How to sell a house by owner in Alabama
Key takeaways
- You can sell your Alabama home without a real estate agent, but it puts a lot of work on your plate.
- When you go the “for sale by owner” (FSBO) route, you don’t have to pay a listing agent’s commission. However, there are still other costs to consider.
- One of those costs will be legal fees: Alabama law requires a licensed attorney to prepare the paperwork and facilitate the closing.
From closing costs to Realtor commissions, the costs of selling a home in Alabama can be steep. And while many of these expenses are unavoidable, there are a few ways to save money on your sale — including by selling without an agent’s help.
However, the “for sale by owner” (or FSBO) path isn’t for everyone. Not only do these transactions require a huge amount of work on the homeowner’s part, but they risk attracting less buyer attention and lower offers than agent-assisted sales. Here’s more about what it takes to sell a house by owner in Alabama.
Selling a house without a Realtor in Alabama
When you sell without an agent, you take on all of the work that they’d normally do. Here are some of the key steps involved in a FSBO sale:
Set an asking price
Cost is likely the first (and most important) factor that buyers will consider when they start house-hunting, so it’s critical to set an appropriate asking price. In Alabama, the median home-sale price was $282,300 in September 2024, according to Redfin data. But of course, that number can vary widely depending on the house and where exactly it is located within the state.
One smart way to figure out how much your home is worth is to check out real estate comps — recently sold homes nearby that are similar to yours. This will give you an objective idea of how much comparable properties in your area have sold for, and how long they took to sell. For example, if a home stays on the market for a particularly long time, it could be a sign that it’s priced too high.
Create a listing
With a price in mind, you can start creating an online listing for your property. Your listing is a key marketing and informational tool to attract buyers, so make sure it’s polished and compelling. It should include several things, including the asking price, a written description of your home and high-quality photos.
In the description, cover basic details about your property, including things like its age, square footage and number of bedrooms and bathrooms. It’s also important to spotlight any special or unique features, like a tennis court or a pool. Information about the school district, local amenities, parks or nearby shopping is also useful.
Your listing also needs multiple photos of both the inside and outside of the house. Hiring a professional is the best way to ensure you get the kind of high-caliber images that will grab the attention of online shoppers — otherwise, they might just scroll on to the next listing.
Market your property
Your next task is to make sure as many house-hunters as possible can find your listing. The best way is to place it on your local multiple listing service (MLS), a database of for-sale properties in your area. Ordinarily, only agents and other real estate professionals can access the MLS — but since you’re not working with an agent, you can pay an online service to do it for you. Some of the many companies that will list your home on the MLS in Alabama for a fee include LocAL Realty, Flat Fee Realty, Houzeo and List With Freedom. MLS listings will also appear on large consumer listing sites like Zillow and Realtor.com.
Aside from that, the old-school method of posting a “for sale” sign in your front yard couldn’t hurt. And you might also share your listing on social media and community websites like Nextdoor — just be mindful not to reveal too much personal information online.
Promoting your home sale also includes showing it to interested buyers, either by private appointment or during an open house. Make sure the house is clean and tidy before anyone arrives, and keep safety in mind when inviting strangers into your home.
Close the deal
Ideally, all of your hard work will help you land an offer (or, better yet, several). At this point, you’ll need to iron out the terms of the deal with your buyer and their agent. In many cases, this will involve going back and forth on price and other contract terms — and without an agent of your own, you’ll be doing all the negotiating yourself.
When it’s time to draft the purchase and sale agreement, there’s one crucial detail for Alabama FSBO sellers to be aware of: You will need to work with a real estate attorney for this part of the process. The state of Alabama requires a lawyer to draft all legal paperwork for a real estate transaction, and to oversee the closing process. That means, while you’re not paying a listing agent’s commission fee, you do still have to pay legal fees.
Required disclosures for Alabama home sellers
Alabama has a caveat emptor rule — Latin for “let the buyer beware” — when it comes to existing homes sold in the state. Broadly speaking, this means that the seller isn’t required to disclose known defects about their property before selling it, as sellers in many other states are. Instead, it’s the buyer’s responsibility to discover any issues (typically via the home inspection). However, if the seller is aware of any immediate health hazards or safety risks, they must tell the buyer, and they must answer truthfully if the buyer asks about any specific issues.
In addition, federal law requires certain disclosures about the presence of lead paint, and if the property is part of a homeowners association, you’ll be expected to turn over documentation about the HOA’s rules and financial health.
Pros and cons of selling a house by owner in Alabama
It’s possible to sell a house by owner in Alabama, but is it worth it? If you’re on the fence, consider these pros and cons:
Pros
- You’ll save on commissions: Simply put, if you don’t have a listing agent, you don’t pay a listing agent’s commission. Typically, an agent’s fee runs between 2.5 and 3 percent of a property’s sale price. For a median-priced $282,300 home in Alabama, that would mean up to $8,469 in savings.
- You’re in charge: Taking the FSBO path gives you full control over your sale. You’re in the driver’s seat regarding pricing, marketing, negotiating and all other decisions.
- You work on your own schedule: When you hire an agent, you’re usually one of several clients that they’re working with. As such, you may find yourself waiting for replies or shifting your schedule to accommodate them. You don’t have to worry about this when you sell independently.
Cons
- It’s hard work: Being in control can be a drawback, too. In traditional home sales, Realtors have many roles and responsibilities — all of which you’ll have to assume yourself as a FSBO seller, and some of which you may not have much expertise in.
- It may be tougher to find a buyer: In addition to being licensed experts, agents are also seasoned marketers. They can often tap into their professional networks to get the word out about your property and find qualified buyers in a more comprehensive way than you could.
- It might not save as much as you think: While you won’t pay a listing agent’s commission, you may still have to pay your buyer’s agent’s fee (depending on the terms of your deal), and you will have to pay closing costs and legal fees as well. Plus, according to data from the National Association of Realtors, FSBO properties tend to sell for lower prices than those sold by agents.
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