Real Estate Commission Calculator — Memphis, TN
Median home price in Memphis: $195,000 · Typical commission: 5.5% · Updated 2025
Total Commission
$10,725
Listing Agent Gets
$3,754
Buyer's Agent Gets
$3,754
Seller's Net
$184,275
Real Estate Commission Rates in Memphis, Tennessee
The typical total real estate commission in Memphis is 5.5% of the sale price, based on current market data for Tennessee. On the median Memphis home price of $195,000, that works out to $10,725 in total agent fees.
Following the 2024 NAR settlement, buyer's agent compensation is now negotiated separately in Tennessee. Most transactions still split the commission 50/50 between listing and buyer agents, but this is no longer required. Sellers in Memphis have more flexibility than ever to offer lower buyer concessions.
How Commission Splits Work in Memphis
- Listing agent typically receives $5,363 (2.8% of sale price)
- Buyer's agent typically receives $5,363 (if seller offers full split)
- Agent keeps ~70% after broker split: ~$3,754 per side
- Seller nets approximately $184,275 on a $195,000 sale
Tips for Negotiating Commission in Memphis
- List at a higher price point — agents on $600,000+ homes often accept 2–2.5% listing side
- Compare multiple agents — commission rates in Tennessee vary by 0.5–1% between agents
- Use a flat-fee MLS service — pay $300–$500 for MLS listing, offer buyer agent 2.8%
- Ask about a reduced rate on a simultaneous buy/sell — agents may discount if you're both buying and selling
Frequently Asked Questions
What is the average real estate commission in Memphis, TN?
The average total commission in Memphis is approximately 5.5%, slightly at or above the national average of 5.0–5.4% following the NAR settlement.
How much does a real estate agent make on a home sale in Memphis?
On the median Memphis home price of $195,000, a listing agent earns roughly $5,363 before broker split. After a typical 70/30 agent-broker split, the agent takes home approximately $3,754.
Do sellers have to pay the buyer's agent in Memphis?
No. Since August 2024, sellers in Tennessee are no longer required to offer buyer agent compensation through the MLS. Many still do to attract buyers, but it's now fully negotiable.