📊 The data: Our September 2024 survey of local agents found that the average real estate commission in Alabama is 5.31%, which is about equal to the national average of 5.32%. Calculate your estimated commission in Alabama.
When selling a house in Alabama, you'll pay an average of 5.31% of the home's sale price in realtor fees.
For context, if you sell a home that costs $170,000, you'd typically pay around $9,027 in realtor fees; $18,054 for a $340,000 home; and $30,267 for a $570,000 home.
Realtor commission is usually the largest cost you'll face when selling your home — but you don't have to pay the full 5.31%. You can use a low commission real estate broker to save on listing fees.
Clever Real Estate could help you save thousands on listing commission by pre-negotiating 1.5% listing fees with full-service Alabama realtors from top brokerages.
On a typical Alabama home, you'd pay just $8,700, up to 28% less than the average rates.
»SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
How real estate commission works in Alabama
| Average listing commission | 2.81% |
| Average buyer's agent commission | 2.50% |
| Total average commission | 5.31% |
There are usually two real estate agents involved in the real estate transactions of 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
The seller's agent earns their commission by determining an appropriate listing price and managing the closing process.
The buyer's agent earns their commission by bringing a qualified buyer who agrees to the terms of the contract and completes the sale on time.
Sellers and buyers must negotiate realtor fees with their agents separately (as required by the 2024 NAR lawsuit settlement). The seller and buyer each sign a contract with their agent, promising to pay the agreed-upon commission. Sellers can offer to pay the buyer's agent commission to help the buyer afford the home.
Real estate commission calculator for Alabama
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Alabama. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Who pays realtor fees in Alabama?
The seller pays for at least their agent, and often covers the buyer's agent fees, as well. When selling a home in Alabama, you don't need to pay the realtor fees upfront. Similar to closing costs, the real estate agent fees are deducted from the sale revenue when the home purchase is finalized.
When you offer to pay for the buyer's agent, you'll owe an average of 5.31% in commission, taken from the sale proceeds at closing. If you don't offer to pay for the buyer's agent, the buyer will owe their agent an average of 2.50% on top of the price of the home and closing costs.
Should sellers pay the buyer's real estate agent commission?
Sellers are not required to pay for the buyer's agent, but most listing agents will recommend you offer to cover this fee. Experts suggest offering a buyer's agent concession within 0.5% of the local norm, which is 2.50% in Alabama.
Here are a few reasons to offer this concession during negotiations:
- It will likely attract more potential purchasers for your home.
- Your home will be affordable to more buyers since they won't have to pay their agent's commission upfront in addition to the down payment and closing costs.
- Agents will be motivated to showcase your property to their clients, increasing your chances of securing multiple offers.
What is the NAR lawsuit?
After losing a lawsuit over their practices in 2024, the National Association of Realtors agreed to change how real estate professionals do business.
As of August 2024, buyer's agents are required to sign an "agency agreement" before providing services to a buyer. This agreement has to specify what services the agent will provide, and how much they will get paid.
Real estate agents are no longer allowed to split commissions with one another. In the past, it was common for a listing agent to collect a 6% fee from the seller, and then split this fee with a buyer's agent who brought a buyer. Going forward, buyer's agents will have to negotiate their fee directly with the buyer they represent.
Learn more about how the lawsuit impacts buyers and sellers.
Will the NAR settlement change how real estate commission works?
Buyers may feel the most immediate impact from the NAR settlement changes. If the seller doesn't offer to pay for the buyer's agent at closing, the buyer could be on the hook for an extra 2–3% of the home's sale price. This may convince some buyers to skip hiring an agent and try to navigate the market themselves.
Many sellers may continue to offer to pay for the buyer's agent like they always have to help sell their home. However, a seller may decline to offer any concessions if they're in a competitive seller's market in which they have all the leverage.
A Clever Real Estate survey found that 94% of home sellers support the commission changes.
How to save on realtor fees in Alabama
Commission rates are not set in stone. In fact, we found that while 2.81% is the average listing commission in Alabama, rates are typically 2.50%–4.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 2.50%– 4.00% |
| Buyer's agent commission | 1.00%– 3.00% |
| Total commission range | 3.50%– 7.00% |
» LEARN: See state-by-state average commission rates. How does your state compare?
