If you are buying or selling Missouri HomeA clear understanding of real estate commissions is essential for effective budgeting and negotiating. New Rules We’ve made changes to how real estate commissions are communicated across the United States, providing more transparency for both buyers and sellers. These updates are designed to help individuals make more informed decisions when determining real estate commissions.
you First-time buyer Or if you’re an experienced seller, this Redfin guide will walk you through Missouri real estate commissions and what to expect in today’s market.
Missouri housing market status
Before we dive into the details of real estate fees in Missouri, let’s first take a look at the state’s current Housing market.
| Median home sales price | $273,400 |
| Housing Supply | 25,293 (19.5% increase from the previous year) |
| Homes sold above list price | 27.6% (-3.8 points compared to the previous year) |
Understanding Missouri Real Estate Commissions
What are real estate commissions?
Real Estate Commission These are fees paid by a real estate buyer or seller to an agent for facilitating the transaction. These fees are settled at the time of closing and are usually calculated as a percentage of the sales price of the property.
Who pays the fees?
Traditionally, sellers have Agent Fees The buyer’s agent’s fee will be deducted from the sale proceeds. However, after August 17, 2024, the buyer must officially Agree with the agent’s commission Please notify us in writing before you begin touring homes.
While buyers can still ask sellers to cover their agent’s commission as part of their offer, the new rules allow for flexibility: the amount a seller pays to a buyer’s agent can vary and is completely negotiable.
Average Real Estate Commission Rates in Missouri
Missouri real estate commission rates vary widely depending on the details of the transaction and the terms agreed to by the parties. While there are general expectations for commission rates, these rates are negotiable, and buyers and sellers can work with their agents to find a commission structure that suits their needs.
Many factors can affect the final commission rate, including the location of the property, market conditions, and the services the agent provides. This flexibility allows both parties room to negotiate and tailor the commission to fit their goals and budget. Below is a breakdown of example commission rates based on average home prices in several countries. The largest city in Missouri.
| city | Median home sales price | Real estate commission 1.5% | Real estate commission 3% | Real estate commission 5% |
| Kansas City | $295,000 | $4,425 | $8,850 | $14,750 |
| St. Louis | $227,000 | $3,405 | $6,810 | $11,350 |
| Springfield | $205,000 | $3,075 | $6,150 | $10,250 |
At Redfin, we are committed to providing the best possible value to our consumers. We are committed to providing the best possible value to our sellers. Listing fees start from 1%*For buyers, our fees vary by location, but we keep them competitive to help your offer stand out and increase your chances of success in the home buying process.
Can you negotiate real estate commissions in Missouri?
Yes, absolutely. There are no federal or state laws regulating commission rates, so agents may be willing to negotiate lower fees depending on the type of transaction, services required, and the relationship between the parties.
When discussing Missouri real estate commission terms, it is important to evaluate the level of service the agent provides, the marketing strategies they implement, and their expertise in the local market. If the property is highly sought after or likely to sell quickly, the seller may be able to negotiate a lower fee. If the same agent is representing both the buyer and seller in a dual agency, commission may be reduced even further since there is only one agent involved.
Tips for successful negotiations
- Comparing multiple agents Before choosing, check out the company and its fee structure.
- Discuss performance-based incentivesFor example, offering a higher commission to sell faster or a better final price.
- Utilizing real estate If it’s in a desirable area, your agent may be willing to accept a lower commission.
Missouri Real Estate Commission Frequently Asked Questions
What are the changes to real estate commissions? Two big changes have altered how commissions are handled: First, buyers must agree to their agent’s commission in writing before they begin touring homes, and second, in many markets, buyer’s agent compensation is no longer displayed on the MLS listing. Changes to real estate commissions here.
How does this change affect Missouri buyers? Buyers should sign a contract with their agent outlining their commission rate before they begin viewing homes, but they can request that the seller cover the agent’s commission as part of their offer.
How do these changes affect Missouri sellers? The seller should discuss with the selling agent how much (if anything) they are willing to offer as compensation to the buyer’s agent. The seller will consider the buyer’s requests and negotiate the terms of the offer.
How do I find a real estate agent in Missouri? When you’re ready to find a home or sell your property, Redfin is here to help. Redfin Agent today.
How can I avoid fees? Selling a Home No Agent While you can save on agent fees in Missouri, a For Sale By Seller (FSBO) transaction requires more work from the seller, including marketing, showings and handling paperwork.
*Listing fees are subject to change and minimums apply. Does not include buyer’s agent fee if seller chooses to cover it. If buyer does not hire an agent, the listing fee will increase by 1% of the sale price. You can only sell with a 1% listing fee if you purchase on Redfin within 365 days of closing on your home you listed on Redfin. We charge a 1.5% listing fee and will pay you the difference of 0.5% by check after you purchase your next home with us. Learn more here.
