When selling a home in St. Louis, Missouri, there are a variety of costs and fees to consider in order to ensure a successful transaction. Homeowners should be aware of the various real estate commissions, taxes, title fees, legal fees and possible home repairs that come along with selling their property. It is important to understand these costs before beginning the process of putting your home on the market so that you can budget accordingly.

Real Estate Commissions

When it comes to selling a home in St. Louis, one of the largest expenses is the commission charged by the real estate brokerage. Generally speaking, 6-7% commission is paid out to the listing agent and buyer’s agent when selling a home in Missouri. This cost will vary depending on the current market conditions and other factors such as length of time on the market or whether or not the agents involved are working for full service or limited service brokerages. It is important for homeowners to shop around for different brokers before committing to one in order to get an idea of what commissions they can expect from each individual business.

While commissions do vary, it is important to remember that service and comfort level with an agent are more important considerations when choosing whom to work with. The commission fee should not be the only factor that influences your decision of whom to hire to represent you in a real estate transaction.

Real Estate Commissions Are Real



Taxes

In addition to commission costs, sellers should be aware that they may be subject to capital gains taxes or other taxes based on their profit made from selling their property. In Missouri, homes are exempt from capital gains tax if they qualify under certain criteria such as being homestead property used as primary residence 2 out of 5 years prior to sale and having owned it at least 3 years prior to sale. However, if this criteria is not met then owners may be subject to state income tax which has a top rate of 5%. Additionally, county and municipality sales taxes may also apply which can range between 1%-3%.

For more comprehensive information on the tax implications of selling a home in St. Louis, Missouri, it is recommended that homeowners consult with a qualified tax professional to review their specific financial situation and assess their potential liability. This is especially important when property has been owned for less than 3 years or does not qualify as homestead property used as primary residence 2 out of 5 years prior to sale, as the owner may be subject to state income tax and county/municipality sales taxes which range between 1%-3%.

Taxes can eat into profits quickly



Title Fees

Homeowners will be responsible for paying title fees when transferring ownership of their property from seller’s name into buyer’s name. These fees usually include an escrow fee as well as title search fees which vary depending on size and complexity of search necessary for transfer document preparation. Additionally closing costs such as attorney fee may also need to be taken into consideration when estimating total cost of sale.

Title Insurance, the Necessary Evil



Home Repairs

Sellers should always anticipate possible repairs that need to be done before listing their home on the market in order for them get maximum returns from their sale price. Items such as leaky faucets, broken tiles or faulty appliances should all be checked prior to listing so that buyers don’t have any surprises after signing purchase agreement contract with seller. Homeowners might also want consider doing some cosmetic updates like painting walls or replacing out dated flooring in order increase potential sale price despite higher initial cost associated with it up front.

Make repairs before going to market?



Additional Fees

In addition there are some optional fees associated with selling your home including staging services which may help maximize potential return when done properly but could also end up being expensive if return on investment isn’t great due given current real estate market conditions at time of listing.. Other additional optional services include advertising and promotion campaigns which can help drive more traffic during open house events held by agents/realtors representing sellers . Overall it is important for homeowners take into account all these costs beforehand before starting process listing their property so that they don’t run into any surprise expenses down road later resulting from poor planning up front.

Miscellaneous fees can put a dent into your home sale as well



If you’re looking to sell your home quickly and with as little pain as possible, be sure to contact Deerwood Realty. Our team of experienced real estate professionals will work hard to get your home sold fast and for the best price possible. Contact us today to learn more about how we can help!