Understanding Real Estate Commissions in Tennessee

August 13, 2025 - 08:57

In Tennessee, navigating the real estate market involves understanding how commissions work for both listing and buyer's agents. Typically, the real estate commission is a percentage of the property's final sale price, which is usually negotiated between the seller and their agent. This percentage often ranges from 5% to 6%, although it can vary based on the specific agreement and the services provided.

When selling a home, the seller is responsible for paying the commission, which is then split between the listing agent and the buyer's agent. This means that both agents are incentivized to work diligently to close the sale. Buyers, on the other hand, generally do not pay a commission directly, as their agent's fee is covered by the seller's proceeds.

It's essential for both buyers and sellers to discuss commission rates upfront with their agents to ensure clarity and avoid any surprises during the transaction process. Understanding these dynamics can lead to a smoother experience in the Tennessee real estate market.