing costs on a house in Tennessee.
Tennessee closing costs calculator
Use our tool to calculate estimated closing costs for Tennessee.
How much are seller closing costs in Tennessee?
Seller closing costs are fees and taxes you pay during the final real estate transaction on the sale of your home in Tennessee. The seller typically pays the costs of verifying and transferring ownership to the buyer, so most closing costs are unavoidable.
| Closing costs | Average cost |
|---|---|
| 🤑 Buyer incentives | 2.00% of home sale price |
| 🏡 Recordation tax | 0.37% of home sale price |
| 🏠 Prorated property taxes | 0.69% of home's assessed value |
| 🔍 Title service fees | $1,444 |
| ✍ Recording fees | $156 |
| 🗞 Owner's title insurance | $1,734 |
| 💵 Lender's title insurance | $100 |
| 💼 Attorney fees (optional in Tennessee) | up to $150 per hour |
| 💸 Other costs | Varies |
Realtor fees in Tennessee: 5.54%
On top of these closing costs, you'll need to pay realtor fees. Average realtor fees in Tennessee are 5.54%.
This total includes an average listing agent fee of 2.91% and an average buyer's agent fee of 2.63%.
The seller and the buyer each sign a contract with their own agents promising to pay the realtor fees when the house is sold. Each party is legally responsible for their own agent fees.
However, many sellers offer to pay for the buyer's agent out of the home sale proceeds. Doing so makes the home easier for the buyer to afford and can help secure a deal. If you don't offer to pay for the buyer's agent fees, they'll need to pay 2.63% of the home's sale price at closing along with their down payment.
Most expenses at closing are fixed, but you can find a better deal on a listing agent. Using Clever to match with a discount broker to save as much as 35% on realtor fees, or about $6,205 on average in Tennessee.
Want to find a top local agent without overpaying on realtor fees? Clever negotiates 1.5% listing fees with top-rated realtors from trusted brokerages like Keller Williams, RE/MAX, and Berkshire Hathaway.
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Tennessee seller average closing costs breakdown
Buyer incentives: 2.00%
Buyer incentives can help you secure a sale in tough markets by making it easier or more appealing for a buyer to purchase your property. You can pay some of the buyer's closing costs, offer repair credits, or include valuable items in the sale of the home.
The average amount sellers spend on buyer incentives in Tennessee comes to about $6,327.
Recordation tax: 0.37%
Tennessee charges you about 0.37% of your home's sale price to transfer the title to the new owner. If you sell for Tennessee's median home value — $316,335 — you'd pay Typically paid by buyer.
Some cities and counties also charge their own transfer taxes. Check with your realtor and title company to see what taxes you'll owe in your area.
Prorated property taxes: 0.69% of assessed value
When you sell a home in Tennessee, you'll still have to pay property taxes for the months you owned the property. Using this prorated system, you won't be on the hook for the full 12 months of taxes. However, this does make it more difficult to estimate how much you'll owe at closing.
The average property tax rate in Tennessee is 0.69%, but this can vary quite a bit depending on your county.
For instance, Shelby County has the highest property tax rate in the state at 1.42%. Meanwhile, Pickett County residents have the lowest property tax rate at just 0.37%.
Keep in mind this tax rate is applied to the assessed value of your home, not the sale price. Be sure to check with your real estate agent so you can find out exactly what you'll need to pay in property taxes.
Title service fees: 0.46%
Title fees cover the costs of the title search and title transfer.
When you sell your home, you have to transfer legal ownership of the property to the buyer. To ensure there are no claims or liens on your home, your settlement agent will complete a title search.
In Tennessee, buyers and sellers usually pay for their own title company or closing agent, but don't expect this for every sale. Ask your realtor if you're not sure.
Tennessee recording fees: $156
Your city or county will charge a recording fee to legally record your property's deed and mortgage information. The exact amount will vary based on your location, but you can expect to pay around $156 in Tennessee — although you might be able to negotiate for the buyer to cover this cost.
