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Written by Steve Nicastro
Cost to sell in Tennessee | Realtor commission | Seller closing costs | Other costs | FAQs
The average cost to sell a house in Tennessee is 6.46% of a home’s final sale price.
That means it costs Tennessee home sellers at least $21,202 to sell a home priced at $282,806 (the average Tennessee home price).
The total cost to sell in Tennessee includes realtor commission (5.44% of the sale price) and seller-paid closing costs (1.0%).
Thankfully, there are several ways you can save money on your home sale. Using an agent matching service like Clever Real Estate is one recommended option. Clever has negotiated a reduced listing commission of 1.5% – far lower than the Tennessee state average of 2.72%.
Here’s a complete breakdown of the costs of selling a house in The Volunteer State, including more tips on how to save on your sale.
Cost to sell a house in Tennessee
| Fee type | Average fee | Average cost |
|---|---|---|
| Realtor fees | 5.44% | $15,385 |
| Closing costs | 1.0% | $2,864 |
| Total costs | 6.46% | $18,249 |
*Costs assume a sale price of $282,806. Numbers are rounded off and may not be 100% precise.
It’s slightly less expensive to sell a house in Tennessee compared to other states.
The table above shows that it costs 6.46% when factoring in realtor commissions and closing costs. That’s about the same as the national average of 6.53%.
However, given Tennessee’s lower home values, it’s slightly less expensive to sell on a total cost basis. It costs sellers a total of $18,249 when factoring in realtor fees and closing costs, lower than the national average of $21,202.
Tennessee home sale costs vs. nearby states
| State | Home value | Cost to sell (%) | Cost to sell ($) |
|---|---|---|---|
| Tennessee | $282,806 | 6.46% | $18,249 |
| North Carolina | $300,640 | 6.38% | $19,106 |
| Georgia | $299,886 | 6.57% | $19,582 |
| Alabama | $199,357 | 6.41% | $13,003 |
Tennessee home values vary quite a bit across the state, so your total home sale costs will also vary. (Get a free, instant home value estimate to learn what your home might sell for in today’s market.)
Factors that may impact your Tennessee home sale costs include:
Typical real estate agent commission in your area
While the state-wide average rate is 5.44%, rates may be higher or lower depending on what’s normal in your area.
Your success in negotiating rates
Realtor fees aren’t fixed – they are completely negotiable. You may be able to negotiate a rate lower than what’s typical in your area.
How you find a realtor
You can potentially save thousands in Tennessee realtor fees by using an agent-matching service to find your agent. For example, Clever Real Estate has pre-negotiated a 1.5% listing agent fee with agents in its network.
If you need to pay optional costs
The estimated total cost to sell of 6.46% in Tennessee does not include costs like home staging, deep cleaning, and pre-listing repairs, which could add thousands more to your home sale costs.
Your negotiated contract
In some Tennessee markets, it’s common for home buyers to request sellers to pay for part or all of their closing costs – especially if your market is shifting more in favor of buyers.
Here’s a deeper look at your expected home sale costs.
1. Tennessee realtor commission (5.44%)
Using a realtor costs Tennessee home sellers an average of 5.44% of the home’s sale price.
It costs sellers an average of $15,385 in realtor commissions, based on the average Tennessee home value of $282,806. That includes both the buyer’s agent and the seller’s agent commission, which sellers are responsible for paying in Tennessee.
Since realtor commission is the single largest home-selling expense in Tennessee, it’s also your best cost-saving opportunity.
How to save on Tennessee realtor fees
Here are some tips on how to save money on your home sale.
Use a discount broker
A discount real estate broker is a company that offers sellers a reduced commission fee. The broker’s listing agents charge less than the average rate, such as a 1% listing fee vs. the typical 2.5% to 3% rate.
Selling at a higher price point leads to even bigger commission savings using a discount broker vs. finding a realtor through traditional sources, like through a personal referral.
Note: Clever offers listing fees of just $3,000 or 1.5%, compared to the average Tennessee listing commission rate of 2.72%. That could save you $7,500 on a $500,000 home sale.
Agents from these firms still provide all of the services you’d expect to receive from a traditional realtor, too. The service is free to try with no obligation, so it’s worth starting out here.
» MORE: The Best Discount Brokers for Every Budget
List your home without a realtor
You can avoid paying Tennessee listing commissions entirely by selling without a realtor. That’d save you 2.72% off of your home sale.
However, studies show that homes sold without a realtor sell for up to 26% less than agent-listed homes, and you’ll be on the hook for all of the tasks normally handled by a real estate professional.
Selling FSBO is hard, time-consuming, and risky. We highly recommend consulting with a local attorney, realtor, or broker for more guidance before making a decision.
Negotiate a lower rate
You can absolutely try to negotiate a lower commission rate with a Tennessee realtor. There’s no law setting a fixed realtor fee in the state or any part of the country.
If you decide to go this route, your best bet is to shop around and meet with multiple agents.
Negotiating commission is more likely to work on a high-value property, since the agent will still earn a substantial commission on the home sale, despite the lower rate.
2. Closing costs for sellers in Tennessee (1.0%)
Seller closing costs typically add another cost of 1.0% or more to the home’s final sale price, according to our data.
