How much does it cost to sell a house in Missouri?
If you’re preparing to sell a home in Missouri, maximizing your sale proceeds is likely to be top of mind. The good news is that the median price of homes in the Show-Me State has increased by 2.6 percent since last year, according to data from Redfin. But when you’re selling a house, there are plenty of expenses to account for as well, which can cut into your profits. Before putting your home on the market, make sure you understand the full cost of selling a home in Missouri.
Sellers’ closing costs
How much does it cost to sell a house in Missouri? The answer will depend largely on your closing costs. Taken together, these fees associated with a real estate transaction are a significant expense that must be paid in order to finalize the sale. Buyers and sellers are each responsible for paying a portion of the bill — here are some of the most common closing costs for sellers:
- Transfer tax: Home sellers are in luck here: Many states charge transfer taxes to cover the legal transfer of the property’s ownership, but Missouri does not.
- Title-related fees: Title fees cover the expenses associated with conducting a title search and securing title insurance, which protects against any issues with the property’s ownership. In Missouri, the seller typically pays for the new owner’s policy.
- Escrow fees: Often, some portion of funds are held in an escrow account during the home sale process. The seller may be required to foot at least part of the bill for maintaining this account.
- Property taxes and HOA fees: When selling a home, you’ll be on the hook for all applicable property taxes and homeowners association fees right up until closing day.
- Mortgage payoff: If you still have a mortgage on your home, that will have to be paid in full before the sale can be finalized. This is very common, and the outstanding amount is typically taken out of your proceeds and wired directly to the mortgage servicer.
- Legal fees: Missouri does not require you to hire a real estate attorney to sell your house, unlike some states. But many sellers choose to hire one anyway, to ensure everything goes smoothly and their interests are protected.
- Seller concessions: It’s not unusual during the negotiation process for a seller to agree to some concessions to close the deal. This may include paying for some repairs to the home or even covering some of the buyer’s closing costs. These types of expenses will be deducted from the proceeds of the home sale on closing day.
Real estate agent commissions
Another significant cost associated with the sale of a home is the commission fee charged by your Realtor. The average agent commission is between 2.5 and 3 percent of the home’s sale price. Redfin data shows that the median sale price of a home in Missouri was $265,900 as of September 2024 — 3 percent of that would amount to $7,977.
However, housing prices fluctuate from location to location across the state, meaning you may pay a higher tab for commission in some areas and less in others. In St. Louis, for example, the median price was lower at $226,500. For a home of that price, a 3 percent commission would be $6,795. In Kansas City, on the other hand, the median was a bit steeper at $290,000, which would bring the amount to $8,700.
Thanks to a federal lawsuit settlement, sellers no longer automatically pay the commission for the buyer’s agent as well as their own — who pays for which commission fee is now negotiated ahead of time. However, some sellers still offer to do so as an incentive, and in these cases, the percentages above would be doubled.
Home prep and moving costs
Putting your home on the market often includes doing some prep work to help it look its best for prospective buyers. Perhaps a fresh coat of paint throughout the home, or taking care of any obvious repairs or issues that might cause a buyer to think twice about submitting an offer. And since first impressions are important, you might also want to spend some time — and cash — on improving its curb appeal. Don’t forget to account for any money spent on these tasks.
Relocation costs should also be part of the expenses you anticipate. The cost to move, if you hire the pros, will depend on how much stuff you have, how far it’s going and more. A local move typically averages $1,711, according to HomeAdvisor, while a long-distance move can set you back many thousands of dollars more.
How much do I get from selling my house?
After all the expenses associated with selling your home have been paid, the amount you wind up with are your net proceeds. To determine how much your net proceeds will be, deduct all of the expenses discussed above from the home’s sale price, Don’t forget to include your mortgage balance, if you have one. Depending on how much you make from the sale, you may be required to to pay capital gains taxes on the earnings. You’d typically need to make a very significant profit to trigger this, though; talk with a tax professional if you’re not sure.
Reducing costs
The list of expenses associated with selling a home can take a big bite out of your profits, and you may want to try to reduce costs where possible. Here are some options to consider:
- Negotiate commissions: Most everything in real estate is negotiable, and that includes the commission paid to your agent. Even a small discount can add up to significant savings, especially on a higher-priced home.
- Sell it yourself: Selling by owner, in which you go without an agent and represent the listing on your own, saves you the cost of a commission altogether. However, it requires a lot of work and a big time commitment.
- Sell it as-is: Listing a home “as-is” indicates to buyers that you do not intend to pay for any upgrades or repairs to the property — what they see is what they get. This saves you money, but it can sometimes be a turn-off to prospective buyers, so it’s a move you’ll want to consider carefully.
- DIY it: If you’re handy around the house, you can minimize out-of-pocket expenses by doing what you can yourself instead of hiring pros. And asking family or friends to lend a hand instead of hiring professional movers can save you plenty as well.
Alternatives
If the traditional home-sale approach isn’t appealing to you, there are several other options:
- Cash-homebuying companies: If you need to sell quickly, or if your home needs more repairs than you are able to manage, selling to a local homebuying company is worth considering. These firms pay in cash, buy homes in any condition (no matter how bad) and can close the sale in a matter of weeks (often faster). However, you’re not likely to get full market value for your home when selling this way.
- iBuyers: These online homebuyers work in much the same way, but they are choosier about the condition of homes they buy and don’t operate in every market. Opendoor and Offerpad are the two biggest.
- Home equity: If you’d rather not move but simply need access to a large lump sum of cash, tapping into your equity via a home equity loan or line of credit is another potential option.
- Renting: As long as you have someplace else to live, renting out your home can be a lucrative option. According to Zillow Rentals, the median rent for a house in Missouri is $1,545 per month.
Next steps
If the time has come to sell your home in Missouri, a good first step is to link up with a local real estate agent who knows your specific area well. An agent who knows the ins and outs of your local market can help you identify the most competitive price for the home and ensure that it’s marketed efficiently. A real estate pro can also be invaluable during negotiations, helping to land the best price possible for your home.
