Missouri Real Estate Closing Costs Statistics (2024 Survey)
A new RealEstateBees.com survey of over 1,000 active real estate professionals found average closing costs for sellers and buyers in Missouri.
We reached out to over 1,000 active real estate professionals from Missouri to collect their insight on the real estate closing costs across the state.
The results are part of the large-scale survey—Nationwide Real Estate Closing Costs Index—conducted by the Real Estate Bees, a leading online real estate platform.
What Is Included in Closing Costs for a Seller in Missouri?
Costs included in seller’s closing costs most commonly across Missouri.
What Are Average Closing Costs for a Seller in Missouri When Selling with a Realtor?
The most common amounts of seller’s closing costs across the state of Missouri in an agent-assisted sale.
What Are Average Closing Costs for a Seller in Missouri When Selling 'by Owner'?
The most common amounts of seller’s closing costs across the state of Missouri in a FSBO sale.
How to Reduce Closing Costs for a Seller in Missouri?
There are several ways a seller can reduce real estate closing costs in Missouri:
1. Negotiate with the buyer. As a seller, you can negotiate with the buyer to see if they are willing to pay for some or all of the closing costs.
This can be done during the initial negotiations or as part of a counteroffer.
2. Price the home appropriately. Pricing the home appropriately can attract more buyers and increase the likelihood of a faster sale.
A faster sale can help reduce some of the carrying costs associated with the property, such as property taxes, utilities, and Missouri home insurance.
3. Shop around for services. Shop around for services such as title insurance, appraisal, and inspection to compare prices and find the best deals.
The seller can choose their preferred service provider, as long as they meet the lender’s requirements.
4. Avoid unnecessary fees. Work with the real estate agent and the Missouri title company to identify and avoid any unnecessary fees that can be waived or negotiated.
5. Consult with a Missouri real estate attorney. A real estate attorney can review the closing statement and identify any discrepancies or unnecessary charges, potentially saving the seller money.
It’s important to keep in mind that some closing costs are non-negotiable, such as state and local taxes, recording fees, and transfer taxes.
However, by being proactive and exploring all options, a seller can reduce their closing costs and maximize their profits.
Sell the house for more money, offset the costs by being a more active agent.
Also I would like to point out that “closing costs” in a ‘for sale by owner’ transaction is lower, yes, however they get an average of 10% less for the house.
So, they end up with a net of -15% compared to using an agent.
The buyer can choose to pay buyer commissions, or the seller can sell by owner.
Negotiate title fees.
Can a Seller Avoid Paying Closing Costs in Missouri?
They can avoid paying the buyer’s closing costs, and sometimes the buyers can pay the seller’s closing costs.
Yes, absolutely. However, it must be negotiated in the contract.
Yes, by stating it upfront in sale.
If a home seller is unable to afford their share of closing costs, there are several options that can be considered:
1. Negotiate with the buyer. The first step is to negotiate with the buyer to see if they are willing to cover some or all of the closing costs.
The buyer may be willing to pay more for the home in exchange for the seller covering fewer closing costs.
2. Consider alternative financing. The seller can explore alternative financing options, such as a personal loan, to cover their share of the closing costs.
This option may be more expensive in the long run, but it can help the seller avoid defaulting on the sale.
3. Ask for help from family or friends. The seller can ask for help from family or friends to cover their share of the closing costs.
4. Postpone the sale. If none of the above options are feasible, the seller may consider postponing the sale until they are able to save enough money to cover their share of the closing costs.
It’s important for the seller to communicate openly and honestly with the buyer and their real estate agent about their financial situation.
By being transparent and exploring all options, the seller may be able to find a solution that works for everyone involved.
If that is the case, the first thing I would probably do is negotiate in contract terms that would allow the seller more funds.
Alternatively, talk to their lenders, both sides of the agency and see what can be done. That is a bad situation to be in.
They can have it come out of their proceeds at closing, or they can have the buyer contribute more to closing costs/title fees.
What Is Included in Closing Costs for a Buyer in Missouri?
Costs included in buyer’s closing costs most commonly across the state of Missouri.
What Are Average Closing Costs for a Buyer in Missouri When Buying with a Realtor?
The most common amounts of buyer’s closing costs across the state of Missouri in an agent-assisted sale.
What Are Average Closing Costs for a Buyer in Missouri When Buying Without a Realtor?
The most common amounts of buyer’s closing costs across the state of Missouri in a FSBO sale.
What Are Average Closing Costs for a Cash Buyer in Missouri When Buying with a Realtor?
