Average Closing Costs in Knoxville, Tennessee (2026 Guide)
Homebuyers in Knoxville typically pay $5,700 to $14,250 in closing costs on a $285,000 home — approximately 1.6% of the purchase price.
2026 Closing Cost Fee Breakdown
Based on $285,000 median home price in Knoxville
| Fee | Typical Range | Negotiable? |
|---|---|---|
| Origination Fee | $500 – $2,500 | Yes |
| Underwriting Fee | $400 – $1,200 | Yes |
| Processing Fee | $300 – $900 | Yes |
| Appraisal Fee | $400 – $700 | No |
| Credit Report | $25 – $75 | No |
| Flood Certification | $10 – $50 | No |
| Lender's Title Insurance | $500 – $2,000 | No |
| Settlement Fee | $300 – $800 | Sometimes |
| Recording Fees | $50 – $250 | No |
| Prepaid Interest | Varies by rate | No |
| Property Tax Escrow | 2–3 months | No |
| Homeowners Insurance | 1–2 months | No |
| Estimated Total | $5,700 – $14,250 |
Ranges are typical for a conventional purchase loan · Prepaid and escrow amounts vary by closing date and lender · Source: FairRate market data 2026
Knoxville Home Price & Closing Cost Context
The median home price in Knoxville is approximately $285,000. At the Tennessee average closing cost rate of 1.6%, a buyer in Knoxville would pay approximately $4,560 in total closing costs — within the typical range of $5,700 to $14,250.
Closing costs in Knoxville cover both lender fees (origination, underwriting, processing) and third-party fees (appraisal, title insurance, settlement, recording). Lender fees are negotiable; third-party fees are mostly fixed, though you can sometimes shop for your own settlement agent to reduce those costs.
Tennessee Real Estate Laws That Affect Your Closing Costs
Tennessee has no state income tax on wages. The state charges a Realty Transfer Tax on property transfers. Tennessee has relatively low property taxes compared to national averages.
Transfer Tax in Tennessee
Tennessee Realty Transfer Tax is $0.37 per $100 of sale price paid by the seller.
Who Pays Closing Costs in Tennessee?
Buyer Typically Pays
- · Lender origination, underwriting & processing fees
- · Appraisal fee
- · Lender's title insurance
- · Prepaid interest, property tax, homeowners insurance escrow
- · Recording fees
Seller Typically Pays
- · Real estate agent commissions
- · Transfer taxes (see details above)
- · Owner's title insurance (in most Tennessee transactions)
- · Any outstanding liens or HOA dues
Buyer/seller splits can shift via negotiated concessions. In competitive Knoxville markets, sellers may be less willing to cover buyer closing costs. Your Loan Estimate will show all buyer-paid fees within 3 business days of application.
Local Market Notes for Knoxville
Knoxville is currently in a seller-leaning market. Sellers are less likely to offer closing cost concessions, but you can still negotiate lender fees directly.
Closing Process
Tennessee uses title companies or escrow officers. Closings typically take 30–45 days.
Lender Competition
Tennessee has solid lender competition. Two to three quotes is usually enough to identify the best rate.
First-Time Buyer Programs in Tennessee
THDA offers the Great Choice Home Loan with down payment assistance.
Income and purchase price limits apply. Contact your lender or your state housing finance agency for current program terms in Knoxville.
Which Fees Are Negotiable?
The fees in Section A of your Loan Estimate are set by the lender and are negotiable: origination, underwriting, and processing fees. Section B fees — appraisal, title, recording — are set by third parties and cannot be negotiated with the lender.
What to Do When You Get Your Loan Estimate
Your lender must provide a Loan Estimate within 3 business days of application. Check Section A fees against the ranges above, ask your lender to justify any fee above the typical range, and compare total closing costs across at least two lenders.
Frequently Asked Questions — Knoxville Closing Costs
How much are closing costs in Knoxville, Tennessee?
Homebuyers in Knoxville typically pay $5,700 to $14,250 in closing costs on a median-priced home of $285,000 — approximately 1.6% of the purchase price.
Who pays closing costs in Tennessee?
In Tennessee, buyers pay lender fees, appraisal, title insurance, and recording fees. Sellers typically pay real estate commissions. Transfer taxes apply — see details above.
What closing costs can I negotiate in Knoxville?
The most negotiable closing costs in Knoxville are lender fees — specifically the origination fee, underwriting fee, and processing fee listed in Section A of your Loan Estimate. Third-party fees like appraisal and title insurance are set by independent providers and are harder to negotiate directly with your lender.
Get Your Fees Analyzed