How commission works | Save on commission | Tennessee housing market | Best low commission companies | 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%.
To sell a house in Tennessee worth $309,460 — the median home value in Tennessee — you’ll pay about $16,835 in realtor fees.
Realtor commission is usually the largest cost you'll face when selling your home — but you don't have to pay the full 5.44%.
Clever Real Estate could help you save thousands on commission by pre-negotiating 1% listing fees with full-service Tennessee realtors from top brokerages.
On that same $309,460 home — you'd pay just $11,400, up to 32% less than paying average rates.
» SAVE: Sell with Clever for 1% listing fees and save thousands in commission!
How real estate agent commission works
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 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 commission rate 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 commissions work?
Who pays realtor fees in Tennessee?
In Tennessee, home sellers pay real estate commission fees out of the final sale proceeds for both agents involved in a deal. Offering to pay for the buyer's agent's commission is an incentive for agents to show your home to their clients.
If you'd like to save on commissions, Clever can connect you with a top listing agent in your area. You'll pay just 1% (or $3,000 if your home sells for less than $350,000), keeping more money in your pocket at the end of your sale.
How to save on realtor fees in Tennessee
Commission rates are not set in stone. In fact, we found that while 5.44% 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 brokerage that has a discounted commission model.
Listing commission range | 2.35%– 3.08% |
Buyer's agent commission | 2.36%– 3.09% |
Total commission range | 4.71%– 6.17% |
Tips for negotiating realtor commission in Tennessee
Whether you’re selling a luxury condo in downtown Nashville, a restored historic home in Memphis, or an investment rental in Knoxville, you can almost always save thousands by negotiating a lower commission rate.
Negotiating a lower realtor percentage 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 will obviously vary, Tennessee real estate market conditions will affect all home sellers in your area.
In general, in a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more willing to lower their commission rates. The opposite is usually true in a buyer's market.
» LEARN: Find our top tips for negotiating lower commission fees
To judge the current state of your real estate market, look at these three factors:
- Months of inventory ⓘ
- Sale to list price ⓘ
- Home value trends ⓘ
If every factor points to Tennessee being a seller's market, then you may be in a good position to negotiate a lower commission rate with your agent. If market conditions are mixed or favor buyers, it may be more challenging to persuade your realtor to accept a cheaper fee.
The current state of the Tennessee real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 2.0 months of housing inventory on the market | Seller's market |
Sale-to-list ratio | Homes are selling for 101.84% of their listing price | Seller's market |
Home values | Home values have risen 49.14% 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.
These are some of the top discount and flat-fee MLS services in Tennessee.
The top discount real estate companies in Tennessee
Discount real estate companies 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.
Clever Real Estate
Get Started💲 Listing Fee
$3,000 or 1%
💰 Avg. Savings
$7,375
⭐ Avg. Customer Rating
4.9/5 (1,995 reviews)
Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.
- Clever offers a free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
- You get multiple agent matches so you can interview, compare marketing plans, and choose the best fit.
- Clever pre-negotiates low rates on your behalf — you get full service for a flat $3,000 listing fee, or just 1% if the home sells for more than $350,000.
- If you buy with Clever, you could get a check worth up to 0.5% of the home price.
- You may not get matched with an agent from your preferred real estate brokerage.
- Agents may not provide premium services like drone photography and professional home staging.
Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,844 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.
Redfin
Full Review💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
$5,550
⭐ Avg. Customer Rating
3.7/5 (301 reviews)
Redfin offers real savings and is a proven brand. But sellers could compromise on service — especially agent experience and availability.
- If you buy and sell with Redfin, you'll get a 0.5% listing fee discount.
- Redfin gives its listings premium placement in its popular home search app.
- If finding the right agent is a top priority, you'll have limited options — Redfin only has a few agents in each of its markets.
- Redfin agents handle more customers at once than the average realtor, so they may not be able to provide as much personalized service.
Redfin has a 3.7 out of 5 rating (301 reviews) across popular review sites like Google and Yelp.
Redfin is available in 80+ U.S. markets (see all locations).
Redefy
Full Review💲 Listing Fee
$3,500 (1% above $1M)
💰 Avg. Savings
$8,500
⭐ Avg. Customer Rating
4.6/5 (300 reviews)
Redefy’s flat fee could offer big savings. But hands-off service and non-refundable upfront fees make it a hard sell over other, less risky options.
- Flat $3,500 listing fee is an excellent value for higher-priced homes
- Agents provide more in-person services than some similarly-priced low commission brands
- Redefy charges an upfront, non-refundable $500 fee (most companies don't make you pay anything until your house sells)
- Your agent will not host an open house for you
Redefy has a 4.6 out of 5 rating (300 reviews) across popular review sites like Google and Zillow.
Redefy is available in the following areas: CO, FL, GA, IL, NC, SC, TN, TX, VA.
» LEARN: How do discount real estate brokers offer lower fees?
The top flat fee MLS listing services in Tennessee
Flat fee MLS services list your home on your local MLS for a low fee, often around $100–$500. The trade-off is that you'll have to handle almost the entire home-selling process yourself.
» MORE: What you need to know about flat fee MLS services.
Learn more
Tennessee has a booming economy, southern refinement, and an unparalleled cultural legacy. Visit Nashville (which rivals Atlanta as the most thriving metropolis in the South) for the country music, or Memphis for Elvis and Graceland.
The Tennessee housing market is benefiting from a red-hot state economy that boasts in-migration that’s more than triple the national average, and job growth that’s double the national average. Median home values have also roughly doubled over the past decade, and long-term trends are looking good. Bottom line: This is a great market to buy into.
Commission can take a big bite out of your profits when it comes to a Tennessee home sale, but Clever can help you keep that money in your pocket by reducing your commission rate. Clever pre-negotiates low 1% commission for you, or a flat fee of $3,000 if your home sells for less than $350,000, and they partner you with pre-vetted elite agents from Tennessee. Contact Clever today to find out how to save thousands on commission!
Methodology
We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying 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 August 2022
- Sale prices and sale-to-list ratios: Based on Redfin data as of May 2022 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of October 2022