When buying or selling a home in Missouri, understanding real estate commissions is crucial for effective budgeting and negotiation. Recent changes in 2024 have improved transparency in how commissions are communicated nationwide, benefiting both buyers and sellers. These updates aim to empower individuals to make informed decisions when dealing with real estate fees.
Whether you are a first-time buyer or a seasoned seller, this detailed guide from Redfin will help you navigate Missouri’s real estate commissions and anticipate market trends.
Current Missouri Housing Market Overview
Before delving into real estate commissions in Missouri, let’s explore the current state of the housing market in the state.
| 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 buyers or sellers to their agents for facilitating a successful transaction. These fees are typically calculated as a percentage of the property’s sale price and settled at closing.
Who Pays the Commission?
Traditionally, sellers covered both their own agent’s commission and the buyer’s agent fees from the sale proceeds. However, a new rule effective August 17, 2024, requires buyers to formally agree to their agent’s commission in writing before beginning home tours.
While sellers can still negotiate for covering the buyer’s agent commission, this rule introduces flexibility in determining the amount and is entirely negotiable.
Average Real Estate Commission Rates in Missouri
Real estate commission rates in Missouri vary based on transaction specifics and agreed terms. These fees are open to negotiation, allowing buyers and sellers to collaborate with agents on a suitable commission structure.
Factors like property location, market conditions, and agent services can influence the final commission rate. This flexibility enables parties to tailor fees to their goals and budget. Below are example commission rates based on median home prices in major Missouri 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 committed to providing consumers with excellent value, offering a listing fee starting as low as 1%.* For buyers, competitive fees from Redfin can enhance your offer and improve success in the homebuying process.
Negotiating Real Estate Commissions in Missouri
There are no federal or state laws regulating commission rates, allowing agents to negotiate lower fees based on transaction type, required services, and party relationship.
When discussing commission terms, consider your agent’s service level, marketing strategies, and local market expertise. Sellers may negotiate lower rates for highly desirable properties or dual agency representation, where one agent handles both sides of the transaction.
Negotiation Tips
- Compare multiple agents and their commission structures before selecting.
- Discuss performance-based incentives like higher commission for faster sale or better price.
- Leverage property value in negotiations, particularly for desirable areas.
Missouri Real Estate Commission FAQs
What are the changes to real estate commission? Two key changes impact commission handling, requiring buyers to agree to agent fees before home tours and omitting buyer agent compensation from many MLS listings. Learn more about these commission changes here.
How do the changes affect buyers in Missouri? Buyers must now sign an agreement outlining agent commission rates before viewing homes, but can still request seller coverage.
How do the changes affect sellers in Missouri? Sellers must decide on compensation for the buyer’s agent and negotiate terms based on buyer requests.
How to find a real estate agent in Missouri? Redfin offers assistance for your home search or sale with experienced Redfin agents.
How to avoid fees? Selling without an agent can save on commission fees, but requires extra effort in marketing, showings, and paperwork for FSBO transactions.
*Listing fee subject to change, minimums apply. Buyer’s agent fee not included. Listing fee increased by 1% if buyer is unrepresented. Sell for a 1% listing fee only with Redfin if you buy with us within 365 days of closing. Learn more here.