How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
We surveyed local agents and found that the average real estate commission in Tennessee is 5.44%, which is higher than the national average of 5.37%.
The average total real estate agent commission rate in Tennessee is 5.44% of the final sale price. Based on the latest median home sale price in Tennessee ($309,795), that translates to a total cost of roughly $16,853.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Tennessee, the average listing agent fee is 2.72%, while the average buyer’s agent fee is 2.72%.
Real estate agent commissions make up a significant portion of the closing costs for Tennessee home sellers. But you don't have to pay the full 5.44% to a traditional agent. If you're selling a home in Tennessee, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 32% on realtor fees, or about $5,426 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in Tennessee
| Average listing commission | 2.72% |
| Average buyer's agent commission | 2.72% |
| Total average commission | 5.44% |
There are usually two real estate agents involved in the real estate transactions of a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average real estate commission paid in Tennessee for listing agents is 2.72% of the final home price and 2.72% for buyer's agents, for a total of 5.44%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Tennessee
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Tennessee. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Who pays realtor fees in Tennessee?
When selling a home in Tennessee, the sales commissions for both the seller's and buyer's agents are deducted from the final sale price. These fees do not need to be prepaid.
The seller's agent earns their commission by providing services such as market analysis and handling the closing process. The buyer's agent makes their commission by bringing a qualified buyer who meets the purchase terms and closes on time.
The seller does not pay these commissions out of pocket. Similar to closing costs, the agents' fees are subtracted from the sale proceeds once the sale is completed.
If you want to reduce your realtor fees, Clever can connect you with a top local listing agent charging just 1.5% commission. This will allow you to keep more of the sale proceeds for yourself.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Why do sellers pay the buyer's real estate agent commission?
Offering to cover the buyer's agent commission may attract more potential buyers to your listing.
Paying this fee makes your home more enticing to buyers, since they won't have to pay their agent's commission upfront in addition to the down payment and closing costs - something many buyers can't afford.
When you make a competitive offer on the buyer's agent commission, real estate agents become more incentivized to showcase your property to their clients. This can increase your chances of getting multiple offers. Experts recommend advertising a buyer's agent commission within 0.5% of the local average, which is 2.72% in Tennessee.
Will the NAR lawsuit change how real estate commission works?
A November 2023 lawsuit found the National Association of Realtors (NAR), Homeservices of America, and Keller Williams Realty guilty of misleading sellers into paying high realtor fees.
The judge agreed with the plaintiffs that sellers should not be on the hook for the buyer's agent commission. It's too early to tell if this decision will change how buyer's agents are paid. We're monitoring the appeal in this case as well as other lawsuits and will keep you updated.
» READ MORE:
How to save on realtor fees in Tennessee
Commission rates are not set in stone. In fact, we found that while 2.72% is the average in Tennessee, rates typically fall between 4.71% and 6.17%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 2.35%– 3.08% |
| Buyer's agent commission | 2.36%– 3.09% |
| Total commission range | 4.71%– 6.17% |
Can I negotiate realtor commission in Tennessee?
Real estate commission is always negotiable. In Tennessee, the 13 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who also plan to buy with you | 85% |
| Seller’s situation (e.g. divorce or death in the family) | 77% |
| Homeowners who are repeat clients | 77% |
| Homeowners with more than one property to sell | 69% |
| High competition for clients | 61% |
| Higher property values | 46% |
| Periods of low housing inventory | 38% |
| Homes expected to sell quickly | 31% |
| Houses in excellent condition | 23% |
| High buyer demand in the area | 15% |
| Highly experienced home sellers | 8% |
Negotiating realtor fees in Tennessee depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The Tennessee housing market |
|
While your personal situation may differ, real estate conditions in Tennessee will impact all home sellers in the area.
Generally in a seller's market, where sellers have more leverage than buyers, listing agents' jobs are easier so they may be more willing to reduce commissions. The opposite is often true in a buyer's market.
Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.
To gauge the current state of your local real estate market, look at these three factors:
- Months of inventory
- Sale to list price ratio
- Home value trends
If all signs point to Tennessee being a seller’s market, you may be in a good position to negotiate a lower commission with your agent. If conditions are mixed or favor buyers, it may be harder to get your agent to accept a cheaper rate.
The current state of the Tennessee real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.9 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 97.50% of their listing price | Buyer's market |
| Home values | Home values have risen 45.65% year over year | Seller's market |
Low commission real estate companies in Tennessee
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Those aiming to sell their homes in Tennessee will discover that Clever stands out as the premier choice for reducing commission costs without cutting corners on professional service.