Based on the average Tennessee home value of $282,806, the typical home sellers pays $2,864 in closing costs.
Here’s a list of the possible closing costs facing home sellers outside of realtor commissions.
Title insurance
The average cost of owner’s title insurance in Tennessee is $759, costing less than the national average of $1,071.
Actual costs depend on your location, the insurance provider, and the price of your home.
Title insurance protects you against any legal claims made against your home or possible mistakes on your deed. It also usually covers the cost of legal fees when defending a claim.
Title insurance is a one-time fee, usually due at the time of closing. The fee amount is based on the price of your property. It may or may not be covered by the buyer, or split between both parties, depending on your county.
State transfer taxes
These taxes are charged by the government to transfer your home’s title documents from your name to the buyer’s name at closing.
Tennessee state transfer taxes cost an average of 0.37% of the home’s final sale price, resulting in a total average cost of $1,046, according to our data. That’s lower than the national average cost of $1,467.
Recording fees
Tennessee charges average recording fees of $50, lower than the national average of $0.
Your county charges recording fees to register the property’s transfer of ownership. The fee amount varies by county.
Attorney fees (optional)
Tennessee is one state where sellers are not required to use an attorney to handle the closing.
Attorneys are responsible for reviewing all of your contracts and legal documents, and protect you from potential issues that may arise during your sale.
Real estate attorneys charge an average of $220 to $250 per hour, according to Thumbtack. However, that figure is based on the national average, and fees vary widely by location.
» LEARN: Do I Need a Lawyer to Sell My House?
Prorated property taxes
Tennessee home sellers are required to pay property taxes on the days they’ve owned their home in the calendar year. Taxes are prorated and split between the seller and buyer.
The tax is due at closing. Actual costs depend on your annual taxes, and how many days you live in your home up until the closing date.
Speak with your agent or attorney for more details on what you might owe in prorated taxes.
3. Other potential costs
Home preparation costs
The cost to prepare your home for sale could add thousands more to your total upfront costs.
For example, home staging costs between $745 to $2,659 on average nationwide, according to HomeAdvisor. However, actual costs depend mainly on your market, the size of your home and number of rooms furnished, and how much furniture is needed.
Home warranty
The cost of a home warranty in Tennessee is just over $600, although the actual cost depends on the size of the home, type of home (single-family or multi-unit), and coverage levels, according to Review Home Warranties.
Homeowner’s association dues
You may owe HOA dues or transfer fees if your home is located in an HOA community. HOA fees vary widely in Tennessee depending on the value and location of the home.
Sellers are typically responsible for covering a prorated amount of their annual membership dues at closing. You may also be charged an extra HOA fee to transfer homeownership records to the buyer at closing.
Like other home sale costs, HOA fees are negotiable between you and the buyer.
Check with your agent, attorney, or HOA board for more information on what you might owe.
Termite inspection fee
Subterranean termites are common in Tennesee. The state is located in Termite Infestation Probability Zone No. 2, which carries “moderate to heavy” termite activity.
Termite inspections are separate from a buyer’s home inspection. They are not required during a home sale in Tennessee, but the buyer might get one anyway – and request you to pay for the cost.
The inspection typically costs about $100 but can cost up to $280, according to HomeAdvisor.
Tennessee capital gains tax
The IRS offers a tax break on capital gains from the sale of your primary residence, as long as you meet certain requirements:
- Single homeowners can deduct up to $250,000 of gains from the sale of their property;
- Married couples can deduct up to $500,000 of gains.
- You must have occupied the property for at least two of the past five years.
- You can also deduct certain repairs and improvements from your home’s cost basis.
» LEARN: How to avoid capital gains on a home sale
FAQs
How much are seller closing costs in Tennessee?
It costs between 6% to 7% of the home's final sale price to sell a home in Tennessee. That figure includes realtor commission, which is by far the biggest home sale expense, and seller closing costs, such as title insurance and transfer taxes. We break down the best ways to save on your Tennessee home sale.
Do buyers or sellers pay realtor fees in Tennessee?
Sellers usually cover both the buyer's agent and seller's agent commission in Tennessee. That figure amounts to an average of over 5% of the home's final sale price. However, you can knock off 1% or more on realtor commissions by using an agent matching service like Clever Real Estate.
Who pays closing costs in Tennessee?
Buyers and sellers have separate closing costs in Tennessee. Prorated property taxes are split between the parties. Sellers are usually responsible for paying owner's title insurance, recording fees, state transfer taxes, and recording fees.
However, actual costs depend on your location. We recommend you find a realtor to get a seller's net sheet, which breaks down all of your potential home sale costs.
What is the cheapest way to sell a house in Tennessee?
Use Clever Real Estate to connect with a Tennessee realtor. Clever has pre-negotiated a low listing agent fee with its agents: a 1% listing fee on homes over $350,000, compared to the national average listing fee of 2.80% and the Tennesee average of 2.72%. That could save Tennessee home sellers $6,000 in fees on a $350,000 home sale, for example.
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How to Find a Realtor: Learn how to connect with a great real estate agent. We help you zero in on the best approaches, whether you’re selling or buying.
Seller Net Sheet Guide: Learn what a net sheet is, how it can help you estimate your potential home sale proceeds, and how to get one for free.
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