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18 min read Feb 21, 2023

What are the Seller Closing Costs in Missouri?

Seller Closing Costs in Missouri

Congratulations! You’re now almost at the finish line. But before you pop open the champagne, you have to go through the closing process to transfer the property to the buyer legally.

Closing on a Missouri property can be overwhelming and exhausting. However, familiarizing yourself with the process and various MO closing costs can make the process smoother and easier.

Key Takeaways

  • Closing costs, also known as “settlement costs,” are the final expenses to complete the real estate transaction.
  • Closing costs are separate from the price of the property.
  • The seller and the buyer have to pay specific closing costs.
  • In Missouri, the closing process is can be carried out by an escrow company, an attorney, or the mortgage lender.
  • Due to different fees and statute requirements, closing costs vary across counties and cities in Missouri.


What are Closing Costs in Missouri?

Closing costs in Missouri are a set of expenses that the seller and the buyer must pay to finalize the real estate transaction and transfer the ownership of the house. Some are closing costs negotiable, while others are non-negotiable, like taxes charged by the state or local jurisdiction.

Who Pays Closing Costs in Missouri?

The answer to who pays for the closing costs in Missouri is, both, the seller and buyer. Although the buyer has to pay more number of fees as closing expenses, a seller has to pay a higher amount as closing costs.

Most of the sellers closing costs in Missouri are deducted from the proceeds they get for the property. As such, the seller needs enough equity to cover some of the expenses.

Real estate agents generally know who typically pays what for the closing costs in Missouri. So, it’s important to seek professional advice. Hiring an experienced agent can help lower estimated closing costs for seller in Missouri. Remember, some of the fees are negotiable, which your agent can discuss with you.

» Top Real Estate Agents: Check out the top real estate agents who can guide you in your real estate journey.

How Much are Closing Costs in Missouri?

The estimated closing costs for sellers could reach up to 8% to 10% of the final sale price of the home, not including the mortgage payoff. The biggest closing cost (5%-6%) the seller has to pay is the commission of the listing and buyer’s agent. The remaining 3%-4% includes expenses like home inspection fee, HOA fee, estoppel fee, etc.

Let’s put it in perspective! The typical home price in Missouri is $234,924. So, average closing costs in Missouri for seller ranges from $18,793-$23,492. On the other hand, closing costs for buyer can amount to $14,095.

Let’s take a deeper look at sellers closing costs in Missouri!

» How Much are Closing Costs in Missouri: Read all about how much closing costs are paid by sellers and buyers in Missouri!

How Much are Closing Costs for Seller in Missouri?

1. Attorney’s Fee

The law in the state of Missouri does not mandate the involvement of a lawyer for sellers. However, sellers may hire real estate attorneys in Missouri to review the sales contract, especially when no real estate brokers are involved or there are any legal issues with the property. Nevertheless, you can hire a real estate attorney even if your case is not unusual.

So, who pays attorney fees at closing? In most cases, the seller and buyer hire different attorneys to represent their best interests. However, if you and the buyer decide to hire the same attorney, the attorney fee will be split.

Typically, the real estate attorney fees depend on the type of home being sold and the type of sale it is. The average real estate attorney fees in Missouri is $250.

2. Credits Towards Closing Costs

You can offer to help buyers with closing costs to make the property more attractive, especially if you live in an area where market competition is low. These costs are called closing credits or seller concessions and are paid at closing.

3. Escrow Fee

An escrow is a neutral third party that holds certain funds or the property until the contract conditions have been met. It protects the interest of both parties by ensuring that either does not wrongfully back out of the deal and lose money. Typically, the escrow fee will be split between the buyer and you as both parties benefit from it.

4. Home Inspection Fee

Home Inspections are non-invasive visual examinations of homes. Home inspections can reveal significant defects in the property that a homebuyer may miss.

Missouri home inspection entails identifying any major defects and issues in the house that you must resolve before selling it.

Disclosure laws in Missouri, for the most part, follow the rule of ‘caveat emptor,’ i.e., let the buyer beware. As the seller, you are not obligated to inform the buyer about any defects. However, you must not actively conceal or hide the flaws.