✅ Benefits and features: Clever commands attention with striking commission discounts reaching as high as 50% compared to standard brokerage fees. Their acclaimed, cost-free matchmaking service offers a no-risk opportunity to assess potential realtor partnerships.
🏠 How it works: Clever forges connections between home sellers and esteemed real estate agents from well-known firms such as RE/MAX and Compass. Sellers are afforded an expansive selection of skilled agents, ensuring a match that aligns with their unique needs, all while paying a 1.5% listing fee.
Pros
- Access to real estate agents from reputable brokerages, ensuring exceptional service
- Exclusive 1.5% listing fee when you work with Clever
- Choose from 100+ top Tennessee real estate agents
Cons
- No guarantee that you’ll be able to work with a specific agent or brokerage you have in mind
- Additional services such as professional staging, drone photos, and 3D tours may come at an additional cost (agents will provide a detailed breakdown during their listing presentation)
Fee structure
- 1.5% listing fee ($3,000 minimum) at closing
- 2–3% buyer’s agent commission at closing
| Weighted avg. | 5.0 | 2,627 |
| Trustpilot | 5.0 | 2,402 |
| 4.8 | 225 |
Website: semya-moya.ru
Phone: 1-833-225-3837
Hours: 8 a.m.–8 p.m. EST, 7 days a week
Address: 6358 Delmar Blvd, Suite 300, Saint Louis, MO 63130
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For property owners in Tennessee considering the sale of their home, Redfin presents a service that's fairly cost-effective overall, although it should be noted that their minimum commission requirement may exceed that of competitors in the region.
✅ Benefits and features: With Redfin, selling your home comes with a competitive 1.5% listing fee. Even better, when you both purchase and sell your residence through Redfin within a single year, the listing charge is further reduced to a mere 1%. Furthermore, Redfin boasts an extensive network of discounted agents across Tennessee at your disposal.
🚩 Potential red flags: The business model embraced by Redfin may not align with every seller's expectations. Emphasizing a tech-forward and team-structured methodology, Redfin's process is significantly remote-centric, engaging you primarily with a Lead Agent along with a support team administratively. Also, Redfin has a minimum commission fee range of $2,000–4,500 in Tennessee. Depending on your location and your home’s value, you may pay more than the advertised 1.5% fee.
Pros
- Significant savings on listing fees
- Well-known brand with capable agents
- Great for sellers who appreciate a technology-driven approach
Cons
- May not be the best fit for those seeking a personalized, one-on-one agent experience
- Higher minimum commission fees than other options in Tennessee
- Limited availability in some Tennessee cities
- Less agent selection than Clever
Fee structure
- 1.5% listing fee at closing
- 2–3% buyer’s agent commission at closing
- 0.5% listing fee refund if you also buy with Redfin within 12 months
*Not enough available data at this time
Website: redfin.com
Phone: 1-844-759-7732
Hours: 8 a.m.–5 p.m. CST, 7 days a week
Address: 302 Innovation Dr, Suite 320, Franklin, TN 37067
Areas served: Bartlett, Chattanooga, Clarksville, Collierville, Franklin, Germantown, Knoxville, Memphis, Murfreesboro, Nashville, and more
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For those in Tennessee looking to cut costs on real estate commissions without sacrificing knowledge of the local market, 1% Lists Midsouth emerges as a strong contender.
✅ Benefits and features: The brokerage stands out in providing an economical 1% listing fee, inviting a cost-effective closing experience for sellers. It's noteworthy that this firm requires no upfront payment, enhancing its appeal. Bolstering their reputation are the commendable testimonials from their clientele, affirming satisfaction with their services.
🚩 Potential red flags: However, it's important to be aware that 1% Lists Midsouth does not incorporate services like hosting open houses or the use of print advertising as part of its standard package. Additionally, ambiguities remain concerning the duration of MLS listings, presenting potential hold-ups or unforeseen expenses.
Pros
- Low 1% listing fee
- Positive customer reviews
- Understanding of Tennessee real estate markets
Cons
- Doesn't hold open houses
- Unclear MLS listing period
- No use of print media in marketing efforts
Fee structure
- 1% listing fee at closing
- 2–3% buyer's agent commission at closing
Website: 1percentlistsmidsouth.com
Phone: (901) 554-4376
Address: 7989 Goringwood Ln, Germantown, TN 38138
Areas served: Arlington, Bartlett, Collierville, Cordova, Fayette County, Germantown, Memphis, Millington, Tipton County, and the surrounding areas
» LEARN: How do discount real estate brokers offer lower fees?
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with Tennessee's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Methodology
We gathered our commission rate data from a survey of 623 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of August 2023
- Sale prices and sale-to-list ratios: Based on Redfin data as of February 2023 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of February 2023
