Buying A House Without A Realtor (in Alabama)

I recently purchased a house in Madison, Alabama, that was For Sale By Owner. I had never bought property in Alabama before. The transaction went smoothly. Here is how I chose to do it:

Make an offer

After looking at the property several times, I emailed the seller and made him an informal offer (I had found the property via Craigslist.com, and never actually spoke to the seller in person until the day of closing, just text and email). My email said something like this: “Would you take $___,000?”

Write up an agreement

The seller emailed me back, and said something like, “That sounds fair, I'll do it.” At this point, we needed to put it down in writing. I found a Purchase and Sale Agreement template online, and filled in the details of our agreement, such as property address, selling price, buyers name, sellers name, etc... I then printed the agreement, signed it, scanned it, and emailed it to the seller. The seller signed it, and emailed it back to me. Here is an example of a blank Purchase and Sale Agreement.
Blank Purchase and Sale

Closing / Record the Deed

I decided to have a real estate attorney do the closing. The real estate attorney acted as a mediator between myself and the seller. I deposited the money to purchase the house in the attorneys escrow account, and he cut a check to the seller at closing. He also provided title insurance, prepared all of the necessary paperwork, and filed the deed. The attorneys fees were very reasonable, only a few hundred dollars in total. Taxes and title insurance were also paid at closing.

*Note: It is common in Alabama to use real estate attorneys for closings, but some other states use title agencies (or title companies), which prepare and record paperwork, provide title insurance, and hold money in escrow accounts for closings. Also, it is possible to cut out the 'mediator' all together and just do your own research, prepare you own paperwork, and record your own deed at the court house.

Disclaimer: The above article is just my personal story of buying a property. I am not qualified to nor am I trying to provide legal advice.