Current Tennessee Real Estate Income, Sales, and Trends

Real estate agents not only get to exercise a wide variety of skills and build relationships with the local community but also have the capacity for serious earning potential.

Average Earning Capacity of Real Estate Agents in the U.S.

The U.S. Census Bureau provides national data on salaries within the real estate industry. Across the United States, agents earn an average of $31.66 per hour, or $65,850 annually.¹

The median national hourly wage is $24.03, or $49,980 per year. The bottom ten percent earn $14.01 hourly or $29,130 annually, while the top 90th percentile earns $54.48 per hour or $113,320 per year.

Average Earning Capacity of Real Estate Agents in Tennessee

Earning capacity for real estate agents in Tennessee varies so much across the state that it’s more productive to look at earnings based on different metro areas, rather than the state as a whole.

The most lucrative area for real estate agents is in Clarksville, located to the north of Nashville near the Kentucky line. Agents in this metro area earn an average of $28.07 per hour or $58,390 per year.²

In the Chattanooga area, in the southeastern part of TN, agents average $23.88 hourly or $49,660 annually. Down in the Memphis metro area in the southwestern part of the state, real estate agents earn $23.17 hourly or $48,190 per year.²

In the state capital of Nashville and the surrounding metro area, average wages for this position are just $19.02 hourly or $39,550 per year.²

What Is the Average Commission for Real Estate Agents?

Real estate agent pay is typically based on a commission, which represents a percentage of the price a property sells for. For a long time, 5 to 7 percent was considered the standard commission.³

NAR now estimates the average commission to range from 4.3 to 5.4 percent.³

Keep in mind that a 5 percent commission on a $100,000 property wouldn’t net one agent a $5,000 price. Instead, the commission is generally split between the buyer and his or her brokerage, as well as the seller and his or her brokerage, with each getting a fraction of that total commission.

Reactivating Your Real Estate License and Cross-State License Acceptance in Tennessee

Once you’ve obtained your real estate license in Tennessee, it’s your responsibility to take all necessary steps to maintain that license over the years if you want to continue to practice real estate.

How Do I Renew a Real Estate License in Tennessee?

The Tennessee Real Estate Commission requires everyone to renew their license every two years. To renew, agents must log into their account on the CORE website, pay a $75 renewal fee, and provide certification of 16 continuing education hours.⁴

Failing to renew on time will add a penalty fee of $50 per month for the first 120 days, and $100 per month after that time.

How To Reactivate a Real Estate License in TN

If you’ve let your TN real estate license lapse, it may be possible to reactivate it without going through the entire application process again. This is at the discretion of the Tennessee Real Estate Commission.

To find out what you’ll have to do in your specific case, log onto the CORE website and fill out the form to request reinstatement.^{7, 5}
A staff member will contact you directly with the next steps to reactivate your license.

Which States Have Reciprocity With TN for Real Estate Licenses?

Reciprocity means that if you have a real estate license in one state, you can practice real estate in a different state without getting a separate license.

Unfortunately, Tennessee doesn’t have reciprocity for real estate licensees in other states. If you are licensed in a different state and you become a resident of TN, you may be able to skip part or all of the real estate license exam.

To find out, you must complete the Tennessee Real Estate Commission’s Worksheet A and email it directly to the Commission at [email protected].⁶ You must attach a certified copy of your license history from each state where you are or ever were licensed.

How To Get a TN Real Estate License if You Are Licensed in Another State

If you want to practice real estate in TN but are licensed in another state and you’re not a resident of Tennessee, you must follow the process for non-resident licensing.⁷ This will typically require you to complete the state portion of the TN real estate exam while allowing you to skip the national portion.

To get permission for this, you’ll need to fill out the Tennessee Real Estate Commission’s Worksheet A.⁸ Attach it to a copy of your full license history, including certified copies of licenses held currently or previously in other states, and email it to the Commission at [email protected].

The Commission will contact you directly with further instructions.