Understanding real estate commissions is crucial when buying or selling a home in Missouri. In 2024, new rules were implemented to enhance transparency in real estate transactions, benefiting both buyers and sellers. These changes aim to empower individuals to make more informed decisions regarding real estate fees.
Whether you’re a first-time buyer or a seasoned seller, this comprehensive guide from Redfin will navigate you through Missouri’s real estate commissions and what to expect in today’s market.
Current state of the Missouri housing market
Before delving into real estate commissions in Missouri, let’s first examine the state’s current housing market.
| Median Home Sale Price | $273,400 |
| Housing Supply | 25,293 (+19.5% YoY) |
| Homes Sold Above List Price | 27.6% (-3.8 pts YoY) |
Understanding real estate commissions in Missouri
What are real estate commissions?
Real estate commissions are fees paid by homebuyers or sellers to their agents for successfully facilitating a transaction. These fees are settled at closing and are typically calculated as a percentage of the property’s sale price.
Who pays the commission?
Traditionally, sellers have covered both their own agent’s commission and the buyer’s agent fees from the proceeds of the sale. However, starting on August 17, 2024, buyers will need to agree to their agent’s commission in writing before commencing home tours.
While buyers can still request that sellers cover their agent’s commission as part of the offer, this new rule introduces flexibility, allowing for negotiation on the amount a seller might pay for a buyer’s agent.
Average real estate commission rates in Missouri
Real estate commission rates in Missouri can vary significantly based on the specifics of the transaction and the terms agreed upon by the parties involved. While there are general expectations for commission rates, these fees are fully negotiable, enabling collaboration between buyers, sellers, and agents to find a commission structure that suits their needs.
Various factors, such as property location, market conditions, and agent services, can influence the final commission rate. This flexibility allows for negotiation and customization of fees to align with specific goals and budgets. Below is a breakdown of example commission rates based on median home prices in some of Missouri’s largest cities.
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| 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 |
Redfin is dedicated to providing consumers with exceptional value. We offer sellers a listing fee starting as low as 1%.* For buyers, our fees are competitive, tailored to help your offer stand out and increase your success in the homebuying process.
Can you negotiate real estate commissions in Missouri?
Yes, commission rates are negotiable in Missouri. Agents may be open to lowering fees based on the type of transaction, services required, and the relationship between parties.
When negotiating commission terms, consider the level of service, marketing strategies, and market expertise offered by your agent. Sellers may negotiate lower rates for highly desirable properties or swift sales. In dual agency situations where one agent represents both buyer and seller, further commission reductions may be possible.
Tips for successful negotiation
- Compare multiple agents and their commission structures before making a decision.
- Discuss performance-based incentives, such as higher commissions for quicker sales or better prices.
- Leverage property desirability to potentially negotiate lower commissions.
Missouri real estate commission FAQs
What are the changes to real estate commission? Two significant changes have impacted how commissions are handled. Buyers must now agree to their agent’s fees in writing before beginning home tours. Additionally, buyer agent compensation may no longer be displayed on MLS listings in many markets.
How do the changes impact buyers in Missouri? Buyers are required to sign an agreement with their agent outlining the commission rate before touring homes. However, they can still request that the seller covers the agent’s commission as part of their offer.
How do the changes impact sellers in Missouri? Sellers will need to discuss with their listing agent the compensation they wish to offer the buyer’s agent, if any. The seller will review buyer requests and negotiate offer terms accordingly.
How do you find a real estate agent in Missouri? If you’re ready to begin your home search or sell your property, Redfin agents are here to help. Connect with a Redfin agent today.
How can you avoid fees? Selling a home without an agent in Missouri can save on commission fees, but FSBO transactions require more effort from the seller, including managing marketing, showings, and paperwork.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.