Average Cost to Sell a House in Colorado: Seller Closing Costs Revealed

• 

  Written by Greg Isaacson

• 

  Edited by Steve Nicastro

Cost to sell in Colorado | Realtor commission | How to save | Closing cost calculator | FAQs

The average cost to sell a house in Colorado is 6.07% of a home’s final sale price, which includes realtor commission (5.52% of the sale price) and seller closing costs (0.5%). 

It costs home sellers in the Centennial State an average of $31,488 to sell a home priced at $530,389 (Colorado’s average home price).

Thankfully, you can save thousands on your home sale by using an agent matching service like Clever Real Estate. Clever has negotiated a reduced listing commission of 1.5% – far lower than the Colorado average of 2.73%.

Here’s a complete breakdown of the average costs of selling a house in Colorado, including tips on how to save on your sale.

Cost of selling a house in Colorado

*Costs assume a sale price of $530,389. Numbers are rounded off and may not be 100% precise.

It’s relatively cheap to sell a house in Colorado compared to other states. The table above shows that it costs 6.07% of the home’s sale price when factoring in realtor commissions and closing costs.

That’s lower than the national average of 6.53%. But with Colorado’s sky-high home values, it’s more expensive to sell on a total cost basis compared to the national average.

Average home prices in Colorado are far higher than in any neighboring state except Utah.

Colorado’s cost to sell as a percentage of the home price is relatively low at 6.07%. But the state’s lofty home values mean that sellers pay an average of $31,488 — far higher than in most neighboring states. Only Utah surpasses Colorado in terms of the average cost to sell in dollars.

Home values vary quite a bit across Colorado, so your total home sale costs will also vary. Among Colorado’s five largest counties by population, the median sales price in July ranged from $485,000 in El Paso County to $723,750 in Denver County, according to the Colorado Association of Realtors.

To determine the current market value of your home, you can ask a real estate agent for a comparative market analysis (CMA). Many realtors are happy to provide a free CMA report when you contact them about listing your home. (It’s a way for them to show they’re knowledgeable about the local market and hopefully earn your future business.)

Here’s an example of your potential costs at various price points, including realtor fees and seller closing costs.

The main factors impacting your Colorado home sale costs include: 

Typical real estate agent commission in your area

While the state-wide average rate is 5.52%, rates may be higher or lower depending on what’s typical in your area.

Your success (or failure) in negotiating rates

Realtor fees are completely negotiable. You may be able to negotiate a rate lower than what’s typical in your area.

How you find a realtor

You can potentially save thousands in realtor fees by using an agent-matching service like Clever Real Estate to find a realtor. Clever has pre-negotiated a 1.5% listing agent fee with agents in its network, much lower than the typical listing agent commission rate of 2.73%.

Optional costs

The estimated total cost to sell of 6.07% in Colorado does not include other potential costs like home staging, deep cleaning, and pre-listing repairs, which could add thousands more to your home sale costs.

Your negotiated contract

Colorado closing costs are split between the buyer and seller in most transactions. Sellers typically pay all commissions, title service fees, owner’s title insurance premiums, transfer taxes, and prorated property taxes.

Sellers may also be on the hook for survey fees, attorney fees, home preparation costs, homeowners association (HOA) fees, and a mortgage payoff, depending on the situation.

Buyers take on most of the other expenses including the appraisal fee, title insurance fees, recording charges, documentary fees, and buyer closing costs for the mortgage such as an origination fee.

Sellers may offer to cover certain buyer closing costs to motivate potential buyers to submit an offer. This practice is more likely if your housing market currently favors buyers over sellers.

Here’s a deeper look at your expected home sale costs.

1. Colorado realtor commission (5.52%)

Colorado home sellers pay an average of 5.52% of the home’s sale price on realtor commissions, which is deducted from the seller’s net proceeds at closing. The 5.52% fee covers both the listing agent and the buyer’s agent commission.

Your actual commission cost depends on your home’s final sale price. Here’s what you might expect to pay in realtor fees at various price points.

*Median sale prices as of July 2022 according to Redfin. Commission costs assume an average realtor commission of 5.52%.

How to save on Colorado realtor fees

Here are some tips on how to save money on your home sale. 

Use a discount broker

A discount real estate broker offers sellers a reduced commission fee with no strings attached. The broker’s listing agents charge less than the average rate, such as a 1–2% listing fee vs. the typical 2.5%–3% rate.

Selling at a higher price point leads to even bigger commission savings using a discount broker vs. finding a realtor through traditional sources, like through a family member or friend.

For example, Clever offers listing fees of just 1.5%, compared to the average Colorado listing commission rate of 2.73%. Clever could save you more than $13,000 on a $500,000 home sale, for example.

Agents that partner with these firms also provide all of the services you’d expect to receive from a traditional realtor. The service is free to try with no obligation, so it’s worth starting here. 

» MORE: The Best Discount Brokers for Every Budget

List your home without a realtor

You can avoid paying Colorado listing commission entirely by selling without a realtor. Expect to save 2.73% off of your home sale, since you avoid paying the listing agent commission.

