Sell your house for cash in Alabama

How to sell a house for cash in Alabama, step by step

1. Get your numbers first. Call your lender for a payoff statement and check your county tax bill. Run a quick estimate with our cash offer calculator so you know what a fair offer looks like.
2. Request several offers. One offer tells you nothing. Get at least two, from local investors, iBuyers that serve your area, or Cash Offer Desk where we buy, and check each one with the calculator.
3. Compare more than price. Look at the closing date, who pays closing costs and the transfer tax, the inspection period, earnest money, and whether the buyer will assign the contract.
4. Close with a professional. Closings are handled by title companies or real estate attorneys. Deeds are commonly prepared by an attorney.
5. Get paid at closing. Your mortgage and any liens are paid from the sale proceeds, and the rest is wired to you or paid by check.

Wholesalers in Alabama

A 2023 law (SB 228, Ala. Code 8-42-1 to 8-42-3, effective August 1, 2023) requires a buyer who plans to market a seller's contract to disclose that intent in writing, disclose the assignment to the seller in advance, and disclose the limited interest to anyone it is marketed to. It covers single-family homes only. A 2026 bill (HB 586) to require a license did not pass.

Wherever you live, ask every buyer one question: “Are you buying this house yourself, or will you assign the contract?” A wholesaler can still be a fine option if they are upfront about it. Read our guide to wholesaling for sellers before you sign.

Closing costs and taxes

Alabama charges a deed tax of $0.50 per $500 of value (about 0.1%). Who pays is set by the contract and local custom, so it is negotiable.

Many cash buyers offer to pay closing costs. Get that in the contract, and ask which costs it covers. Capital gains rules are federal and state; a tax professional can tell you what you will owe.

Do you have to disclose problems?

Alabama has no required seller disclosure form and follows buyer beware for used homes. Sellers still cannot hide known defects that affect health or safety or lie when asked directly.

If you are behind on payments

Most Alabama foreclosures are non-judicial sales under a power of sale. After the sale, the owner can redeem within 180 days for homestead property on mortgages made on or after January 1, 2016, or one year for other property.

Selling before a foreclosure sale can protect your equity and your credit, but watch for foreclosure rescue scams. Never sign your deed over to anyone outside of a formal closing. A free HUD-approved housing counselor can walk you through every option. More in our foreclosure guide.