Commission guide
Tennessee real estate commission rates
The average real estate commission in Tennessee is 5.32%, about $17,556 on a $330,000 home. Here's exactly how that breaks down, what changed after the NAR settlement, and how to pay less.
Total rate
5.32%
Listing agent
2.7%
Buyer agent
2.62%
Median price
$330,000
What you'll actually pay in Tennessee
On a $330,000 home (the Tennessee median), the total commission breaks down like this:
| Fee | Rate | Amount |
|---|---|---|
| Listing agent commission | 2.7% | $8,910 |
| Buyer agent commission | 2.62% | $8,646 |
| Total commission | 5.32% | $17,556 |
The listing agent's commission (2.7%) is paid by the seller from the sale proceeds. The buyer's agent commission (2.62%) was traditionally also paid by the seller, but since the NAR settlement in August 2024, this is negotiated separately.
In practice, most Tennessee sellers still offer to cover the buyer's agent commission to attract more offers, but the amount is no longer set by the MLS. Buyers should be prepared to negotiate this cost directly with their agent.
How the NAR settlement changed Tennessee
The NAR settlement took effect in August 2024, and the Tennessee Real Estate Commission (TREC) moved quickly to align state rules with the new requirements. TREC updated its disclosure forms and now mandates that buyers sign a written buyer representation agreement, specifying the agent's compensation, before touring any property. Buyer agent rates dropped from an average of 2.82% pre-settlement to approximately 2.62%, a 0.2 percentage point decline that has held steady rather than rebounding like some other states. Because Tennessee is a non-disclosure state, meaning deed sale prices are not public record, gathering reliable commission data is harder here than in most states; industry surveys and MLS data are the primary sources rather than county records. Nashville has seen the sharpest compression, particularly on homes above $500K where agents are more willing to negotiate. Statewide, Tennessee's 5.32% total rate now sits well below the 5.70% national average. About 37% of sellers nationally now negotiate commission post-settlement, and Tennessee's competitive Nashville and Knoxville markets are tracking at or above that rate.
Before NAR settlement
5.64%
Total commission ($18,612 on $330,000)
Buyer agent rate: 2.82%
After NAR settlement
5.32%
Total commission ($17,556 on $330,000)
Savings: $1,056 per transaction
The NAR settlement, effective August 2024, ended the practice of listing buyer agent compensation on the MLS. In Tennessee, this means:
- Buyer representation agreements are required. Before touring any home in Tennessee, buyers must sign a written agreement with their agent that clearly states what the agent will be paid.
- Commission is more negotiable. With rates no longer set on the MLS, agents are more open to discussing their fees. Average buyer agent rates in Tennessee have dropped from 2.82% to 2.62%.
- Sellers can still offer buyer agent compensation. Most Tennessee sellers continue to offer it, but the amount and terms are negotiated directly between the parties rather than advertised publicly.
Commission rates by city in Tennessee
Commission rates vary across Tennessee metros. Higher-priced markets tend to have slightly lower percentage rates because agents earn more per transaction.
| City | Listing | Buyer | Total | On median |
|---|---|---|---|---|
| Nashville | 2.65% | 2.55% | 5.20% | $21,840 |
| Memphis | 2.75% | 2.65% | 5.40% | $9,450 |
| Knoxville | 2.7% | 2.6% | 5.30% | $18,020 |
| Chattanooga | 2.7% | 2.6% | 5.30% | $16,960 |
| Franklin | 2.6% | 2.5% | 5.10% | $42,075 |
| Clarksville | 2.7% | 2.55% | 5.25% | $15,960 |
Rates are averages based on 2024–2025 transaction data. Actual rates depend on agent, home price, and negotiation. Median home prices sourced from Zillow Home Value Index.