However, the typical FSBO home sells for close to $60,000 less than agent-listed homes, according to the National Association of Realtors, so you might lose money on the sale. You’ll also be on the hook for all of the tasks normally handled by a listing agent.

Negotiate a lower rate

Agent commissions aren’t set in stone. There’s no law setting a fixed realtor fee in any part of the country, including Colorado, so you can try to negotiate a lower commission rate with your realtor.

You may have more luck reducing the commission rate if you plan to buy a new home with the same agent that’s helping you sell since the agent earns a commission on both transactions.

Negotiating commission may also work on a high-value property, since the agent still earns a substantial commission on the home sale, despite the lower rate.

Sellers set the buyer’s agent commission rate in Colorado and can pay a lower rate if they choose to. Colorado buyer agents receive an average commission rate of 2.79%, according to our data. But sellers should avoid paying below market rates, says Elizabeth Sugar, a realtor with Coldwell Banker Realty in Boulder.

“You do not want to dissuade a buyer’s agent from encouraging their client to put an offer on your home,” says Sugar.

2. Closing costs for sellers in Colorado (0.5%)

Seller closing costs typically add another cost of 0.5% or more to the home’s final sale price, according to our data. (Closing costs do not include realtor commission.)

Based on the average Colorado home value of $530,389, the typical home seller pays $2,210 in closing costs.

Colorado seller closing costs typically include title service fees, owner’s title insurance premiums, transfer taxes, and prorated property taxes. The seller might also be responsible for survey fees, attorney fees, home preparation costs, HOA fees, and a mortgage payoff.

Buyers are on the hook for everything else, including appraisal and inspection costs, lender’s title insurance fees, and buyer closing costs for the mortgage.

The exact breakdown of closing costs between the buyer and seller can vary with each transaction. The purchase and sale agreement spells out who is responsible for paying each cost.

If the local market is more favorable to buyers, the seller may agree to cover certain buyer closing costs, such as a home warranty, appraisal, or inspection.

Title service fees

Title fees include the costs of the title search and title transfer.

A title search should be conducted before the property transfers from the seller to the buyer. A title inspector checks county and state records and documents the property’s chain of ownership.

In Colorado, sellers usually pay for their own title company or closing agent. These fees average about 0.20% of the home’s sale price. For example, title service fees for a $600,000 sale would come to $1,200.

Owner’s title insurance

Title insurance protects home buyers or lenders from possible losses arising after the transaction due to issues with the property’s ownership or title. An owner’s policy protects the buyer’s interest in the property, whereas a lender’s policy protects the lending institution.

Who pays for these policies is negotiable in Colorado, but home sellers generally purchase owner’s title insurance while buyers pay for lender’s title insurance.

The cost of title insurance and closing fees can range from $1,000–2,000, depending on the company and the value of the property, according to the Colorado Department of Regulatory Agencies reports.

Our data shows that the cost of title insurance averages $1,053 in Colorado.

Transfer taxes

Colorado imposes a statewide real estate transfer tax, known as a “documentary fee,” of $0.10 per $1,000 of property value, or 0.01%. For instance, a $600,000 home purchase would trigger a $60 documentary fee.

That one-time fee is withheld at closing and paid to the county clerk and recorder’s offices. In addition, several Colorado towns impose municipal transfer taxes on property sales. 

Documentary fees and transfer taxes are often paid by sellers, but this isn’t set in stone and the buyer and seller can negotiate who pays. Consult with a realtor or attorney to explore your options.

Prorated property taxes

Colorado home sellers must pay property taxes on the days they’ve owned their home in the calendar year. Taxes are prorated and split between the seller and buyer.

The tax is due at closing. Actual costs depend on your annual taxes, and how many days you live in your home up until the closing date.

Speak with your realtor or attorney for more details on what you might owe in prorated taxes.

3. Other potential costs

Attorney fees

Colorado law does not require home sellers to hire an attorney to handle the closing, but it’s usually a good idea to have a lawyer on your side if you have any questions about the transaction or your responsibilities as a seller.

“If a seller does not want to pay a real estate agent to represent them, they should still pay a real estate attorney to review the documents for the transaction,” comments Sugar, the realtor with Coldwell Banker Realty. “Homes sell for a lot of money these days, and a mistake could cost you even more than the cost of the home.”

Fees vary depending on the law firm. Jones Property Law, which serves four states including Colorado, estimates that real estate contract drafting or review costs $500–700, while general transaction counsel with contract review, advice, and closing counsel costs $1,000–1,500.

The cost can reach $1,500–3,000 for attorney in-house closings (where no title company is involved), or more complex transactions with title issues, negotiations, or minor disputes.

» LEARN: Do I Need a Lawyer to Sell My House?

Home preparation costs 

Preparing your home for sale could add thousands more to your upfront costs.

Home staging costs between $745 to $2,659 on average in the U.S., according to HomeAdvisor. Actual costs vary widely depending on your location, the size of the home, and the number of rooms being furnished.

Regardless of your choice, you need high-quality photos of your house to display online. Professional photos can cost $100–300, but your real estate agent will likely arrange and pay for this.

Expect to spend at least $300 for a deep cleaning, if required. Finally, pre-listing home repairs and improvements could add hundreds, if not thousands more to your budget, depending on your home’s condition.