Owner's title insurance: $1,734
Owner's title insurance protects the buyer if there's a problem with the property title. It will pay for any legal fees if mistakes are found — or potentially even reimburse the value of the home.
In Tennessee, it's more common for the seller to pay for owner's title insurance.
If you do pay part of the bill, owner's title insurance usually costs around 0.55% of a Tennessee home's final sale price — or $1,734 for a $316,335 home. However, title companies in Tennessee often use tiered pricing to determine how much you'll pay for a policy based on your home's value.» MORE: What is title insurance, and why do you need it?
Lender's title insurance: $100
Just like owner's title insurance protects the buyer, lender's title insurance protects the bank or financial institution that issued the buyer a mortgage.
Tennessee is one of the few states where sellers typically pay for lender title insurance. You can expect to pay around 0.03% of your home's sale price — about $100 if your sell your home around the state median value.Attorney fees: up to $150 per hour
Hiring a real estate attorney for closing is optional in Tennessee.
On average, an attorney costs $150 per hour in Tennessee. Some real estate attorneys may offer a flat fee for closing services, which can range from $750–$1,250 for straightforward closings.
Your attorney costs will vary based on your location, the services required, and the complexity of the closing.
Other Tennessee closing fees for sellers
Every Tennessee home sale is unique, and many closing costs come with a few surprise fees. Here are a few of the most common additional costs you may face selling your Tennessee home:
- Homeowners Association (HOA) fees
- Mortgage payoff and/or prepayment penalty
- Property appraisal fees (averages $234)
» LEARN: The total cost of selling a house
How to save on Tennessee closing costs
While closing fees in Tennessee aren't usually the biggest expense for sellers, there are a few ways to reduce these costs.
Save on realtor fees
The best way to reduce your overall expenses when selling is to find a realtor who charges lower listing fees. In Tennessee, real estate commission costs an average of $17,525 — that's usually more expensive than all of your closing costs combined!
Thankfully, there's a way to save big by selling with Clever. With listing fees of just 1.5%, you'll save around 35% on realtor commission in Tennessee, providing some relief from the most expensive part of selling a home.
Get matched with the best local agents from top brokerages and get pre-negotiated listing fees of just 1.5%.
Clever's service is 100% free, with zero obligation. Interview as many agents as you like until you find the perfect fit — or walk away at any time.
Negotiate for the buyer to pay
Who pays closing costs is up for negotiation. If you're selling in the middle of a hot seller's market with low housing inventory, you could ask the buyer to cover some of your closing costs.
Competition among buyers is fierce in these market conditions, so they're typically more willing to make concessions so you'll accept their offer on your Tennessee home.
When you're selling in a buyer's market, however, they'll likely ask you to make more concessions since you won't be getting as many offers.
» MORE: How to negotiate with buyers before accepting an offer
Shop around for better prices
It might be possible to save some money by shopping around for cheaper rates on services like title insurance and closing fees.
However, these costs are relatively low and tend to be fairly consistent among different companies. When you're already navigating inspections, repair requests, and appraisals, calling several different companies to find a $50 discount probably isn't worth the hassle!
FAQ about closing costs in Tennessee
How much are closing costs for sellers in Tennessee?
On average, closing costs are about 3.09% of a home's sale price in Tennessee. Don't forget about realtor fees, which will cost another 5.54% of your sale price on average, accounting for a large share of your expenses.
Who pays closing costs in Tennessee?
In Tennessee, the seller is usually responsible for the majority of the closing costs. Seller closing costs include transfer tax, recording fees, and title service fees. The buyer is responsible for their home loan fees, such as the loan origination fee and private mortgage insurance.
Will the NAR lawsuit change how real estate commission works?
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 real estate commission changes will impact buyers and sellers.
Methodology
The Clever team of researchers gathered data for property taxes, transfer taxes, and recording fees using publicly available information. We found average costs for attorney fees, title insurance, and other services by requesting quotes from local providers.
We gathered our commission rate data from a survey of 734 of our partner agents. Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of December 2024
- Transfer taxes and mortgage taxes: Based on public data as of February 2024.
