Average commission by state / Tennessee
Average Real Estate Commission in Tennessee
Tennessee's average real estate commission rate is 6.05% of the sale price, above the 5.70% national average rate.
How Tennessee compares to the rest of the country
At 6.05%, Tennessee has the 2nd highest average commission rate of the 51 states and DC. That is 0.35% above the 5.70% national average, a difference of about $1,400 on a $400,000 sale.
Tennessee leans buyer-side: the buyer's agent takes 0.15% more than the other side, worth about $600 on a $400,000 sale. That is the side with the most room in it, and it is where a negotiation usually starts.
States that price closest to Tennessee: Ohio (5.90%), Washington (5.90%), Michigan (6.20%), South Carolina (5.88%).
Worked example
On a $400,000 home sold at Tennessee's average rate:
| Sale price | $400,000 |
| Listing agent (2.95%) | $11,800 |
| Buyer's agent (3.10%) | $12,400 |
| Total commission | $24,200 |
Commission by sale price in Tennessee
What the Tennessee average of 6.05% works out to across common sale prices.
| Sale price | Listing side | Buyer side | Total commission |
|---|---|---|---|
| $200,000 | $5,900 | $6,200 | $12,100 |
| $300,000 | $8,850 | $9,300 | $18,150 |
| $400,000 | $11,800 | $12,400 | $24,200 |
| $500,000 | $14,750 | $15,500 | $30,250 |
| $750,000 | $22,125 | $23,250 | $45,375 |
| $1,000,000 | $29,500 | $31,000 | $60,500 |
How Tennessee compares to the national average
The national average total commission is 5.70%, so Tennessee runs 0.35% above it. On a $400,000 sale that is about $1,400 more than a seller at the national average would pay.
Treat the state figure as a starting point rather than a going rate. Commission is negotiated deal by deal, and the spread between what two sellers in the same Tennessee zip code pay is usually wider than the spread between Tennessee and the national average. Learn what actually moves the number in the guide on negotiating real estate commission.
Commission is the largest fee in a Tennessee sale but not the only one. What else comes out at closing, what the percentage actually buys, and how much of it the agent keeps rather than the brokerage are covered on real estate agent fees. For whether the seller or the buyer covers each side after the 2024 rule change, see who pays realtor fees.
For your own price and rate, or to see your full net proceeds after closing costs and mortgage payoff, use the real estate commission calculator or the net proceeds calculator.
Frequently asked questions
- What is the average real estate commission in Tennessee?
- The average total commission in Tennessee is 6.05% of the sale price: about 2.95% to the listing agent and 3.10% to the buyer's agent. That is above the 5.70% national average by 0.35%. These are averages for planning, not a fixed or legal rate -- commission is always negotiable.
- How much commission on a $400,000 home in Tennessee?
- At the Tennessee average of 6.05%, total commission on a $400,000 sale works out to about $24,200: roughly $11,800 to the listing agent and $12,400 to the buyer's agent.
- What is the average realtor commission rate in Tennessee?
- About 6.05% of the sale price in total. Sellers usually see that quoted as a single listing-agreement number, which the listing broker then splits with the buyer's broker: roughly 2.95% and 3.10%. "Realtor" is a trademark for members of the National Association of Realtors, so a Realtor's rate in Tennessee and a non-member agent's rate come from the same negotiated range.
- Who pays the real estate commission in Tennessee?
- The seller pays out of sale proceeds at closing in the large majority of Tennessee transactions. Since the August 2024 NAR settlement, the buyer's agent fee is negotiated separately, so a buyer may agree to cover some or all of their own agent's fee rather than having it come out of the seller's side.
- Is real estate commission negotiable in Tennessee?
- Yes. Commission rates are set by agreement between you and your agent, not by law or by any MLS, in Tennessee or anywhere else in the US. Since the August 2024 NAR settlement, buyer-agent compensation in particular is negotiated separately rather than automatically bundled into one listing-side rate.