How to Sell Your Home Without a Realtor in Tennessee (FSBO Guide)

Tennessee is one of the most seller-friendly states in the country for FSBO. There is no state income tax, relatively low closing costs, and no legal requirement to use a real estate agent. The state's disclosure laws are specific and manageable - know what you must disclose, document it, and you're protected.

On a $400,000 home (near the Nashville metro median), a 6% agent commission is $24,000. On a $500,000 home, it's $30,000. That's what you keep when you sell FSBO in Tennessee.

Tennessee Disclosure Requirements

Tennessee has the Tennessee Residential Property Condition Disclosure Act (T.C.A. 66-5-201 through 210), which requires sellers of residential property to complete and deliver a Residential Property Condition Disclosure form to buyers prior to or at the time of contract.

The Tennessee disclosure form requires you to disclose known material defects and issues including:

Structural components: foundation, walls, roof, floors, windows
Mechanical systems: heating, cooling, plumbing, electrical, water heater
Water intrusion, drainage issues, or flood damage
Pest infestation or damage (termites are common in Tennessee)
Environmental hazards: lead paint (federal requirement for pre-1978 homes), radon, asbestos, underground storage tanks
Septic system condition (relevant for rural properties)
HOA membership and status of fees
Zoning violations or encroachments
Any pending litigation or liens

Tennessee follows a "known defects" standard - you must disclose defects you are actually aware of, not defects you should have discovered through a professional inspection. However, concealing known defects exposes you to fraud claims.

Exceptions to disclosure requirement: New construction (buyer waives with written agreement), foreclosure/trustee sales, and certain estate sales. Most FSBO residential sales are covered.

Tennessee FSBO Purchase Contracts

Tennessee does not have a single standardized FSBO contract form. You have three options:

Tennessee REALTORS standard forms - the most widely recognized in the state but technically members-only forms. Many FSBO sellers use these via a licensed attorney
Tennessee Bar Association real estate contracts - available through attorneys, appropriate for standard transactions
Custom contract drafted by a Tennessee real estate attorney - most protective, recommended for anything non-standard

Tennessee is a non-attorney state for closings - a licensed attorney is not legally required to close real estate transactions, though many buyers and title companies use one. Title companies and escrow companies can conduct closings.

Key contract provisions to include:

Purchase price and earnest money amount (typically 1-2% held in escrow)
Inspection contingency (typically 10-14 days)
Financing contingency (typically 21-30 days for conventional loans)
Appraisal contingency
Closing date (typically 30-45 days)
Property condition at closing
Personal property included/excluded
Closing cost allocation

Earnest Money in Tennessee

Earnest money is typically held by a title company, escrow company, or real estate attorney acting as escrow agent. Use a neutral third party - not the buyer directly and not yourself as seller.

Standard earnest money in Tennessee is 1-2% of the purchase price. In competitive markets like Nashville, 2-3% is common. The earnest money becomes liquidated damages if the buyer defaults without a valid contingency reason.

Tennessee Transfer Tax

Tennessee charges a real estate transfer tax of $0.37 per $100 of the purchase price (or any portion thereof). On a $400,000 home, the transfer tax is $1,480. Customarily paid by the seller.

Some counties have additional local transfer taxes - check your specific county. Davidson County (Nashville) follows the state rate only.

Typical seller closing costs in Tennessee:

Real estate transfer tax: ~$1,480 on $400K ($0.37/$100)
Mortgage payoff (if applicable)
Prorated property taxes (Tennessee collects in arrears)
HOA payoff/transfer fee (if applicable)
Owner's title insurance policy (if seller pays): $700-$1,500
Recording fees: $50-$200
Attorney fee if you use one: $300-$600

Tennessee's Major Markets

Nashville Metro (Davidson, Williamson, Rutherford, Wilson, Sumner counties)

Nashville is one of the hottest real estate markets in the country. FSBO works in the suburbs - Brentwood, Franklin, Murfreesboro, Spring Hill, Hendersonville. The Nashville proper market (East Nashville, Germantown, 12South) moves so quickly that MLS access is important. Without MLS, you may miss buyers whose agents only show listed properties. A flat-fee MLS listing ($99-$299) is strongly recommended in the Nashville metro.

Williamson County (Brentwood/Franklin) has among the highest median home prices in Tennessee - $600K-$800K+ is common. Commission savings at these prices are enormous.

Memphis

A more affordable market with strong FSBO activity. Greater value sensitivity means buyers are more likely to engage directly. Less buyer agent domination than Nashville. Good market for FSBO without MLS.

Knoxville

University of Tennessee town with steady buyer activity. Mix of long-term residents and relocators. FSBO works well with solid photos and accurate pricing.

Chattanooga

Fast-growing market with significant out-of-state buyer interest. Buyers from Atlanta, Charlotte, and Nashville are common. MLS access helps reach buyer agents representing relocating buyers.

Tri-Cities (Johnson City, Kingsport, Bristol)

Smaller market, slower pace. Direct buyer connections via Facebook and Nextdoor work well. Lower price points mean each commission dollar saved is proportionally meaningful.

Pricing Your Tennessee Home

Tennessee property tax assessment is based on the appraised value (market value) determined by your county assessor. Assessment ratio is 25% of appraised value for residential, and tax is applied to that assessed value. Your county's Assessor of Property website shows your current appraised value - use it as a reference point but don't treat it as your listing price.

Accurate pricing:

Pull sold comps from the last 60-90 days, same neighborhood or zip code, similar size and condition
Use Redfin's "sold" filter or Zillow's sold homes map for raw data
Adjust for differences in square footage ($75-$150/sf depending on market), bedrooms/baths, lot size, age, and condition
In Nashville's fast market, recent data (last 30 days) is more reliable than 90-day averages
In slower markets, price at the upper end of comps and expect some negotiation

Getting on the Tennessee MLS

Tennessee has regional MLSs: RealTracs (Nashville/Middle Tennessee), Knoxville MLS, Memphis Area Association of REALTORS MLS, Greater Chattanooga MLS. A flat-fee MLS service can list you in the relevant regional MLS for $99-$299.

Also post on:

Zillow FSBO (free)
Craigslist Nashville/Memphis/Knoxville (free)
Facebook Marketplace and Tennessee FSBO Facebook groups
Nextdoor
Yard sign with phone number and listing URL

Checklist: Tennessee FSBO Process

Gather property documents: deed, survey, HOA documents, permits
Complete Tennessee Residential Property Condition Disclosure form
Complete federal lead paint disclosure if pre-1978
Professional photography
Price using 60-90 day sold comps
List on Zillow FSBO, Craigslist, Facebook Marketplace, Nextdoor
Flat-fee MLS listing (strongly recommended in Nashville metro)
Yard sign with contact info
Respond to inquiries promptly
Show the property
Review offers - use an attorney for contract review
Negotiate inspection period, financing contingency, and closing date
Cooperate with buyer's inspection (typically 10-14 days)
Respond to repair requests in writing
Buyer financing and appraisal
Title company or attorney coordinates closing
Sign closing documents, receive proceeds

This guide is for informational purposes only and does not constitute legal advice. Consult a licensed Tennessee real estate attorney for guidance specific to your transaction.