Alabama process · seller view

The Alabama Home-Selling Process: Your Step-by-Step Checklist

Selling a home in Alabama means choosing a listing agent, pricing your home, handling offers under post-2024 commission rules, and closing under the state's caveat emptor doctrine.

Reading as seller. Switch to buyer

Phase 1 of 7 · typically 2-6 weeks

Pre-Listing

Pick your listing agent, decide on price and strategy, and get your home ready to show. This is also when you sign the paperwork that lets your agent represent you.

Interview a few listing agents
You4-8 weeks before you want to list
Talk with at least two or three Alabama real estate agents before you pick one. Ask about their recent sales in your neighborhood, their marketing plan, and how they will communicate with you. You are hiring this person to handle the biggest sale of your year, so make sure you trust them.
Cost: $0
Review and sign the RECAD agency disclosure
Your agentAt your first real meeting with the agent
Before your agent gives you any real advice about selling, Alabama law requires them to hand you a RECAD form. This form explains the types of agency relationships available in Alabama, like seller's agent, transaction broker, and limited consensual dual agency. Read it, ask questions, and sign it so your agent can move forward.
You'll need
- RECAD form
Cost: $0
Sign the listing agreement
Your agentBefore your home goes on the market
The listing agreement is the contract that hires your agent to sell your home. In Alabama, this is usually the Alabama Association of Realtors listing form. It spells out the listing price, how long the agent has to sell, the commission you will pay your own brokerage, and what services they will provide. Do not sign until you understand every line.
You'll need
- Listing agreement
- Photo ID
Cost: $0
Price your home using a market analysis
Your agent1-2 weeks before listing
Your agent will pull recent sales of similar homes nearby to suggest a list price. This is called a comparative market analysis. Price too high and the home sits; price too low and you leave money on the table. Look at the comps with your agent and pick a number you can defend to a buyer.
Cost: $0
Decide whether to offer buyer-agent compensation
Your agentBefore going live on the MLS
Since the NAR settlement took effect on August 17, 2024, sellers in Alabama no longer have to advertise buyer-agent pay through the MLS. Offering some compensation can still attract more buyers because buyers now sign their own pay agreements with their agents. Talk with your agent about what is normal in your price range and decide before listing.
Cost: varies
Prep your home to show well
You2-4 weeks before listing
Buyers form an opinion in the first 30 seconds. Declutter, deep clean, fix small things like leaky faucets and broken trim, touch up paint, and boost curb appeal with a tidy yard. Stage the main rooms so buyers can picture themselves living there. Your agent can recommend a stager if you want professional help.
Cost: varies
Consider getting a pre-listing inspection
InspectorBefore listing the home
Alabama follows caveat emptor, which means buyers are expected to do their own homework on the property. Even so, paying for your own inspection up front lets you find problems before a buyer's inspector does. You can fix issues on your own schedule or price the home to reflect them, which avoids surprise renegotiations later.
Cost: $400-600 typical

Phase 2 of 7 · typically 1-4 weeks after listing

Offer

Offers start coming in. You review terms, negotiate, and sign a purchase agreement that locks in the deal.

