Sellers in Alabama typically pay 5.31% in total real estate commission when selling a home. See what you can expect to pay in realtor commission with our commission calculator.
Home sellers pay an average of 5.31% in real estate commission when selling a home in Alabama. This includes a 2.81% listing agent commission and a 2.50% buyer’s agent commission.
To put those costs into context, you'd pay around $9,027 in realtor commissions on a $170,000 home; $18,054 on a $340,000 home; or $29,736 on a $560,000 home. No matter your home price, that's a lot to pay in realtor fees!
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How does real estate commission work in Alabama?
Typically, there are two real estate agents involved in a home sale.
The seller's agent (sometimes called the listing agent) represents the seller. The seller's agent is responsible for marketing the home and helping the seller set an appropriate price.
The buyer's agent represents the interests of the buyer. They help their client with the home search and assist with negotiations and closing.
The seller and the buyer each sign a contract with their own agents, promising to pay the agreed-upon commission when the sale is complete. Each party must negotiate contracts with their own agents separately, as required by the 2024 NAR lawsuit settlement.
An August 2024 ruling has forced the National Association of Realtors to change how real estate professionals do business:
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- Buyer's real estate agents must present an "agency agreement" that includes a description of the agent’s services to a potential home buyer.
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- Buyer's agents must negotiate their fee directly with the buyer ahead of signing the contract.
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- Listings cannot include buyer's agent commission.
Before the settlement, a real estate agent would split commissions: a listing agent would collect a 6% fee from the seller and give half of it to the buyer's agent. The home buyer typically wouldn't pay any agent commissions.
Sellers traditionally advertised the buyer's agent cut on the home listing to entice buyer agents to show the home. This practice also made it clear who would pay for the buyer's agent — usually the listing agent — before a prospective buyer even toured the home.
Real estate commission calculator for Alabama
Estimate how much you'll pay in real estate commission with our helpful calculator.
Who pays real estate commission in Alabama?
The seller pays for their own agent at closing. The seller will often offer to pay for the buyer's agent as well, to make the home more affordable.
While you might find a buyer willing to pay for their own agent, it’s wise to budget for the buyer’s agent fees ahead of time.
If you offer to pay for both agents, you'll owe an average of 5.31% commission. If you don't offer to pay, you'll owe about 2.81% to your agent and the buyer will owe 2.50% to their own agent on top of the cost of the home.
Buyers are more likely to see the immediate effects of the NAR ruling than sellers and should budget for their agent's 2–3% commission, even if the seller ends up covering that fee.
Many sellers may offer concessions to cover the buyer's agent's fees, but only after an offer is made and negotiations begin. In a competitive seller's market, however, a seller with all of the leverage might not offer anything to the buyer's agent.
Until buyers know for sure, they should count on being on the hook for their agent's 2–3% commission.
Current Alabama real estate commission in 2025
Your exact commission depends on your final selling price, the home’s condition, and the brokerage you choose. Commissions also vary by region.
Here’s an estimate of what you can expect to pay in listing agent and buyer's agent commission:
| Average rate | Cost for a $170,000 home | Cost for a $340,000 home | Cost for a $560,000 home | |
|---|---|---|---|---|
| Listing agent commission | 2.81% | $4,777 | $9,554 | $15,736 |
| Buyer’s agent commission | 2.50% | $4,250 | $8,500 | $14,000 |
| Total realtor fees | 5.31% | $9,027 | $18,054 | $29,736 |
If these numbers seem high, you can always negotiate commissions with your realtor, or you can use our free service that negotiates a lower rate for you.
How much is real estate commission in Alabama?
On average, sellers pay 5.31% in total realtor fees in Alabama, compared with the national average of 5.32%.
We contacted Trey Sippial of River Region Realty in Montgomery to learn more about the average commission in the state.
Commission fees can also fluctuate depending on the location. For instance, a realtor might charge a different rate to sell a single-family home in a suburban community than a condo in a trendy neighborhood.
According to Sippial, total commission rates fluctuate based on the local market. “For example, in Auburn or Birmingham, to be competitive, the listing fee typically needs to be 5% or less,” says Sippial. “For Montgomery, to be competitive, it needs to be no more than 6%.”The current housing market in Alabama
The state of the housing market is another factor that affects commission rates.
To figure out if your local area is a seller's market or buyer's market, look at these three statistics:
- Months of inventory — How long it would take for all current listings on the market to sell if no new properties were added.
- Sale-to-list price ratio — How much homes sell for versus how much they list for.
- Home value trends — Whether home values are rising or falling year over year.
If these factors suggest you're in a seller's market, you might have an easier time negotiating real estate commission with your listing agent. If the market conditions give buyers more leverage, your agent will need to work harder and may be less likely to cut their rate.
