{"id":96556,"date":"2024-09-11T14:11:23","date_gmt":"2024-09-11T21:11:23","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96556"},"modified":"2024-09-11T14:11:23","modified_gmt":"2024-09-11T21:11:23","slug":"tennessee-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/tennessee-real-estate-commissions\/","title":{"rendered":"Tennessee Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

When buying or selling a <\/span>home in Tennessee<\/span><\/a>, grasping real estate commissions is essential for effective budgeting and negotiation. In 2024, <\/span>new rules<\/span><\/a> altered the way real estate commissions are disclosed across the U.S., offering clearer information for both buyers and sellers. These updates are designed to enhance transparency and help you make more informed choices regarding real estate fees.<\/span><\/p>\n

Whether you’re a <\/span>first-time homebuyer<\/span><\/a> or a seasoned seller, this Redfin guide will assist you in understanding Tennessee’s real estate commissions and what to expect in the current market.<\/span><\/p>\n

\"memphis<\/p>\n

Current state of the Tennessee housing market<\/span><\/h2>\n

Before we explore real estate commissions in Tennessee, let\u2019s first examine the state\u2019s <\/span>housing market.<\/span><\/a><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$388,900<\/span><\/td>\n<\/tr>\n
Housing Supply<\/b><\/td>\n39,220 (+21.8% YoY)<\/span><\/td>\n<\/tr>\n
Homes Sold Above List Price<\/b><\/td>\n16.2% (-5.5 pts YoY)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Understanding real estate commissions in Tennessee<\/span><\/h2>\n

What are real estate commissions?<\/span><\/h3>\n

Real estate commissions<\/span><\/a> are fees paid to agents by homebuyers or sellers for their role in completing a transaction. These fees are settled at closing and are generally calculated as a percentage of the property’s sale price.<\/span><\/p>\n

Who pays the commission?<\/span><\/h3>\n

Traditionally, sellers were responsible for covering both their own <\/span>agent\u2019s commission<\/span><\/a> and the buyer\u2019s agent fees from the sale proceeds. However, starting August 17, 2024, <\/span>buyers must now agree<\/span><\/a> to their agent\u2019s fees in writing before starting home tours.<\/span><\/p>\n

While buyers can still request that the seller cover their agent\u2019s commission as part of the offer process, this new rule means that the amount a seller might contribute to a buyer\u2019s agent\u2019s fee is negotiable and may vary.<\/span><\/p>\n

Average real estate commission rates in Tennessee<\/span><\/h2>\n

In Tennessee, commission rates for real estate can vary significantly depending on the details of the transaction and the agreement between the parties. Although there are standard expectations for commission rates, these fees are negotiable, allowing buyers and sellers to collaborate with their agents to establish a fee structure that works best for them.\u00a0<\/span><\/p>\n

Factors such as the property\u2019s location, current market conditions, and the services offered by the agent can all affect the final commission. This flexibility allows both parties to discuss and adjust fees to align with their budget and objectives. Below is a detailed overview of example commission rates based on median home prices in some of <\/span>Tennessee\u2019s largest cities<\/span><\/a>.<\/span><\/p>\n\n\n\n\n\n\n
City<\/b><\/td>\nMedian Home Sale Price<\/b><\/td>\n1.5% Real Estate Commission<\/b><\/td>\n3% Real Estate Commission<\/b><\/td>\n5% Real Estate Commission<\/b><\/td>\n<\/tr>\n
Nashville<\/span><\/a><\/td>\n$455,000<\/span><\/td>\n$6,825<\/span><\/td>\n$13,650<\/span><\/td>\n$22,750<\/span><\/td>\n<\/tr>\n
Memphis<\/span><\/a><\/td>\n$174,900<\/span><\/td>\n$2,623<\/span><\/td>\n$5,247<\/span><\/td>\n$8,745<\/span><\/td>\n<\/tr>\n
Knoxville<\/span><\/a><\/td>\n$327,750<\/span><\/td>\n$4,916<\/span><\/td>\n$9,832<\/span><\/td>\n$16,387<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At Redfin, we\u2019re dedicated to offering consumers with the best value possible. To support this, we offer sellers a <\/span>listing fee starting as low as 1%<\/span><\/a>.* For buyers, our fees differ by location, but remain competitive to help ensure your offer stands out and improves your chances of success in the homebuying process.<\/span><\/p>\n

\"House<\/p>\n

Can you negotiate real estate commissions in Tennessee?\u00a0<\/span><\/h2>\n

Absolutely! There are no national laws or regulations setting fixed commission rates, so agents may be open to negotiating lower fees based on the transaction type, required services, and client relationship.<\/span><\/p>\n

When negotiating commissions, consider the level of service the agent provides, their marketing strategies, and their local market expertise. Sellers may have the opportunity to negotiate lower rates if their property is in high demand or likely to sell quickly. Additionally, if a single agent represents both the buyer and seller, there might be room for further commission reductions since there is no second agent involved.<\/span><\/p>\n

Tips for a successful negotiation<\/span><\/h3>\n