Average Realtor Fees in Alabama

When selling your home in Alabama, it's important to understand the realtor fees. Alabama has an average realtor commission of 5.44%. This figure equates to a total of $11,882 for most home sellers.

Never underestimate the importance of knowing the standard commission where you live as it can play a big role in ensuring that you can evade excessively high realtor fees. This creates an opportunity for you to predict costs more accurately when selling your home.

The commission fees may seem like a lot of money, but you have options. Some real estate companies will give you access to knowledgeable agents, but allow you to pay lower realtor fees in Alabama. Finding the right realtors in Mobile Alabama and properly negotiating puts you in a better position to save a lot of money without sacrificing the quality of service.

What is a fair commission for a real estate agent in Alabama?

Another important thing to know before deciding on a real estate agent is that you can negotiate their commission fees. While there are average rates for each state, many brokerages will have a bit of wiggle room. If you just accept the deal up front, you might be leaving money on the table. It is quite easy to negotiate commission rates for realtors. Most of the negotiation depends on the kind of agreement you can reach with your agent.

From research, we know that the average expectation of a real estate agent in Alabama falls within the 4.71% to 6.17% range. Since realtor commission is negotiable, what's fair will ultimately come down to whatever rate you and your agent are comfortable with within that range. The chart below breaks down how the different tiers of realtor fees equate to the actual cost.

These rates may make you wonder why the realtor commission fee is so high. There are a few things that contribute to it:

• Commission is split: The listing agent doesn't take the entirety of the realtor fees. The fees are shared among the listing and buyer's agent.

• Risk involved: There are a lot of risks that come with being a real estate agent. All the marketing costs incurred during the process of listing the house are paid for upfront by the listing agent. They only receive payment after your sale has been completed.

• Finding clients: It is very difficult to find clients right after listing. Real estate agents spend much of their time and money searching for potential clients.

How much do Alabama realtor fees cost?

Alabama realtor fees usually go for 5.44% of the home cost. The fee is a combination of the listing agent's fee and the buyer agent's cost.

The realtor fees come out of the proceeds made from the home sale. The homeowner isn't required to pay anything to the agent until the sale is complete. The important thing to remember is that sellers must pay the fees for both the listing agent and the buyer's agent.

This table represents how the realtor costs will be taken from the seller's profits on an average home sale in Alabama.

How are the Realtor Fees Divided in Alabama?

Upon the sale of a home through an Alabama realtor, the listing agent is entitled to 1.36% of the price of the home. This is a lot less than the total price of the realtor fees. The reason for this is that while the realtor fees are 5.44% of the cost price, the fee is divided among the buyer's agent, listing agent, and each party's brokers.

This table is an example of the way the commission is divided upon a sale in Alabama.

Who Is Responsible for Realtor Fees in Alabama?

In Alabama, like most other places in the country, the seller pays for the realtor fees out of the sale proceeds. This encompasses the fees for all the agents and brokers. This means that even though it is the responsibility of the home seller to pay the realtor fees, they are not required to pay them at the beginning of the sale. The agents don't get their commission until the completion of the deal.

You may wonder why the home seller's job is to pay the commission fee for the buyer's agent. This is because the fees are regarded as one of the marketing costs for the home. If you are able to offer a good buyer's agent commission, the realtors will be motivated to get their clients to consider your home.

How Can You Save on Realtor Fees in Alabama?

The housing inventory in Alabama isn't very high, and the costs of available houses are steadily rising. This is what is regarded as a seller's market. Even though this market creates an avenue for you to sell without an agent (FSBO), it is still advisable for you to sell through a skilled real estate agent. Because the sellers have competitive power, you can negotiate a lower rate with your realtor. Most of the agents in Alabama are open to offering discounts to clients they have previously worked with. Housing market trends are prone to changes, so you need to carefully research and evaluate the area before you start.

Selling on Your Own

Choosing to sell your home independently (aka For Sale By Owner or FSBO) means that you are selling your home without an agent. This means that you will be free from the listing agent's fee, and you can avoid paying the total realtor's fee. This is understandably a very attractive option, but you also need to consider the several risks that accompany this kind of home sale. Selling on your own means that you have to put in the work to market and stage your home and navigate the convoluted legal and financial paperwork.