The buyer can also undertake a home inspection. However, if they find undisclosed defects, it might give them the upper hand during negotiations, or they may back out of the deal.

Missouri seller disclosure requires sellers to declare any known issues and defects with the property. Some of these are:

  • Structural defects: The buyer must be informed about leaking roofs, loose masonry, foundational cracks, etc.
  • Factors that pose health risks: You must disclose the presence of asbestos, lead paint, etc., to the buyer. However, Illinois law does not mandate radon testing and identifying the presence of mold.
  • Soil problems: You must identify any issues related to the foundation of the home that could potentially render the house inhabitable. This includes underground pits, mines, or other instability.
  • Flood risk: You must provide a list of flooding instances and water damage caused by pipe leaks, broken sewer lines, leaking roof, etc.
  • Pest infestation: You must also offer a list of any previous or current infestations of termites or other wood-boring insects.
  • Utility defects: You must list defects such as malfunctioning heating and air conditioning systems, damaged lighting fixtures, faulty wiring, leaky ventilation systems, etc.

» What is a Home Inspection Cost in Missouri: Here’s how much you’ll have to pay for closing costs in Missouri!

5. Home Warranty Fee

A home warranty covers the maintenance cost of the devices and appliances in the house for a limited time period, like, days, months, or years. You may offer a home warranty to make the property more desirable for buyers. Home Warranty in Missouri typically costs $40-$58 dollars per month.

6. Homeowner Association(HOA) Fee/ Document Fee

If you are a part of the Homeowners Association(HOA), you will have to pay the fee due until the closing date and clear the remaining dues, if any. In most cases, you will not be able to close on the house until the dues are paid.

However, if the issue persists and is not resolved before closing, the HOA can place a lien on your house and even initiate foreclosure.

» Foreclosure in Missouri: How to stop foreclosure in Missouri? Here’s a guide.

7. HOA Estoppel Fee

The HOA Estoppel letter is a legally binding document containing details about the financial obligation, like the monthly fee, that the buyer will have to pay after closing. It also offers information about any unresolved dues you may owe.

The HOA Estoppel fee needs to be paid by you as part of the process. It ranges from $200-$500.

8. HOA Transfer Fee

If you are a part of the Homeowners Association, at the time of closing, the ownership of your house needs to be transferred to the buyer in HOA records. HOA transfer fee is a one-time non-negotiable charge that you pay the HOA to update their records.

9. Mortgage Payoff

Mortgage payoff will most likely be one of the biggest items on your list of fees. You’ll have to pay off any remaining balance of the mortgage on your property with the proceeds of your home sale at closing. This includes interest accrued from the last payment to the day of closing and any penalty the lender might charge you for prepayment of the mortgage.

Contact your lender and discuss the requirements to pay off the mortgage to get the overall details of your closing costs. Also, check for the loan documents for any prepayment penalty with your mortgage.

» Mortgage Lender Missouri: Read to know about mortgage lenders in Missouri.

10. Municipal Lien Search

A Municipal Lien Search can help you uncover any unrecorded liens, code violations, permits, taxes, and utility bills, associated with the property. While many sellers forego a municipal lien search, it can complement a title search, especially since it offers additional information about open or expired permits.

An open or expired permit can be a thorn in the side for both you and the buyer, as it can lead to further expenses and delays in the sale. On average, a municipal lien search costs $200.

11. Owner’s Title Insurance

The title insurance cost in Missouri is based on the property value and is decided by the state. Usually, the seller pays for the owner’s title insurance in Missouri to protect the buyer against discrepancies relating to the ownership of the property or false documentation. Additionally, title insurance takes care of any back taxes, liens, ownership clauses, etc.

Both parties can negotiate who purchases the owner’s title insurance.

» Who Pays Owner’s Title Insurance in Missouri: Find out who pays owner’s title insurance in Missouri.

12. Property Taxes

Missouri is one of the 12 states in America that does not impose a transfer tax on the sale of property.

