Wed. Sep 27th, 2023

Most real estate agents in Tennessee get paid through commissions. Commissions are typically calculated as a percentage of a property’s sale price, though some brokerages will charge a flat fee. The average agent commission rate nationwide is 5.8% of the home sale price, according to HomeLight’s real estate transaction data of thousands of home sales each year. But how does that compare to the average real estate commission rate in Tennessee?

In this post, we’ll help you determine how much commission you might pay on your Tennessee home sale, and what options are available to earn the highest proceeds possible.

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What’s the average real estate commission in Tennessee?

According to Paul Avratin, a top-performing Chattanooga area agent with 14 years of experience, you can expect to pay 6% in agent commissions when selling a home in Tennessee, with some variation based on location within the state. “Outlying, the highest commission on a home is 7%,” he says, and “the lowest I’ve seen is 4%.” On a property worth the current statewide median home sale price of $273,665, 6% in commissions amounts to $16,420 in commission costs.

Using an overall statewide average of 6%, here’s a breakdown of how much you might pay in real estate commissions based on what a home sells for in six of the largest cities in Tennessee:

Tennessee city Median home price Typical commission at 6%
Memphis $473,565 $28,414
Nashville $174,839 $10,490
Knoxville $350,314 $21,019
Chattanooga $327,729 $19,664
Clarksville $313,246 $18,795
Murfreesboro $414,000 $24,840

Median home prices calculated from multiple public sales data sources.

HomeLight gathers agent commission data from cities throughout the U.S. To see if we have commission rates for your city, try our Agent Commissions Calculator. You might also be interested in our Home Value Estimator.

Still curious about commission rates in Tennessee? Here are the answers to common questions about real estate agent commissions:

Who pays real estate commission fees?

The commission is typically paid by the home seller, and the seller’s agent will then split the commission with the buyer’s agent.

Avratin serves on four MLS boards in Tennessee: Knoxville MLS, Chattanooga MLS, Cleveland MLS, and Nashville MLS. He explains that the final settlement statement will clearly indicate how much commission will be paid to the seller’s and buyer’s agents. “In the state [of Tennessee], by law, three days before closing, it shows both agencies on the seller’s statement. Buyers never pay commission unless it’s a unique situation.”

​​In a moment, we’ll look at how the commission splits play out and how much the agents actually keep.

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