The Tennessee Home-Selling Process: Your Step-by-Step Checklist

The Tennessee REALTORS (TAR) Purchase and Sale Agreement is the standard residential contract form used across Tennessee. It covers the purchase price, financing contingency terms, inspection period, earnest money amount and holder, closing date, and possession terms. Your agent will walk you through each section. Pay close attention to the offered price, contingencies the buyer is requesting, and the proposed closing timeline. This form is what most buyers, lenders, and title companies expect to see in a Tennessee residential transaction.

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The TREC Confirmation of Agency Status form must be attached to or incorporated into the Purchase and Sale Agreement at the time an offer is written or presented. It formally documents which agent represents which party in the transaction. If the buyer's agent and your agent both work at the same brokerage, this form is critical for documenting whether dual agency or designated agency applies. Dual agency requires written consent from both buyer and seller.

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You have three choices when you receive an offer: accept it as written, make a counteroffer changing one or more terms, or reject it outright. A counteroffer voids the original offer, so the buyer is free to walk away. All changes must be in writing and signed to be enforceable. Your agent will guide you on which terms are worth negotiating based on current market conditions. Once both parties have signed the same version of the agreement, you are officially under contract.

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After the August 2024 NAR settlement, MLS systems in Tennessee — including RealTracs and the Memphis Area Association of REALTORS MLS — no longer allow sellers to advertise offers of buyer-agent compensation in MLS listing fields. However, you can still choose to offer compensation to the buyer's agent. If you want to offer it, that offer must be communicated outside the MLS, such as through direct negotiation or as a seller concession written into the contract. Discuss with your agent whether offering compensation makes sense for your situation and price range.

Cost: varies

Earnest money is a good-faith deposit the buyer puts up to show they are serious about the purchase. The TAR Purchase and Sale Agreement specifies the amount and the deadline for deposit. Under Tennessee law, earnest money held by a real estate broker must be deposited into the principal broker's trust account within the time frame set in the contract, or within three banking days of receipt if no timeline is specified. Your agent or the escrow holder will confirm when the funds arrive. If the buyer fails to deposit on time, that may give you the right to cancel the contract.

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After going under contract, a title company or real estate attorney will be engaged to handle escrow and confirm that your property's title is clean — meaning no liens, judgments, or ownership disputes that would block the sale. In Tennessee, real estate closings are typically handled by title companies or closing attorneys. The title company will issue a title commitment, which is a promise to issue title insurance once certain conditions are met. Review the title commitment carefully with your agent.

Cost: $0 (cost wrapped into closing)

If you have not already delivered your completed Tennessee Residential Property Disclosure form to the buyer, it must be provided before the buyer makes their written offer or shortly after contract execution if there are any facts that came to light after listing. If your property has underground storage tanks — active, abandoned, or previously removed — Tennessee law requires you to disclose that on the disclosure form. Known karst or sinkhole issues on or near the property must also be disclosed as material defects.

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Now that you are under contract, you have a clearer picture of your closing date. Start planning your move early — popular moving companies can book out several weeks. Arrange for utilities to remain in your name through closing day unless your agreement states otherwise. Begin sorting belongings and addressing any items you agreed to include with the property versus items you will take with you.

Cost: $800-$3,000 typical for local moves

The TAR Purchase and Sale Agreement gives the buyer a due diligence period — typically 10 days from contract execution — to conduct inspections. You must provide reasonable access to the property during this time. Make sure the utilities are on, pilot lights are lit, and areas like the attic, crawl space, and electrical panel are accessible. You do not need to be present during the inspection, but your agent may advise attending the inspector's walkthrough summary.

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After the inspection, the buyer may submit a list of repairs or a request for a price reduction or credit. Review the report with your agent and respond within the timeframe set in the contract. You are not legally required to make every requested repair, but refusing all requests can cause the buyer to walk away. Common options include agreeing to fix specific items, offering a closing cost credit instead of repairs, or negotiating a reduced sale price.

Cost: varies

If you agreed to make specific repairs during negotiation, complete them before the final walkthrough, which typically happens a day or two before closing. Use licensed contractors when required by local code. Keep receipts and any warranty documents from completed work, as the buyer may ask to see proof that repairs were done. If repairs are not completed by closing, the buyer may have grounds to delay or cancel the transaction.

Cost: varies

Beyond a general home inspection, the buyer may request specialized inspections for items like the roof, HVAC system, chimney, septic system, or crawl space. Tennessee's geology in Middle and East Tennessee includes significant karst terrain, so buyers in those areas sometimes request geotechnical evaluations if they have concerns about sinkholes or subsidence. Allow reasonable access for any inspections the contract permits during the due diligence period.

