Closing Costs in Missouri: Who Pays What?

Are you trying to figure out who pays what at the closing table in St. Louis? You are not alone. The list of fees can feel confusing, and the totals matter when you are planning a sale or purchase. In this guide, you will learn what closing costs include, who typically pays which items in Missouri, how much to budget, and the key steps to keep your numbers on track. Let’s dive in.

Closing costs explained

Closing costs are the one-time charges you pay to finalize a home sale. They cover services that make the transfer legal, safe, and funded. You will see two broad buckets on your settlement statement:

• One-time settlement charges: title and escrow services, document prep, recording, and professional fees tied to this transaction.
• Prepaids and escrows: upfront collections for property taxes, homeowner’s insurance, and interest that set up your mortgage account if you are financing.

Here is what typically shows up:

• Real estate brokerage commissions: total commission shared between listing and buyer’s broker. Paid from seller proceeds unless negotiated otherwise.
• Title and settlement: title search and exam, closing or escrow fee, document prep, and notary.
• Title insurance: an owner’s policy that protects the buyer’s title and a lender’s policy that protects the lender’s interest if there is a mortgage.
• Lender-related fees (buyers with financing): loan origination, underwriting and processing, appraisal, credit report, and any discount points.
• Government and recording: fees to record the deed and mortgage, and any transfer or documentary taxes if applicable in your jurisdiction.
• Inspections and reports: home inspection, termite or pest inspection, survey, and other property-specific checks.
• HOA or condo items: prorated dues, document or transfer fees, and any estoppel letters.
• Seller items: payoff of existing mortgage(s), liens, prorated taxes, and deed-related preparation.

Remember, some items are true one-time charges, while prepaids and escrows are advances on ongoing costs you will pay during ownership.

Who pays what in Missouri

There is no statewide rule that assigns every fee to one side. The purchase contract and local custom decide how costs are split. In Missouri and across the U.S., certain patterns are common, and most items are negotiable.

Seller-paid costs: common items

• Real estate commission: customarily paid by the seller at closing. Commission totals vary by market and are negotiable.
• Owner’s title insurance policy: in many Missouri transactions the seller commonly pays for the buyer’s owner’s policy, but this varies by area and by deal. Confirm local practice for St. Louis.
• Prorated property taxes: the seller pays their share from the start of the tax period through the closing date.
• Existing mortgage payoff: principal, accrued interest, and any lien releases or payoff fees.
• Deed preparation and recording fees related to the seller’s side.

Buyer-paid costs: common items

• Lender fees: origination, underwriting, processing, and any discount points if the buyer chooses to pay points.
• Appraisal and credit report required by the lender.
• Lender’s title insurance policy: typically paid by the buyer.
• Inspections and survey unless the parties negotiate otherwise.
• Recording fees for the new mortgage and, in many cases, the deed.
• Prepaids and escrows for property taxes, homeowner’s insurance, and prepaid interest.

St. Louis local custom and variability

Local practice matters. In the City of St. Louis and St. Louis County, recording fees, transfer charges, and forms can differ. Title companies typically handle closings in Missouri and can tell you who customarily pays for the owner’s title policy, how settlement fees are split, and current recording requirements. For the most accurate breakdown, confirm with the appropriate Recorder of Deeds office and the City Treasurer or Finance Department for any transfer-related items.

How much to budget

Exact totals depend on price, loan type, property location, and your negotiations. Use these planning ranges as a starting point.

Sellers: typical ranges

• Commission: commonly a mid–single-digit percentage of the sale price, shared between listing and buyer’s agents. This is usually the largest seller expense and is negotiable.
• Other seller closing costs: often about 1 percent to 3 percent of the sale price, covering items like the owner’s title policy if customary, prorations, and settlement or recording fees.
• Total seller costs: many sellers see roughly 6 percent to 10 percent of the sale price when including commission.

Buyers: typical ranges

• Lender and third-party fees (excluding prepaids): commonly about 0.5 percent to 3 percent of the purchase price or loan amount.
• Prepaids and escrows: lenders often collect a few months of taxes and insurance upfront. Amounts vary with timing and tax schedules.
• Total buyer closing costs (excluding down payment): commonly about 2 percent to 5 percent for conventional financing. Cash buyers avoid lender fees but still pay title, recording, inspections, and other third-party costs, often around 0.5 percent to 2 percent.

Example estimates only

• Financed buyer: lender and third-party fees around 1.5 percent, title and recording around 0.5 percent, and prepaids or escrows around 1.5 percent for a total near 3.5 percent. Your figure can be lower or higher based on loan type, points, and timing.
• Seller: commission around a mid–single-digit percentage and other closing costs around 1 percent to 2 percent for a total near 6 percent to 8 percent. Your result will vary with negotiated terms.

These examples are not quotes. For precise numbers, ask your lender for a Loan Estimate and request a title fee quote early.