The most common amounts of closing costs paid by cash home buyers in Missouri in an agent-assisted sale.
What Are Average Closing Costs for a First-Time Buyer in Missouri When Buying with a Realtor?
The most common amounts of a first-time home buyer’s closing costs across the state of Missouri in an agent-assisted sale.
How to Reduce Closing Costs for a Buyer in Missouri?
Here are some strategies to help reduce closing costs for a homebuyer:
1. Shop around for a mortgage lender. Different lenders may offer different rates and fees, so it’s important to shop around and compare offers from multiple lenders.
You can use online mortgage comparison tools to help with your research.
2. Negotiate with the seller. As a buyer, you can negotiate with the seller to see if they are willing to pay for some or all of the closing costs.
This can be done during the initial negotiations or as part of a counteroffer.
3. Look for incentives. Some Missouri home builders or developers may offer incentives such as closing cost credits, upgrades, or other incentives to help attract buyers.
You can also ask your real estate agent if they know of any incentives available in the area.
4. Request a Good Faith Estimate (GFE). The GFE is a document provided by the lender that outlines the estimated costs associated with the loan.
You can use this document to compare offers from different Missouri real estate lenders and negotiate with the lender for lower fees.
5. Opt for a lower down payment. While putting more money down can reduce your monthly mortgage payments, it can also increase your closing costs.
Opting for a lower down payment can help reduce your closing costs, but keep in mind that it may also increase your monthly mortgage payment.
6. Ask about discounts. Some lenders may offer discounts on closing costs for certain groups, such as veterans or first-time homebuyers. Ask the lender if any discounts are available to you.
By being proactive and exploring all options, a homebuyer can reduce their closing costs and potentially save thousands of dollars.
Get sellers concessions to use. There are several grants available, and lots of lenders are also helping pay for some closing costs and/or loan origination fees.
Buyer can ask the seller to contribute towards closing costs.
How to Negotiate Closing Costs With a Seller in Missouri?
Here are some steps to help negotiate closing costs with a home seller:
1. Understand the costs. Before negotiating with the seller, it’s important to understand the closing costs associated with the purchase.
Review the loan estimate provided by your lender, which outlines the estimated costs associated with the loan, and the Closing Disclosure, which provides the final costs.
2. Identify the costs to negotiate. Not all closing costs are negotiable, so it’s important to identify which costs are negotiable.
For example, some costs, such as transfer taxes and government recording fees, are set by law and cannot be negotiated.
3. Ask for concessions. Once you have identified the costs that are negotiable, you can ask the seller for concessions, such as a credit toward closing costs or a reduction in the sale price to cover some of the costs.
This can be done during the initial offer or as part of a counteroffer.
4. Be flexible. Keep in mind that the seller may have their own priorities and limitations, so it’s important to be flexible and open to alternative solutions.
For example, the seller may be willing to cover some closing costs if the buyer agrees to a shorter closing period.
5. Find a good real estate agent. Your real estate agent can be a valuable resource in negotiating with the seller.
They can help identify which costs are negotiable and provide guidance on how to approach the negotiation.
6. Keep emotions in check. Negotiations can be stressful, but it’s important to remain calm and professional. The focus should be on finding a solution that benefits both parties.
By taking these steps and approaching the negotiation process in a respectful and professional manner, you may be able to negotiate with the seller to reduce your closing costs and potentially save money.
A benefit of using a realtor is that they can negotiate on your behalf by using conversation and negotiation tactics. Express why you want them and why you should get them.
Add them into the price of the property. Instead of asking for a reduced price, ask the seller to pay for closing costs.
Can a Buyer Avoid Paying Closing Costs in Missouri?
As a buyer, it may be possible to avoid paying closing costs on the purchase of a new home, but it depends on the terms of the sale and negotiations with the seller.
Here are some options to consider:
1. Negotiate with the seller. As a buyer, you can negotiate with the seller to see if they are willing to pay for some or all of the closing costs.
This can be done during the initial negotiations or as part of a counteroffer.
2. Look for incentives. Some builders or Missouri real estate developers may offer incentives such as closing cost credits, upgrades, or other incentives to help attract buyers.
You can also ask your Missouri real estate agent if they know of any incentives available in the area.
3. Take advantage of first-time homebuyer programs. Some states or local governments offer first-time homebuyer programs that provide financial assistance for down payments and closing costs.
These programs may have income and purchase price restrictions, so it’s important to research the eligibility requirements.
4. Roll closing costs into the loan. Some lenders may offer the option to roll the closing costs into the loan, which means you can pay them over time instead of upfront.
