How to Sell a House By Owner in Tennessee

Why sell a house by owner in Tennessee?

Saving money is the most common reason sellers choose to sell by owner. According to NAR research last year, 50% of sellers who did not know the buyer said they chose FBSO because they did not want to pay a commission. Among those who knew the buyer, 12% said they sold via FSBO to dodge agent fees. Other reasons for going the FSBO route include selling to a relative, friend, or neighbor and because the buyers contacted the seller directly to request the purchase.

To get a firsthand perspective on selling homes in Tennessee, we spoke with top real estate agent Rebecca Carter in Knoxville, who has 10 years of experience in the property market.

Carter says Tennessee FSBO sellers she encounters “think that because the market has been so [active], they can sell the house by themselves, and they don’t need an agent.” Ultimately, they are looking to save on the commission they’d have to pay a listing agent.

However, sales data from NAR shows that FSBO homes sold last year at a median price of $310,000, significantly lower than the median selling price of agent-assisted homes, which was $405,000. If saving money is the goal, typical FSBO sellers gave up $95,000 in proceeds last year to save $9,000-$12,000 in agent fees.

As you can see, FSBO is a mixed bag. So, before we share our selling tips, let’s lay out some pros and cons to help you decide if this is the route for you.

In spite of the cons, we’ll help you navigate the challenges of FSBO if you’re committed to selling your Tennessee house without agent assistance. For some, selling a home FSBO is a challenge worth accepting, and success can be measured in more ways than one.

Steps to sell a house by owner

Next, let’s review the FSBO process step by step.

1. Prepare your house for sale

Whether you’re selling with an agent or FSBO, at a minimum, you’ll want to get your Tennessee home into respectable shape before any showings to increase your chances of receiving a fair price. Here are a few standard tasks to add to the list.

Indoors

These efforts will go a long way toward impressing buyers looking for a home in Tennessee:

• Declutter floors, shelves, and surfaces throughout the home.
• Make small fixes and repairs, like a leaky faucet or broken door handle.
• Lightly update with new light fixtures, faucets, or cabinet hardware.
• Refinish hardwood floors.
• Repaint bold walls (or those that look dingy) in a neutral color.
• Reduce furniture in crowded rooms — consider a temporary storage unit.
• Stage the home with final touches like fresh-cut flowers or a basket of fresh produce.
• Use rugs to define spaces and place them strategically.
• Deep clean until the house is sparkling.
• Open blinds or drapes to show off a great view and add natural lighting. Replace any dim, blown, or missing bulbs with bright bulbs.

Carter suggests removing any evidence of previous problems that you’ve taken care of so you don’t scare off buyers. “If there have been water leaks and you have brown spots on the ceiling, that’s something you really need to paint” after you’ve fixed the leak.

Outdoors

Data from HomeLight’s 2023 Top Agents Insight Report shows that 31% of agents cited large or improved outdoor spaces or garden areas as the biggest selling points of a house in their market.

Curb appeal is important because many potential buyers drive by the house before deciding if they want to investigate it further, Carter says. “If they don’t like what they see, they aren’t going to pursue it. Some people allow their shrubs to grow up over the windows so you can’t see the house. All that needs to be pruned back so they can actually see what they might buy.”

“Another overlooked item is the mailbox,” Carter notes. “If it’s old and tired looking, it’s an easy fix just to spray paint it.”

2. Do the homework necessary to set a competitive price

You’ve arrived at a critical moment in your FSBO process: setting a listing price. You don’t want to leave money on the table, yet you want to encourage activity on your listing.

Before listing a home, an agent usually conducts a comparative market analysis (CMA). This is a highly detailed study of “comps” — similar homes nearby that have sold recently, are pending, on the market, or were previously listed but taken off the market. Some may have even been pulled off the market without a sale.

In Carter’s opinion, price-setting is one of the biggest problems FSBO owners face. “If you price the home too high because you don’t have an agent do a market analysis, it usually takes longer to sell,” she says. “In our market, if you price it correctly, you’re probably going to get multiple people to come in and see it and multiple offers, which will drive the price higher ”

Without an agent, you’ll miss out on the complexity of a full CMA and the know-how to interpret it.