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The buyer's lender will hire a licensed appraiser to determine the market value of your home. The appraiser will schedule a visit to walk through the property and take measurements and photos. Make sure the home is clean, accessible, and in the same general condition it was when the offer was made. You are not required to be present. The appraiser's report is sent to the lender, not to you directly, so ask your agent to stay in contact with the buyer's agent for updates.

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If the appraisal value is lower than what the buyer agreed to pay, the buyer's lender will not loan more than the appraised value. This creates a gap that must be resolved. Your options include reducing your sale price to match the appraised value, asking the buyer to pay the difference in cash, meeting somewhere in the middle, or letting the buyer walk away if the contract allows it. Your agent will advise on what is reasonable given current market conditions.

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If the buyer has a financing contingency, the transaction can fall apart if they cannot secure a loan. Ask your agent to check in with the buyer's agent regularly to confirm the loan is moving forward. The TAR Purchase and Sale Agreement sets a financing contingency deadline. If that deadline passes and the buyer has not secured financing, you may have rights under the contract. Keep communication open and documented.

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Before closing, you will receive a settlement statement or closing disclosure showing all the financial details of the transaction: your sale price, your agent's commission, the realty transfer tax, prorated property taxes and utilities, any credits or repairs agreed upon, and your estimated net proceeds. Review this carefully with your agent. Tennessee's realty transfer tax is $0.37 per $100 of the sale price and is typically a seller cost, so on a $400,000 sale that is approximately $1,480.

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The title company may identify issues during their title search such as unpaid liens, judgments, or errors in prior deed recordings. As the seller, it is generally your responsibility to clear these before closing. Common issues include contractor liens, tax liens, or HOA liens. Your attorney or the title company can guide you through the process of satisfying or clearing each item. Title issues that are not resolved can delay or kill the closing.

Cost: varies

Buyers typically conduct a final walkthrough of the property 24-48 hours before closing to confirm it is in the agreed-upon condition, agreed-upon repairs have been completed, and personal property included in the sale is still present. Your home should be clean and broom-swept. Remove all personal belongings that are not included in the sale. Leave items that were agreed upon in the contract, such as appliances, window treatments, or fixtures.

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If you are a foreign person — defined as a nonresident alien individual, foreign corporation, or similar entity — federal law requires the buyer to withhold a percentage of the sale price at closing under the Foreign Investment in Real Property Tax Act (FIRPTA). The standard withholding rate is 15% of the gross sale price, or 10% if the sale price is below $1 million and the buyer will use the property as a primary residence. Tennessee has no state income tax and no state-level nonresident withholding, so FIRPTA is the only withholding issue for international sellers in Tennessee. If you are a U.S. citizen or resident, FIRPTA does not apply to you.

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Collect every key, garage door opener, gate code, mailbox key, HOA access card, and appliance manual for the property. You will hand these over at closing or leave them in the home as directed by your agreement. Make a list and confirm with your agent that nothing is missing. Smart home device access and security system codes should also be reset or transferred to the buyer.

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At closing, you will sign the deed transferring ownership to the buyer, along with other documents the title company or closing attorney prepares. In Tennessee, closings are typically conducted by a title company or real estate closing attorney. Bring a government-issued photo ID. Review each document before signing. Your agent can attend to support you, but the closing attorney or title officer will walk you through the paperwork.

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Tennessee's realty transfer tax is $0.37 per $100 of the sale price under state law. This tax is paid at the county register of deeds when your deed is recorded after closing. By market convention in Tennessee, the transfer tax is a seller cost, though this can be negotiated. Your closing statement will reflect the exact amount. On a $300,000 sale the tax is $1,110; on a $500,000 sale it is $1,850. The title company or closing attorney handles the payment on your behalf.

Cost: $0.37 per $100 of sale price

After all fees, commissions, taxes, and payoff amounts are deducted, you will receive your net proceeds. Funds are typically wired to your bank account on closing day or the next business day. Confirm your wire instructions with the title company well in advance and be cautious of any last-minute wire instruction changes — wire fraud targeting home sellers is a known scam. Your mortgage lender will also confirm the payoff was received.

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Once closing is complete and funds have been disbursed, you hand over all keys, garage openers, access cards, and any other items included in the sale. Your purchase and sale agreement defines the exact possession date and time — in some cases possession happens at closing, while other agreements allow the seller a few days after closing to move out. Do not remain in the property past the agreed possession date to avoid breach of contract issues.

Cost: $0