What is the Real Estate Agent Commission in Alabama? (2022)

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|10 min read

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According to a poll of 580 agents on FastExpert, the average Alabama real estate agent commission rate is 5.52% across the state, which is similar to the national average of 5.57%.

Of course, this percentage will vary depending on the size and location of the property. In addition, the agent’s experience and expertise will impact the commission rate.

In this guide, we’re going to break down the insights FastExpert’s Alabama real estate agents have to offer on commission rates so that you can make the best decision for your home sale.

Key Takeaways

In Alabama, Realtors, agents, and brokers across the state:

  • 100% are Realtors with an average career span of 14.3 years
  • Sell an average of 38 homes per year
  • Calculated a list-to-sale ratio of 98.7%, resulting in homes selling for an average of 1.3% below the initial asking price
  • Earned an average of $234,000 a year

Are Commissions Negotiable?

In some cases, commissions may be negotiable. However, remember that agents are not required to negotiate their fees. Here’s what the Realtors in Alabama we surveyed said about negotiating lower commission rates with home sellers:

77% of Realtors in Alabama we surveyed said they are open to negotiating lower commission rates, while 23% said no.

However, some of those who are hesitant to negotiate their commission rates did offer flexibility in the form of flat fee services, averaging $2,000 for their services. For those who reduced their services when taking a lower commission, the most commonly omitted services were:

  • Paid Facebook Advertising Campaigns
  • Professional Photography/Drones
  • Other marketing campaigns

Just remember that it’s always worth asking if there’s room to negotiate. However, don’t be surprised if the answer is no. Realtors’ success hinges on their ability to successfully market and sell a home, so they’ll want to be sure they’re being compensated fairly for their services.

What Services Are Included in the Average Alabama Real Estate Commission?

The average Alabama real estate commission includes both the buyer’s agent commission and the seller’s agent commission, which are typically split 50/50 between the two agents. Here’s a breakdown of the services that are typically included in an agent’s commission:

  • Listing the home on the MLS
  • Holding open houses
  • Advertising the property
  • Negotiating with buyers
  • Drawing up contracts
  • Coordinating with inspectors, appraisers, and loan officers
  • Managing the closing process

Of course, the services included in an agent’s commission will vary depending on their experience and the type of property being sold. To get a better sense of the type of work real estate agents do, take a look at our article “50+ Steps Realtors Take to Sell Your Home.” It will help you better understand the value of the expertise Realtors can bring to the home selling process.

What Factors Affect Alabama Real Estate Agent Commission Rates?

There are a number of factors that can affect Alabama real estate commission rates. Here are a few of the most common:

The Location of the Property

According to the survey, Alabama Realtors who responded operate in the following areas:

38.5% of Realtors are in the Mobile/Baldwin area, 15.4% in the Auburn/Opelika area, followed by 7.7% each in Cullman, Anniston, Gardendale/Trussville, Wedoww, Tuscaloosa, and Birmingham.

In Mobile/Baldwin, Realtors averaged 30 home sales per year, whereas Realtors in Auburn/Opelika averaged 65 sales per year, despite having a lower population. This difference in sales volume is likely due to the fact that Auburn/Opelika is home to two major universities, which results in a higher demand for housing.

The Size of the Property

Larger properties tend to sell for higher commissions because they typically take more time and effort to sell. In Alabama, the average commission rate for a home under $100,000 is 3.6%. For a home between $100,000 and $250,000, the average commission rate is 3.5%. And for a home over $250,000, the average commission rate is 3.8%.

The Type of Property

The type of property can also affect the commission rate. In Alabama, the average commission rate for a condo is 3.7%, while the average commission rate for a house is 3.6%.

The Market Conditions

In a hot market, sellers are often willing to pay higher commissions because they know their home will sell quickly. In a slow market, sellers may be more likely to negotiate commission rates because they know it may take longer to find a buyer.

The Agent’s Experience and Expertise

More experienced agents typically charge higher commission rates because they have a proven track record of successful sales. In Alabama, the average commission rate for an agent with 1-5 years of experience is 2.8%. For an agent with 6-10 years of experience, the average commission rate is 3.25%.

And for an agent with more than 10 years of experience, the average commission rate is 4.5%. Oftentimes these agents bring with them not only years of sales experience, but also additional education and knowledge.

The Agent’s Marketing Plan

The agent’s marketing plan can also affect the commission rate. If an agent has a well-defined marketing plan that includes online services and offline marketing tactics, they may charge a higher commission rate.

How Do Alabama’s Real Estate Commission Rates Compare to the National Average?

According to our survey of 580 agents on FastExpert, the national average commission rate is 5.52%. That means that Alabama’s average real estate commission rate is slightly above the national average at 5.57%.

Check Out: Real Estate Agent Commissions by State

Alabama Real Estate Disclosure Laws

Alabama law and the Real Estate Consumers Agency and Disclosure Act (RECAD) require certain things must be disclosed to the consumer before any agreement is reached.

Mandatory Listing Agent Disclosures

Other laws that pertain to listing agent commissions in Alabama include, but are not limited to, the following:

  • If a salesperson is selling their own property, they must disclose in writing that they are a licensed real estate salesperson.
  • Sellers and/or their listing agents must inform potential buyers of defects that can affect the health and safety of the occupants.
  • Listing agents must disclose any fiduciary relationships they have with parties that may be considered as having a conflict of interest.
  • If a buyer asks a specific question about any topic, the listing agent is required to answer that question honestly.
  • Salespersons must also disclose if they are acting as dual agents, meaning they plan to represent both the buyer and the seller in a transaction.

All of these laws are designed to protect consumers and ensure that they are getting the best possible service from real estate agents and Realtors.

Final Thoughts

If you’re considering selling your home in Alabama, contact a FastExpert agent in Alabama today. We can help you find the right real estate agent for your needs and get your home sold quickly and for the best possible price.

Real Estate Experts

FastExpert is a real estate agent directory that ranks agents by location according to client ratings and past home sales history. Our goal is to give you all the information you need to choose the right real estate agent for your needs. Users can search by specific traits that are important to them as well as see specific addresses of homes agents have sold in the past.

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