Average Real Estate Commission in Alabama: 2024 Data

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By Jon Stubbs Updated July 1, 2024


How commission works | Commission calculator | Best ways to save | Methodology

📊 The data:

Our December 2023 survey of local agents found that the average real estate commission in Alabama is 5.45%, which is less than the national average of 5.49%. Calculate your estimated commission in Alabama.

The average total real estate agent commission rate in Alabama is 5.45% of the final sale price. Based on the latest median home sale price in Alabama ($230,383), that translates to a total cost of roughly $12,556.

Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Alabama, the average listing agent fee is 2.75%, while the average buyer’s agent fee is 2.70%.

Real estate agent commissions make up a significant portion of the closing costs for Alabama home sellers. But you don't have to pay the full 5.45% to a traditional agent. If you're selling a home in Alabama, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 27% on realtor fees, or about $3,336 on average.

Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.

How real estate commission works in Alabama

Average listing commission 2.75%
Average buyer's agent commission 2.70%
Total average commission 5.45%
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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

Based on our research, the average real estate commission paid in Alabama for listing agents is 2.75% of the final home price and 2.70% for buyer's agents, for a total of 5.45%.

» LEARN: How do real estate broker commissions work?

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.

If you want to reduce your real estate fees, Clever can connect you with a top local listing agent charging just 1.5% commission. This will allow you to keep more of the sale proceeds for yourself.

» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!

Who pays realtor fees in Alabama?

When selling a home in Alabama, the sales commissions for both the listing agent and buyer's agent are taken out of the final sale price. You do not need to pay these fees upfront.

The listing agent earns their commission by providing services such as market analysis and handling the closing paperwork. The buyer's agent makes their commission by bringing a qualified buyer who meets the purchase terms and closes on time.

You as the seller do not pay these commissions out of pocket. The agents' fees are deducted from the sale proceeds once the transaction closes.

Why do sellers pay the buyer's real estate agent commission?

Offering to cover the buyer's agent commission can attract more potential buyers to your listing.

Paying this fee makes your home more enticing to buyers, since they won't have to pay their agent's commission upfront in addition to the down payment and closing costs—an expense many buyers struggle to afford.  

When you make a competitive offer on the buyer's agent commission, real estate agents become more motivated to showcase your property to their clients. This can increase your chances of securing multiple offers. Experts recommend advertising a buyer's agent commission within 0.5% of the local norm, which is 2.70% in Alabama.

Will the NAR lawsuit change how real estate commission works?

On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023. 

While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need. 

The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.


How to save on realtor fees in Alabama

Commission rates are not set in stone. In fact, we found that while 2.75% is the average listing commission in Alabama, rates typically fall between 2.50% and 3.00%. 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%– 3.00%
Buyer's agent commission 2.20%– 3.00%
Total commission range 4.70%– 6.00%
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» LEARN: What's the commission on a $1 million home?

Can I negotiate realtor commission in Alabama?

Real estate commission is always negotiable. In Alabama,  the 11 agents we surveyed said these were their most common reasons for agreeing to lower their commission.

Would you lower your commission for…? Agents who answered yes
Homeowners with more than one property to sell 64%
Homeowners who also plan to buy with you 64%
Seller’s situation (e.g. divorce or death in the family) 64%
Homeowners who are repeat clients 45%
High competition for clients 36%
Higher property values 27%
Homes expected to sell quickly 18%
Periods of low housing inventory 9%
High buyer demand in the area 9%
Highly experienced home sellers 9%
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Negotiating realtor fees 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
  • You're selling a high-value home
  • You have a personal relationship with a realtor
  • You can offer a realtor repeat business
The Alabama housing market
  • Homes are selling quickly
  • There are relatively few homes listed for sale
  • Home values are rising
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While your personal situation differs, the real estate conditions in Alabama impact all homeowners looking to sell in the area.  

In a seller's market, where sellers have more leverage than buyers, listing agents typically have an easier time so they may be more willing to reduce their commissions. The opposite often happens in a buyer's market.

Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.

To assess the current state of your local real estate market, examine these three factors:

  • Inventory Months
  • Sales Price to List Price Ratio   
  • Home Value Trends

If all signs point to Alabama being firmly a seller’s market, you may be in a good position to negotiate a lower agent commission. However, if conditions are more balanced or favor buyers, it may be harder to get an agent to accept a cheaper rate.

The current state of the Alabama real estate market

Factor Trends Indication
Months of inventory There's 2.23 months of housing inventory on the market Seller's market
Sale-to-list ratio Homes are selling for 98.00% of their listing price Seller's market
Home values Home values have risen 13.71% year over year Neutral market
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» LEARN: See state-by-state average commission rates. How does your state compare?

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.

Discount 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.

Best for most sellers

Clever Real Estate

Learn more

Listing Fee

1.5% ($3,000 min.)

Customer Rating

5.0 (2,627)







Overview: Clever stands out as the go-to choice for Alabama home sellers aiming to keep realtor commissions in check without diminishing the quality of service.

✅ Benefits and features: Experience considerable savings with Clever, offering rate reductions as steep as 50%, unlike traditional realtor charges. Additionally, Clever's acclaimed matching service is entirely complimentary and no-strings-attached.

