Considering FSBO in Tennessee? What You Need to Know First
Jul 16, 2025
Selling your home without an agent might seem like a smart way to save thousands in commission fees. More control over the process, plus more money in your pocket. What's not to love?
While this path offers independence, understanding both the opportunities and challenges helps you make the right decision for you. According to the National Association of Realtors, only 6% of homes were sold by owner in 2023. The reality: Well-intentioned sellers might begin the FSBO journey excited, only to discover they’d prefer experienced support.
Jan Cooper, the Director of Sales at Mark Spain Real Estate in Tennessee, frequently sees FSBO sellers struggling. Seemingly simple decisions, like replacing outdated flooring, can create unexpected complications without an agent’s input.
The expectation: New flooring equals a higher purchase price. And the reality: Ripping up old flooring might reveal foundation problems or water damage. “Now they have to disclose these problems,” Cooper says. An agent might have advised the owner to skip the reno.
So, what does selling a home by owner really involve in Tennessee? This guide outlines potential pitfalls, from struggling with complex paperwork to competing in a professional, agent-driven market.
Ready to sell your house fast? Get a strong cash offer today.
When you're considering selling your home by owner, it's natural to focus on the commission savings. But the true cost calculation is more nuanced than simply avoiding Tennessee's typical 5.42% agent commission.
Here are some factors that might hurt your bottom line.
Yes, you’ll skip paying the listing agent's commission. But consider that 88% of buyers work with agents. While it’s not required, offering a buyer's agent commission, which averages 2.67% in Tennessee, helps get more showings.
For a $400,000 home, that commission is roughly $10,800. Without this incentive, many buyers may skip your listing entirely.
You’re saving money on commissions, but are you earning more money overall? Nationally, FSBO homes sold for a median of $380,000 in 2024, while agent-assisted sales averaged $435,000—a difference of $55,000. Even after accounting for commission savings, many FSBO sellers end up with less money than if they had used professional representation.
Pricing challenges begin early. Most FSBO sellers “are going to use whatever Zillow tells them their home is worth,” Cooper says. “Or maybe they're going to try and sell their home for what their neighbor sold their house for 10 years ago.” Incorrect pricing might make your home unattractive or leave money on the table. And a big gap between the appraised value and the sale price, which happens more often than you might think, can cause negotiating problems, too. Experienced agents can counsel the seller on their options, like challenging the home appraisal or negotiating a middle ground.
That’s not the only way negotiations could increase your loss. Sellers might “end up losing 16% because of negotiations,” Cooper says. “They don't know what they can negotiate or what they can't."
Some FSBO sellers do achieve their financial goals, particularly those selling to family or friends or with prior real estate experience. But for most, having a dedicated negotiator improves outcomes considerably.
Tennessee homes typically spend 55 days on the market as of May 2025, about one week longer than a year prior, according to Redfin. But FSBO properties are 9% more likely to sit unsold for over three months. Every extra month means additional mortgage payments, utilities, property taxes, and insurance eating into any commission savings.
Every dollar matters when selling your home. If you sell a Tennessee home by owner for $380,000, you'll save approximately 2.7% in listing agent commission, or $10,260. But your home might have sold for $435,000 with professional representation.
Even after paying the larger commission fee of approximately $23,800, you’ve still lost $20,940 by selling FSBO.
FSBO sellers may start with enthusiasm before learning that attracting qualified buyers requires more work than expected.
Most FSBO sellers rely on free or low-cost marketing: posting on social media platforms like Facebook Marketplace, creating Craigslist ads, and placing a "For Sale" sign in the yard. You’re “hoping that somebody drives by and wants to buy your house,” Cooper says.
To broaden your reach, make sure you’re listed on the multiple listing service (MLS). This is the central hub that feeds major real estate websites like Zillow, Realtor.com, and Redfin. With 51% of buyers finding their homes online and 29% through their agent’s MLS access, a presence here is essential. Otherwise, FSBO sellers must rely on limited exposure through yard signs (which attract only 4% of buyers) and word-of-mouth.
Budget flat-fee MLS services in Tennessee start at about $95, but costs can be dramatically higher depending on what services you need. For example, some plans limit the number of photos or how long your property can be listed. Professional photography in Tennessee starts at about $100 for small homes. Like MLS services, add-ons, like 3D walkthroughs, drone photography, or virtual staging, will increase that price.
If you’re selling your home without an agent, overwhelm is understandable. One simpler option is Mark Spain Real Estate’s Guaranteed Offer Program, which provides no-hassle, no-stress cash offers from our trusted network of investors. Don’t like the offer? You’re still free to list traditionally.
