How much does it cost to sell a house in Florence, Alabama?
Selling a home in Florence or the greater Shoals area typically costs 7–9% of your sale price once you add up agent commission, closing attorney and title fees, Alabama's deed tax, prorated property taxes, a termite letter, and any buyer concessions. On a $325,000 home, that's roughly $23,000–$29,000 before your mortgage payoff. Commission is the largest single line item and is fully negotiable; the rest are mostly fixed Alabama closing customs your closing attorney will itemize on your settlement statement.
By Matt Golley & Sami Lamb, Fernhill Realty | July 15, 2026
If you search "cost to sell a house," you'll get national calculators built on averages from markets that look nothing like the Shoals. Alabama does closings differently — we use closing attorneys instead of escrow companies, we charge a deed tax instead of a big transfer tax, and our caveat emptor rules change what you do (and don't) have to hand a buyer.
Here's the full breakdown I walk every Florence, Killen, and Muscle Shoals seller through before we list — so the number on your closing statement is never a surprise.
The big one: real estate commission
Commission is the largest cost of selling, and it's fully negotiable — there's no set rate in Alabama, and since the 2024 industry rule changes, buyer-agent compensation is a decision you make deliberately rather than a default.
Here's the honest picture for our market in 2026:
Total commission typically runs 5–6% of the sale price when a seller chooses to compensate both the listing side and the buyer's side.
Almost all Shoals sellers still offer buyer-agent compensation because it widens the buyer pool — and in a slower, balanced market where homes are taking anywhere from 32 to 59 days to sell, you want every qualified buyer through the door.
On a $325,000 home, 5.5% total commission is $17,875.
What you're buying with that fee matters more than the fee itself: pricing strategy, professional photography, marketing reach, negotiation, and someone managing the inspection-to-closing gauntlet. If you're interviewing agents, my guide on questions to ask a real estate agent before hiring one works just as well for sellers as buyers.
What you'll pay at the closing table
Alabama is an attorney-close state. Instead of an escrow company, a closing attorney prepares the deed, handles the money, and records the sale. Here's what shows up on the seller's side of the settlement statement in Lauderdale and Colbert County:
Closing attorney and settlement fees — typically $600–$1,200, sometimes split with the buyer depending on the contract.
Owner's title insurance — in Alabama, it's customary for the seller to pay for the buyer's owner's title policy (the buyer pays for the lender's policy). Expect roughly $800–$1,400 at Shoals price points. Money-saving tip: if you bought or refinanced within the last ten years, ask your closing attorney about the reissue rate — providing your prior title policy can cut this premium meaningfully.
Deed tax — Alabama's version of a transfer tax is small: $0.50 per $500 of value ($1 per $1,000). That's just $325 on a $325,000 sale. Who pays it is set by the contract, so make sure your agent addresses it in the offer.
Prorated property taxes — Alabama property taxes are paid in arrears on October 1, so you'll credit the buyer for the months you owned the home. With Lauderdale and Colbert County's low effective rates, this is usually a few hundred dollars to around $1,000 — far less than sellers moving here from other states expect.
Recording and payoff fees — usually $100–$300, plus whatever your lender charges to release your mortgage.
Costs before you ever list — and after the inspection
A few Alabama-specific items catch sellers off guard:
The termite letter (WIIR). Most buyers' lenders — and virtually all VA loans — require an Alabama Wood Infestation Inspection Report. It typically costs $75–$150. If your home is under a termite bond, your pest company can often issue it quickly; if it isn't, get ahead of this before the buyer's lender asks. Any treatment or repair findings become a negotiation point.
No disclosure form — but that's not a free pass. Alabama is a caveat emptor ("buyer beware") state, so sellers here rarely fill out the disclosure packets common elsewhere. You still can't conceal known problems or misrepresent the property, and health/safety issues have their own rules — your closing attorney and your agent will keep you on the right side of that line. Practically, it means Shoals buyers lean hard on inspections, so expect a thorough one.