However, with a little time and money, you can set a competitive price yourself.

Conduct your own “CMA Lite”

It’s time to roll up your sleeves and research.

Start with an online home value estimate

As a starting point, look at several online estimators for your home’s value. HomeLight’s Home Value Estimator aggregates publicly available data such as tax records and assessments, your home’s last sale price, and recent sales records for other properties in the same neighborhood.

We also add a new layer of information to our estimates using a short questionnaire. Tell us a few details about your Tennessee home, such as:

• How much work does it need?
• What type of home is it (single-family, condo, townhouse, or other)?
• Roughly when was your house built?
• Are you planning to sell soon?

Using these insights, we’ll provide you with a preliminary estimate of home value in under two minutes.

Whether you use Zillow, Chase, Realtor, or Redfin to get a home value estimate, think of any online home price tool as a first step (not your only source of truth) — and recognize that the data used may be limited.

Narrowly filter your search for comps

When you’re ready to find comps, you can choose from sites like Zillow, Trulia, Redfin, or Realtor.

You’ll want to filter your searches to the area very near your house (within blocks if possible) and with similar characteristics. If you’re not finding any comps, expand your search map.

You’ll also want to filter results by details like:

• Listing status (look at recently sold, pending, and active)
• Number of bedrooms
• Number of bathrooms
• Square footage
• Home type (single-family, condo, etc.)

Beyond the above criteria, the more houses you find with floor plans and an age similar to yours, the better.

Use a site like Zillow to collect your data

As an example, let’s take a look at how to filter your search for comps on Zillow.

• Navigate to Zillow.
• Type in your Tennessee address. If a pop-up with your home’s specs appears, close it.
• Filter by “sold.”

• Now, filter by the number of bedrooms and bathrooms and check the box “Use exact match.”

• Next, filter by home type.

• Next, select the “More” box. Here, you can specify square footage, lot size, year built, and — crucially — the “sold in last” (time period) category.

• Scroll down and select to view houses that sold in the past 30 days.
• If you find there are not many results in your area, try expanding to 90 days. However, the further back you go, the less relevant the comps.
• If necessary, click the plus or minus buttons to widen the search area.
• Once you’ve collected data for sold houses, revise or restart the search to view active and pending listings as well.

You can also change the map view option so you can see satellite images of the neighborhoods and homes.

Invest in an appraisal

If you want to further reduce guesswork, top agents recommend paying an appraiser to provide a professional opinion of value for your home. An appraiser will combine recent property data, research of the surrounding market, and information collected from a walkthrough of your home to determine an appraised value. For a single-family home, an appraisal will likely cost $500 to $599, according to NAR’s 2023 Appraisal Survey  — well worth it to avoid possibly over- or underpricing your house by thousands.

Overpricing your home can cost you both time and money, says Carter, who recommends that FSBO sellers get an appraisal. “If you price it too high, you’re not going to get traffic, and it’s going to sit there until you reduce the price. If you let it sit there too long, let’s say three weeks, four weeks, then people are going to think there’s something wrong with it or that they can come in with a lower offer because it’s been on the market so long.”

Make sense of the research

Compare your home’s features against the nearby comps you collected. Hopefully, the houses you studied give an indication of an appropriate price range for your home. From there, you can make dollar adjustments based on characteristics that add value (patios, curb appeal, an extra bedroom) versus detracting from it (a busy street, deferred maintenance, less square footage).

Consider the differences and similarities of comps with the appraised value of your home to choose a price that will encourage activity (too high, and it may seem out of reach to many buyers) but will also maximize your profit.

Carter says that in Tennessee, buyers prefer homes with recent updates. For instance, buyers don’t want to deal with repairs, such as having to replace “a deck that is not safe to walk on” or “windows that are the original, single-pane glass.” Buyers prefer modern double-pane windows that protect against the hot summers and cold winters the Volunteer State experiences.

3. Photograph your home

Listing photos are powerful, either pulling in buyers for showings or keeping them away.

To give your listing an edge, consider hiring an experienced real estate photographer. While they may charge as much as $110 to $300 per session, this could be one of the most important things you do to sell your home.

