Missouri Real Estate Commissions: What You Can Expect in 2024
When purchasing or selling a home in Missouri, having a clear understanding of real estate commissions is essential for budgeting effectively and negotiating well. In 2024, new rules altered how real estate commissions are communicated throughout the U.S., offering greater transparency for both buyers and sellers. These updates are designed to help individuals make more informed decisions when navigating real estate fees.
Whether you’re a first-time buyer or an experienced seller, this Redfin guide will walk you through Missouri’s real estate commissions and what to anticipate in today’s market.
Current state of the Missouri housing market
Before diving into real estate commissions in Missouri, let’s first take a look at 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 the fees paid by homebuyers or sellers to their agents for successfully facilitating a transaction. These fees are settled at closing and are usually 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 formally agree to their agent’s commission in writing before starting home tours.
Although 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 might pay for a buyer’s agent can vary, and is entirely negotiable.
Average real estate commission rates in Missouri
Real estate commission rates in Missouri can vary significantly depending on the specifics of the transaction and the terms agreed upon by the involved parties. While there are general expectations for commission rates, these fees are fully open to negotiation, enabling buyers and sellers to collaborate with their agents on finding a commission structure that aligns with their needs.
Various factors, such as the location of the property, the state of the market, and the services provided by the agent, can impact the final commission rate. This flexibility gives both parties room to negotiate and tailor fees to their goals and budget. 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
At Redfin, we’re committed to offering consumers the best possible value. We provide sellers with a listing fee that starts as low as 1%.* For buyers, our fees vary by location but remain competitive to help your offer stand out and increase your chances of success in the homebuying process.
Can you negotiate real estate commissions in Missouri?
Yes, absolutely! There are no federal or state laws that regulate commission rates, so agents may be open to negotiating lower fees depending on the transaction type, services required, and the relationship between the parties.
When discussing real estate commission terms in Missouri, it’s important to evaluate the level of service your agent offers, the marketing strategies they’ll implement, and their expertise in the local market. In some cases, sellers can negotiate lower rates if their property is highly desirable or likely to sell quickly. If the same agent represents both buyer and seller in a dual agency, further commission reductions may be possible, as only one agent is involved.
Tips for a successful negotiation
Compare multiple agents and their commission structures before choosing.
Discuss performance-based incentives, such as offering a higher commission for a faster sale or better final price.
Leverage your property if it is in a desirable area, as agents may be willing to accept lower commission.
Missouri real estate commission FAQs
What are the changes to real estate commission? Two significant changes have affected how commissions are handled. First, buyers are now required to agree to their agent’s fees in writing before they start home tours. Second, in many markets, buyer agent compensation is no longer displayed on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Missouri? Buyers must now sign an agreement with their agent that outlines the commission rate before they begin touring homes. However, you can still request that the seller covers your agent’s commission as part of your offer.
How do the changes impact sellers in Missouri? Sellers will still need to discuss with their listing agent how much they wish to offer 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 do you find a real estate agent in Missouri? If you’re ready to begin your home search or sell your property, Redfin is here to assist. 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) transactions require more effort from the seller, including handling 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.
The post Missouri Real Estate Commissions: What You Can Expect in 2024 appeared first on Redfin | Real Estate Tips for Home Buying, Selling & More.
