Top Land Buyers in Residential Lots

How long does it typically take to sell vacant land in Alabama?

In the current 2025 market, the average timeline to sell vacant land in Alabama is approximately 6 to 12 months. However, Alabama exhibits a significant "two-speed" market. High-demand metropolitan areas and coastal hubs like Huntsville (Madison County) and Gulf Shores (Baldwin County) are seeing turnover rates as fast as 70 to 85 days. In contrast, rural timberland and agricultural parcels in the "Black Belt" region—such as Greene or Wilcox counties—frequently require 18 to 36 months to find a suitable buyer. Sellers should expect a standard closing period of 30 to 45 days once a contract is executed, provided there are no major survey or title discrepancies.

What are the common closing costs for land sellers in Alabama?

Alabama is a title company state, but it is common to use closing attorneys to conduct the settlement and manage the escrow process. While not legally mandated for all transactions, using an attorney is the standard practice for ensuring a clear title and proper deed recordation. Sellers can typically expect to pay between 6% and 10% of the sale price in total costs, largely driven by brokerage commissions. Unlike some states, the responsibility for transfer taxes in Alabama is negotiable, though local custom often sees the buyer paying the tax unless otherwise specified in the contract.

Specific costs for 2025 include:

• Transfer Tax (Deed Tax): The state rate is $0.50 per $500 (or $1.00 per $1,000) of the property’s value. For a $150,000 sale, the total tax would be $150.
• Title Insurance: Owners' title insurance typically costs between $2.70 and $3.57 per $1,000 of the sale price.
• Attorney/Closing Fees: Closing fees usually range from $750 to $1,250 for a flat-fee transaction, or hourly rates averaging $248 per hour for complex legal work.
• Recording Fees: Alabama counties typically charge around $100 for standard deed recordation.

Do I need a survey to sell my land in Alabama?

A new survey is not strictly required by Alabama state law to transfer property, but it is highly recommended and often demanded by title insurers to remove "survey exceptions" from a policy. Effective January 1, 2025, Alabama implemented updated Standards of Practice for Surveying, which mandate stricter certification language on all maps of survey. For rural land with aging boundary markers, a Boundary Survey is essential to prevent legal disputes over "adverse possession," which is a common issue in Alabama's timber-heavy regions. In 2025, a basic lot survey costs $400–$700, while large-scale acreage surveys start at $2,500 and increase based on terrain density.

How is the land market trending in Alabama for the next 12 months?

The Alabama land market is entering a "healthy and balanced" phase for 2026. While the rapid price surges of previous years have leveled off, the median land price remains 18.5% higher than early 2024 levels. Inventory of active listings is expected to rise by approximately 7.5% to 9%, giving buyers more leverage than they had during the post-pandemic boom. The Alabama Commercial Real Estate Index (ACRE) currently sits at 56.2, indicating moderate confidence in continued market expansion. The strongest growth is projected for suburban-fringe lots within 30 minutes of Huntsville and Birmingham, driven by Alabama's status as one of the most affordable housing markets in the United States.

Can I sell land in Alabama if I have back taxes or title issues?

Yes, but you must navigate Alabama's unique three-year redemption period. If a property is sold at a tax sale, the original owner has 36 months from the date of the sale to redeem the property by paying the delinquent taxes plus 12% annual interest. If the property is not redeemed within this window, the tax certificate holder can apply for a Tax Deed, at which point the original owner must resort to a "judicial redemption" in a court of law to reclaim title.

For inherited property, Alabama law allows for a "Power of Sale" in probate. If the decedent’s will explicitly authorizes the executor to sell real estate, the land can be sold without a direct court order, potentially saving 4 to 6 months in processing time. Without this specific language, the executor must petition the court for a "License to Sell," which requires a 40-day notice period to all heirs and a formal hearing.

What is the most in-demand type of land in Alabama right now?

The most in-demand land use in Alabama for 2025 is Utility-Scale Solar and Energy Infrastructure. Under the state’s "Powering Growth" plan enacted in mid-2025, over $1 billion in bonds have been authorized to expand energy sites. Major projects like the 209 MW Walker Springs facility in Clarke County are driving massive demand for flat, rural acreage. Additionally, there is a rising trend in Mitigation Banking in the Gulf Coast and Mobile Delta regions, where developers purchase large tracts of wetlands to sell environmental credits. In urban areas, Industrial Infill lots near major automotive plants (Mercedes-Benz, Mazda-Toyota) remain the top choice for commercial investors.