But if you do go the DIY route, make sure to:

• Use a good camera with a wide-angle lens.
• Pay attention to lighting.
• Include a photo of every room.
• Take multiple pictures of living areas, kitchens, and bathrooms.
• Try shooting different angles.

Review our guide on how to take quality real estate photos for further guidance.

4. Create a detailed, compelling listing

Along with stellar photos, you’ll want to craft an informative and compelling listing. Leverage both the listing description (a paragraph or two highlighting key features) and the property details to show potential buyers all about your home and what makes it desirable.

Tell a story with your description

Draw in potential buyers with a powerful listing description that tells a story about your Tennessee house, including details like:

• Your home’s most unique and desirable features, like a breakfast nook or sunroom
• Recent upgrades like a kitchen or bathroom remodel, new roof, or upgraded HVAC system
• High-end appliances, materials, or finishes
• Outdoor features like a pool or patio
• Neighborhood features and amenities
• Nearby parks, walking trails, restaurants, and attractions
• Views your home has of Tennessee’s mountains or lakes

If your home is located in a popular neighborhood or a sought-after school district, be sure to highlight those aspects of your location in the listing, Carter advises.

Don’t skimp on the property details

Aside from writing the description, you may be prompted to enter information like:

• Age of the home
• Square footage
• Architectural style (i.e., split-level, rancher, craftsman)
• Appliances included
• Exterior building materials
• Flooring types
• HOA fees
• School zone information
• Lot size

Many real estate agents and potential buyers really do read this “fine print” on your listing — so include accurate details and plenty of them.

5. List your home online

It’s finally time to post your Tennessee home online. While you can create FSBO listings for free on popular search sites, you’d have to painstakingly post site by site, and your listing wouldn’t reach the majority of buyers and agents.

To give your home the most exposure, pay to have your home put on your local MLS (multiple listing service) — a platform agents use to share properties with one another as well as major real estate sites. Posting there will feed your listing to buyers’ agent databases and to common sites buyers use.

Only licensed real estate agents and brokers who are MLS members can post to the MLS. However, you have two options to gain access: paying an agent to post for you or using a FSBO platform online.

Pay an agent to list your home on the MLS

A local agent may be willing to list your house on the MLS for a flat fee without any other involvement in your real estate transaction. If you decide to go this route, ask whether the fee includes updating your listing if necessary.

Use a FSBO platform with an MLS option

You can use various paid websites to list your Tennessee house online as “for sale by owner.” These sites offer packages ranging from about $100 to $400 for just a listing, or a larger flat fee of $3,000 to $5,000 that includes any number of additional professional marketing services.

Some of these companies display their rates on their websites, but others won’t quote a fee until you input your address or select an area of the country. A few examples include:

• Unreal Estate
• ISoldMyHouse.com
• FSBO.com
• Houzeo
• Houwzer
• Homie Real Estate

It’s important to note that most of these companies serve FSBO sellers nationwide, which can cause challenges if the assisting representatives don’t understand the local market trends in your Tennessee neighborhood.

Whatever you choose, read the fine print carefully: some sites may have hidden fees or even take a percentage off your sale — a detour you’d rather avoid on the FSBO route.

Not willing to pay for the MLS?

If you’re determined to save money by forgoing the MLS, creating a free FSBO listing on Zillow might be your top option. You can post a video and unlimited photos and get fairly wide exposure via Zillow and the Zillow-owned Trulia.

6. Market your home

Now it’s time to spread the word about your Tennessee home.

Experienced agents like Carter know that posting a home on the MLS is just the beginning of the marketing phase. A successful home sale requires a deliberate and targeted marketing plan to reach the right buyers and attract the best offers.

“When you list with a real estate agent, our listing doesn’t just go on the MLS; it goes out to other websites, and people from outside the state see it, so you can attract so many more buyers to fight for the home,” Carter says. Additionally “we have a database of buyers looking for homes, we have the criteria they’re looking for, and we may not even have to put the home on the market because we may already have a buyer.”

Here are some of the steps you can take to market your home:

Place a nice FSBO sign by the road

Consider getting a custom yard sign rather than purchasing a generic one you write on with a Sharpie. You can order a custom sign on a site like Vistaprint with your contact information, plus a stand, for as little as $25 plus shipping. Note that some MLS providers may have rules about whether you can post a FSBO yard sign while your home is on the MLS.

