When buying or selling a home in MissouriHaving a clear understanding of real estate commissions is essential to effective budgeting and effective negotiation. In 2024, new rules changed the way real estate commissions are transferred across the US, providing greater transparency for both buyers and sellers. These reviews are designed to help people make more informed decisions when navigating real estate costs.
Even if you are a the first buyer or an experienced seller, this Redfin guide will walk you through Missouri real estate commissions and what to expect in today’s market.
The current state of the Missouri housing market
Before getting into real estate commissions in Missouri, let’s first look at the current state of the state housing market.
| Median Home Sales Price | $273,400 |
| Provision of Housing | 25,293 (+19.5% YOY) |
| Homes Selling Above List Price | 27.6% (-3.8 pts YoY) |
Understanding real estate commissions in Missouri
What are real estate commissions?
Housing commissions are fees paid by home buyers or sellers to their agents to facilitate the transaction. These fees are paid at closing and are usually calculated as a percentage of the property’s sales price.
Who pays the commission?
Traditionally, vendors have covered both of theirs agent’s commission and buyer’s agent fees from the proceeds of the sale. However, starting August 17, 2024, consumers will need to do so legally they agree to their agent’s commission in writing before starting the journey home.
While buyers can still request that sellers cover their agent’s commission as part of the offer, this new rule introduces flexibility. The amount a seller may pay a buyer’s agent can vary, and is completely negotiable.
Real estate commission rates in Missouri
Missouri real estate commission rates can vary greatly depending on the specifics of the transaction and the terms agreed upon by the parties. While there are general expectations for commission rates, these fees are fully open to negotiation, allowing buyers and sellers to work with their agents to find a commission structure that suits their needs.
Various factors, such as location, market conditions, and services provided by the agent, can affect the final commission rate. This flexibility gives both parties the opportunity to negotiate and make investments that fit their goals and budgets. Below is a breakdown of example commission rates based on average home prices for some of them Major cities in Missouri.
| The city | Median Home Sales Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Kansas City | $295,000 | $4,425 | $8,850 | $14,750 |
| Louis | $227,000 | $3,405 | $6,810 | $11,350 |
| Springfield | $205,000 | $3,075 | $6,150 | $10,250 |
At Redfin, we’re committed to giving consumers the best value possible. We offer sellers a listing fee starting as low as 1%.* For buyers, our fees vary by location but are always 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, of course! There are no federal or state laws governing commission rates, so agents may be open to negotiating lower fees depending on the type of work, services required, and the relationship between the parties.
When discussing real estate commission terms in Missouri, it is important to evaluate the level of service your agent provides, the marketing strategies they will use, and their expertise in the local market. In some cases, sellers may negotiate lower prices if their property is highly desirable or likely to sell quickly. If the same agent represents both the buyer and the seller in a dual agency, further reductions in commission may be possible, since only one agent is involved.
Tips for a successful conversation
- Compare multiple agents and their commission structures before selection.
- Discuss performance-based incentivessuch as offering a higher commission for faster sales or a better final price.
- Use your property if it is in a desirable location, as agents may be willing to accept a lower commission.
Missouri real estate commission FAQs
What are the changes to the real estate commission? Two important changes have affected the way commissions are handled. First, buyers are now required to agree to their agent’s fees in writing before starting a home tour. Second, in many markets, a buyer’s agent’s compensation is no longer reflected in MLS listings. Read more about housing commission changes here.
How do the changes affect consumers in Missouri? Buyers must now sign an agreement with their agent detailing the amount of the commission before they start visiting homes. However, you can still ask the seller to cover your agent’s commission as part of your offer.
How do the changes affect Missouri retailers? Sellers will still need to discuss with their listing agent how much they wish to contribute as compensation to the buyer’s agent, if any. The seller will review any requests made by buyers and negotiate the terms of the offer.
How to find a real estate agent in Missouri? If you’re ready to start your home search or sell your property, Redfin is 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 for sale by owner (FSBO) requires more effort from the seller, including handling marketing, showings, and paperwork.
*Listing fees are subject to change, minimum applicable. Any buyer’s agent fees the seller chooses to cover are not included. The listing fee is increased by 1% of the purchase price if the buyer is unrepresented. Sell at 1% listing rate only if you shop with Redfin within 365 days of closing your Redfin listing. We’ll charge a 1.5% listing fee, and send you a check for the 0.5% difference after you buy your next home with us. Read more here.
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