Find an agent in Tennessee
How to negotiate commission in Tennessee
Commission rates in Tennessee are always negotiable. They have never been fixed by law or regulation. Since the NAR settlement, more buyers and sellers are negotiating, and agents are increasingly open to competitive pricing. Here are strategies specific to Tennessee:
1. Know that TN is a non-disclosure state, and what that means for you
Tennessee doesn't require sale prices to be publicly recorded. That means your agent has access to MLS comp data that you can't easily verify independently. Ask your agent to show you the closed-sale comps they're using to price your home, and get a comparative market analysis (CMA) from a second agent. When you can see the numbers, you negotiate from a stronger position, even if county records won't show them.
2. Negotiate before signing the buyer representation agreement
TREC now requires a signed buyer representation agreement before your agent shows you any property. This agreement locks in what you'll pay your buyer's agent. Before you sign, ask: "Is this rate negotiable?" and "What happens if the seller offers less than this amount?" Once you've signed, changing terms is harder. This is your best leverage point as a Tennessee buyer.
3. Leverage Nashville's rate compression on higher-priced homes
Nashville has seen the sharpest post-settlement commission compression in Tennessee, especially above $500K. If you're selling in Nashville or Franklin (median $825,000), agents are competing harder on price because higher sale prices mean bigger commissions even at lower percentages. A 2.5% listing rate on an $825,000 Franklin home is still $20,625, plenty of incentive for an agent to accept a reduced rate.
4. Compare flat-fee brokerages in Nashville
Nashville's market supports several flat-fee alternatives. Felix Homes charges a flat $5,000 listing fee regardless of home price, compared to $11,130 at the average 2.65% rate on Nashville's $420,000 median. That's a $6,130 difference. Flat-fee services typically handle pricing, listing, and closing coordination but may offer less hand-holding on staging or open houses. Know what's included before deciding.
5. Get three agent quotes, not one
47% of homeowners hire the first agent they talk to. That's negotiation leverage left on the table. Interview at least three agents, ask each for their commission rate and what services are included, and let them know you're comparing. Tennessee's post-settlement market, especially in Nashville and Knoxville, has made rate conversations normal. Agents expect it now.
Calculate your Tennessee commission
Enter your home price to see exactly what you'd pay in agent commissions at Tennessee average rates. Compare buyer vs seller costs and see how referral platform fees affect your agent.
Average rates in Tennessee: 2.7% listing + 2.62% buyer = 5.32% total
What you'll pay as a buyer
Since the NAR settlement (August 2024), buyers may need to pay their agent directly. Here's what that looks like at $415,000.
Your agent keeps $2,718 more of their commission
With our 25% referral fee vs. the industry's 33-40%, your agent keeps more, which means more resources for your deal, not the platform.
Need the full tool? Try our commission calculator with all states and comparison mode.
Tennessee commission FAQ
Related resources
Commission Rates by State
Compare rates across all states with our full breakdown.
Commission Calculator
Interactive tool to estimate your exact costs as a buyer or seller.
Find an Agent in Tennessee
Browse vetted agents across Tennessee metros.
NAR Settlement Explained
Full breakdown of what changed for buyers and sellers in 2024.
How Agentsorted Works
See how we match you with a vetted local agent.
North Carolina Commission Rates
Average 5.53% total rate on a $340,000 median home.
South Carolina Commission Rates
Average 5.65% total rate on a $340,000 median home.
Florida Commission Rates
Average 5.57% total rate on a $400,000 median home.
Georgia Commission Rates
Average 5.66% total rate on a $330,000 median home.
Texas Commission Rates
Average 5.85% total rate on a $310,000 median home.
Colorado Commission Rates
Average 5.28% total rate on a $490,000 median home.
Arizona Commission Rates
Average 5.48% total rate on a $400,000 median home.
Virginia Commission Rates
Average 5.19% total rate on a $380,000 median home.
Idaho Commission Rates
Average 5.39% total rate on a $410,000 median home.
Alabama Commission Rates
Average 5.55% total rate on a $230,000 median home.
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