Published
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Edited by Kristy Snyder
Written by Jon Stubbs
Edited by Kristy Snyder
Why trust us: Our data is based on a survey of 650 real estate agents and brokers across the U.S. Learn how we researched.
In this guide: How much you’ll pay | Average Tennessee realtor fees | How Tennessee agents set rates | How to save on commission in Tennessee | FAQ | Our research
The average total real estate commission in Tennessee is 5.44%. This includes a 2.72% listing agent commission and a 2.72% buyer’s agent commission. In Tennessee, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing.
Tennessee sellers pay an average of $15,850 in realtor fees, based on the average Tennessee home price of $291,354.
Realtor commission rates vary considerably by region, city, or even neighborhood. The agent and brokerage you choose, as well as the specifics of your sale — like your home’s value, location, and condition — are also factors.
This guide breaks down how much commission sellers can expect to pay in Tennessee. We’ll also explain why Tennessee commissions are what they are (and offer up some tips that could help you save).
Tennessee real estate commission: How much will you pay?
Here’s what you can expect to pay in realtor commission based on the average home price of $291,354.
| Average rate | Cost | |
| Listing agent commission | 2.72% | $7,925 |
| Buyer’s agent commission | 2.72% | $7,925 |
| Total realtor fees | 5.44% | $15,850 |
List with the best local agents for just 1.5% (seriously)
Clever Real Estate matches you with vetted local agents who work for just a 1.5% listing fee when you find them through Clever’s free service.
Clever’s partnered with 187 top-producing agents across Tennessee from major brands like RE/MAX and Coldwell Banker. You compare options, choose the best fit, and get the same service and support for up to half the usual rate!
Clever is free to use and there’s no obligation to work with any of the agents you’re matched with.
How much are realtor fees in Tennessee?
Selling a house in Tennessee will typically cost you 5.44% in total realtor fees, compared to the national average of 5.37%.
The local housing market factors heavily into what you’ll pay in Tennessee real estate commission. The median sale price in Tennessee is currently 7.3% higher than it was a year ago, but homes are selling much more slowly. Over the same period, the number of homes sold has gone down by 32.7%, and the median days on market has risen by 23.
So while realtors are making a little more from each sale due to higher prices, they’re not selling nearly as many homes. And the homes they are selling are taking over three weeks longer to sell. When realtors are working longer for less money, they might be hesitant to lower their fees. They’ll need to make the most from each sale.
At the end of the day, the exact commission you pay can vary from location to location. Always check with a local agent to see what the going rate is in your neighborhood.
How real Tennessee agents and brokers set commission rates
In general, realtors set their fees to stay in line with what their competitors are charging. However, most real estate agents are open to negotiating their fees a bit.
Agents tend to lower their rates for homes that are easy to sell, for repeat customers, and for clients who agree to use them for both buying and selling.
As an example, if you’re selling in a popular Nashville neighborhood where homes are selling quickly with little effort, your realtor may be willing to work for less commission.
However, if you have a unique home in Hohenwald that only appeals to a select group of buyers, your realtor will likely expect their full commission to sell it
Most agents can’t afford to lower their rates too much because they need to split their commission with their brokers. In a typical sale, the listing agent and buyer’s agent each split their commission with their respective brokers. So if the total commission is 6%, the listing agent takes only 1.5%.
Agents also have plenty of overhead expenses they need to pay out of their commission. These expenses include:
- Taxes: Real estate agents must pay a self-employment tax of 15.3% on all commission earned
- Association dues: $591 annually
- Multiple Listing Service (MLS) fees: about $900–1,300 annually
- State license fees: $75 every two years
- Administrative staff: Assistants can help with bookkeeping, scheduling, and other day-to-day operations
- Marketing costs: Professional photos, advertising, open houses, and staging
How can I save on realtor fees in Tennessee?
While it may take some outside-the-box thinking, there are a few ways you can save on realtor fees:
- Negotiate with a traditional real estate agent or broker
- Work with a discount real estate broker
- Sell without a realtor
Negotiate with a traditional realtor
Realtors expect their clients to negotiate fees. Getting the agent to lower their rate depends on convincing them your home will be easy to sell.
You can use evidence such as a comparative market analysis (CMA). A CMA shows how fast homes are selling in your neighborhood, and it’ll show your realtor that your home can sell quickly.
Ways to negotiate lower realtor fees
- Handle some tasks on your own. By paying for things like photography and staging on your own, you can save your agent money — and they might return the favor with a discounted commission.
- Recommend your realtor to others. If you refer your agent to future clients, they’re more likely to reduce their fees.
- Skip extensive marketing campaigns. Realtors typically spend a lot on advertising. If you can sell your house without it, your realtor may be able to pass the savings on to you.
Negotiating can be awkward and uncomfortable. If you’d rather avoid it, you can find an agent through Clever Real Estate. They’ve already pre-negotiated a 1.5% listing fee with experienced agents in Tennessee, so you don’t have to. Find a Tennessee agent for less.
Work with a discount real estate broker
Some brokerages offer discounted realtor fees up front. These companies can help you save money, but some come with risks or worse-than-average customer service. Do your research to understand what you’ll get for the discounted fee. See how we ranked discount real estate brokers in your area based on savings, customer reviews, and our experience mystery shopping with each company.
To save an average of $7,000 on your listing fee without sacrificing service, Clever Real Estate is your best option.
Sell without a realtor
The ultimate way to save on realtor fees is to sell without a realtor — though we don’t recommend this to most Tennessee sellers.
You’ll avoid paying a listing commission, but you’ll have to do all of the work of a listing agent on your own. Plus, you’ll still want to pay a full buyer’s agent commission to incentivize other agents to show your home to their buyers.
Learn more about how to sell a house without a realtor in Tennessee.
Other FAQs about Tennessee real estate commissions
How do real estate agents get paid in Tennessee?
Realtors are paid out of the proceeds of the home at closing. Once they're paid, each agent splits their commission with their broker. Learn more about what realtor fees cost in Tennessee.
Can you negotiate realtor fees in Tennessee?
You can always negotiate to try for lower fees. To be successful, you'll need to convince your agent that your home won't be difficult to sell. Learn more about what realtor fees cost in Tennessee.
Research methodology
We regularly survey our pool of 14,000 partner agents nationwide on the commission rates they use for buying and selling. These data points are averages based on responses we’ve received from 22 agents across Tennessee.
Sources
- Clever Real Estate Commission Survey Data
- Redfin – Tennessee Housing Market
- Internal Revenue Service
- Eastern Middle Tennessee Realtor Association
- Knoxville Area Association of Realtors
- Tennessee Real Estate Commission – Fees
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