{"id":35406,"date":"2025-01-08T04:00:24","date_gmt":"2025-01-08T12:00:24","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=35406"},"modified":"2025-09-22T08:35:08","modified_gmt":"2025-09-22T15:35:08","slug":"how-to-sell-a-house-by-owner-in-alabama","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/how-to-sell-a-house-by-owner-in-alabama\/","title":{"rendered":"How to Sell a House By Owner in Alabama"},"content":{"rendered":"

Choosing to sell a home without a realtor<\/a> is a bold decision, but many homeowners opt for the \u201cFor Sale by Owner\u201d (or FSBO \u2014 pronounced fizz-bow)<\/a> route. Whether motivated by the desire to save on commission fees or maintain full control over the process, these sellers take on the challenge of navigating the complexities of the sale independently.<\/p>\n

FSBO isn\u2019t a popular selling approach. With millions of homes sold each year, a modest portion of sellers \u2014 only 6%<\/a> \u2014 were FSBO. Of those, 38% already knew the buyer of the home, according to data from the National Association of Realtors (NAR).<\/p>\n

In this guide to selling a house by owner in Alabama, we\u2019ll cover what can be the most difficult aspects of selling by owner in the Yellowhammer State, including the steps that might be harder than you think. We\u2019ll also provide a comprehensive overview of the full process to prep, market, and close on your home without the assistance of a real estate agent.<\/p>\n\n\n\n\n\n

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Unsure About Selling FSBO in Alabama?<\/h3>\n

If you don\u2019t have the time or expertise to list your home FSBO, partner with a trusted, top agent in your Alabama market. We analyze over 27 million transactions and thousands of reviews to find you the best agent for your unique situation.<\/p>\n \n

\n Get Started<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n

Note:<\/strong> Once you\u2019ve seen what\u2019s required, you can roll up your sleeves and get started with your FSBO sale. Or \u2014 in the event you\u2019d prefer to work with a real estate agent \u2014 HomeLight would be happy to introduce you to highly-rated professionals in your Alabama market<\/a> who can help you command top dollar and provide a low-stress selling experience.

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How does selling by owner (FSBO) work in Alabama?<\/h2>\n

Editor\u2019s note:<\/strong> This blog post is intended for educational purposes only. HomeLight recommends that you look into the real estate regulations for your area and consult a trusted advisor.<\/em><\/p>\n

FSBO is a method of selling your home without the involvement of a listing agent. In this scenario, the seller assumes the responsibilities that would normally fall to their agent, such as pricing the home<\/a>, marketing it to potential buyers<\/a>, arranging showings<\/a>, and negotiating<\/a> the deal.<\/p>\n

Agent commissions<\/h3>\n

For decades, the seller has been responsible for paying agent commissions<\/a>, which typically range from 5% to 6% of the home\u2019s sale price<\/a> in a traditional agent-assisted sale. This fee was split between the listing agent and the buyer\u2019s agent. Recently, however, agent commission rules<\/a> have changed following the historic NAR lawsuit settlement<\/a>.<\/p>\n

Under the new commission structure, sellers are no longer required to pay their buyer\u2019s agent\u2019s fee, as buyers are expected to negotiate directly with their agents. Thus, sellers working with an agent only have to cover their listing agent\u2019s fee, which is about 2.5% to 3% of the home\u2019s sale price, depending on negotiations.<\/p>\n

But while these new rules aim to reduce fees, some sellers still feel the need to cover the buyer\u2019s agent\u2019s fees to entice more buyers or expedite a sale. Thus, if you partner with a realtor, you may be looking at paying a commission of 3% (your listing agent\u2019s fee) to 6% (your listing agent\u2019s fee and your buyer\u2019s agent\u2019s fee) of the home\u2019s sale price.<\/p>\n

Commission savings<\/h3>\n

By selling FSBO, you can eliminate the cost of the agent commissions since you won\u2019t have a listing agent. If you decide to cover the buyer\u2019s agent\u2019s fee, you\u2019ll only pay around 2.5% to 3% of the home\u2019s sale price, still saving you a good chunk of money.<\/p>\n

Buyers\u2019 agents expect compensation for the work they do to bring a buyer to a sale, such as arranging showings and helping to tee up and qualify the buyer. Plus, when a seller isn\u2019t working with an agent, the buyer\u2019s agent may end up carrying more of the weight to get the deal to the finish line.<\/p>\n

Next: <\/strong>Consult our guide on who pays closing costs<\/a> when selling a house by owner for more details.<\/em><\/p>\n

A FSBO sale does not mean that a seller won\u2019t need any professional assistance. In Alabama, sellers are required to hire a real estate attorney<\/a>, and FSBO sales typically warrant legal and professional oversight of some kind to avoid an abundance of legal risks.<\/p>\n

Most people who sell by owner will need to hire an attorney to review and prepare key documents and make sure paperwork is filled out properly, such as the seller\u2019s disclosures<\/a>. We\u2019ll address what disclosures are required when selling a house in Alabama later in this post.

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Why sell a house by owner in Alabama?<\/h2>\n

The top reasons people cite for selling FSBO<\/a> include selling to a relative, friend, or neighbor (38%) and avoiding agent commission or fee (30%).<\/p>\n

To get a firsthand perspective on selling homes in Alabama, we spoke with Jessica Donaldson<\/a>, a top agent in Dothan, Alabama<\/a>, who completes 66% more sales than typical agents in the area.<\/p>\n

We also spoke with Clarence Graham<\/a> in Birmingham<\/a>, a top-producing agent who works with over 84% more single-family homes than the average Birmingham agent.<\/p>\n

Donaldson says saving money is the number one reason why FSBO sellers she encounters in Alabama attempt to sell the home themselves. \u201cThey don\u2019t want to have to pay the agent fee. They feel like that will cut into their bottom line,\u201d she explains.<\/p>\n

However, recent NAR data shows that FSBO homes sold for a median of $380,000<\/a> in 2023, signi\ufb01cantly lower than the median of agent-assisted homes, which was $435,000.<\/p>\n

Donaldson estimates that this disparity is even greater in Alabama, with FSBO homes selling for 10% to 15% below properties listed with an agent.<\/p>\n

As you can see, FSBO is a mixed bag. So, before we share our selling tips, let\u2019s lay out some pros and cons to help you decide if this is the route for you.

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Pros of selling a house by owner<\/h2>\n