However, this may increase your mortgage payment every month and the cost of the loan overall.
5. Shop around for a mortgage lender. Different lenders may offer different rates and fees, so it’s important to shop around and compare offers from multiple lenders.
You can use online mortgage comparison tools to help with your research.
It’s important to note that some closing costs, such as state and local taxes, recording fees, and transfer taxes, may be required by law and cannot be avoided.
However, by exploring all options and negotiating with the seller, a buyer may be able to minimize their closing costs and potentially save money.
The seller can take on all of the buyer’s closing costs, minus any down payment.
Yes, but it must be negotiated in the contract.
Are There Closing Costs Assistance Programs Available for Buyers in Missouri?
Yes, there are real estate closing cost assistance programs available for homebuyers in Missouri. Here are a few examples:
1. Missouri Housing Development Commission (MHDC). The MHDC offers several programs that provide down payment and closing cost assistance to eligible first-time homebuyers.
The programs have income and purchase price limits, and the assistance is provided in the form of a forgivable loan.
2. HOME Investment Partnerships Program. This program provides funds to local governments and nonprofit organizations to help first-time homebuyers with down payment and closing cost assistance.
The program has income limits and varies by location.
3. Neighborhood Assistance Corporation of America (NACA). NACA is a nonprofit organization that provides low- to moderate-income homebuyers with low interest rate mortgages, and no down payment or closing cost requirements.
4. Federal Home Loan Bank of Des Moines Home$tart Program. This program provides up to $5,000 in grant funds to eligible first-time homebuyers to assist with down payment and closing costs.
It’s important to note that these programs have specific eligibility requirements and may have limited funding available.
Homebuyers should research the programs and reach out to the appropriate agency or organization to determine their eligibility and how to apply.
Yes. Many local banks offer grants or reduced rates. Some loans will provide a percent of closing costs to be paid at closing on behalf of the buyer.
In some locations, yes. St. Charles County gives 10k to those that buy within a few zip codes under 219k.
Yes, through NACA.
Who Pays Closing Costs in a Conventional Sale in Missouri?
Who Pays Closing Costs in a Cash Sale in Missouri?
Are Closing Costs Negotiable in Missouri?
What Are the Available Ways to Pay Closing Costs in Missouri?
Why Are Closing Costs So High in Missouri?
Closing costs can vary depending on various factors, including the state in which the property is located, the price of the property, and the type of mortgage being used.
In Missouri, closing costs can be high for several reasons, including:
1. Property taxes. Missouri has a higher property tax rate compared to other states, which means that people looking to buy a property in Missouri may have to pay more in property taxes during the closing process.
2. Title insurance. Title insurance is required in Missouri, which can add to the closing costs. This insurance protects the buyer and lender from any issues with the title, such as ownership disputes or liens.
3. Recording fees. In Missouri, recording fees are charged for recording the deed and other documents related to the sale of the property.
These fees can add up, depending on the number of documents that need to be recorded.
4. Appraisal and inspection fees. Buyers may be required to pay for an appraisal from a Missouri property appraiser and the Missouri home inspector, which can also add to the overall closing costs.
5. Attorney fees. Buyers or sellers may choose to hire an attorney to help with the closing process, which can also add to the costs.
It’s important to keep in mind that while closing costs can be high, they are typically a one-time expense and are necessary to complete the purchase or sale of a property.
It’s a good idea to work with a reputable real estate agent and mortgage broker in Missouri who can help you understand the closing costs and negotiate the best possible deal.
Closing costs are not high. The reason people think they are high is because everyone is telling them they are.
Closing costs are also different from cash to close. Closing costs being the lesser of them.
In a lot of cases, earnest money will get returned and cover a lot of the “closing costs,” i.e., title costs. The biggest chunk is the loan down payment and that comes from the lender.
Even so in most residential sales, you are under 15k in cash to close and normally under 8k in actual “closing costs.”
Closing costs are high in Missouri because of the fees that have to be paid to the Missouri escrow company and pre-paids.
What Are the Transfer Taxes in Closing Costs in Missouri?
Missouri is one of thirteen states that does not impose a transfer tax as part of real estate closings.
Each of the states surrounding Missouri impose such a tax, with a variety of names and mechanisms.
For example, Iowa places revenue stamps on deeds when the transfer is recorded, to implement its transfer tax.
Nebraska uses a documentary stamp tax to generate revenue. The stamp is placed on the deed when it is filed.
Kansas has a mortgage registration tax, while Tennessee has a simple formula for a tax assessment on the value of the transaction at closing.