Buying a Home in Madison, AL

Madison, Alabama, is a sprawling, rural area that offers a charming downtown with all the amenities of a booming metropolitan area. Residents can access beautiful parks and open spaces, skate parks, minor league baseball, shopping districts, and more. You’ll also find the dining options are plentiful and offer everything from adorable cafes to lavish fine dining. Despite the relatively new population growth, this Huntsville suburb packs a punch. If you’re interested in calling Madison home, read on for everything you should know about buying a home in Madison, AL.

Chapel Hill is a private, gated community that boasts gorgeous custom brick homes with ample square footage. Residents can also access a community pool, fishing, parks, shopping centers, restaurants, and award-winning schools. Though this neighborhood retains easy access to Huntsville, it has a quaint feeling.

This community is next to the gorgeous Rainbow Mountain Nature Preserve and has a tranquil environment. It is an executive-planned community where residents are surrounded by forests and enjoy access to lakes, stunning views, and enviable landscaping on each estate. You’ll find plenty of modern amenities nearby for convenience.

Bridgemill is a newer development for those looking to grow in the area. A vast assortment of stunning home styles and floor plans offer something for everyone. It sits minutes from downtown Huntsville’s shopping, dining options, entertainment, and minor-league baseball fields. This is the perfect neighborhood if you’re looking for luxury at a tremendous value.

Another new community in the area, Dublin Farms, provides popular craftsman-style homes for anyone who wants a bit more character. Residents enjoy easy access to Palmer Park and various other outdoor recreation, plus convenience to modern amenities.

Like most other communities in the area, Oakstone is relatively new and offers beautifully designed homes. This community is known for its elegantly designed entrance, secluded houses, and multiple walking paths that connect it to neighboring communities. You’ll find shopping and dining nearby, parks and green spaces, and excellent schools.

One of the most popular neighborhoods in Madison is Mountain Brook. Set among massive, mature trees and beautifully landscaped lots, these estates are some of the most stunning in the area. If you want homes with basements, separate entrances, isolated primary suites, and privacy, this is an excellent choice. Access to local parks and historic locations makes this perfect for those who love staying active.

This walkable community features tree-lined streets and classic Southern homes. Those wanting a traditional neighborhood with a small-town atmosphere and friendly vibes will love The Village. This neighborhood is the perfect representation of everything the region has to offer. With everything from a lakeside pool, tot lots, and modern amenities to downtown access, it’s easy to see why this neighborhood is so well loved.

The housing market in Madison, AL, is in high demand and continues to increase in popularity. This demand is due to a strong economy, steady household income, and a growing metropolitan area. On top of all those benefits to living in madison, AL, the area is home to some incredible schools. Bob Jones High School and James Clemens High School are both award-winning schools that rank among the top 10 in the state. Though this demand is positive, it has led to a reduction in available homes and an increase in prices. Houses in Madison sold for a median price of 367,000 in March 2023, higher than the state’s average of $137,200. Expect prices to continue increasing, so don’t hesitate to purchase if you find the perfect home.

Average closing costs in Madison, AL, will be between 2% to 5% of the loan amount, or $3,000 to $5,000. The loan size will determine how much you’ll be obligated to pay. Most closing costs cover third-party costs like title insurance, inspection fees, escrow fees, attorney fees, property taxes, and down payments. Negotiating for the seller to cover some of these costs is possible, so check with your agent.

Property taxes are considered “ad valorem” taxes based on the assessed value of real and some personal property. State and local municipalities levy them to fund local expenses and projects like school districts and community amenities. Property taxes in Madison County average 0.43% of the home’s fair market value and are considered one of the lowest in the country.

When shopping for mortgages, shopping around and looking for the lowest rates is essential. You’ll first want to decide which type of loan you want, consider how much money you’ll put down, and if you wish to pay points. Comparison shop multiple lenders until you find the best rate to fit your budget.

Your down payment will vary depending on the home, but on average, expect to spend between 6-20% of the total loan. The average seasoned buyer will put down a 13% down payment, while a first-time buyer may put down less. Notably, the greater the down payment, the smaller the loan, saving money over time. While not all mortgages require a down payment, you should put down at least a small percentage to cut costs.

Another thing that will keep initial costs down and save money over time is a higher credit score. This helps keep your mortgage rates low and gives lenders more confidence in you. If you need to improve your credit, there are several ways to do so quickly. Start by checking your credit regularly. Keep your credit utilization lower than 30%, or aim only to spend what you can afford to pay each month. Pay your bills on time monthly, setting up automatic payments if needed. Every minor detail can significantly impact your credit and help you get a better rate.

When purchasing Madison real estate, there are many factors to consider. Everything from finding the perfect neighborhood to locking down the best rate matters. Working with Kristin Bridges, an experienced local Realtor, will help determine the best path for you.