How are real estate agent paid in Tennessee? According to Indeed, the average Tennessee agent earns $98,912! How much you do or can make can depend on several factors, such as how long you’ve been in the career.

If you’re interested in being a Tennessee real estate agent, you likely love the idea of working at your own pace and creating a business from the ground up.

Regrettably, though, it has to take a back seat to existence, and as someone who is gathered enough to see past slogans, the question is, how much can you really make buying and selling real estate in Tennessee?

Here’s what you need to know about what real estate agents earn in Tennessee — and how you can maximise your earning potential.

Real Estate Commission in Tennessee

Real estate agents are paid on commission. Thus, affiliate brokers, or real estate agents, in Tennessee earn an average of 5.6% on the sale of a home. That is just above the national average of 5.49%.

And if the sellers use one agent, the commission does not necessarily flow to that one agent. There are typically two agents involved: the seller’s agent, who lists the property, and the buyer’s agent. How the two agents split up the commission varies from state to state. Clever said the split in Tennessee is 50/50 so far.

For example, if an agent sells a house at the median list price of a Tennessee home, which is now $415,000, the agent will receive one portion of 50% of $23,240, or $11,620. The remainder is paid to the buyer’s agent.

Remember, brokers will also be slicing off a percentage of each agent’s take. Brokers usually keep 50% of the agent’s commission as a fee for their service. That will leave the agent with $5,810 in commission on average.

Understanding Real Estate Salaries in Tennessee

The average base salary for a Tennessee real estate agent is $98,912, according to Indeed. At the current median price, a listing agent would need to sell over 17 homes a year to earn the average salary.

There are a few things that determine how much a real estate agent makes. One of them is experience. Nor are things perfect for agents who have not succumbed to temptation — or who want to, according to the accountants firm Baker Tilly, agents with one to two years on the job make an average of $76,613 a year, while those with more than 10 years of experience make $100,521 a year.

Another major element in how much money you can make as a Tennessee real estate agent is where you are. Currently, one of the most in-demand real estate markets in Tennessee is the greater Nashville area. But the average Nashville real estate agent makes $100,761, just a little less than the state average.

What could account for this discrepancy? Buyers are migrating outside of Nashville to more upscale suburbs, where homes are being sold at a higher price point. It’s essential to get your start in the right place and to know which market areas are more profitable if you want to potentially make top dollar down the line as a real estate agent.

It might be yet another excellent approach to earn more if you stay ahead of a fast-growing area with potentially lower competition now. But do compare average prices of homes in both communities.

How to Boost Your Earning Potential

No matter where you are as an agent and how long you’ve been doing the job, you can actively work on increasing your earning potential. This is one of the best benefits as a real estate agent!

But Garrett Beasley, a real estate agent with Brentwood Realty in Brentwood, Tenn., the fourth generation of his family to have a career in real estate, sees something different in his own business: a field where it still really can be about hard work and hustle. His advice to young, budding real estate agents is to build relationships in the community.

“Real estate agents should network by participating in local charities and clubs,” Beasley noted. “Start with the local Rotary Club chapter.

The more you work on connecting with people in your community, the more likely it is that people will come to you when they want to sell their home. It is a must if you hope to earn more than the average real estate agent’s income in Tennessee!