Here's what the Alabama real estate market looks like right now:[1]
| 🏠 Current housing inventory | Seller's market: There's 2.42 months of housing inventory on the market. |
| 📈 Sale-to-list ratio | Buyer's market: Homes are selling for 97.30% of their listing price. |
| 💰 Median home value | Seller's market: Home values have risen 5.83% year over year. |
To secure the best commission rate, research and compare agents. Even within your local area, agents may offer varying fees based on the services they provide.
How Alabama real estate agents and brokers set commission rates
Real estate agents typically have some degree of flexibility when it comes to setting their commission fees.
“We don’t like to go below 5%,” says Sippial. “We will certainly be competitive as needed between 5–6%. I don’t go higher than 6% in most cases.”Agents usually base the fee on what their competitors in the region are charging, as well as the amount of time and effort they expect to invest in the sale.
“I have marketing expenses, I have to pay my transaction coordinator, I have office expenses, MLS fees, gas,” says Sippial.Typically, each agent shares a portion of their commission with their brokerage. The listing agent and the buyer’s agent receive their agreed-upon fees, and then each of them split the commission with their broker.
How can I save on realtor fees in Alabama?
While it may take some outside-the-box thinking, there are a few ways you can save on realtor fees:
- Negotiate with a traditional real estate agent or broker
- Work with a discount real estate broker
- Sell without a realtor
Negotiate with a traditional realtor
Negotiating with a traditional realtor is one of the first things to try when looking for ways to save on realtor fees.
Have an honest conversation with your agent about what you need and what the agent can deliver.
Finding a good match will set you and your agent up for a successful sale.Here are some ways to prepare for negotiations before meeting with an agent:
- 📚 Do your research. Knowing the basics of your housing market will give you a strong basis on which to start your negotiations. Learn about the average commission in your area and check what similar homes have sold for recently.
- 🧹 Get your house in order. It’s much easier to sell an updated house with great curb appeal than a dilapidated house with dated fixtures. Giving your house a makeover and even staging it yourself are great ways to lessen your agent’s burden.
- 🛒 Shop around. Talking to multiple realtors will help you determine who offers the best service for the lowest rate. Knowing you’re talking to other realtors will encourage agents to give you their best rate.
- 🏘️ Be a repeat customer. Sales volume is one of the biggest determiners of a realtor’s success. Offering to sell your home and buy your next one with the same agent might convince them to give you a better rate.
Remember, not all agents will be willing to lower their fees. They may have a set minimum imposed by their brokerage, or they may not change their rate for an individual seller.
Learn more about how to negotiate realtor fees.
Work with a real estate brokerage that offers built-in savings
A simpler way to pay less is by working with a Alabama low commission real estate brokerage that already offers lower rates. These realtors provide the same level of service and support you'd get from a traditional realtor — but they charge less.
Our free service matches you with top agents from reputable brokerages in your area. You can compare and interview agents, or walk away anytime. If you find an agent through our service, you’ll pay a low 1.5% listing fee — half the rate most realtors charge. Check out your agent matches today.
Sell without a real estate agent
The surest way to not pay any listing commission is to sell the home without a realtor. However, we don’t recommend this option for most Alabama sellers.
You won’t pay a listing commission, but you’ll have to do all of the work of the agent yourself, which can take up a lot of your time and energy. Also, you’ll still need to offer a competitive buyer’s agent commission to entice other agents to bring their clients to see your home.
Learn more about how to sell a house without a realtor in Alabama.Frequently asked questions
Each party, the buyer and seller, is contractually responsible for paying their own agent commission. However, it's common practice for sellers to cover both their own agent's fee and that of the buyer's agent. This arrangement helps buyers, as they don't have to factor agent costs into their expenses when they're already saving for their down payment.
Although real estate agent commissions are due when the transaction completes, they aren't categorized as closing costs. Instead, "closing costs" specifically refers to the various fees and charges collected at settlement, such as property transfer taxes, title insurance, and administrative expenses.
Dual agency is when a single agent represents both the buyer and the seller for the same real estate deal. This can lead to a conflict of interest. Dual agency is illegal in eight states: Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, Vermont, and Wyoming.
The most common type of agent contract is known as an exclusive right to sell listing agreement. This contract states the seller agrees to work with only one agent, who gets paid when the home sells, even if the agent doesn't bring in the buyer.
Research methodology
We regularly survey our 19,000+ partner agents nationwide on their commission rates for buying and selling. These data points are averages based on responses we’ve received from 12 agents in Alabama.
We also contacted Trey Sippial of River Region Realty in Montgomery to learn about average real estate agent commission and negotiation in the state.
