How to Sell a House By Owner in Tennessee
When the time comes to move, some enterprising homeowners are eager to take charge of their home sales and figure out how to sell a house by owner in Tennessee.
With millions of homes sold each year, only a modest portion of sellers — about 7% — choose to list “For Sale By Owner” or FSBO (pronounced fizz-bow). Of those, more than half (57%) already knew the buyer of the home, according to data from the National Association of Realtors (NAR).
In this guide to selling FSBO in Tennessee, we’ll cover what can be the most difficult aspects of selling by owner in the Volunteer State, including the steps that might be harder than you think. We’ll also provide a comprehensive overview of the full process of preparing, marketing, and closing on your home without the assistance of a real estate agent.
Note: Once you’ve seen what’s required, you can roll up your sleeves and get started with your FSBO sale. Or — in the event you’d prefer to work with a real estate agent — HomeLight would be happy to introduce you to highly-rated professionals in your Tennessee market who can help you command top dollar and provide a low-stress selling experience.
How does selling by owner (FSBO) work in Tennessee?
Disclaimer: This blog post is intended for educational purposes. HomeLight recommends that you research your area’s real estate regulations and consult a trusted advisor.
FSBO is a method of selling your home without the involvement of a listing agent. In a FSBO scenario, sellers assume the responsibilities that would normally fall to their agent, such as pricing the home, marketing it to potential buyers, arranging showings, and negotiating the deal.
Historically, in an agent-assisted sale, the seller would pay commissions for their listing agent and the buyer’s agent. The combined commission would amount to around 6% of the sale price, which was then typically split 50/50 between the agents. That 6% was deducted from the seller’s proceeds at closing.
However, a landmark NAR settlement changed the commission playing field. Beginning in August 2024, the new rules decoupled buyer and seller commissions. Buyers are now expected to negotiate and pay their own agent fees. Still, some sellers may feel the need to cover the buyer’s agent commission to help attract buyers and accelerate the home sale.
In contrast, by selling FSBO, a seller has the potential to eliminate the cost of the listing agent’s commission (so around 3%), though they still have the option to offer a buyer’s agent commission.
Next: Consult our guide on who pays closing costs when selling a house by owner for more details.
Finally, a FSBO sale does not mean that a seller won’t need any professional assistance. In Tennessee, sellers aren’t required to hire a real estate attorney, but FSBO sales typically warrant legal and professional oversight of some kind to avoid an abundance of legal risk.
Most people who sell by owner will need to hire an attorney to review and prepare key documents and make sure paperwork is filled out properly, such as the seller’s disclosures. We’ll address what disclosures are required when selling a house in Tennessee later in this post.