Review each incoming offer with your agent
Your agentWithin 24-48 hours of receiving each offer
Price is only one part of an offer. Look at the financing type, the size of the earnest money deposit, the closing timeline, contingencies, and any seller concessions the buyer is asking for. A slightly lower cash offer may close faster and with less drama than a high financed offer.
You'll need
- Offer documents
Cost: $0
Negotiate the deal
Your agent1-5 days of back-and-forth
You can accept, reject, or counter any offer. Your agent will deliver counteroffers and feedback between you and the buyer's side. Decide ahead of time the lowest price and the most concessions you are willing to accept, so you do not make emotional calls under pressure.
Cost: $0
Handle buyer-agent pay in the purchase contract
Your agentWhile drafting the final contract
After the NAR settlement, the buyer's agent's compensation is set in the buyer's own brokerage agreement. If you agree to cover some or all of it, that amount is now spelled out in the purchase contract itself as a concession or direct broker payment. Confirm the dollar figure and how it will be paid at closing before you sign.
Cost: varies
Sign the purchase agreement
Your agentSame day you accept the final offer
Once you and the buyer agree on terms, you sign the Alabama Association of Realtors residential purchase contract and any addenda. This is the binding contract for the sale. Make sure all blanks are filled in and dates are correct before you sign anything.
You'll need
- AAR purchase contract
- Photo ID
Cost: $0
Sign the lead-based paint disclosure if the home was built before 1978
YouAt contract signing
Federal law requires sellers of homes built before 1978 to disclose any known lead-based paint or hazards and to give the buyer the EPA pamphlet on lead. You must also attach a lead-based paint addendum to the purchase contract. This is required even though Alabama is a caveat emptor state — federal law overrides state law here.
You'll need
- Lead-based paint disclosure form
- EPA Protect Your Family pamphlet
Cost: $0
Confirm the buyer's earnest money is deposited
Your agentWithin 3-5 business days of contract acceptance
Once the contract is signed, the buyer delivers earnest money to a brokerage trust account. Under Alabama Real Estate Commission rules, the broker must deposit those funds within three business days of receiving them. Ask your agent to confirm the deposit so you know the buyer has skin in the game.
Cost: $0

Phase 3 of 7 · typically 1-2 weeks

Under Contract

The home is off the market and the clock starts ticking on the buyer's contingencies. You provide the documents and access the buyer needs to do their due diligence.

Open escrow and order title work
Escrow / titleWithin 1-2 days of contract acceptance
Your agent or the closing attorney opens the file with the title company so they can begin checking that you actually own the property and that there are no surprise liens or judgments against it. Make sure the contract goes over the same day it is fully signed so the clock starts on time.
You'll need
- Signed purchase agreement
Cost: $0
Disclose every known material problem with the property
YouAs soon as the home goes under contract
Alabama does not require sellers to fill out a property condition form, but if you or your agent know about something serious — like past flooding, foundation movement, a former meth lab on the property, or an underground storage tank — that information must be shared with the buyer. Hiding a known defect can lead to a lawsuit after closing and to discipline against your agent.
Cost: $0
Deliver the HOA or condo resale certificate if your property has one
YouWithin the contingency period in the contract
If your home is in a condominium project created after January 1, 1991, Alabama law requires you to give the buyer a resale certificate. It lists current monthly dues, any special assessments, known deferred maintenance, and pending litigation against the association. Request it from your HOA or management company as soon as you go under contract, because it can take a week or more to get back.
You'll need
- Resale certificate
- HOA financials
Cost: $100-300 typical
Coordinate access for inspections and appraisal
Your agentFirst 7-14 days under contract
The buyer will need to schedule a general inspection, possibly specialty inspections like termite or roof, and the lender's appraiser. Work with your agent to arrange times that are not disruptive. Keep the home clean and easy to walk through, since the inspector and appraiser will look at every room.
Cost: $0
Track every contingency deadline
Your agentThroughout the contract period
The purchase contract has firm deadlines for the buyer's inspection objections, financing commitment, and appraisal. Each one that passes without action locks the buyer in tighter. Keep a simple list of dates and ask your agent for an update whenever one is approaching, so a missed deadline does not catch you off guard.
Cost: $0

Phase 4 of 7 · typically 1-2 weeks

Inspection

The buyer inspects the home, sends a list of concerns, and you negotiate repairs, credits, or no change at all.

