Alabama Seller Closing Cost Calculator

Closing Cost Calculator for Alabama: State Averages

This free calculator can help home sellers in Alabama estimate their closing costs and net proceeds. To get a ballpark idea of the cost of selling a house in the Heart of Dixie, enter the information for each of the input fields above. You can see typical or state averages for most Alabama seller closing costs below.

Home Selling Price: $284,900

How does your home compare to the state’s median selling price of $284,900? To determine your listing price, you can:

1. Get a preliminary estimate with HomeLight’s free Home Value Estimator

2. Request a Comparative Market Analysis (CMA) from a top Alabama agent

3. Purchase a pre-listing home appraisal (typically $550-$600 in Alabama)

4. Visit this HomeLight map link to compare recently sold homes in Alabama

Mortgage Payoff Amount: $178,204

According to the credit experts at Experian, the average mortgage balance for Alabama homeowners is $178,204. To find your exact payoff amount, check your latest mortgage statement or contact your mortgage servicer.

Listing Agent Fee: $7,123–$8,547

A typical listing agent commission in Alabama is 2.5% to 3% of the home’s selling price. On a $284,900 house, your agent’s fee might range from $7,123–$8,547.

Buyer’s Agent Fee: $7,123–$8,547

In the past, sellers covered both the listing agent and the buyer’s agent fees. However, following a landmark court settlement by the National Association of Realtors, buyers are now expected to negotiate compensation directly with their own agents. If you’re offering to pay this fee to attract buyers, on a $284,900 median-priced Alabama home, you can expect to pay $7,123–$8,547.

Detailed Closing Costs: $3,988

Closing costs in Alabama average about 1.4% of the home’s sale price. On a median-priced home of $284,900, you might pay $3,988. Below are some of the typical types of closing costs you can expect:

• Home Preparations: Curb appeal improvements such as cleaning, landscaping, and professional home staging.
• Renovations/Repairs: Fixing or updating your Alabama home to meet buyer expectations or inspection requests.
• Title Service Fees: Title company work required to verify ownership and help manage the legal transfer of the property.
• Owner’s Title Insurance: A one-time insurance premium typically paid by the seller in Alabama to protect the buyer from title issues or ownership disputes.
• Transfer Taxes: While negotiable, it’s customary for the buyer to cover the state transfer tax, called a recordation tax. (See more below.)
• Recording Fees: Fees paid to the local government to officially record the change in homeownership.
• Buyer Incentives: Credits or concessions you might offer buyers, such as paying the buyer’s agent commission or offering a rate buydown.
• Other Costs: Miscellaneous expenses not covered in other categories, such as attorney fees and HOA transfers. (An attorney is required to sell a house in Alabama.)
• Moving Expenses: While not technically considered a closing cost, you might want to include this expense in your budget, which can range from $883 to $7,000.

In Alabama, a recordation tax, also known as a real estate transfer tax, is applied when a property deed is recorded. The fee rate is $0.50 for every $500 of the property’s value. Two-thirds of the revenue goes to the State General Fund, and one-third goes to the county where the property is located. Responsibility for paying this tax typically falls on the buyer in Alabama, but there is no legal requirement designating which party must pay.

More Helpful Seller Tools From HomeLight

Here are some additional tools you may find helpful as you plan your Alabama home sale:

• Listing Agent Match platform
• Home Value Estimator
• Best Time to Sell Calculator
• Agent Commissions Calculator
• Net Proceeds Calculator

Want to avoid closing costs and sell fast? Get a cash offer today.

With HomeLight’s Simple Sale platform, you can receive a no-obligation, all-cash offer in 24 hours and close in as few as 10 days. Answer a few questions about your Alabama home to get started. Along with your offer, you’ll also see an estimate of what a top Alabama agent might be able to get for your home. Get both options with one tool.

As you look ahead to your next home purchase, here are some helpful buyer tools:

• Home Affordability Calculator
• Down Payment Calculator
• Closing Costs Calculator
• Buyer’s Agent Match platform