You should also check the laws in your community and your HOA’s rules about posting signs. For example, your town or HOA may limit the size or placement of for-sale or open-house signs.

Share on social media

Share your home across social media — and ask your friends to share, too. “Most buyers are going to look at the MLS, Zillow, Facebook, and Instagram, so you want to post on those sites,” Carter says.

Hold an open house

Try these strategies for a successful open house event:

• Share details on Facebook and Nextdoor.
• Update your MLS listing with the open house details (if you’re able to as part of paying the flat fee), or update your DIY FSBO listing.
• Place open house signs at nearby intersections. (Again, check local rules to be sure this is permitted.)
• Tidy up the house before potential buyers come through.
• Pass out info sheets with the address, bullet points about the house, your contact info, and perhaps one photo.
• If you can, collect visitors’ info — then follow up later to ask if they have any questions.

Find more expert tips for how to hold an open house at this link.

7. Manage showings

If your marketing is successful, your next step will be to show the home to prospective buyers. Welcome to the busiest phase of the home sale process. A major reason some FSBO sellers switch to an agent is that they underestimated the time, energy, and expertise needed to manage this crucial step.

Some FSBO sellers decide to sell the home themselves “because they like to take people through their home and tell them about it,” Carter says. However, “that’s really a turnoff for a lot of buyers,” who may prefer to look at the house without an owner hovering nearby.

To manage the logistics of showings:

• Respond to inquiries ASAP.
• Set end times if you need to fit many showings in one day. This will also create a sense of demand and urgency for buyers to place offers.
• Remove or secure valuables.
• Make sure the home is clean and tidy for showings.
• Follow up with buyers’ agents after showings to get their feedback.

Should you be present for showings?

If you’d rather not be present for every showing, consider using a lockbox with a code to let buyers’ agents enter the house. This is standard industry practice among agents. To ensure you’re working with someone legitimate, use your state’s agent search platforms or sites like arello.com to check their real estate license number.

With unrepresented buyers, plan to be on the property for the showing. During a showing, we recommend you:

• Point out a few highlights of the house.
• Let buyers look without hovering.
• Be prepared to answer questions.
• Avoid the temptation to tell all — let the house and listing do the talking.

8. Evaluate offers, negotiate a deal, and make disclosures

You’ve got your first offer — congratulations! Before signing anything, be sure to do your due diligence. “You must make sure you are abiding by state and federal laws, and you have to use particular forms,” Carter notes. She personally wouldn’t have attempted to sell a home herself before getting licensed. “I would be afraid I would do something wrong and would be sued.”

Here are key considerations when considering an offer on your Tennessee home:

• Vet potential buyers by requiring a mortgage pre-approval letter or proof of funds.
• Require everything in writing.
• Remember, you can counter-offer and negotiate.
• Look for a good real estate attorney. (See the next step!)

Property condition disclosure

In Tennessee, a residential property seller is generally required to disclose any known defects about the property (Tenn. Code Ann. § 66-5-202). The disclosure also must contain a notice to prospective buyers that they may want to hire a professional inspector to evaluate the property’s condition.

The buyer has the right to waive receiving the disclosures, in which case the seller should present a disclaimer that says you’re making no representations or warranties about the condition of the property. The disclaimer reminds the buyers they are receiving the property “as is.”

You must give the buyers the disclosure before you accept a purchase contract. Some sellers may prefer to provide the disclosures before an offer has even been presented so that a prospective buyer is more informed beforehand and less likely to withdraw from a deal later on.

In an agent-assisted sale, your listing agent would likely provide you with the required disclosure form(s). However, as a FSBO seller, you can find the form online.

What will you be asked? In Tennessee, you can expect to disclose any significant defects or issues you’re aware of concerning:

• Plumbing system
• Sewer or septic system
• Electrical system
• HVAC system (central heating, heat pump, central air conditioning)
• Foundation
• Roof
• Basement or slab
• Driveway and sidewalks
• Exterior walls or insulation
• Windows, doors, floors, ceilings, or interior walls
• Environmental hazards such as asbestos, radon, or lead-based paint
• Encroachments, easements, or similar issues that could affect ownership interest in the property.
• Room additions or structural changes that were made without required permits or that don’t comply with building codes
• Whether any part of the property was ever used for a landfill
• Flooding or drainage problems
• Property damage from wood-destroying insects, floods, landslides, or storms

If in doubt about a problem with the home’s condition, most top real estate agents would recommend you disclose it. If you know of an issue and choose not to disclose a major problem, and that defect is later discovered, you could be held liable for damage or subsequent costs.