Pre-listing appraisal and inspection

An appraisal is a professional estimation of a home’s value. Buyers usually pay for appraisals in Colorado, but obtaining a pre-sale appraisal can give you a more accurate starting point for pricing your home. Appraisals in Colorado cost an average of $500–1,000.

You may also want to consider ordering a pre-listing inspection to identify any problems with the house before the buyer can discover them, so there are fewer surprises during negotiations.

The cost of a home inspection generally ranges from around $250–350 in rural areas of Colorado to $300–600 in Denver, according to Iron Horse Home Inspection.

Homeowners association dues

You may owe homeowners association (HOA) dues if your home is located in an HOA community. Sellers are typically responsible for covering a prorated amount of their annual membership dues at closing.

If the HOA charges fees to transfer homeownership records to the buyer at closing, the seller usually pays them. Costs vary between communities, but they commonly range from $150 to $500. Check with your agent, attorney, or HOA board for more information on what you might owe.

Buyer’s closing costs

In addition to the costs outlined above, buyers may request that sellers cover some of their closing costs. Seller concessions include anything that the seller gives the buyer to close the deal.

Seller concessions often come in the form of seller credits towards the buyer’s closing costs — 2–3% of the home’s sale price is common — or home warranty policies. However, they can also include compromises that don’t hold monetary value, such as an agreement to close on a date that’s preferable to the buyer.

Some Colorado home buyers are paying over $10,000 in closing costs — including lender fees and loan buydowns to get a lower interest rate — on top of the 20% down payment required by most lenders to get a loan, says Sugar, the realtor with Coldwell Banker Realty.

“This adds up to a lot of cash upfront that makes it difficult for buyers to get to the closing table, especially with the higher interest rates on loans,” Sugar adds. “Sellers offering to help with these additional costs can really help a buyer.”

Appraisal and inspection fees

Most home buyers in Colorado pay for an appraisal and inspection to determine the value and condition of the home they’re purchasing.

Lenders require an appraisal as part of the approval process for most home purchase loans, but some sellers may offer to cover this cost for the buyer. Appraisal costs in Colorado range from $500–1,000.

Prospective buyers in Colorado also conduct a general home inspection to uncover any serious issues with the property, from a cracking foundation to a leaky roof. The home inspection results could lead to further visits by other professionals such as engineers, electricians, or exterminators.

Sellers may offer to pay for inspections as a buyer incentive, and some sellers purchase their own pre-listing inspections. The cost of a home inspection generally ranges from around $250–350 in rural areas of Colorado to $300–600 in Denver, according to Iron Horse Home Inspection.

Lender’s title insurance

Most lenders require home buyers to purchase lender’s title insurance as a condition of receiving a mortgage loan.

The cost of title insurance and closing fees can range from $1,000–2,000, depending on the company and the value of the loan, according to the Colorado Department of Regulatory Agencies.

Home warranty

A home warranty offers the homeowner protection from high repair costs on major appliances and electrical and plumbing systems. The homeowner pays an annual or semi-annual premium and enjoys reduced service rates when a technician comes to evaluate or fix a problem.

Homebuyers can purchase a home warranty for themselves, but many sellers offer to purchase a home warranty plan on the buyer’s behalf. “It is becoming increasingly common for sellers to offer a home warranty as an incentive to buyers” in Colorado, notes Jennifer Spinelli, founder and CEO of Denver-based cash buyer company Watson Buys.

The annual premium for a home warranty in Colorado averages around $583 for a single-family home, according to Review Home Warranties. Premiums for townhomes and condos are lower at about $534 and $623, while premiums for multi-family homes average $1,302.

Capital gains tax

The IRS offers a tax break on capital gains from the sale of your primary residence, as long as you meet certain requirements:

• Single homeowners can deduct up to $250,000 of gains from the sale of their property;
• Married couples can deduct up to $500,000 of gains. 
• You must have occupied the property for at least two of the past five years. 
• You can also deduct certain repairs and improvements from your home’s cost basis. 

» LEARN: How to avoid capital gains on a home sale

Cost of selling a house in Colorado calculator

Use our calculator to get a rough estimate of what you might walk away with in your home sale. Change the home sale price and closing costs to fit your particular situation.

For more accurate numbers, we recommend finding a local realtor to provide you with a free seller’s net sheet: a personalized document that estimates how much you may earn in your home sale.

Colorado seller closing costs: FAQs

Recommended reading

The True Costs of Selling a Home Revealed: What does it really cost to sell a house in the U.S.? We explore all of the common expenses in a home sale, and how you can save thousands.

How to Sell a House Without a Realtor in Colorado: Selling a home For Sale by Owner (FSBO) in Colorado means you won’t have to pay a listing commission, but there are major challenges you should learn about first.

How to Find a Realtor: Find out how you can connect with a great real estate agent. We help you zero in on the best approach, whether you’re selling or buying.

Seller Net Sheet Guide: Learn how a net sheet can help you estimate your potential home sale proceeds, and how to get one for free.

Negotiating Realtor Commission: Knocking your real estate commission down just one percentage point could save you a ton of money on your home sale.