If you’re considering selling your home in Tennessee, there are a few things you may want to consider, especially regarding realtor fees and commission rates. You need to know the realtor commission’s rate before you begin selling your home since it is the highest cost you’ll have to face when you sell your house.
After an in-depth study of local real estate agents in Tennessee, we discovered the average value of real estate commissions. The commission rate of Tennessee real estate agents is 5.44%, as opposed to the 5.37% national average.
For example, if you want to sell a Tennessee house worth the median Tennessee home value of $309,460, you would see realtor fees of $16,835.
Murfreesboro real estate agents are your best option if you want to find a top agent that will be upfront with their commission rate. These agents will work hard to understand your needs, price your home correctly, and sell the home quickly.
Who Gets Paid the Real Estate Agent Commission?
In calculating the total real estate commission fee paid, two real estate agents are considered, the listing agent and the buyer’s agent. These are the two agents participating in the home sale:
- The homeowner’s agent (seller’s agent). This is also referred to as the listing agent.
- The buyer’s agent, is a representative of the individual who wants to buy the home.
Research has shown that each of the real estate agents in Tennessee has a commission rate of 2.72% of the final price of the home being sold. Together, the commission rate is a total of 5.44%.
Who is Required to Pay the Realtor Fees in Tennessee?
Tennessee laws require home sellers to pay the realtor fees. The money comes from the cost of the house’s final sale, and the seller pays the fees for both real estate agents participating in the sale. The seller paying the commission for both parties incentivizes the buyer’s agent to show their clients your home.
Some agents are willing to negotiate their commission fee. It’s important to always be respectful when discussing payment. This agent is marketing and selling your home; therefore, you want them to be on your side and working hard to sell your home.
What are the Realtor Fees in Tennessee?
The commission rate for real estate agents is not a rigid rate for all agents. Even though the average rate in Tennessee is 5.44%, it is interesting to note that the rate could be anywhere from 4.71% to 6.17%. This points to a chance to save money on realtor costs by negotiating correctly with the listing agent. You can also try to work with a real estate firm that offers discounts on commissions to clients.
| Listing agent commission | 2.35%– 3.08% |
| Buyer’s agent commission | 2.36%– 3.09% |
| Total commission | 4.71%– 6.17% |
Things to Note When Negotiating Realtor Commission in Tennessee
It doesn’t matter the kind of house you are trying to sell. Whether it’s a luxury condo or a restored home with a wealth of history, or even an investment rental – no matter the kind of house or its location, you can potentially save on realtor commission costs through negotiation.
In order to negotiate a lower realtor rate in Tennessee, you must take into consideration your circumstances and the nature of the housing market at any given time.
| Factor | Things that affect the factors |
| Your situation |
|
| The nature of Tennessee’s housing market |
|
Your situation will vary from other home sellers at different times. The Tennessee housing market will fluctuate with economic conditions. Agents may be more open to negotiation as the market changes.
Generally speaking, listing agents have an easier job in a market where the home situation favors the sellers more than the buyers. They are a lot more likely to accept lower commissions from the sellers. A buyer’s market will make it harder to negotiate lower commission rates.
When evaluating the state of the Tennessee real estate market, there are some factors to take into consideration:
- Months of inventory
- Sale to list price
- Home value trends
If your evaluation of these factors indicates that Tennessee is a seller’s market, you’d be better positioned to get a lower realtor commission rate from the real estate agent. However, a mixed market condition or one that leans towards buyers would make it harder for you to get lower rates from your realtor. Utilizing a comprehensive real estate agent CRM tool can empower you with advanced analytics, aiding in the strategic pursuit of more advantageous commission terms from your realtor.
Getting a lower rate in your negotiations with an expert real estate agent can be very difficult. Homeowners can ease the process for themselves by selling their homes through a real estate company.
Some real estate companies offer discounts and lower rates with full service for their clients. Different companies have their models with which they come up with their discounts. At the end of the day, you only need to find a company whose trade-offs align with your long-term goals.
The Bottom Line
After completing a home sale, the commission could greatly affect how much profit you make on the home. This is why you need to employ the services of Murfreesboro real estate agents to help you get the best possible price for your home.
At the moment, the housing market in Tennessee is enjoying a very hot economy with a lot of migration into the city. The state has experienced a large influx of people in recent years alongside higher job growth than other parts of the country. The prices of homes have gone up considerably in the past decade, and market trends point to an upward direction for home values. This makes it an excellent market to be a part of.
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