🏠 How it works: Clever facilitates connections between you and elite local realtors from distinguished brokerages, including RE/MAX and Compass. This allows you to weigh various options and secure a favorable 1.5% listing fee (comparable to Redfin), which applies regardless of your chosen realtor.


  • Sell with a traditional agent from a name-brand brokerage (not a discount agent)
  • Agents work for up to 50% off their typical rate when you go through Clever
  • Most agent selection by far — choose from hundreds of top Alabama realtors


  • No guarantee you’ll be able to work with a specific agent or brokerage you have in mind
  • Add-ons like professional staging, drone photos, and 3D tours may cost extra (agents will break down what’s included during their listing presentation)

Fee structure

  • 1.5% listing fee ($3,000 minimum) at closing
  • 2–3% buyer’s agent commission at closing
Weighted avg. 5.0 2,627
Trustpilot 5.0 2,402
Google 4.8 225

Website: listwithclever.com
Phone: 1-833-225-3837
Hours: 8 a.m.–8 p.m. EST, 7 days a week
Address: 6358 Delmar Blvd, Suite 300, Saint Louis, MO 63130

Redfin Alabama

Learn more

Listing Fee

1.5% ($3,000 min.)



Customer Rating






Overview: In the Alabama market, Redfin stands as a viable discount brokerage for property sellers, albeit with a narrower agent selection in comparison to Clever.

✅ Benefits and features: Redfin’s appeal lies in its 1.5% listing fee, offering substantial cost savings over the standard 3% commission rate typically levied by other real estate agents. Moreover, an additional bonus of 0.5% off the listing fee awaits those who engage Redfin services for selling and purchasing within the same year. 

🚩 Potential red flags: Though Redfin's innovative, team-based service model suits many sellers, it may not align with every seller’s preferences. Also, Redfin has a minimum commission fee of $3,000 in Alabama. So if your property sells for less than $200,000, the actual listing fee percentage will be slightly higher than the advertised 1.5%.


  • Enjoy substantial savings due to Redfin's lower listing fees
  • Benefit from a reputable and well-established brand that offers a wide selection of agents
  • Redfin's tech-driven approach may be particularly appealing to certain sellers


  • The high-volume and team-based approach of Redfin may not be the best fit for every seller
  • Redfin offers a smaller number of agents compared to Clever in Alabama

Fee structure

  • 1.5% listing fee ($3,000 min. in Alabama) at closing
  • 2–3% buyer’s agent commission at closing
  • 0.5% listing fee refund if you also buy with Redfin within 12 months

*Not enough available data at this time

Website: redfin.com
Phone: 1-844-759-7732
Hours: 9 a.m.–7 p.m. EST, 7 days a week
Address: 350 Commons Dr, Birmingham, AL 35209
Areas served: Huntsville, Birmingham, Madison, Hoover, Mobile, Gulf Shores, Montgomery, Orange Beach, Auburn, Vestavia Hills, and more

Flat Fee Real Estate Birmingham

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Very good

Listing Fee

$2,900—7,500 or 1%

Customer Rating

4.9 (70)







Overview: Flat Fee Real Estate Birmingham proposes an economical and straightforward solution for homeowners looking to sell in Alabama, promising savings on traditional commission costs with a value-based flat fee structure. Take note, however, that an administrative fee is applicable during closing. 

✅ Benefits and features:  The service prides itself on its forthright flat fee offer, commencing at $2,900 for residences valued under $350k. As part of the listing, the package encompasses many attractive services, such as conducting open house events, providing electronic lockboxes, and employing various marketing strategies.

🚩 Potential red flags: It’s crucial for potential clients to acknowledge that the flat fee model adjusts upward with the home's price point, potentially affecting the attractiveness of this model for some sellers. An added point to consider is the mandatory administrative fee of $275 imposed at the time of closing.


  • A flat fee structure that allows potential savings for sellers with higher-priced homes
  • Included features like open houses, electronic lockboxes, and marketing materials


  • The flat fee model may not be suitable for all sellers in Alabama
  • Additional administration fee charged at closing

Fee structure

  • $2,900–7,500 or 1% based on home value at closing
  • 2.5% buyers agent commission at closing
  • $275 administration fee at closing
Weighted Avg. 4.9 90
Google 4.9 70
Facebook N/A 20

Website: flatfeerealestatebirmingham.com
Phone: (205) 222-7109
Address: 2828 Old 280 Court, Vestavia Hills, Al 35243
Areas served: Cahaba Heights, Birmingham, Alabaster, Chelsea, Homewood, Hoover, Pelham, and Mountain Brook

» LEARN: How do discount real estate brokers offer lower fees?

Next steps

Thinking of selling your home but don't know where to start? Here are some next steps.

Start interviewing local agents

Set up some listing appointments, where an agent visits 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!

👋 Next Steps: Find an agent!

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!


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. 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 May 2024
  • Sale-to-list ratios: Based on Zillow data as of May 2024 (unless specified otherwise)
  • Months of inventory: Based on Realtor.com data as of May 2024

Additional resources for Alabama home sellers

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