Repairs and buyer concessions. In 2026's balanced Shoals market — prices up about 4% year over year, with new construction adding competition — buyers have room to negotiate again. Budget 1–2% of the sale price for post-inspection repairs or closing cost credits. Homes priced right and prepped well give up less here; overpriced homes that sit past that 53-day mark give up more.
Prep, staging, and photos. Deep cleaning, paint touch-ups, and landscaping typically run a few hundred to a couple thousand dollars. Professional photography and marketing should be included in your listing agreement — if an agent asks you to pay separately for photos, keep interviewing.
A real example: netting out a $325,000 Florence sale
Here's what the math looks like on a typical mid-priced Shoals home:
Estimate
Commission (5.5%, both sides) $17,875
Closing attorney / settlement fees $900
Owner's title policy (seller-paid, AL custom) $1,100
Deed tax ($1 per $1,000) $325
Prorated property taxes (estimate) $600
Termite letter (WIR ) $100
Repairs / concessions (1.5%) $4,875
Recording & payoff fees $250
Total cost of sale (~8%)≈ $26,025
Two things move that number more than anything else: your commission structure and how well the home is priced and prepped. And right now, the demand side is working in buyer' favor but that should shift soon — between Project Jolt's $300M+ transformer plant bringing 1,100 jobs to Muscle Shoals and the $2.4B Hadrian Factory 4 defense plant in Cherokee, thousands of well-paid workers will be house-hunting across Lauderdale and Colbert County over the next few years. Sellers who position correctly now are meeting that wave early.
If you're selling and buying your next home locally, timing both sides matters — my breakdown of whether now is a good time to buy in Florence covers the other half of that equation, and if you're weighing a move across the river, see Florence vs. Muscle Shoals: which community is right for you.
Frequently Asked Questions
Who pays closing costs in Alabama — buyer or seller?
Both pay their own set. Sellers typically cover the commission, the owner's title policy, their share of the closing attorney fee, prorated taxes, and the deed tax if the contract assigns it to them. Buyers typically pay lender fees, the lender's title policy, appraisal, and inspections. Everything is negotiable in the contract.
Do I have to fill out a seller disclosure form in Alabama?
Usually no. Alabama is a caveat emptor state, and sellers here rarely complete disclosure forms. You still cannot actively hide known defects or lie when asked directly, and certain health and safety conditions must be disclosed — ask your agent or closing attorney about your specific situation.
Who pays for the termite letter in the Shoals?
It's negotiable, but the seller often provides the Alabama Wood Infestation Inspection Report (WIIR), especially on VA loans where the buyer is prohibited from paying for it in most cases. It typically costs $75–$150.
How much is the deed tax in Lauderdale and Colbert County?
Alabama's deed recording tax is $0.50 per $500 of the sale price — $1 per $1,000. On a $400,000 home, that's $400. It's one of the lowest transfer costs in the country.
Can I lower my title insurance cost when selling?
Often, yes. If you purchased or refinanced within roughly the last ten years, give your prior owner's title policy to the closing attorney and ask for the reissue rate — it can reduce the premium on the new policy noticeably.
The bottom line: plan on 7–9% of your sale price in total selling costs, know that commission is the lever you control most, and don't let Alabama's quirks — the closing attorney, the deed tax, the termite letter, caveat emptor — surprise you at the table.
Every house nets differently. If you want your exact number, I'll run a personalized seller net sheet for your address — your likely sale price in today's Shoals market and a line-by-line estimate of what you'd walk away with. No cost, no obligation. Reach out through fernhillal.com and I'll have it back to you quickly.
About Matt Golley & Sami Lamb
Matt Golley leads The Matt Golley Team at Fernhill Realty in Florence, Alabama, helping buyers and sellers across the Shoals — from Downtown Florence's historic districts to the Wilson Lake waterfront. Sami Lamb is the other half of the Matt Golley Team, and specializes in relocation clients and comes with a strong background as a paralegal, making contracts a second language for her. The team combines deep local market knowledge of Lauderdale and Colbert County with straight answers about what it actually takes to buy or sell here. Find more guides at fernhillal.com/finding-home.