Tennessee Real Estate Commission Calculator
State average: 5.1% commission · Median home: $327,500 · 6 cities tracked · Updated 2026
Calculate Your Tennessee Commission
Total Commission
$16,703
Listing Agent Gets
$5,846
Buyer's Agent Gets
$5,846
Seller's Net
$310,797
Real Estate Commission Rates in Tennessee (2026)
The average total real estate commission in Tennessee is 5.1%, which is in line with the national average of 5.0–5.4%. On the median Tennessee home price of $327,500, total agent fees come to $16,703.
Following the August 2024 NAR settlement, buyer's agent compensation is no longer required to be offered through the MLS in Tennessee. Sellers have more flexibility than ever to negotiate commission rates — especially on higher-priced homes where listing-side fees of 1–2% are increasingly common.
How Commission Works in Tennessee
- Total commission: typically 5.1% of sale price = $16,703 on median home
- Listing agent side: ~$8,352 (2.5% of sale)
- Buyer's agent side: ~$8,352 (negotiable since Aug 2024)
- Agent's take-home: ~70% after broker split = ~$5,846 per side
- Seller nets: approximately $310,797 before closing costs
Commission by Price Range in Tennessee
- Under $200,000: 5.5–6% total (agents need minimum earnings to justify the work)
- $200,000–$500,000: 5–5.5% total (near the Tennessee average of 5.1%)
- $500,000–$1,000,000: 4.5–5% total (negotiating room opens up)
- Over $1,000,000: 3–4% total (high-dollar listings often command a lower percentage)
Tips for Negotiating Commission in Tennessee
- Get multiple listing presentations — commission rates in Tennessee vary 0.5–1% between agents
- Offer a competitive buyer's concession — to attract buyers, 2–2.5% buyer side works well in Tennessee
- Use a flat-fee MLS service — pay $300–600 for MLS access, then offer buyer agent 2.5%
- Bundle buy and sell — agents may discount if you're buying and selling simultaneously
- List in spring — Tennessee markets peak March–June, giving sellers more negotiating leverage
Commission Rates by City in Tennessee
| City | Median Price | Avg Rate | Total Fees | Calculator |
|---|---|---|---|---|
| Nashville | $470,000 | 5% | $23,500 | Calculate → |
| Memphis | $195,000 | 5.5% | $10,725 | Calculate → |
| Knoxville | $310,000 | 5% | $15,500 | Calculate → |
| Clarksville | $280,000 | 5% | $14,000 | Calculate → |
| Murfreesboro | $400,000 | 5% | $20,000 | Calculate → |
| Chattanooga | $310,000 | 5% | $15,500 | Calculate → |
Showing top 6 cities. View all cities →
Frequently Asked Questions
What is the average real estate commission in Tennessee?
The average total real estate commission in Tennessee is approximately 5.1%, which is in line with the national average of 5.0–5.4%. On the median Tennessee home price of $327,500, total agent fees equal $16,703.
How is real estate commission split in Tennessee?
In Tennessee, the total 5.1% commission is typically split 50/50 between listing and buyer's agents. Each agent then splits with their broker — commonly 70/30. That means each agent earns approximately $5,846 on a $327,500 sale.
Can I negotiate real estate commission in Tennessee?
Yes. Since the August 2024 NAR settlement, buyer's agent compensation is fully negotiable in Tennessee. Sellers are no longer required to offer buyer concessions through the MLS, making commission negotiation more accessible than ever.
How much does a seller net after commission in Tennessee?
On the median Tennessee home of $327,500 with a 5.1% commission, the seller nets approximately $310,797 before closing costs. Add another 1–3% for closing costs depending on the transaction.
Who Pays the Real Estate Commission in Tennessee?
In Tennessee, the seller traditionally pays the full commission out of their sale proceeds, and the listing broker then shares part of it with the buyer's agent. That changed with the August 2024 NAR settlement: sellers are no longer required to advertise a buyer-agent commission through the MLS. Today the seller almost always still pays the listing side (about 2.5% in Tennessee), but buyer-agent compensation is negotiated separately - it may be paid by the seller as a concession, by the buyer directly, or split between them. Every buyer now signs a written representation agreement before touring homes, so the fee is agreed up front rather than assumed.
More Tennessee Commission Questions
Who pays the real estate commission in Tennessee - the buyer or the seller?
The seller pays the listing agent's side (roughly 2.5% of the sale price in Tennessee) from their proceeds. Since the 2024 NAR settlement, the buyer's agent fee is negotiated separately: the seller may still cover it as a concession to attract buyers, or the buyer may pay their own agent under their representation agreement. On the median Tennessee home of $327,500, the full 5.1% works out to about $16,703.
When is the commission paid in Tennessee?
Commission is paid at closing, not up front. It is deducted from the seller's proceeds by the title or escrow company and disbursed to the brokerages on the settlement statement. If the home never closes, no commission is owed under a standard Tennessee listing agreement.
Do you still pay commission if your house doesn't sell in Tennessee?
Generally no. Most Tennessee listing agreements are "no sale, no fee" - if the property doesn't close, you owe nothing. Watch two clauses: a cancellation fee for early termination, and a protection (or "safety") period that can owe commission if you sell to a buyer the agent introduced shortly after the listing ends.
What are typical closing costs in Tennessee, on top of commission?
Beyond agent commission, sellers in Tennessee usually pay another 1-3% in closing costs - roughly $3,275 to $9,825 on the median home - covering title, transfer taxes, escrow, and prorated property taxes. Estimate the full picture with our closing costs calculator before you list.