9. Close the sale — with professional help

Time to button up that deal.

While some states require that FSBO sellers hire a real estate lawyer to help close their sale, Tennessee does not.

However, it’s still a good idea to invest in the services of an experienced attorney as you close one of the biggest and most complex deals of your life. By doing so, you’ll minimize your legal and financial risk, plus simplify the process for yourself.

Real estate attorney fees can vary depending on location and how much help you want or need. According to Clio, which provides technology solutions for law firms, real estate attorneys in Tennessee generally charge about $316 per hour — well worth it for professional guidance in closing one of life’s largest legal transactions.

FSBO mistakes to avoid in Tennessee

On your FSBO journey, watch out for these major pitfalls:

• Missing out on the MLS
• Forgetting or refusing to pay the buyer’s agent commission
• Over- or under-pricing
• Letting your house sit on the market too long
• Not getting enough marketing exposure
• Being overly fixated on any one detail
• Not showing your home’s full potential if you don’t declutter and remove personal decor

One of the most common FSBO seller mistakes is failing to confirm the buyer has the funds to purchase the home. “It’s a big problem. A lot of for-sale-by-owner sales fall through because of financing. Someone says they can buy it for cash when they can’t,” Carter says. Most sellers don’t know how to check someone’s finances, but real estate agents ”know how to stay on top of that, how to communicate with lenders to make sure they can purchase the house.”

Alternatives to selling by owner in Tennessee

If you decide you don’t want the hassle or pressure of FSBO, you’ve got other solid options.

Enlist the help of a top-rated real estate agent

Ultimately, the services and price gains you can get with an experienced real estate agent may put more money in your pocket than FSBO. A proven agent is also better equipped to help you achieve your selling and moving timelines.

Carter recalls a couple in Corryton, northeast of Knoxville, who tried the FSBO route before turning to her for help. “They had it priced too high. And they had put it on Zillow and nowhere else.” The couple received no offers. “We came in and priced it correctly, took professional pictures and video, then put it out on our social media and all the websites. It sold pretty quickly.”

Interested in such expertise? HomeLight can connect you to top-performing agents in your Tennessee market. Our free tool analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. It takes only two minutes to receive your matches.

Request a cash offer to buy your Tennessee home

If you’d like to skip the sale prep altogether — plus avoid paying agent commissions — you can opt to sell your home “as-is” to an all-cash buyer instead.

For a low-stress experience, consider requesting a cash offer from HomeLight’s Simple Sale platform. Tell us a few details about your home, and within a week, we’ll send a no-obligation all-cash offer your way. If you decide to accept the offer, Simple Sale sellers have the ability to close in as little as 10 days.

Without leaving the Simple Sale platform, you’ll also be able to compare your cash offer to an estimation of what your home would sell for on the open market so you can make an informed decision.

Ready to sell your Tennessee home?

Unless you already have a buyer lined up, selling a house by owner in Tennessee requires a significant investment of time and effort. You’ll need to pull your own comps, capture excellent pictures, create a listing, market the house online, field inquiries, host showings, negotiate, and close the deal. And that’s after preparing the house itself.

You also have to consider that FSBO listings tend to sell for less than agent-assisted sales. An experienced agent who knows the area can make recommendations for targeted upgrades to help you maximize your sale price and get a premium offer. This can help to offset or, in some cases, more than make up for the cost of commission — while saving you time and headaches.

If you choose to go FSBO, you should have a good idea now of what to expect from the process. Otherwise, our internal transaction data at HomeLight shows that the top 5% of real estate agents sell homes for as much as 10% more than average, and we’d be happy to introduce you to some of the best agents in your Tennessee market.

Writer Hayley Abernathy contributed to this story.

Header Image Source: (Brandon Hooper / Unsplash)