General information, not legal or tax advice
Closing Costs for Sellers in Tennessee
When you sell, the price is not the same as the money you take home. Closing costs, your mortgage payoff and other items come out of the proceeds. This page is general information to help you plan. It is not legal or tax advice, and every sale is different. Your closing attorney or title company will prepare the official settlement statement.
Tennessee recordation taxes
Tennessee charges a recordation tax when a deed and a mortgage are recorded. According to the Tennessee Department of Revenue:
- The realty transfer tax is $0.37 per $100 of the purchase price, based on the greater of the consideration or the value of the property.
- The mortgage tax is $0.115 per $100 of indebtedness, with the first $2,000 of debt exempt.
Under the state recordation tax statute, the transfer tax is paid by the grantee, which is the buyer. In practice, who pays which costs is set by your purchase contract, so read it carefully and ask questions.
Costs sellers commonly see
- Payoff of your mortgage and any home equity loan or lien
- Real estate commission, which is negotiable and is agreed in your listing agreement
- Any concessions you agree to pay toward the buyer's costs
- Closing agent or attorney fees for your side
- Property tax proration, so you pay for the part of the year you owned the home
- HOA dues proration and any transfer fees, if applicable
- Repairs you agreed to after the inspection
- Release fees to record the payoff of your loan
Estimating your net proceeds
Your rough net is the sale price minus your loan payoff, minus closing costs, minus anything you agreed to pay for the buyer. I can prepare a seller net sheet for your home once we know a likely price range. It will be an estimate; the final numbers come from the closing agent.
Taxes on the gain
Federal tax rules may let many homeowners exclude some or all of the gain on a primary home. That is a question for a tax professional, and I recommend asking one early.
Ways to keep more of your sale
- Prepare the home well so you do not need big concessions later
- Price it right from the start
- Consider a prelisting inspection
- Compare every offer for its full terms, not just price
Get your numbers
Request your free home value report below. Once we know a likely price range, I can prepare an estimated net sheet. See also how to sell a house in Manchester.
Common questions
What is the Tennessee transfer tax rate?
The realty transfer tax is $0.37 per $100 of the purchase price, based on the greater of the consideration or the value, according to the Tennessee Department of Revenue.
Who pays the transfer tax in Tennessee?
The state statute places the tax on the grantee, the buyer. Who pays which costs in your sale is set by your purchase contract.
Are real estate commissions set by law?
No. Commissions are negotiable and are agreed in your listing agreement.
Matt Sargent is a Tennessee licensed affiliate broker with Keller Williams who helps buyers and sellers in Manchester and Coffee County. Call (615) 497 1658 or send a message.