How Much Does It Cost to Buy a House in Alabama?

Kristy Snyder

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Kristy Snyder

October 3rd, 2022
Updated October 3rd, 2022

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Costs to buy a house in Alabama | Alabama closing costs | Alabama house buying calculator | Homeownership costs | How to save when buying a home in Alabama

The average home buyer in Alabama spends between $18,780 and $63,242 when purchasing a $215,294 home — the state median value.

Keep in mind, this is just the cost of buying a home. After you close, you'll still need to budget for all the ongoing costs of homeownership.

If you're looking for ways to cut down on the costs of buying a home, Clever Real Estate can help. We're an agent-matching service that can help you compare real estate agents in your local area. All of our agents offer local expertise to keep more money in your pocket.

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Average cost to buy a house in Alabama

Expense
Amount
$2,153 to $6,459
$7,535 to $43,059
$1,986 to $2,979
$5,389
$233
$233
$1,250 to $4,890
Total
$18,780 to $63,242

Buyer closing costs in Alabama

While the other costs to buy a house in Alabama are pretty transparent, Alabama closing costs are a bit more nuanced. They're actually a series of smaller costs lumped together into one total. Here's a breakdown of all of the Alabama closing costs you'll likely pay when buying a home.

Closing cost
Amount
Closing fee
$215
Recording fee
$58
Title service fees
$1,235
Origination fee
$1,076
Underwriting fee
$600
Discount points
$1,722 per point
Lender's title insurance
$266
Owner's title insurance
Typically paid by seller
Prorated property tax
Varies
Reaccordation tax
0.10%
Total
$5,389

Keep in mind, closing costs are often negotiable. However, to win the negotiation battle, you'll need a great agent who can work out a deal with the seller. Clever can match you with a top agent in your area that can get the seller to shoulder more of the above costs.

Contact us at Clever for top agent recommendations.

Cost to buy a house in Alabama calculator

Ongoing costs of homeownership in Alabama

Unfortunately, the cost to buy a house is just the beginning. After closing, you'll officially own the home and begin paying for the ongoing costs of homeownership.

Expense
Average monthly cost
Mortgage (principle and interest)
$993
Homeowners insurance
$152
Taxes
Varies but averages $73 statewide
Maintenance
$178
Utilities
$439
Total
$1,835
Note: All numbers are estimates based on state averages and a median home value of $215,294 and a down payment of 20%.

Besides the expenses outlined above, you'll also want to consider private mortgage insurance (PMI) and homeowner's association (HOA) fees.

  • If you pay less than 20% as a down payment on your house, you'll probably have to pay PMI monthly until you get to 20% equity. For the average Alabama homeowner, this is between $94 to $317 a month.
  • Some neighborhoods have HOA fees for the care and maintenance of common areas. The national average is around $250 per month.

» MORE: The true cost of homeownership

Top ways to save money when buying a house in Alabama

1. Look into better financing options

Paying off debts and getting your credit in the best shape possible before applying for a loan will help you get a better interest rate, which will lower your monthly payments for the life of the loan.

You can also shop around to compare lenders so you get the lowest fees and interest rates available. It may be a good idea to enlist the help of a mortgage broker if you're not sure how to go about vetting lenders.

Get Pre-approved Today!

Get matched with a lender who can tell you how much house you can afford. To get started, where do you plan on buying?

2. Participate in home buyer programs Alabama

Alabama has several home buyer programs that make owning a house much easier.

For instance, the Alabama Housing Finance Authority (AHFA) offers the Step Up program, which gives borrowers 4% of the sales price (up to $10,000) for their down payment costs. This program is available for home buyers making under $130,600.

Low-income buyers may also partake in Habitat for Humanity’s housing help program, which allows them to purchase affordable housing in exchange for "sweat equity" such as assisting with construction or volunteering.

» MORE: First-time home buyer programs everyone should know about

3. Partner with an expert agent

Having an expert agent on your side can ensure you win the negotiating battle with the seller.

Clever can help match you with a knowledgeable, hyper-local agent that knows the ins and outs of how to save you money on your local fees. And best of all, our service is totally free!

👋 Find your perfect agent now!

Finding a great local realtor is the first step in making your home buying dreams a reality. Our free service matches you with top agents from trusted brands like Keller Williams and RE/MAX.

Enter your zip code to request hand-picked agent matches in minutes. Compare your options until you find the perfect fit, or walk away with no obligation. Try Clever's free service today!

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