St. Louis specifics to verify

Because fees change and vary by jurisdiction, check the latest details before you sign.

• Recorder of Deeds: Recording fees for deeds and mortgages can include per-page charges and flat filing fees. The City of St. Louis may differ from St. Louis County. Confirm the current schedule with the correct office based on the property location.
• Transfer or documentary taxes: Some municipalities assess transfer-related fees. Verify whether any apply to your property, the rate, and who remits payment.
• Required forms: Some transactions require transfer affidavits or reporting forms at recording. Your title company will advise you on what to complete and when.
• Title company practices: Ask how owner’s title policy costs are typically handled in your part of St. Louis, and have the settlement or escrow fee explained line by line.

How to manage and reduce costs

You have options to keep closing costs predictable and, in some cases, lower.

• Negotiate concessions: Buyers can request seller credits toward closing costs. Sellers can negotiate which side pays specific fees. Lender programs may cap concession amounts, so confirm limits with your loan officer.
• Compare lender quotes: Request at least one additional Loan Estimate so you can compare origination and third-party fees and choose the structure that suits you.
• Focus on rate versus points: If you are offered discount points, weigh the upfront cost against your expected time in the home.
• Time your closing: Closing later in the month can reduce prepaid interest. Talk with your lender about timing that fits your move and cash flow.
• Get itemized title fees early: Title insurance, settlement, and recording can vary by provider and jurisdiction. Ask for a written estimate before you finalize negotiations.
• Clarify HOA charges: Request a breakdown of any association transfer fees and document costs so you can plan for them.

Buyer checklist

Use this quick list to keep your numbers accurate and your timeline smooth.

• Request a Loan Estimate from your lender and review each fee.
• Ask your title company for a title commitment and a written estimate of title, escrow, and recording costs.
• Budget for inspections and the appraisal.
• Confirm any negotiated seller credits toward your costs.
• Ask your lender how many months of taxes and insurance will be collected at closing.
• Verify HOA or condo requirements and any document or transfer fees.

Seller checklist

Set yourself up for a clean closing and fewer surprises.

• Confirm the total commission and how it will be paid from proceeds.
• Order mortgage payoff statements early and confirm wire instructions.
• Ask whether local custom expects you to pay the owner’s title policy and request the estimated premium.
• Provide required disclosures and gather any property documents your buyer will need.
• Confirm how property taxes will be prorated to the closing date.

Day-of-closing tips for both sides

• Bring a valid government-issued ID and any requested documents.
• Confirm wiring instructions with the title company by phone using a known number to avoid fraud.
• Review your final settlement statement or Closing Disclosure as early as possible. Buyers with financing should receive their Closing Disclosure at least three business days before consummation.

What this means for West County clients

If you are buying or selling in neighborhoods like Ladue, Frontenac, Town and Country, Clayton, Kirkwood, Olivette, or Creve Coeur, the mix of fees and who pays which line items often reflects local custom and negotiation. High-value transactions can involve larger title premiums and more complex prorations, which makes early estimates essential. A clear, itemized plan helps you protect your proceeds as a seller and align cash to close as a buyer.

When you want a precise picture for your specific property, I can coordinate a lender estimate and a title fee quote, then overlay local customs so you know exactly what to expect. For a confidential conversation tailored to your goals, connect with Sandra R Mesker.

FAQs

Who pays closing costs in Missouri home sales?

• There is no universal rule. Responsibilities are negotiated in the contract and shaped by local custom. Sellers often pay commission and may pay the owner’s title policy, while buyers typically pay lender fees, the lender’s title policy, inspections, and prepaids.

Do St. Louis sellers pay the owner’s title policy?

• In many Missouri transactions the seller commonly pays for the owner’s policy, but this is not guaranteed. Confirm the local norm with your St. Louis title company and agent.

How much should St. Louis buyers budget for closing?

• A practical starting point is 2 percent to 5 percent of the purchase price for closing costs if you are financing, excluding your down payment. Ask your lender and title company for written estimates early.

Are recording or transfer fees high in St. Louis?

• Recording fees are usually modest, and transfer-related charges depend on the specific city or county. Verify current schedules with the appropriate Recorder of Deeds and any municipal finance office.

Can the seller pay some of the buyer’s costs?

• Yes. Buyer credits, often called concessions, can be negotiated, although loan programs may cap the allowable amount. Discuss limits and options with your lender and agent.

What prepaids and escrows should buyers expect?

• Lenders often collect a few months of property taxes and homeowner’s insurance plus prepaid interest from the closing date to month-end. The amount depends on timing and your loan setup.

How do cash buyers’ closing costs compare?

• Cash buyers skip lender fees but still pay title, settlement, recording, inspections, and other third-party costs. Totals are often around 0.5 percent to 2 percent of the purchase price, depending on negotiations and services used.