✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.
A steep 5% to 6% of your home sale price. That’s how much Realtor commissions are in the Cotton State. On a median-priced Alabama home of $272,700, this translates to $16,362!
The recent NAR settlement has cast doubt on the future of the 3% buyer agent commission structure. But the 3% listing agent fee is still up for grabs. With a Flat Fee MLS company like Houzeo, you can skip the listing agent and save almost $8181!
With Houzeo, your home can be on the MLS within 24 hours. Moreover, you get access to tools available only to real estate agents. So, what are you waiting for?
How Much Are Realtor Commission Rates in Alabama?
The average Alabama real estate commission is 5.53%. However, this rate may vary based on the agreement, property type, and market conditions.
Here’s how much you would get for your home in Alabama with and without a listing agent:
| Price Comparison | With Listing Agent | Without Listing Agent |
| Actual Selling Price | $272,700 | $272,700 |
| Listing Agent Commission | 2.5% to 3% (~$8,181) | 0 |
| Recommended Buyer Agent Commission | 2.5% to 3% (~$8,181) | 2.5% to 3% (~$8,181) |
| Total Real Estate Agent’s Commission | $16,362 | $8,181 |
| Final Home Sale Price | $255,838 | $264,519 |
Real estate agent commission rates also vary depending on your location. In major cities like Auburn and Huntsville, agents may charge up to 6% of the home’s value. For suburban or smaller areas, commission rates typically fall around 5%.
» What is My Home’s Worth: Find your home’s value briefly. This will help you calculate the agent fees.
How Is the Commission Split Between Real Estate Agents and Brokers in Alabama?
Real estate commissions in Alabama typically follow the structure given below:
The 6% Realtor commission in Alabama is equally divided between the listing agent’s brokerage and the buyer agent’s brokerage. Once operational expenses are accounted for, this 3% commission is further split between the agent and the broker.
Who Pays the Real Estate Agent in Alabama?
In Alabama, home sellers typically pay real estate commissions, which are usually included in the seller closing costs. A buyer pays only for the home and their own closing expenses.
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✍️ Important Note: A recent lawsuit challenging the National Association of Realtors (NAR) on commission practices has been settled. As a result, sellers won’t take the whole brunt of paying the real estate agent fees.
Will the NAR Lawsuit Benefit the Home Sellers?
The recent tsunami of antitrust class action lawsuits against NAR has forced it to settle for $418 million. It has also led to a series of changes that could potentially reduce the burden of agent commissions on the seller.
Here are the settlement terms:
- NAR will not create rules that mandate listing agents to set compensation for buyer brokers. There will now be room for independent negotiation between buyers and their agents, potentially reducing the seller’s overall commission burden.
- NAR will create a rule to ensure compensation offers aren’t displayed on the MLS listings. This could encourage transparent and competitive commission discussions.
Are you curious about NAR’s recent year of trouble? Watch our detailed analysis.
Alternatives to Paying Real Estate Commission in Alabama
If you’re looking for an affordable alternative to an agent-assisted sale, here are a few options you can opt for:
- List With a Discount Real Estate Broker: The best discount real estate brokers in Alabama offer all the services that traditional Realtors do but at discounted rates. They usually charge 1.5% to 3% commissions to list your home.
- Sell “For Sale By Owner”: Selling your home via Alabama For Sale By Owner websites implies no access to the MLS. You market your property, conduct market research, manage offers and showings, etc., all by yourself.
- Sell to an iBuyer or Cash Buyer: A cash buyer can make a cash offer instantly and help you sell your house fast in Alabama. iBuyers have strict purchase criteria but can make cash offers as high as 80% of the Fair Market Value.
- List Your Home on the MLS for a Flat Fee: Flat Fee MLS Alabama companies get you listed fast, typically within 24 to 48 hours on your local MLS. This is your best chance to get top dollar for your house.
How Can You Save on Real Estate Commissions in Alabama?
Real estate agent commissions in Alabama are a steep 5% to 6% of the home sale price. To maximize savings, consider negotiating with your agent.
You can also opt for Flat Fee MLS Listing services like Houzeo. Your home can be on the MLS within 24 to 48 hours. Additionally, your listing will receive maximum exposure via top real estate websites like Trulia, Redfin, and more.
5 Easy Steps to List on MLS
Check out the following video to understand how to list your house on Houzeo and save on commissions.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
Frequently Asked Questions
How much commission does a realtor make in Alabama?
Realtor percentage in Alabama is about 5% to 6% . The agents receive this amount on each house they successfully sell.
Who pays Realtor commission in Alabama?
Usually, sellers pay the Realtor commission in Alabama. However, from July, NAR's new rules could mean sellers no longer have to pay the buyer's agent commission on their own
Can I negotiate Realtor commission?
Yes! You can always negotiate on real estate commissions. Before negotiating, you should consider market conditions, agent experience, and services offered. Do your research and interview agents as well.
Are there alternatives to using a realtor?
Yes! Flat Fee MLS services like Houzeo allow you to get your home listed on the MLS without the 3% listing agent fee. You can also consider other alternatives like discount brokers or cash buyers.