How to negotiate real estate commission in Alabama
Real estate commission is always negotiable. According to our survey of real estate agents, you'll likely have an easier time negotiating low rates if:
- You're selling a high value home
- You have a personal relationship with a realtor
- You can offer a realtor repeat business
The state of the housing market in Alabama will also impact your ability to negotiate realtor fees.
In a seller's market, home sellers have more leverage than buyers. This makes listing agents' jobs more straightforward, so they may be open to reducing their fees. The opposite is often true in a buyer's market.
To assess the current state of your local real estate market, look at the months of inventory, sale-to-list price ratio, and home values.
If all factors indicate Alabama is a seller's market, you may be in a good position to negotiate a lower rate with your agent. If market conditions are mixed or favor buyers, it may be tougher to get your realtor to accept a cheaper commission.
The current state of the Alabama real estate market
| Current housing inventory | Seller's market: There's 2.31 months of housing inventory on the market. |
| Sale-to-list ratio | Buyer's market: Homes are selling for 97.50% of their listing price. |
| Median home value | Seller's market: Home values have risen 5.77% year over year. |
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.
Low commission real estate brokers 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.
Top 5 low commission real estate companies in Alabama
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Best Overall
Clever Real Estate
Agent Marketplace⚡ Get StartedListing fee: 1.5%
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Flat Fee Real Estate Birmingham
Discount Real Estate BrokerLearn MoreListing fee: $2,900
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Assist-2-Sell Baldwin Realty
Discount Real Estate BrokerLearn MoreListing fee: $2,995
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Flat Fee Realty USA
Discount Real Estate BrokerLearn MoreListing fee: $3,500
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Justin & Bethany Russell at 1 Percent Lists Legacy
Discount Real Estate BrokerLearn MoreListing fee: 1%
» LEARN: How do discount real estate brokers offer lower fees?
How much do real estate agents make in Alabama?
Even though the average total real estate commission is 5–6%, not all those fees go directly to the agents. In most cases, the agents must share as much as half of their commission with their sponsoring brokerage.
Let's say a home sells for $600,000 and each agent is earning 2.5%. Each agent would earn $15,000 at closing. However, since they would owe their brokerage half, their take-home pay would only be $7,500.
What do real estate agents do in Alabama?
Homeowners continue to rely on real estate agents when selling. A recent Clever survey found that 88% of homeowners planning to sell within the next year intend to use a real estate agent and see them as an important part of the process.
The most important advantage of an agent is their ability to increase the home's sale price. Research by the National Association of Realtors indicates that homes sold with an agent typically sell for nearly $100,000 more than those sold by owner.[1]
Full-service real estate agents provide a wide range of helpful services, including:
- Providing comparative market analysis
- Developing pricing strategies
- Listing and marketing properties to attract buyers
- Negotiating offers and advising the seller on how to proceed
- Guiding sellers through the closing process
Next steps
Think you're ready to sell your home? Start by setting up some listing appointments with local agents. During these meetings, an agent will visit your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
- It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business and will try to sell you on their service.
- You can compare pricing and features: Shopping around helps you find the best fit for your specific needs — in terms of fees, experience, and services provided.
- Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
- Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with Alabama's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Frequently asked questions
The buyer and seller are ultimately responsible for paying their own agents. However, many sellers offer to pay for the buyer's agent commission. This makes the home more affordable for the buyer, who already has to come up with a down payment.
Real estate commission is not considered a closing cost, even though it's due when the home sells. The term "closing costs" is typically used to refer to costs like transfer fees, title services, and other taxes due at closing.
Dual agency is when one agent represents both the buyer and the seller for the same deal. This can potentially set up a conflict of interest. Dual agency is not legal in eight states: Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, Vermont, and Wyoming.
Most real estate agents will ask clients to sign an exclusive right to sell listing agreement—this is the most common type of contract. This type of contract says the seller agrees to work with only one agent, and that agent gets paid when the home sells, even if the seller finds a buyer themselves.
Methodology
We gathered our commission rate data from a survey of 734 of our partner agents. The survey asked about standard local rates for both listing and buying agents. These data points are averages based on responses we’ve received from 12 agents in Alabama.
We also asked agents about when and why they're willing to negotiate real estate commissions.
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 2025
- Sale-to-list ratios: Based on Zillow data as of March 2025 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of April 2025