13. Real Estate Broker Commission

The agent’s commission is the biggest chunk of the cost you need to pay. However, it’s negotiable and typically paid from the proceeds of your house sale. Likewise, don’t forget to contact your agent to negotiate the fees. In total, you are expected to pay the real estate agent commission that ranges from 4% to 6% (listing agent commission + buyer’s agent commission which costs 2% to 3% of the total sales price).

If you want to avoid paying hefty commissions, you can list your property for a flat fee or with no commission at all! Choosing FSBO (For Sale by Owner) and listing your home with a Flat Fee MLS listing service Missouri can help you save more money. What’s more, you have to pay zero commissions if your buyer has no agent.

» How to Sell a House by Owner in Missouri: A Comprehensive Guide

14. Recording Fees

A recording fee is paid to the local government to register the change in ownership of a house or sale of a property in the public record. It also records mortgages and other liens against the house. Usually, the state recording fee in the state of Missouri is paid by the seller. However, you can negotiate it with the buyer.

15. Settlement Fee/Escrow Fee

Settlement fee is the compensation paid to a settlement agent for their closing services. A settlement agent is a third-party intermediary who helps you and the buyer complete the transaction. They clear the house for sale and transfer the ownership to the buyer and the respective funds to you.

Depending on the state laws, the settlement agent could be a title company, an escrow company, or an attorney. In 21 U.S. states and the District of Columbia, it is mandatory for an attorney to be a part of the deal closure.

16. Utility Bills

You must pay all utility bills till the date of purchase of the house. The title company usually checks for unpaid bills and utility liens. If there are any dues, you must clear them at closing.

How to Reduce Seller Closing Costs in Missouri?

1. Opt for a discount broker or a flat fee realtor

As compared to traditional brokers who charge 6% of the sales price as commission, discount real estate brokers in Missouri only charge 3%-4% of the sales price for their services. Some low commission realtors offer higher concessions if you let them represent you as buyer’s agents for your next real estate purchase.

» Largest Mortgage Brokers in Missouri: Read to know about Missouri mortgage brokers.

2. Choose “For Sale By Owner”(FSBO)

Sellers can save up to 3% commission and cut several costs by opting for “For Sale By Owner” services. Houzeo offers Flat Fee MLS packages for FSBO sellers that list properties on the MLS and make the selling process easier and smoother. Additionally, if the buyer is unrepresented, with Houzeo, sellers can sell their homes for zero realtor commission charge!

» Flat Fee MLS: Everything You Need to Know

3. Research and compare

You can save more cash on closing costs for seller, such as the pest inspector or homeowner’s insurance agent, title and escrow companies that are more economical. Browse and ask friends who have already experience hiring one.

4. Ask to roll pay your closing costs into your loan

Your lender may offer to pay the seller closing costs at closing and add it to your mortgage. However, it comes with a price. The lender may charge you a higher interest on the loan, which now also includes the closing cost.

5. Negotiate realtor fees

While traditional real estate agents usually charge 6% of the sale price as commission, this number is not set in stone. You can negotiate the fee with your realtor.

6. Ask the buyer to cover seller closing costs

Buyers may agree to cover closing costs for sellers if the market is competitive and fewer houses are in the market. Alternatively, you can raise the listing price according to closing costs to cover full or partial closing costs.

» How Much are Closing Costs for Buyer in Missouri: Check out what are the buyer closing costs in Missouri.

Missouri Closing Costs Calculator

Closing costs vary heavily according to location and mortgage rates. Houzeo’s Closing Costs Estimator is a free tool that factors in these elements to help sellers and buyers estimate their closing costs. It shows the user a detailed list of itemized costs and highlights junk costs that can be avoided.

Houzeo’s Home Sale Calculator MO is a free tool that factors in these elements to help sellers estimate their closing costs. It shows the user a detailed list of itemized costs and highlights junk costs that can be avoided.

Houzeo’s Seller Closing Costs Calculator Missouri is frequently calibrated to give you the closest estimate according to market conditions.

» Calculate Seller Closing Costs in Missouri: Check out the seller closing costs calculator for calculating the closing costs for the seller.