Let the buyer's inspector into the home
YouWithin the buyer's inspection window in the contract
On inspection day, plan to be away for two to four hours so the buyer and their inspector can walk the property freely. Make sure every area is accessible — attic hatch unlocked, crawl space clear, breaker box reachable, and pets put away. A clean and accessible home leaves a better impression and reduces silly findings.
Cost: $0
Review the inspection report and the buyer's repair request
Your agent1-3 days after the inspection
The buyer will usually send a written list of items they want repaired, credited, or replaced. Read the inspection report along with the request so you understand which items are real safety issues, which are cosmetic, and which are the buyer trying to renegotiate price. Your agent can help you separate must-fix from nice-to-have.
You'll need
- Inspection report
- Buyer's repair request
Cost: $0
Respond with repairs, a credit, or a polite no
Your agentWithin the response window in the contract
You generally have three options: agree to make the repairs before closing, offer a closing credit so the buyer can do the work themselves, or refuse and let the buyer decide whether to walk away or move forward. Cash credits are often cleaner than DIY repairs because they avoid arguments over whether the work was done right.
Cost: varies
Complete any repairs you agreed to do
YouBefore the final walkthrough
If you said yes to specific repairs, hire licensed contractors when the work requires it and save every receipt and invoice. Buyers and their agents often request proof of who did the work and what was done. Doing repairs cheaply or without a real pro can cause problems at the final walkthrough.
You'll need
- Contractor invoices
- Permits if needed
Cost: varies
Provide proof that the repairs are done
Your agentA few days before closing
Send copies of the paid invoices and any permits or warranties through your agent to the buyer. This documents that you fulfilled your side of the repair agreement and gives the buyer confidence going into the final walkthrough. Keep originals in your closing folder.
You'll need
- Paid contractor invoices
Cost: $0

Phase 5 of 7 · typically 2-4 weeks

Loan and Appraisal

If the buyer is financing, their lender orders an appraisal and finalizes their loan. Your job is to give access and not break the deal by changing the property's condition.

Give the appraiser access to the home
Your agentWithin the first 2 weeks after the inspection
The buyer's lender hires an appraiser to confirm that the home is worth at least the contract price. Make the home easy to enter, well-lit, and clean. Leave a printed list of recent improvements with dates and costs on the counter — appraisers often use that information.
You'll need
- List of recent improvements
Cost: $0
Decide how to respond if the appraisal comes in low
Your agentWithin a few days of getting the appraisal report
If the appraisal is below the contract price, the buyer's loan will only cover the appraised value. You have a few options: lower the price to match, meet the buyer in the middle, ask them to bring extra cash, or supply better comparable sales to challenge the appraisal. Talk through the math with your agent before you respond.
Cost: $0
Do not change the property's condition during financing
YouFrom appraisal through closing day
Once the appraiser has been through, avoid making any structural or cosmetic changes the lender does not know about. Pulling out a built-in, painting in an unusual color, or starting a renovation can trigger a re-appraisal and delay closing. Wait until after you have moved out.
Cost: $0
Confirm the buyer has final loan approval
Your agent5-7 days before closing
Ask your agent to confirm in writing that the buyer's financing contingency has been removed and that the lender has issued a clear-to-close. Until you have this, the deal can still fall through over financing. Do not start scheduling movers or canceling utilities before you see it.
You'll need
- Clear-to-close confirmation
Cost: $0

Phase 6 of 7 · typically 1-2 weeks

Pre-Closing

Last week before closing. You line up the move, pay off the old mortgage, and get the paperwork ready so closing day is calm.

