When buying real estate in Alabama, finding a real estate agent who can guide you through the process is crucial. Real estate agents help to find the right real estate option in the desired location and at the right price. They also coordinate the legal documents necessary for the real estate transaction. Before choosing an agent, read customer reviews about the activities of specific real estate agents, and meet with them to verify that they have the interpersonal skills that are required. An experienced real estate agent can advise you, get the legal contract right, and assure a smooth translation when buying real estate in Alabama. Realtors in Montgomery, AL, are committed to providing objective service in your real estate transaction for the best possible outcome.
In 2023, the median home price in the United States is $428,700, higher than in Alabama, where the median home price is $202,984. With relatively affordable yet steadily increasing real estate prices, Alabama is one of the best states for real estate investment. So it is essential to turn to Alabama realtors for help finding and purchasing the property you need. They can quickly and efficiently navigate the complex real estate world.
Our ranking of Alabama’s five most populous cities for the best investment opportunities is based on four critical criteria.
- Economy
- Investment potential
- The current rental value of real estate purchased in Alabama
- Urban infrastructure
To assess affordability and investment potential, data from the Zillow Home Value Index was used to compare home prices in each city to the national average and how home prices have changed since 2015. Current rental rates are derived from Zillow’s rental market trend data, based on the median rent for a two-bedroom apartment. If one of the cities on this list catches your eye, we recommend that you contact local real estate agents to search for housing in that city.
Birmingham
With a population of 1.1 million, Birmingham is the state’s most populous city and is twice the size of Huntsville, Alabama. The active population growth of Birmingham in recent years has occurred in the suburbs surrounding the city. A typical single-family home in Birmingham costs about $103,431, but since 2015, home prices have increased by an impressive 86%. The rent is relatively high, and the average rent for a typical two-bedroom apartment averages $1,000 monthly. Ranked among the 100 best places to live in the United States, Birmingham has excellent potential for future growth as Alabama’s most important economic center. Birmingham is a charming city where art events are thriving, theater and music are actively developing, and various entertainment events are held. It is also home to the Birmingham Civil Rights Institute and the University of Alabama at Birmingham, which has more than 22,000 students.
Huntsville
Actively growing technological and manufacturing industries contribute to the influx of new residents in Huntsville. The population has grown by around 15% since 2010, reflecting increased renters looking for apartments, townhouses, and family homes here. Huntsville offers affordable real estate prices that are increasing and high rents that are attractive to potential investors. The typical home price is $273,648, the highest price on this list of Alabama locations. Yet, that is still approximately $64,000 below the national average. Home prices have skyrocketed in recent years, with a staggering 85% increase in real estate prices since 2015. The median rent for a two-bedroom apartment in Huntsville is currently $1,035 monthly, the highest among Alabama’s five largest cities. Huntsville is the center of the space industry and the most popular tourist attraction in Alabama, USA. The Space Rocket Center is also located here. The Huntsville Botanical Gardens and the University of Alabama at Huntsville are popular attractions.
Montgomery
Montgomery is the third most livable place in Alabama. As Alabama’s capital, it is known for its military community of more than 12,500 people living at Maxwell Air Force Base. In addition, the number of students is significant due to the proximity of universities. Home prices in Montgomery have increased 40% since 2015 and are now $127,030. That’s $210,530 less than the national average, making the city affordable for renters. The average rent for a two-bedroom apartment and the cost of living is lower than in other cities on this list. Montgomery’s history and culture are unmatched, with world-class museums and historical sites that attract tourists worldwide.
Mobile
Mobile is the state’s only port city on Alabama’s Gulf Coast. Many residents work in the maritime industry, and the manufacturing, aviation, and medical sectors are actively developed here. Average home prices are $175,447, about $162,000 below the national average, and the average cost of renting a two-room apartment is $886. Mobile also receives significant precipitation annually. However, light rain does not keep residents at home. The town hosts unique events, such as the Alabama Nut Festival, which attracts many visitors.
Tuscaloosa
With 38,000 students living in Tuscaloosa, rental demand is very stable. On average, renting a two-bedroom apartment costs $900 and brings the property owner about $11,000 in annual income. If you’re looking to rent a single-family home but can’t afford to do so in other real estate markets, the typical Tuscaloosa home price will pleasantly surprise you at $205,101 ($132,000 less than the standard home price in other US states). Yet, real estate prices have increased over time, and since 2015, home prices have increased by 36%. Just an hour’s drive from Birmingham, this university town is a vibrant place to live for students studying here. Fun things in Tuscaloosa include watching football games, walking the waterfront, Capitol Park, and visiting the many local restaurants and entertainment.
Points for profitable investment in Alabama real estate
From bustling Birmingham to world-renowned cultural attractions in Montgomery, Alabama, it offers many profitable real estate investment opportunities. The first step in looking for Alabama rental properties is to contact a local real estate agent. Realtors can share their insights on promising rental properties, promising markets, and more. Finding the best real estate agents in Alabama is critical in your search. Actively work with an experienced Alabama real estate agent who will offer various real estate options, help you understand your goals, and take your investment journey to the next level.
Follow the guidelines for finding a real estate agent and buying the right property. Avoid conflict of interest. Build a relationship with a real estate agent who provides quality services. Be very honest with your realtor when you first meet and don’t be afraid to admit that you don’t know anything or don’t have the money to fix a real estate problem. Top agents have your best interests at heart, and if you feel no partnership, look for another real estate agent.
Also, focus on specialization when looking for a property. Narrow down your priorities and only look at properties with your given parameters. An agent needs to be active in your ideal property segment to gain a sense of the market, so it’s essential to choose a real estate agent specializing in specific Alabama investment properties. They must also know the market accurately to help you make a profitable investment. Honest and transparent relations with the agent will pay off in your property search and, ultimately, when you purchase a worthwhile investment. A reliable agency is essential if you continue to grow your investment business.
To determine if you’ve found the right professional, ask your real estate agent three additional questions:
- What is the real estate agent’s specialization (apartment/commercial property, price range, square footage, sale /rent)?
- How much is the commission?
- Where on the Internet can you read the opinions of customers about the activities of a real estate agent?
Choose a real estate agent who specializes in your type of property. Understanding what you want will help you choose the right agent. The effectiveness of an Alabama real estate agent in conducting negotiations will be essential to a successful transaction.
Additionally, a real estate agent with a narrower area of expertise that deals with investment properties for sale in Alabama will lead to the most significant number of potential buyers. A real estate agent can be best understood by their segment and prices. Remember that real estate agents in big cities in Alabama are often limited to specific areas and only work in particular locations. Find a real estate agent who works in your area and specializes in finding your property type. Choose the right specialist based on customer reviews in your city. Check out the quality of the real estate agent’s work, talk to him, and ask him all the questions that interest you in the field of real estate investment in Alabama. The agent should provide the maximum amount of information. Also, talk to several professionals. Then choose a real estate agent to find and buy an investment property in Alabama. When you meet, ask what types of investment properties the agent has found and on what terms he can work with you. Discuss your real estate buying strategy. A professional agent always provides clients with a clear marketing plan. Ask the real estate agent what tools he plans to use to buy an investment property. Lastly, find out about his terms of cooperation and the commission percentage.
