How commission works | Save on commission | Alabama housing market | Best low commission companies | Methodology
📊 The data:
We surveyed local agents and found that the average real estate commission in Alabama is 5.44%, which is higher than the national average of 5.37%.
To sell a house in Alabama worth $206,044 — the median home value in Alabama — you’ll pay about $11,209 in realtor fees.
Realtor commission is usually the largest cost you'll face when selling your home — but you don't have to pay the full 5.44%.
Clever Real Estate could help you save thousands on commission by pre-negotiating 1.5% listing fees with full-service Alabama realtors from top brokerages.
On that same $206,044 home — you'd pay just $8,600, up to 23% less than paying average rates.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
How real estate agent commission works
Average listing commission | 2.72% |
Average buyer's agent commission | 2.72% |
Total average commission | 5.44% |
There are usually two real estate agents involved in a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average commission rate for listing agents is 2.72% of the final home price and 2.72% for buyer's agents, for a total of 5.44%.
» LEARN: How do real estate commissions work?
Who pays realtor fees in Alabama?
In Alabama, home sellers pay real estate commission fees out of the final sale proceeds for both agents involved in a deal. Offering to pay for the buyer's agent's commission is an incentive for agents to show your home to their clients.
If you'd like to save on commissions, Clever can connect you with a top listing agent in your area. You'll pay just 1.5%, keeping more money in your pocket at the end of your sale.
How to save on realtor fees in Alabama
Commission rates are not set in stone. In fact, we found that while 5.44% is the average in Alabama, rates typically fall between 4.71% and 6.17%. You can save money by negotiating a lower rate with your listing agent or by working with brokerage that has a discounted commission model.
Listing commission range | 2.35%– 3.08% |
Buyer's agent commission | 2.36%– 3.09% |
Total commission range | 4.71%– 6.17% |
Tips for negotiating realtor commission in Alabama
Whether you’re selling a college rental in Tuscaloosa, a luxury condo in Gulf Shores, or a modest bungalow in Huntsville, you can almost always negotiate a lower commission rate on your sale.
Negotiating a lower realtor percentage in Alabama depends on two main factors: your situation and the housing market.
Factor | You may have an easier time negotiating low rates if... |
|---|---|
Your situation |
|
The Alabama housing market |
|
While your personal situation will obviously vary, Alabama real estate market conditions will affect all home sellers in your area.
In general, in a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more willing to lower their commission rates. The opposite is usually true in a buyer's market.
» LEARN: Find our top tips for negotiating lower commission fees
To judge the current state of your real estate market, look at these three factors:
- Months of inventory ⓘ
- Sale to list price ⓘ
- Home value trends ⓘ
If every factor points to Alabama being a seller's market, then you may be in a good position to negotiate a lower commission rate with your agent. If market conditions are mixed or favor buyers, it may be more challenging to persuade your realtor to accept a cheaper fee.
The current state of the Alabama real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 2.2 months of housing inventory on the market | Seller's market |
Sale-to-list ratio | Homes are selling for 97.26% of their listing price | Buyer's market |
Home values | Home values have risen 35.47% year over year | Seller's market |
Low commission real estate companies in Alabama
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
These are some of the top discount and flat-fee MLS services in Alabama.
The top discount real estate companies in Alabama
Discount real estate companies typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Clever Real Estate
Get Started💲 Listing Fee
1.5% (min. $3,000)
💰 Avg. Savings
$5,625
⭐ Avg. Customer Rating
4.9/5 (1,995 reviews)
Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.
- Clever offers a free, nationwide agent-matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
- You get multiple agent matches so you can interview, compare marketing plans, and choose the best fit.
- Clever pre-negotiates low rates on your behalf — you get full service for a low 1.5% listing fee.
- If you buy with Clever, you could get cash back after closing.
- You may not get matched with an agent from your preferred real estate brokerage.
- Agents may not provide premium services like drone photography and professional home staging.
Clever has a 4.9 out of 5 rating on Trustpilot, based on 1,844 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.
Redfin
Full Review💲 Listing Fee
1.5% (min. fees vary)
💰 Avg. Savings
$5,550
⭐ Avg. Customer Rating
3.7/5 (301 reviews)
Redfin offers real savings and is a proven brand. But sellers could compromise on service — especially agent experience and availability.
- If you buy and sell with Redfin, you'll get a 0.5% listing fee discount.
- Redfin gives its listings premium placement in its popular home search app.
- If finding the right agent is a top priority, you'll have limited options — Redfin only has a few agents in each of its markets.
- Redfin agents handle more customers at once than the average realtor, so they may not be able to provide as much personalized service.
Redfin has a 3.7 out of 5 rating (301 reviews) across popular review sites like Google and Yelp.
Redfin is available in 80+ U.S. markets (see all locations).
» LEARN: How do discount real estate brokers offer lower fees?
The top flat fee MLS listing services in Alabama
Flat fee MLS services list your home on your local MLS for a low fee, often around $80–$1,000. The trade-off is that you'll have to handle almost the entire home-selling process yourself.
List With Freedom
List With FreedomBest For
Experienced sellers who know what services they do and don't need
Price Range
$89-295
Pros:
- If you know exactly what you need, you can go with a cheaper package and buy the extras on their own.
- There's no cancellation fee for live listings.
- You can pay a little more for showing and open house assistance.
Cons:
- There's only one photo included in the base package.
- List With Freedom offers no built-in pricing support or home valuation.
Flat Fee Group
Flat Fee GroupBest For
Experienced investors who need only a basic MLS listing
Price Range
$399-999
Pros:
- You can set up a free FSBO web page along with your MLS listing.
- It's easy to switch to a full-service agent if you decide FSBO isn't for you.
Cons:
- This broker offers only one flat-fee MLS package. However, the company offers a higher-priced full-service option if you want help with facilitating your sale.
- The company's flat-fee MLS option allows fewer photos and changes to your listing.
» MORE: What you need to know about flat fee MLS services.
Learn more
Alabama boasts one of the lowest costs of living in the United States, with housing costs that are nearly 50% lower than the national average. And the state has something to offer everyone, from the beaches of Gulf Shores, to college football Saturdays in Auburn, to the Southern charm and historic homes of Mobile.
But even though housing is super affordable in Alabama, the state still has a very healthy real estate market, with median home values rising steadily over the past decade. The Gulf Coast has a booming tourism industry, and the state has 61 (!) college towns, so demand for housing is high and steady throughout the state. And where demand is high, so are your chances of negotiating a lower commission.
If you’re interested in saving thousands on your commission, Clever has already pre-negotiated low listing rates of only 1.5%, or $3,000, with some of Alabama’s top real estate agents. Contact Clever today to find out how much you can save!
Methodology
We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of March 2023
- Sale prices and sale-to-list ratios: Based on Redfin data as of February 2023 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of February 2023
Learn more about other Alabama:Closing Costs here.