How Should I Prepare for My Missouri Home Closing?

Your closing agent will set the closing appointment after consulting with you. You must prepare all the documents before the scheduled closing date. Also, contact your real estate agent and attorney for clarification.

1. Double-check your closing documents in advance

It’s a must to review and re-examine your closing documents prior to closing. Read them thoroughly and understand the regulations and provisions stated in the deed, contract, and record. Here are some of a few crucial documents that you will likely sign during your home closing.

  • The HUD-1 or Closing DisclosureThis form must be provided at least 3 days before the closing transaction. If your Missouri property is purchased with a mortgage, you’ll need to supply a closing disclosure that contains all the costs in detail. If it’s paid in cash, you need to provide a HUD-1 (although this is less common).

These are crucial documents that detail the amounts/fees you’re being charged—all fees, including taxes, insurance, escrows, credits, etc.) On the closing date, you might be asked to bring a check (or send a wire), depending on the amount of equity in your property. Make sure there are no typos, your name, address, property address, bank info, and other important details. As much as possible, review every amount and the total to ensure there are no mathematical errors or inadvertent costs. You’ll be surprised how many times these documents have you missed or errors – this is one of the reasons our founder launched Houzeo.

  • The Deed: This document enables the legal transfer of title from the seller to the buyer.

Review the document if there’s a mistake. Read and verify the details carefully, together with your real estate attorney, including the legal description of the property, the deed book, the deed book page, and the Property Identification Number (PIN), if any.

We know of a case where a Seller sold a $94,000 property, but the deed also legally transferred the Seller’s 5 other homes worth $680,000 over to the Buyer. There was a huge scramble post-closing to correct this mistake. It could have been a nightmare for the Seller if the Buyer didn’t honestly transfer the rest of the properties back to the Seller.

2. Ask Questions

If this is your first time selling a house in Missouri, always ask questions if you are confused with something—on the forms, contracts, etc. Contact your real estate attorney for legal advice or opinion related to legal issues. Bear in mind to prepare your closing documents the day before the appointment. You’re paying your agent and lawyer’s service, so make the most out of it.

3. Bring TWO Forms of Official ID

Never forget to bring your valid driver’s license or passport for identification purposes—to verify your identity. Also, you should bring a secondary I.D. as a backup. A licensed notary will verify and make you legally swear for your identification.


Developing an understanding of closing costs when selling your own home in Missouri is important for you as it can greatly impact your profits. Additionally, Missouri closing costs are an important factor in calculating the listing price of your house.

If you have not begun your real estate journey yet, opt for Houzeo., a tech company, provides an unbeatable combination of maximum savings, cutting-edge technology, and 5-star customer support. With its 100% virtual service, it helps home sellers list their properties without any hassle from the comfort of their homes while also allowing home buyers to explore properties and make offers online. Houzeo’s customer-centric approach, advanced technology, and flat fee packages make it an ideal choice for those looking to avoid paying high commissions and closing costs in Missouri.

Note: This is only a quick guide for all the sellers in Missouri. Despite most information readily available online, seeking expert advice helps progress the process of selling a home.

Frequently Asked Questions

1. How long does it take to record a deed in Missouri?

It usually takes 4-8 weeks from the date of submission of documents to record a deed in Missouri.

2. Do I have to pay capital gains tax in Missouri?

Yes. The state of Missouri taxes capital gains as income. The current capital gains tax rate is 5.40%

3. How is closing cost for sellers in Missouri calculated?

Closing costs are a sum of specific settlement expenses. These vary according to the location, mortgage rates, and market conditions. Houzeo's closing cost estimator is a free tool you can use to get a close estimate of closing costs in Missouri.

2. Who pays for title insurance in Missouri, the buyer or the seller?

Usually, the seller pays for the owner's title insurance in Missouri. However, you can negotiate this cost with the buyer. If the buyer has opted for a mortgage, they will pay for the lender's title insurance. Click on this link for more information on who pays owner's title insurance in Missouri.
Want to know what title insurance covers in Missouri? Or what is the cost of title insurance in MO?

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