Alabama real estate commission rates are around 5.52%, according to a survey conducted by FastExpert. With the national average real estate commission rate sitting at 5.57%, Alabama aligns closely with the rest of the country. By using this information (and the average home value in some of Alabama’s largest markets), you can better understand the income potential available to you as a real estate agent.
Ready to take control of your future? Keep reading to learn about a real estate agent’s salary structure, how average real estate commission rates in Alabama are calculated, and how you can maximize your earnings in this rewarding career.
Key Takeaways
- Average Commission Rate: The average real estate commission rate in Alabama is 5.52%.
- Average Home Value: As of late 2025, the average home value in Alabama is $231,050.
- Potential Earnings: Based on the average home value and commission rate, the total commission per transaction is approximately $12,754.
- Split Structure: Commissions are typically shared between buyer and seller agents and their respective brokerages.
How Real Estate Agent Commission Works in Alabama
You probably already know that most real estate agents work solely on commission, which is based on a percentage of the property’s sale price. This system has been in place since the 1950s and remains the primary way real estate agents are paid.
Typically, you will share your commission with your brokerage through either a fixed or graduated commission split. Regardless of your commission split or rate, the principle is simple: the more you sell, the more you earn. This unlimited income potential is one of the most compelling reasons to launch a career in real estate.
How is real estate commission in Alabama calculated?
Real estate agents agree to provide services to their clients for a set commission rate. Once the transaction is complete, the rate is applied to the final sale price to determine the gross commission. The buyer’s agent and seller’s agent typically share this commission, and their brokerages also receive a share of this income.
According to Zillow, the average home value in Alabama is currently $231,050. Given the average real estate commission rate in Alabama of 5.52%, real estate professionals will earn approximately $12,754 in transaction-related fees.receives upon sale completion
Who pays the real estate commission in Alabama?
The seller typically pays the real estate commission in Alabama. Usually, the fees are deducted from the proceeds the seller receives upon completion of the sale.
Does the real estate commission rate in Alabama fluctuate over time?
The real estate commission rate has remained relatively steady in the U.S. at around 6%. However, commission rates are always negotiable. Some agents may adjust their rates to secure business, and the rise of online real estate models has influenced the market slightly. Currently, average real estate commission rates in Alabama and nationwide generally hover between 5% and 6%.
Average Real Estate Commission Rate in Alabama
The average real estate commission rate in Alabama is 5.52%.
According to the Bureau of Labor Statistics, the average income of a real estate salesperson in Alabama is $58,840. However, the data gathered by this organization doesn’t account for real estate agents working part-time.
Average Alabama real estate commission rate by city
We know you want to visualize your potential success. To help you plan your career, we’ve done the math for you.
Below is the average home value in ten of Alabama’s major cities (based on Zillow data from November 2025). Using the 5.52% commission rate, here is how much total commission is generated by selling an average property in these markets.
Average Real Estate Commission for 10 Alabama Cities
| City | Average Home Value | 5.52% Real Estate Commission |
| Hoover, AL | $424,554 | $23,435 |
| Auburn, AL | $404,543 | $22,330 |
| Madison, AL | $371,933 | $20,530 |
| Huntsville, AL | $278,544 | $15,375 |
| Tuscaloosa, AL | $224,104 | $12,370 |
| Decatur, AL | $219,703 | $12,127 |
| Dothan, AL | $203,243 | $11,219 |
| Mobile, AL | $192,864 | $10,646 |
| Montgomery, AL | $146,127 | $8,066 |
| Birmingham, AL | $132,725 | $7,326 |
Source for Average Home Value: Zillow. December 2025
Remember, this 5.52% commission is typically split between the buyer’s and seller’s agents and their brokerages. As a real estate professional, you are also responsible for taxes on these earnings.
Average Commission by Property Type
While we have focused on residential real estate, you may choose to specialize in a different niche, such as commercial real estate.
Some commercial transactions use a standard 6% rate, while others use a graduated scale (e.g., 5% on the first $1M, 4% on the next $4M). Commercial agents might also negotiate flat fees. Because commercial deals often involve higher price points and complex negotiations, the income potential is significant. If you decide to pursue this path, seek a brokerage that specializes in this niche and take advantage of advanced training to build your expertise.
How Is the Commission Divided Between Agents?
It’s important to realize that the 5.52% Alabama real estate commission is usually shared. Here is an example of how the commission is typically divided among real estate professionals in Alabama, assuming a 50/50 split between agents and a 50/50 split between agents and their brokerages.
Example Split for an Average Alabama Home ($231,050)
| Item | Amount |
| Sale Price of home | $231,050 |
| Total commission paid to real estate professionals | $12,754 |
| Seller’s agent commission (based on a 50/50 split) | $3,188 |
| Seller’s agent’s brokerage commission | $3,188 |
| Buyer’s agent commission (based on a 50/50 split) | $3,188 |
| Buyer’s agent’s brokerage commission | $3,188 |
Note: This is a hypothetical scenario. Commission splits vary by brokerage and agent experience.
We hope these numbers give you a clear understanding of the income you can expect as a real estate agent in Alabama. Remember, there is a direct connection between your effort and your income. Your success depends on you!
Start Your Journey with Colibri Real Estate
Are you excited to become a real estate agent in Alabama? It’s a smart career move. Being a real estate professional is a rewarding profession that allows you to build your own business and control your financial future.
When you are ready to start your Alabama pre-licensing courses, turn to Colibri Real Estate. For over 25 years, Colibri Real Estate has been the trusted choice for aspiring and experienced real estate professionals seeking to achieve more in their careers.
Once licensed, you can rely on Colibri Real Estate for career guidance and continuing education that prepares you for your licensing exam—and your career.
Learn more about the Alabama pre-licensing process. Then, when you are ready, enroll in the 60-hour Colibri Real Estate licensing course for Alabama.
Disclaimer: This guide is for general informational purposes only, based on a September 2025 survey of Colibri Real Estate School alumni and publicly available industry sources. While Colibri Real Estate School strives for accuracy, we make no guarantees regarding the completeness, reliability, or applicability of the information. Earnings and outcomes vary widely based on factors like location, experience, and market conditions and should not be considered guarantees. This guide does not constitute professional advice. Users should consult additional sources for personalized guidance.
