Buyer’s Guide - Alabama

  • Alabama is a “Caveat Emptor” (buyer beware) state. Sellers are not generally required to disclose property defects unless:
    • The defect affects health/safety.
    • The buyer asks directly about a defect.
    • There's a fiduciary relationship (e.g., between family members or agents).
  • Still, it's wise to be transparent. Disclosures help avoid lawsuits.
  • A licensed Alabama real estate agent can help with:
    • Pricing the home accurately.
    • Marketing and listing on MLS.
    • Handling offers, negotiations, and paperwork.
  • Agent commission is typically 5–6% of the sale price, split between buyer and seller agents.
  • Use Comparative Market Analysis (CMA).
  • Consider a professional home appraisal (~$300–$500).
  • Monitor market trends in your Alabama city/town.
  • Deep clean and declutter.
  • Make minor repairs or cosmetic upgrades.
  • Consider staging for better presentation.
  • Professional photography helps with online listings.
  • List through an agent or FSBO (For Sale By Owner).
  • Use platforms like:
    • Zillow
    • Realtor.com
    • MLS (through a flat-fee MLS service if FSBO)
  • Include quality photos, a compelling description, and accurate details.
  • Offers will typically include:
    • Price
    • Financing terms
    • Contingencies (inspection, financing, appraisal)
    • Closing timeline
  • Negotiate via agent or directly if FSBO.
  • Once you accept, the buyer deposits earnest money.
  • Most offers will include a home inspection contingency.
  • Buyers may ask for repairs or a price adjustment.
  • If the buyer is using a loan, the lender will order an appraisal.
  • In Alabama, attorneys handle closings (not title companies).
  • The attorney:
    • Conducts a title search
    • Drafts the deed and closing documents
    • Manages funds through escrow
  • Final walkthrough by the buyer (usually 24–48 hours before closing).
  • Sign all closing documents.
  • Pay closing costs:
    • Attorney fees
    • Agent commissions
    • Any agreed-upon repairs or credits
  • Cancel utilities and insurance.
  • Keep a copy of closing documents for tax purposes.
  • Report capital gains on your tax return if applicable.