Tennessee law requires seller disclosures and specific procedures that protect both buyers and sellers. Professional guidance protects you from legal pitfalls.
According to Cooper, for-sale-by-owner transactions result in lawsuits far more frequently than those assisted by an agent. "That's usually due to problems during the inspection period or not understanding the timelines that are involved in the contract," she says.
Tennessee sellers must provide a written property condition disclosure detailing any known material defects and a lead-based paint disclosure for homes built before 1978.
These requirements aren't just paperwork. They're legal obligations with serious consequences if handled incorrectly.
While Tennessee doesn't require attorneys for real estate closings, some sellers still may want to hire one to handle the convoluted process. But at $150-$500 per hour, this unexpected cost of hiring a real estate attorney can add up. Without one, sellers need to handle:
Title companies handle the mechanics of closing, but they won't advocate for your interests or catch potential issues the way an experienced agent would.
Selling your own home means negotiating one of your largest financial transactions while emotionally invested in the outcome. When a buyer offers $20,000 below asking and criticizes your newly renovated kitchen, it feels personal. That emotional response can derail negotiations that a neutral third party might navigate smoothly.
Buyer's agents are skilled negotiators working for their clients' best interests. Having your own representation levels the playing field
Agents understand market conditions and comparable sales and know smart negotiating strategies. Without similar expertise and emotional distance, FSBO sellers might make concessions they later regret or gum up a sale.
Cooper says that 14% of Tennessee homes are at risk of severe flooding in the next 30 years, and nearly all homes statewide are at risk of wind damage. Weather can damage things like roofs or siding, thus buyers might have different standards for what makes a roof ‘old.’
“These will typically be things that are negotiated when you go under contract with a buyer,” she says. But if you weren’t familiar with the market, that request to repair a 10-year-old roof might feel silly.
Property values vary dramatically based on factors invisible to most homeowners. Great agents invest their time getting to know you, understanding what makes your home special, and researching hyperlocal market conditions. Combined with deep real estate expertise in your local market, including comparable homes, school district ratings, and commute times, your agent can tailor a plan specifically for you and your house.
Without comprehensive market data, FSBO sellers struggle to:
FSBO sellers who ended up selling below their original list price had to cut their price by an additional $11,000 on average compared to sellers using agents.
Cooper says today’s buyers are "more selective due to the interest rate. They are expecting the value to match the price. One of the things that we're seeing now is that buyers expect a turnkey, move-in-ready home."
While that’s great if you already have a perfect, move-in-ready home, most properties benefit from an agent's trained eye to identify cost-effective improvements. Experts can recommend the right changes to provide actual return on investment and help you avoid unnecessary repairs.
At Mark Spain Real Estate, we want to understand your unique situation, your goals, and what matters most to you. This relationship-first approach allows us to advocate effectively on your behalf, whether that means fighting for top dollar on the traditional market or finding creative solutions that prioritize your timeline and convenience.
Our deep market knowledge helps sellers make informed decisions. "We understand which repairs will add value to the property and which ones won't,” Cooper says. “We can help you navigate through that."
We start by listening to your goals and understanding your timeline. Then, your agent will provide:
In today's fast-paced market, response time matters more than ever. Cooper has found a dramatic increase in sales if you can respond to a lead within one minute. "If you're a FSBO seller, and you can't answer that buyer request in 60 seconds or less, they're moving on to the next house,” she says.
Mark Spain Real Estate handles all inquiries professionally and promptly, coordinates showings around your schedule, and provides regular updates on market feedback. You stay informed and in control while we manage the time-consuming details.
Every seller's situation is unique. We offer flexibility because we know one size doesn't fit all. You can decide what works best for you.
The appeal of saving on commission by selling your home yourself is understandable. You work hard for your money, and keeping more of it sounds attractive. However, an experienced agent on your side often means the difference between a stressful, prolonged sale and a smooth transaction that nets you more money.
"What's most important to you? Is it the commission you pay or is it what's in your bank account the day of closing?" Cooper asks. When professional representation consistently helps sellers net more money, even after commissions, while reducing stress and risk, the choice is clear.
Ready to explore your options? Contact Mark Spain Real Estate for a free, no-obligation market analysis. Discover what your home is really worth in today's market and understand how professional representation can help you achieve the best possible outcome—maximum proceeds with minimal stress. You deserve to know all your options before making one of your life's biggest financial decisions.
Need to sell now? Get a strong cash offer on your home today.
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