What It Actually Costs to Sell a House in Tennessee

Most sellers find out what selling costs at the closing table, which is the worst possible time. The number that matters isn't your sale price. It's what lands in your account after everyone gets paid.

Here's the whole list.

Agent commission is the largest single cost in most Tennessee sales. Statewide, total commission has averaged around 6% — roughly 2.95% to the listing side and 3.10% to the buyer's side.

That structure changed with the 2024 NAR settlement. You're no longer required to offer buyer-agent compensation through the MLS, and what you pay your own agent has always been negotiable. Many sellers still offer something to the buyer's side, because it widens the pool of buyers who can afford your house. That's a decision, not a rule.

On a $350,000 sale, the difference between 6% and 4.5% is over $5,000.

Tennessee charges a realty transfer tax of $0.37 per $100 of the sale price, under T.C.A. § 67-4-409. On a $350,000 sale that's $1,295. On a $600,000 sale, $2,220.

Who pays it is negotiable. The statute places the obligation on the transferee shown on the recorded instrument, and local custom varies, so it comes down to what goes in your contract. Nothing in Tennessee law dictates who pays which closing cost.

Expect an owner's title insurance policy, which is commonly a seller cost in Tennessee, plus title examination and a closing or escrow fee that is often split with the buyer.

Together with transfer tax and miscellaneous items, the non-commission costs typically run about 1% to 3% of the sale price.

You pay property tax for the part of the year you owned the home. Tennessee's average effective property tax rate is around 0.56% of assessed value, among the lower rates in the country, and it's billed annually by the county trustee. At closing, the year's bill gets divided between you and the buyer based on the closing date.

This is usually a few hundred to a couple thousand dollars, and it catches people off guard because they've already been paying it through escrow all year.

Your mortgage payoff is not your last statement balance. It includes interest through the closing date and sometimes a recording or statement fee.

If you have a second mortgage or a HELOC — even one with a zero balance — it has to be paid off and released. An unreleased line is a common reason a closing stalls at the last minute.

• Repairs the buyer's inspection turns up
• A buyer concession toward their closing costs, which has averaged around 2% of the sale price in Tennessee
• Carrying costs while the house sits: mortgage, insurance, utilities, lawn care
• Cleanout, storage, or staging

Excluding commission, sellers average roughly 2% to 4% of the sale price in closing fees. Add commission and the total commonly lands in the 7% to 10% range.

On a $350,000 Tennessee sale at 8%, that's about $28,000 before your mortgage payoff.

Sale price − (mortgage payoff + commission + closing costs + prorated taxes + repairs and concessions) = what you actually walk away with.

Do this before you list, not after you're under contract. If the number doesn't work, you still have options — different pricing, different timing, or a different way of selling entirely.