Real Estate Commissions in Tennessee |

Real estate agents — whether representing the buyer or the seller — generally earn their income through a percentage of the home’s sale price. Traditionally, sellers have picked up the tab for both their own agent and the buyer’s agent, with total commissions often landing in the 5 percent to 6 percent range.

However, that long-standing paradigm is shifting. Who covers which portion of the agent fees is now often a matter of negotiation. Regardless of how the cost is divided, both agents still need to be paid. That’s as true in Tennessee as it is in any state in the country.

Take a moment to better understand what to expect when it comes to agent commissions in the Volunteer State and what you can expect to pay.

How much are real estate commissions in Tennessee?

Real estate commissions in Tennessee typically average 5.42 percent, according to data from Clever Real Estate. That figure aligns closely with the national average of 5.44 percent. Listing agents in the state earn about 2.75 percent, while buyer’s agents take home approximately 2.67 percent, on average.

With homes selling for a median price of $405,700 in Tennessee as of June 2025, per Redfin, a standard 5.42 percent commission rate would translate to nearly $22,000 in agent fees. In this example, the seller’s agent would take home about $11,157, while the buyer’s agent would earn roughly $10,832.

Real estate prices — and therefore commissions — can differ drastically from market to market in Tennessee. For instance, sales in a booming city like Nashville versus those in a quieter rural area such as Jonesborough may net significantly different commissions.

Wondering how much Tennessee real estate agent fees might differ from one area to another? Let’s take a deeper dive into several metro markets, where typical home prices — and corresponding commission payouts — can vary quite a bit.

What’s included in a real estate agent’s commission?

Real estate agents in Tennessee play a crucial role in making sure home sales and purchases run smoothly. Their commission reflects the range of personalized support, local market knowledge and logistical expertise they bring to each transaction.

Listing agent’s commission

When you’re selling a home, your listing agent becomes your strategist and advocate. This expert will analyze recent sales of similar properties nearby to help you set a competitive asking price. From there, they’ll handle everything from creating a compelling listing and showcasing your home through private showings and open houses, to fielding offers and negotiating terms with buyers and their agents.

A good agent isn’t just focused on speed: They’re working to help you secure a strong deal without unnecessary delays. From contract to closing, they’ll guide you through each step, ensuring deadlines are met, documents are in order and nothing slips through the cracks.

Buyer’s agent’s commission

If you’re gearing up to buy a home, a skilled agent becomes your guide through the maze of listings, helping you zero in on options that align with your budget, lifestyle and must-haves. Seasoned agents often have access to homes before they’re officially listed, giving you a crucial edge in competitive markets. They can also connect you with trusted professionals you’ll need along the way, such as lenders, inspectors and attorneys.

When it’s time to make an offer, your agent will craft a strong, well-timed proposal that reflects market conditions and protects your interests. They’ll handle the back-and-forth with the seller, advocate for favorable terms and stick with you every step of the way, right up to the moment the keys are in your hand.

That’s why many agents, as well as the buyers and sellers they’ve helped, view their commissions as well-earned. What you’re really paying for isn’t just hours worked, but the strategic know-how, deep market insight and skilled negotiation it takes to get you the most favorable outcome.

Who pays agent commissions in Tennessee?

Agent commissions have always represented a portion of the various costs to sell a house in Tennessee. However, the way these fees get paid has recently changed across the country because of a 2024 federal lawsuit settlement involving the National Association of Realtors (NAR).

Traditionally, sellers covered the commission for both their own agent and the buyer’s agent. But that’s no longer a given. Under the new structure, buyers and sellers typically arrange their own agreements with their respective agents, each signing an independent contract that spells out how much they’ll pay for representation.

Sellers are no longer obligated to pay the buyer’s agent’s fee, though they still have the option to contribute as a concession.

Check carefully to see that your real estate contract clearly indicates which party pays for which commission fees, and exactly how much.

Are Tennessee real estate agents worth it?

Buying or selling a home in Tennessee is a big deal, likely representing the most significant transaction of your life. This major financial move often involves complex steps and high stakes. Given the size of the transaction, it’s understandable that many people pause to consider whether the hefty commission fees are worth it.

Truth is, you’re not required to hire an agent to represent you through this selling or buying process. But having a knowledgeable pro in your corner can be a game-changer. Their expertise can streamline the process, help you avoid costly mistakes and potentially lead to a better deal overall.

The reason? Agents are professionally licensed and carry a deep understanding of the local real estate landscape. This advantage can make all the difference when it comes to pricing your home correctly or making a smart purchase.

What’s more, if challenges arise along the way, a seasoned agent knows how to handle these obstacles swiftly and effectively. Their role is to represent your best interests throughout the process, using their expertise to help you avoid costly missteps, reduce stress and keep the transaction on track.

These extensive benefits make what they charge worth it to most buyer and seller clients, especially those who’ve never been through this process before.

Saving on fees

Determined to lower your out-of-pocket agent costs? Follow these best practices:

• Redo the rate: Like many costs tied to real estate deals, commission fees aren’t set in stone: They can be negotiated. As you interview potential agents, don’t hesitate to ask whether they’re open to reducing their standard fee. Even a modest decrease could lead to significant savings, especially if you’re dealing with a more expensive property.
• Opt for a discount agent: Clever, Redfin and other companies offer discounted commission rates, sometimes as low as 1 percent of the sale price. Alternatively, some agents operate on a flat-fee model, earning a set amount no matter what the home ultimately sells for.
• Go the “FSBO” route: Choosing to sell your home as a “for sale by owner” (FSBO) means you won’t owe a commission to a listing agent. However, this approach requires you to take on many responsibilities that an agent would typically manage. Additionally, it’s important to remember that you might still be responsible for paying the buyer’s agent commission.
• Sell to a cash homebuyer: An alternative to paying agent commissions is selling your home directly to a cash-buying company in Tennessee. These businesses focus on quick transactions, often closing within just a couple of weeks, and do so without involving any real estate agents. While this approach eliminates commission fees, you typically won’t receive the full market price for your property.

Find a Tennessee real estate agent

Excited about selling or buying a Tennessee home? It’s important to do your homework and find a real estate agent who truly understands the nuances of your local area. Start by asking friends and family for recommendations of trusted agents they’ve worked with. Also, explore online reviews and listings, and keep an eye out for agents’ names on “for sale” signs in your neighborhood.

Try to meet with at least two or three different agents before making your choice. This way, you can select a professional you feel comfortable with and be confident that this expert will represent your best interests.