Tennessee sellers can expect to pay around 3.47% of their home's final sale price in closing costs. For a $311,678 home — the median home value in Tennessee — you'd pay about $10,821.
Most sellers have their closing costs taken directly out of their sale proceeds. If you don't earn enough from your sale to cover your closing costs, you might have to pay for some fees out of pocket — but this rarely happens.
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Keep reading to learn what you're responsible for as a seller and how much closing costs are in Tennessee. Need estimates for your sale? You'll also find our Tennessee seller closing costs calculator!
How much are seller closing costs in Tennessee?
Seller closing costs include all the fees due when you finalize the sale of your home in Tennessee. Many of these expenses are required in order to verify and transfer ownership of the property to your buyer.
In Tennessee, you'll pay about 4.16% of your home's final sale price in closing costs, not including realtor fees.
Remember that this figure is only an estimate. Your closing costs may vary based on your location, selling timeline, property value, and other factors. Fortunately, you can always negotiate with your buyer about splitting these costs.
For best results, you'll want to work with an experienced local agent. Clever can help by matching you with a great realtor in your neighborhood who can expertly negotiate on your behalf and help you make the most of your sale.
» MORE: See how Clever can match you with a local expert
Who pays closing costs in Tennessee?
Buyers and sellers both have to pay unique closing costs to finalize a home sale. In Tennessee, it's common for sellers to pay title and closing service fees, owner's title insurance policy, lender's title insurance policy, transfer taxes, and recording fees.
Title fees: 0.46%
Title fees cover the costs of your title search and title transfer.
In order to sell your home, you'll have to transfer legal ownership of the property to your buyer. Before this can happen, your settlement agent will perform a title search to ensure there aren't liens or claims against your property.
Buyers and sellers in Tennessee will usually pay for their own closing agent or title company, but this isn't always the case. Ask your agent if you don't know which fees you'll need to cover.
Owner's title insurance: 0.56%
Owner's title insurance will protect the buyer if any issues are found with the property title. Problems with property titles can range from simple clerical errors to complicated ownership disputes over the property. A title insurance policy will cover the buyer's necessary legal fees or possibly reimburse the buyer for the value of their home if the issues can't be resolved.
In Tennessee, title insurance usually costs around 0.56% of your home's final sale price — or $1,734 for a $311,678 home. Most title companies in Tennessee use a tiered pricing system that determines the cost of a policy based on a property's value.
» MORE: What is title insurance, and why do you need it?
Tennessee transfer 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 — $311,678 — you'd pay $1,153.However, transfer taxes may differ depending on your home value and county. Ask your real estate agent if there are any local ordinances you should know about.
» FIND: Learn more about transfer taxes in Tennessee
Tennessee recording fees: $156
Your county will charge a small fee to keep a legal record of your property's mortgage and deed information. This fee can vary slightly based on your location, but you can expect to pay around $156 in Tennessee. You can also negotiate for the buyer to pay for this cost.
If you want to see exactly how much you'll pay in recording fees, most counties have these costs listed on their official website.
Buyer incentives: 2%
Sellers can use buyer incentives to appeal to house hunters and encourage more people to submit offers. A few common incentives may include covering some of the buyer's closing costs, providing them with repair credits, or including valuable items — such as new appliances or furniture — in the home sale.
Sellers spend an average of $6,234 on buyer incentives in Tennessee.
Don't forget about property taxes!
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 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%.
Be sure to check with your real estate agent so you can find out exactly you'll need to pay in property taxes
Other Tennessee closing costs for sellers
Since every Tennessee home sale is unique, plenty of sellers end up dealing with a few surprise expenses. For example, you may want to hire a real estate attorney to help with the sale of your Knoxville duplex, or you might need a property appraisal for your historic Memphis home.
» LEARN: The total cost of selling a house
No matter how prepared you are, you can still wind up with some unexpected costs. Here are some of the most common miscellaneous fees you might encounter:
- Homeowners Association (HOA) fees
- Mortgage payoff and/or prepayment penalties
- Property appraisal fees
- Settlement or attorney fees
Working with a local realtor who has plenty of experience in your area is a great way to avoid unforeseen expenses. A knowledgeable agent will be able to explain which fees you can expect based on the unique features of your Tennessee neighborhood.
An experienced agent will also be familiar with local trends and know what kind of features buyers are searching for. When you use Clever, you'll be matched with a top local realtor with the insights you need to maximize your profits.
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.
Tennessee closing costs calculator
Your total closing costs will ultimately vary based on your home's value, local fees, and buyer negotiations.
Use this Tennessee closing costs calculator to better understand how much money you'll actually take home after closing.
How to save on Tennessee closing costs
Even though closing costs aren't the most expensive part of selling a home in Tennessee, there are a couple ways you can further reduce your savings.
Shop around for better prices
It's possible to save money by shopping around for lower rates on closing services and title companies.
However, sellers should keep in mind that these fees are pretty low and tend to be consistent between different companies. When you already have to keep track of inspection, repair, and appraisal fees, researching several companies to find a $50 discount probably isn't worth the hassle.
Negotiate for the buyer to pay
If you're in an area with a low housing inventory and many interested buyers, you can ask your buyer to cover some of your closing costs.
In a hot market, buyers expect fierce competition and may be more willing to compromise on closing fees so you'll accept their offer on your Tennessee home.
» MORE: How to negotiate with buyers before accepting an offer
Save on realtor fees
The easiest and most effective way to reduce your closing costs is to find an agent who charges lower listing fees. In Tennessee, real estate commission costs an average of $16,955 — that's usually more expensive than the rest 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 up to 50% on realtor commission, putting more money in your pocket.
Clever matches you with top-rated agents from major brokerages, like Keller Williams and RE/MAX. Sellers get pre-negotiated 1.5% listing fees. Buyers can get cash back after closing!
Clever's service is 100% free with no obligation. Interview as many agents as you like until you find the perfect fit — or walk away at any time.
Frequently asked questions
How much are seller closing costs in Tennessee?
In Tennessee, expect to pay about 3.47% of your home’s sale price in closing costs — not including realtor fees. At the median home value of $311,678, this equates to around $10,821 at closing. Learn more about what makes up seller closing costs in Tennessee.
Who pays closing costs in Tennessee?
Buyers and sellers each pay for different closing costs to finalize a sale. In Tennessee, sellers typically pay for title fees, transfer taxes, owner's title insurance expenses, and recording fees at closing. Learn more about who pays closing costs in Tennessee.
