Real estate commission in Tennessee: what sellers actually pay
Commission is negotiable in Tennessee, it is not set by any board or association, and since 2024 the buyer-agent side is negotiated separately. Here is how the math works on an East Tennessee sale.
There is no standard or legally fixed commission rate in Tennessee. Total commission on a residential sale commonly lands between about 5% and 6% of the sale price when the seller agrees to contribute toward the buyer's agent, but every piece of that is negotiated in writing between you and the brokerage — and after the 2024 NAR settlement changes, buyer-agent compensation is a separate negotiation rather than something published in the MLS.
Any brokerage claiming a required or standard rate is misstating Tennessee practice.
Observed range on residential sales; higher on low-price or land listings, lower on high-price ones.
Total commission at 5%–6% before any other closing costs or payoff.
What changed in 2024, and why it matters to your net
Buyer-agent compensation used to be published inside the MLS on nearly every listing, which made a combined 5%–6% feel like a single fixed number. That practice ended with the National Association of REALTORS® settlement. Offers of compensation to a buyer's agent are no longer advertised in the MLS, and buyers now sign written agreements with their own agent covering how that agent gets paid.
Practically, a Tennessee seller now makes two separate decisions. First, what you agree to pay your listing brokerage. Second, whether you offer anything toward the buyer's agent — and if so, how much, structured as a concession negotiated in the purchase contract.
Offering nothing is allowed. Whether it is wise depends on your price point and how much competing inventory sits around you. In practice a lot of East Tennessee buyers are stretched to their down payment already, and a seller concession is often what closes the gap. That is a pricing conversation, not a rule.
What the commission actually pays for
The number matters less than what the listing side actually does with it. On our listings that means professional photography and drone work where the property justifies it, syndication across the four Tennessee MLS feeds we belong to plus the national portals, showing coordination, pricing built from closed sales rather than a portal estimate, negotiation on repairs and appraisal gaps, and transaction coordination through closing.
- Photography, drone, and floor plan work on properties where it moves the price
- MLS syndication across Lakeway, Great Smoky Mountains, and Tennessee/Virginia Regional feeds
- Comparable-sales pricing from recorded closings, not an automated national estimate
- Showing coordination, feedback, and buyer-agent follow-up
- Repair, inspection, and appraisal-gap negotiation
- Transaction coordination from contract to closing table
Want your actual number, not a national average?
Our valuation is built from recorded closed sales across the four Tennessee MLS feeds we belong to, then reviewed by a local listing agent. No listing agreement, no obligation.
Get my home value rangeThe discount-brokerage tradeoff, said honestly
National referral sites advertise a 1%–1.5% listing side. That number is real, and so is the tradeoff: the fee usually buys a thinner service level, and many of those companies also collect a referral fee from the agent they hand you to. You are not dealing with the company that marketed to you — you are dealing with whichever local agent bought that lead, which may or may not be someone who knows your road.
The honest comparison is not rate against rate. It is net proceeds against net proceeds, including what the property actually sells for. A one-point saving on commission disappears fast if a property is mispriced by 3% or sits ninety days and takes a reduction.
See your number before you sign anything
Run your address through the valuation tool for a comp-based range built from real closed sales in your area, then use the seller net sheet to subtract commission, closing costs, and your payoff. That gives you a proceeds figure you can actually plan around — and no listing agreement is involved in getting it.
Common questions
Is there a standard real estate commission in Tennessee?
No. Commission is not set by law, by the Tennessee Real Estate Commission, or by any REALTOR® board. It is negotiated in writing between the seller and the brokerage on every listing.
Does the seller have to pay the buyer's agent in Tennessee?
No. Since the 2024 NAR settlement changes, buyer-agent compensation is negotiated separately and is not advertised in the MLS. A seller may offer a concession toward it, decline to, or negotiate it as part of the purchase contract.
What is commission on a $350,000 home in Tennessee?
At a total of 5% to 6%, commission on a $350,000 sale runs roughly $17,500 to $21,000. Closing costs, any seller concessions, and your loan payoff come out separately.
Can I negotiate the listing commission?
Yes. Rate, length of the listing term, and what marketing is included are all negotiable before you sign, and the agreement must state the compensation in writing.
Keep going
This page is general information about selling residential property in Tennessee and is not legal, tax, or accounting advice. Figures are typical ranges observed in East Tennessee and will differ on your transaction. Spring Mountain Realty PLLC is licensed in Tennessee and does not list or sell property in Virginia. Commission rates are negotiable and are not set by any board, association, or government agency. Spring Mountain Realty PLLC fully supports the Fair Housing Act and the Equal Opportunity Act.