Order your mortgage payoff statement
Escrow / titleAbout 7-10 days before closing
Call your current lender or ask the closing attorney to request a payoff letter. This is the exact dollar amount needed to pay off your loan as of the closing date, including any interest and fees. The number changes by the day, so it is usually requested about a week before closing.
You'll need
- Loan account number
Cost: $0
Resolve any title clouds the closer flags
AttorneyAs soon as the title company flags an issue
The title company may discover old liens, judgments, unpaid taxes, or boundary issues that need to be cleared before the deed can transfer. Respond quickly to any request from the closing attorney for documents or signatures. Unresolved title issues are the most common reason closings get delayed.
You'll need
- Lien releases
- Court documents if applicable
Cost: varies
Schedule movers and utility transfers
You7-10 days before closing
Book a moving company at least a week out — good ones fill up fast. Call your power, water, gas, internet, and trash providers and tell them to stop service in your name as of the day after closing. Forward your mail through the USPS website so nothing gets lost.
Cost: varies
Cancel or transfer your homeowner's insurance
YouThe week of closing
Do not cancel until you confirm the closing actually happened — if you cancel too early and the deal slips a day, you are uninsured. Set the cancellation date for the day after closing, or transfer the policy to your next home. Ask the company for any prepaid premium refund.
You'll need
- Policy number
Cost: $0
Gather every key, garage remote, mailbox key, and appliance manual
You2-3 days before closing
Buyers expect to receive everything that operates the house. Walk through and collect spare house keys, garage door openers, gate fobs, pool keys, mailbox keys, and any owner's manuals or warranties for appliances staying with the home. Put them in one labeled bag for closing day.
Cost: $0
Review the closing disclosure or settlement statement
Escrow / title1-3 days before closing
A day or two before closing, the closing attorney or title company will send a statement that shows your sale price, your mortgage payoff, all closing costs, and your net proceeds. Read every line and ask about anything that does not match what you expected. Math errors do happen and are easier to fix before signing than after.
You'll need
- Settlement statement
Cost: $0
Leave the home in walkthrough-ready condition
YouDay before closing
The buyer usually does a final walkthrough within 24 hours of closing. The home should be empty of your stuff, broom-clean, with all agreed-on items still in place. Things like fixtures, curtain rods, and built-ins that came with the contract must stay; personal items must go. Take photos of every room when you leave for proof of condition.
Cost: varies

Phase 7 of 7 · typically 1 day

Closing

Sign the final papers, the mortgage gets paid off, money moves, and the buyer becomes the new owner.

Attend closing in person or sign remotely
Escrow / titleOn the closing date
Alabama does not require an attorney to handle a residential closing, but many closings are run by either a real estate attorney or a title company. Bring a government-issued photo ID and any documents the closer asked for. If you cannot be there, ask in advance about mail-away or remote online notarization.
You'll need
- Government-issued photo ID
- Wire instructions for proceeds
Cost: $0
Sign the deed and other transfer documents
Escrow / titleAt the closing table
You will sign a deed transferring ownership to the buyer, an affidavit of title, and other forms confirming who you are and what you are selling. The closer will explain each document. Do not rush — read what you are signing and ask questions until you understand each piece.
You'll need
- Deed
- Affidavit of title
Cost: $0
Pay the Alabama deed transfer tax
Escrow / titleAt closing
Alabama charges a deed transfer tax of fifty cents per five hundred dollars of the sale price, which works out to about one dollar per thousand dollars sold. It is one of the lowest transfer taxes in the country. The cost is normally pulled out of your sale proceeds at closing, so you do not need to bring cash for it.
Cost: $1 per $1,000 of sale price
Pay off your existing mortgage from sale proceeds
Escrow / titleSame day as closing
The closer uses part of your sale proceeds to wire the payoff amount to your old lender. This officially clears the loan and the lien against your house. Your lender then files a release with the county so the public record shows the mortgage is gone, which can take a few weeks.
You'll need
- Payoff statement
Cost: varies
Hand over keys and access items
Your agentAt closing or as the contract requires
Once the deed is signed and funds are confirmed, give the labeled bag of keys, garage remotes, fobs, and manuals to the closer or directly to the buyer's agent. Possession in Alabama is usually at funding and recording, unless the contract specifies a different date. Confirm with your agent before you let the new owner in.
Cost: $0
Receive your net proceeds
Escrow / titleClosing day or the next business day
After your mortgage, transfer tax, agent commission, and other closing costs come out of the sale price, the remainder is wired to your bank account or handed to you as a check. Wire transfers are safer — confirm wire instructions verbally with the closer by phone, never just by email, because wire fraud is common in real estate.
You'll need
- Bank account and routing number
Cost: $0

Sources

Last updated May 15, 2026