How Much Does It Cost to Sell a Home in Tennessee?
Aug 12, 2025
Your Tennessee home just appraised for $400,000. Exciting, right? Here's what might surprise you: After all the fees, commissions, and unexpected costs, you could walk away with $28,000 less than you expected. Understanding these expenses upfront empowers you to keep more of that $28,000 in your pocket, which you can use for your next home, your family's future, or your dreams.
This guide breaks down the costs associated with selling your Tennessee home, from the obvious to the often overlooked. By understanding these expenses upfront, you can plan accurately and make informed decisions about your sale.
Ready to sell your house fast? Get a strong cash offer today.
Selling a home involves more than just paying your real estate agent. From closing costs to transfer taxes, the expenses add up quickly. Understanding each component helps you budget realistically and evaluate different selling strategies.
Jan Cooper, a real estate agent at Mark Spain Real Estate in Nashville, estimates sellers should set aside roughly seven percent of the sale price for closing costs. This estimate includes both agent commissions and closing costs, giving sellers a realistic starting point for their financial planning.
Tennessee seller’s agent commissions average around 5.42% of your home's sale price, while seller closing costs add another 2–5%. For a home selling at Tennessee's median price of $405,700, that translates to $30,000 or more spent on selling expenses.
Real estate commissions represent the largest single expense when selling your home and are negotiable. The total commission is split between your listing agent and the buyer's agent. No, sellers don’t have to offer buyer agent compensation, but doing so may limit your buyer pool. Many shoppers rely on agent representation, and they can't afford to pay out of pocket.
Professional agents handle pricing strategy, marketing, negotiations, and complex paperwork. Their expertise often results in higher sale prices that more than offset their fees. Homes sold with agent assistance averaged $435,000 in 2023, compared to just $380,000 for FSBO sales. That $55,000 difference far exceeds typical commission costs.
Beyond commissions, Tennessee sellers will need to pay several closing costs. This includes:
There may be other unexpected expenses, too. "Sometimes sellers took out loans or went through forbearance during COVID," Cooper says. "They find out and say, ‘Oh my god, I have to pay that back.’"
Tennessee does impose a transfer tax of $0.37 per $100 of value, though this is typically paid by the buyer rather than the seller.
Current market conditions significantly affect your selling costs. With 44% of home sales involving seller concessions, many Tennessee sellers find themselves offering credits to sweeten deals. This is especially true if your home has been on the market for a while. With the Tennessee median time on market ticking up five days in 2025 to 54 days, sellers should be prepared to sweeten the deal.
"When days on market increase, it's an indicator to a buyer that they might be able to get a discount," Cooper says. Sellers who misprice initially may face both extended carrying costs (mortgage payments, utilities, insurance, and maintenance) and pressure to offer concessions.
If you need to sell your home quickly, Mark Spain Real Estate’s Guaranteed Offer program shops your property to our vetted network of investors to find the best cash offer.
You know you'll need to pay commissions and closing costs, but several expenses routinely catch Tennessee sellers off guard. These hidden costs can significantly impact your net proceeds if you haven't budgeted for them.
Getting your home ready for the market requires upfront investment. Sellers spend about $5,400 on pre-sale improvements, covering everything from deep cleaning to painting and landscaping.
But that isn’t always necessary. "People call us because they don't want to do those updates," Cooper says. Mark Spain Real Estate offers a competitive Guaranteed Offer from investors looking for as-is homes. And if you’re interested in listing on the open market, Cooper suggests offering credits to buyers instead of investing significant money up front..
Every month your home sits on the market will cost you additional money. Cooper advises sellers to prepare for up to 90 days of carrying costs, and estimates that sellers will spend between $4,000 and $5,000 per month.
For an average-priced Tennessee home with a $320,000 mortgage at 7% interest, the monthly principal and interest alone run about $2,100. Add property taxes, insurance, and utilities to determine the carrying costs for your home. And don’t forget any HOA fees or other regular costs charged by your neighborhood or municipality.
Even after accepting an offer, sellers face a second round of negotiations following the home inspection. "They're not prepared for how much that repair credit could possibly be," Cooper says.
Common inspection issues include HVAC problems, roof repairs, and foundation concerns, of of which could cost thousands. While sellers can refuse these requests, doing so risks the deal falling through and returning to market, where you'll accumulate more carrying costs and potentially face the same issues with the next buyer.
While selling expenses are inevitable, strategic decisions can significantly reduce their impact on your net proceeds. Tennessee sellers who plan ahead keep more money in their pockets.
Sellers have multiple paths to market, each with different cost structures and net proceeds. Understanding these options helps you choose the approach that best fits your situation.
Mark Spain Real Estate's unique approach gives you something most agencies can't: multiple paths to sell, all through one trusted agent relationship. Our agents will present all of your options with complete transparency, so you can make the right financial decision for your family.
We offer three options:
Our flexibility lets you compare real numbers, not hypotheticals. You'll see exactly what each path means for your net proceeds, timeline, and stress level, so you can make the right choice.
Successfully selling your home requires careful financial planning, which is why 42% of home sellers in 2024 said selling expenses exceeded their expectations. By anticipating all costs, you avoid closing day surprises and make decisions based on accurate numbers.
Mark Spain Real Estate's transparent approach, complete with detailed net sheets and multiple selling options, removes the guesswork from selling. Whether you need top dollar through a traditional listing or prefer the speed of a cash offer, you'll know exactly what to expect.
Ready to see exactly what you'll walk away with when you sell your Tennessee home? Contact Mark Spain Real Estate for a free, no-obligation consultation. Whether you're looking for top dollar through traditional listing or need the speed and convenience of a cash offer, we'll show you all your options—and the real numbers behind each one.
Need to sell now? Get a strong cash offer on your home today.
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