The market you are selling into
In August 2026 the median Birmingham-area sale price was $329,950, up 6.4% from a year earlier. Listings fell 15.4% to 4,455, or 3.8 months of supply, and homes went under contract in 37 days on average. Fewer listings help sellers, but higher borrowing costs limit what buyers can pay. Details in our Birmingham market report.
What you have to disclose
Alabama follows caveat emptor, "let the buyer beware," for used homes, so a seller generally has no duty to volunteer defects. The Supreme Court of Alabama recognizes three exceptions. A seller must disclose known defects when:
- there is a fiduciary relationship between buyer and seller;
- the seller knows of a material defect that affects health or safety and is not known to or readily observable by the buyer; or
- the buyer asks directly about a material defect or condition.
The Court has also held that a buyer who signs an "as is" contract and does not inspect cannot rely on those exceptions. None of this permits misstating a known problem. When in doubt, disclose, and ask your attorney.
Know your net before you accept
Alabama licensees must give you an estimated closing statement, sometimes called a net sheet, any time you make or receive an offer or counteroffer. It is a best estimate, not an exact figure. We prepare one at listing too, so the first offer is not the first time you see your number.
The deed tax
Recording a deed in Alabama carries a tax of $0.50 per $500 of value, on the value above any mortgage on which mortgage tax was paid. On an all-cash sale at $329,950, that is $330. Your contract decides who pays it.
Pricing with an appraiser's eye
Most pricing mistakes come from the wrong comparable sales. As an MAI appraiser and qualifying broker, Christopher A. Baker prices your home the way the buyer's appraiser will look at it, so the contract price holds up at appraisal. Start with what your home is worth today.
Sources
- Alabama Center for Real Estate, Birmingham Residential Report (August 2026 data)
- Nesbitt v. Frederick, Supreme Court of Alabama (2006)
- Kidd v. Benson, Supreme Court of Alabama (2020)
- Alabama Association of REALTORS, AREC Holds September 2025 Meeting (estimated closing statements, Rule 790-X-3-.04)
- Alabama Department of Revenue, Recordation Tax (Code of Ala. 40-22-1 and 40-22-2)
This page is general information, not legal or tax advice. Program terms, fees and rules change; confirm current terms with the source linked above, your lender and your attorney. Updated October 30, 2026.