What Fees Do Sellers Pay at a Real Estate Auction in Tennessee?
If you’re thinking about selling your home, land, or estate at auction in Tennessee, one of the first questions that comes up is: “What fees will I pay as the seller?”
The good news? Auctions can be one of the most cost-effective and efficient ways to sell property. But like any real estate transaction, there are some expenses you’ll want to understand up front.
Here’s a breakdown of the most common costs sellers may encounter when selling at auction.
Title Expenses: Providing a General Warranty Deed
To transfer property at auction, sellers typically cover the title expenses needed to provide the buyer with a clear deed — most often a General Warranty Deed. This guarantees the property is free of liens or claims and assures buyers they’re receiving clean title.
🧹 Property Cleanup and Preparation
Property sells better when it shows well. A cluttered home or overgrown yard can drive down bids. Many sellers choose to invest in:
Clutter removal and debris haul-off
Mowing and yard maintenance
Basic property clean-up
While not always required, these improvements can increase buyer confidence and final sale price.
📏 Survey (If Needed)
In some cases, especially with land or properties with unclear boundaries, a property survey may be recommended or required before auction. This ensures buyers know exactly what they’re bidding on.
🎤 Auctioneer Fees: How They Work
There are several ways auctioneers structure their fees. Your agreement will outline which method applies to your sale:
Buyer’s Premium – The most common structure. The buyer pays a set percentage (often 10%) on top of the winning bid. This reduces the seller’s out-of-pocket commission costs.
Flat Fee Commission – The seller pays the auctioneer a flat percentage of the sales price.
Seller-Paid Commission – In some cases, the seller may agree to cover part or all of the commission directly.
Each approach has pros and cons, but the buyer’s premium model is widely used because it shifts the majority of the fee to the buyer.
📢 Marketing Fees
Auction success depends on strong marketing — photography, advertising, online promotion, signage, and more. In most cases, sellers cover marketing costs up front to attract qualified buyers.
👉 Important note: If a reserve auction is held and the reserve is met, but the seller decides not to sell, marketing fees are still due. This ensures the auction company is compensated for their time, effort, and advertising expenses.
🏁 The Bottom Line
Selling at auction can save sellers money, time, and headaches compared to a traditional listing. While there are fees involved — such as title expenses, property preparation, surveys, auctioneer commissions, and marketing — the competitive bidding process often results in a faster, cleaner sale with strong results.
📞 Ready to Sell Your Property at Auction?
If you’re considering selling your home, farm, or estate in Tennessee, I’d love to walk you through the process and help you understand the costs up front.
👉 Schedule a free consultation today to learn which auction method is right for your property — and how to maximize your net return. 971-400-6420
My name is Jennifer Davis. I’m a Realtor®, Auctioneer, and Tennessee native, helping families and landowners get results through professional auction marketing
