The average total real estate commission in Colorado is 5.52%. This includes a 2.73% listing agent commission and a 2.79% buyer’s agent commission. In Colorado, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing.
Colorado sellers pay an average of $29,788 in realtor fees, based on the average Colorado home price of $539,640.
Realtor commission rates vary considerably by region, city, or even neighborhood. The agent and brokerage you choose, as well as the specifics of your sale — like your home’s value, location, and condition — are also factors.
This guide breaks down how much commission sellers can expect to pay in Colorado. We’ll also explain why Colorado commissions are what they are (and offer up some tips that could help you save).
Colorado real estate commission: How much will you pay?
Here’s what you can expect to pay in realtor commission based on the average home price of $539,640.
|Listing agent commission||2.73%||$14,732|
|Buyer’s agent commission||2.79%||$15,056|
|Total realtor fees||5.52%||$29,788|
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How much is real estate commission in Colorado?
Average realtor fees in Colorado are 5.52%, which is a bit higher than the national average of 5.37%.
Colorado realtor commissions are split between the listing agent, buyer’s agent, and both brokerages. Since the commissions are paid from the sale proceeds, the pays these fees.
Real estate commissions in Colorado vary from one city to the next, and they can also change over time. That said, Colorado realtor fees have remained relatively consistent in recent years, going up slightly from 5.50% in 2021.
Market conditions also play a big role in commissions. According to Redfin, the Colorado real estate market is experiencing a substantial slowdown from the recent seller’s boom. Between January 2022 to 2023, the number of homes sold dropped a massive 31.5%, and the number of homes for sale rose 22.6%.
This slow down in the Colorado market could mean the average realtor in Colorado is closing fewer sales, which means fewer commission checks and possibly less flexibility in negotiating commission rates.
Ultimately, your best course of action is to speak with multiple experienced agents in your area to determine a fair commission rate.
How real Colorado agents and brokers set commission rates
Agents and brokers in Colorado usually set their rate to be competitive with other realtors in their area, but these rates are affected by average home prices, the state of the housing market, and a variety of other factors.
The specific client and home being sold can also affect an agent’s commission. If a home is in a highly desirable area and is likely to sell easily, an agent may consider a lower rate. They’ll still make a good commission with relatively little effort.
Conversely, if your home is likely to require a lot of effort to sell and isn’t going to result in a large commission check, an agent won’t work for less than their usual rate.
It’s also important to remember realtor commissions are split four ways between the listing and buyer’s agents, as well as both brokerages. Your listing agent only gets about a quarter of the full commission, so they have to set their rate accordingly.
Finally, realtors have a lot of expenses they need to pay — and their commission needs to cover them all. Here are just a few of the expenses realtors or brokers need to cover:
- Taxes: Real estate agents must pay a self-employment tax of 15.3% on all commission earned
- Association dues: $280–605 annually
- MLS fees: $44–54.50 monthly
- State license fees: $195 every three years
- Administrative staff: Assistants can help with bookkeeping, scheduling, and other day-to-day operations
- Marketing costs: Professional photos, advertising, open houses, and staging
How can I save on realtor fees in Colorado?
While it may take some outside-the-box thinking, there are a few ways you can save on realtor fees:
- Negotiate with a traditional real estate agent or broker
- Work with a discount real estate broker
- Sell without a realtor
Negotiate with a traditional realtor
Some realtors may be willing to work with you on their rate, whereas others may draw a hard line. The only way to know which kind you’re working with is to ask.
For most realtors, the logic is simple: the more time and effort a sale takes, the less the commission is worth to them. Obviously, sale price plays a big role in what an agent walks away with, but you probably don’t have a lot of control over that.
What you can do is minimize the effort involved in selling your home. Making it as easy to sell as possible, in the shortest time frame, is the best way to convince an agent to accept less money for helping you sell your home.
Negotiating can be awkward and uncomfortable. If you’d rather avoid it, you can find an agent through Clever Real Estate. They’ve already pre-negotiated a 1.5% listing fee with experienced agents in Colorado, so you don’t have to. Find a Colorado agent for less.
Work with a discount real estate broker
Some brokerages offer discounted realtor fees up front. These companies can help you save money, but some come with risks or worse-than-average customer service. Do your research to understand what you’ll get for the discounted fee. See how we ranked discount real estate brokers in your area based on savings, customer reviews, and our experience mystery shopping with each company.
To save an average of $7,000 on your listing fee without sacrificing service, Clever Real Estate is your best option.
Sell without a realtor
The ultimate way to save on realtor fees is to sell without a realtor — though we don’t recommend this to most Colorado sellers.
You’ll avoid paying a listing commission, but you’ll have to do all of the work of a listing agent on your own. Plus, you’ll still want to pay a full buyer’s agent commission to incentivize other agents to show your home to their buyers.
Other FAQs about Colorado real estate commissions
What percentage do real estate agents make in Colorado?
The average total commission for realtors in Colorado is 5.52%, but this is split between the buyer’s agent, the listing agent, and both brokerages. The amount that an individual agent walks away with depends on the split between these four parties, which varies.
How are real estate commissions determined in Colorado?
A variety of factors influence real estate commissions in Colorado, including the state of the housing market, the average home price in that area, what rates are common in the agent’s area, and if the client is a repeat customer. These rates can change over time and from one location to the next. Talk to agents in your area to see what’s a common rate for your city.
We regularly survey our pool of 14,000 partner agents nationwide on the commission rates they use for buying and selling. These data points are averages based on responses we’ve received from 35 agents across Colorado.