Putting your property on the market is seldom an easy decision, and it’s generally not a simple task, either. There are various costs to consider and timelines to follow. You’ll also need to work with lots of professionals and deal with multiple processes that result in more money being lost than you initially anticipated.
Below, FasterHouse has shared a comprehensive guide discussing what’s involved when selling a Missouri home the traditional way. We’ll also discuss possible alternatives to try if you find it all too overwhelming.
Benefits of Selling Real Estate Properties Quick
How Much Does It Cost To Sell a House in Missouri?
The traditional sale of a Missouri home is said to cost about 12.04% of the total sales price. So, if you project your real estate asset to sell at $300,000, expect around $36,120 in total expenses. This is a substantial amount, and several factors contribute to this high number.
Real Estate Agent Commissions
Traditional real estate sales, which require marketing and listing on MLS platforms, will usually require a real estate agent or realtor. Missouri agents tend to charge 5.77% of the total sale price, which is almost half of the total average cost. Thankfully, some options help you avoid the need for agent commissions, such as working with a cash buyer like FasterHouse.
Title Fees and Title Insurance
Title fees and insurance are necessary expenses that will help you avoid any future conflicts in ownership or hidden liens. Generally, the seller will be responsible for funding the title fees and insurance policy. The buyer, meanwhile, will cover the lender’s policy. These fees are nominal, though, and typically won’t exceed 0.1% of the total sales price.
HOA Fees
Some homeowners associations (HOAs) charge prorated dues through the closing date. Many home buyers and sellers overlook this charge, resulting in an unexpected and unplanned expense. Thankfully, cash buyers like FasterHouse take care of this expense for you, eliminating the hassle.
Escrow Fees
You may need a neutral third party to hold the funds from your home sale, so working with an escrow firm becomes necessary. These companies charge around 2.5–3% of the total sales price, which can be a substantial amount. While the bill is typically split between the buyer and seller, the amount can still be a surprise expense if you weren’t anticipating or aware of it.
Transfer and Property Taxes
While Missouri doesn’t charge transfer taxes on the state level, some local governments and counties may impose a fee. It’s always good practice to check with your realtor to understand if there are specific fees in your area.
Property taxes, meanwhile, are generally paid regularly. However, some houses may have liens due to unpaid tax liabilities. You must address these liens first before selling the asset to attract more buyers.
Seller Concessions
Concessions are perks you offer to attract more buyers. Of course, providing these advantages will come at a cost. Here are a few examples.
- Offering a Home Warranty: Provides peace of mind by covering repairs for systems and appliances.
- Paying for Repairs or Upgrades: Addresses inspection concerns or improves appeal.
- Providing a Mortgage Rate Buydown: Temporarily lowers the buyer’s interest rate.
- Including Furniture or Appliances: Adds value and convenience for the buyer.
While these perks make your home more appealing in a competitive market, you’ll need to balance the expenses and advantages. For example, paying for repairs may lower your capital gains, but a quick sale reduces the costs associated with maintaining the home while it is on the market.
St Louis Missouri
How To Sell a House in Missouri
Traditional real estate sales follow these steps.
1. Assessing the Property’s Market Value
The first thing you’ll want to know is the home’s current market value. This step can usually determine whether now is the best time for a sale or if waiting to sell later is more profitable. Most homeowners, assisted by a real estate agent, utilize methods such as comparative market analysis (CMA) to determine the value of their property. Professional appraisals are also ideal for more accurate values.
2. Preparing the Required Documentation
The ones that entail the most effort are disclosure requirements — documents you’re legally required to submit to help reveal information about a property. In Missouri, disclosure requirements include the following.
- Material defects, including structural issues, plumbing problems, and drainage damages
- Code violations
- Lead-based paint hazards
- Health and safety risk hazards
- History of methamphetamine production inside the property
3. Getting the Property Ready
The next step is making repairs, deep cleaning, and staging. These practices help turn your home into something that is appealing to buyers. The total cost of these steps varies significantly, but addressing extensive issues can significantly impact your expected income.
4. Marketing and Listing
You will need to list your property on MLS platforms and other channels to maximize your reach. This step is necessary to find buyers who are looking for features and characteristics only your home offers. Good photos taken after staging can increase the appeal of your real estate asset. Open houses are also great for those who want to check out the property.
5. Buyer Negotiations
Once you begin getting offers, thorough reviews become a necessary practice. You’ll need to analyze the price, financing, and timing to help you find one that fits your goals. Ensure that you negotiate with the intention of avoiding prolonging this phase.
6. Closing
After accepting an offer, the final step is the closing. This phase typically lasts 30–60 days and includes final buyer inspections, document signing, and escrow transfers. However, you may encounter delays in traditional sales due to title issues or financing challenges on the buyer’s end.
How To Calculate Closing Costs
Closing costs include the expenses mentioned above, such as agent commissions, escrow fees, and property taxes. For more complex transactions, a real estate lawyer may also be needed. As such, there’s no predictable calculation for closing costs — the final amount will be based on your unique circumstances.
Given this uncertainty, working closely with your real estate agent is the best practice. The agent’s knowledge can help you predict the final expenses and avoid unwanted surprises down the road. There are ways to reduce or avoid closing costs altogether, of course, such as working with a cash buyer.
How To Save Money When Selling in Missouri
A traditional real estate sale takes away a significant chunk of your overall earnings. Fortunately, there are other methods and strategies you can try to keep more money in your pocket.
For Sale by Owners (FSBO)
An FBSO transaction removes the need for an agent, and by extension, realtor commissions. This approach is ideal for individuals with some level of experience in real estate sales, as well as those selling to a predetermined buyer. However, inexperienced folks may find FSBO overwhelming without professional guidance.
Preventing Closing Delays
The phase where you are most likely to incur unexpected expenses is during closing. Surprise costs are more likely the longer your home remains unsold. You may need to continue paying the mortgage, property taxes, and property maintenance costs. As such, you’ll want to follow best practices that help expedite this stage, such as preparing all necessary documents in advance and promptly addressing all buyer concerns.
Working with a cash buyer can also eliminate these issues, thanks to the streamlined nature of the transaction.
Cash Home Buyer
Home Cash Buyer
Engaging with a cash buyer makes the home sale feel like a simple retail transaction. FasterHouse buys homes without requiring repairs, marketing, or lengthy closing times. Regardless of the current condition of your property or its age, we will provide a competitive offer. You get to keep all of the cash since you won’t need to work with an agent, offer concessions, or make extensive fixes.
Ready To Sell? FasterHouse Makes It Simple
We’ve created a streamlined approach that ensures a convenient experience for home sellers. Simply send the details of your home, and we’ll get back to you with a competitive offer. If you accept it, you can then choose the closing date, which can be anything from a week to even two months later.
Get your free, instant cash offer today and avoid the hassle of traditional real estate sales.
Frequently Asked Questions
1. What is the cost of selling a property in Missouri?
While there is no set amount, and various factors can impact how much you’ll need to shell out, expect to pay around 12.04% of the total sales price.
2. How can I avoid paying so much when selling a property?
We recommend exploring alternatives to minimize or eliminate commission rates, escrow fees, and other related costs. Working with a cash buyer like us is a cost-effective strategy to sell my house fast St Louis.
3. How much tax will I need to pay after selling a Missouri property?
On the federal level, you may need to pay up to 20% in capital gains taxes. However, the Section 121 Exclusion allows you to avoid capital gains taxes for up to $500,000 (for married couples) in gains.
