Realtor Fees And Real Estate Commissions in Colorado

Historically, selling your home meant paying the commission of not just your own real estate agent, but also the buyer’s agent. The cost of commissions for both agents involved in the transaction typically amounted to somewhere between 5 and 6 percent of the home’s selling price — a hefty sum that was split evenly between the two agents.

However, a recent lawsuit settlement changed the rules, and home sellers are not necessarily on the hook for buyer’s agent’s fees anymore. Instead, which party pays for which commissions (and how much) is negotiated and decided in advance. What does that mean in practice for buyers and sellers in the Centennial State? Here’s a closer look at Realtor fees in Colorado.

How much are real estate commissions in Colorado?

Combined Realtor commissions in Colorado average 5.29 percent, according to the most recent data data from Clever Real Estate. That’s slightly lower than the national average of 5.32 percent.

Now let’s look at what that commission would amount to when applied to a median priced home in Colorado. According to Redfin data, a home in the state cost a median of $626,700 as of November 2024 — 5.29 percent of that would total $33,152. But that figure is for both agent fees combined. In Colorado, Clever data shows that listing agents (who represent the seller) earn an average of 2.67 percent, or $16,733 on a median-priced sale, while buyer’s agents average 2.62 percent, or $16,420.

Median home prices vary from location to location in Colorado, though, so the cost of commissions will also vary across the state. Here’s what the fees would be in three of Colorado’s major cities, assuming the above price and percentages.

SOURCES: Clever, Redfin pricing data as of November 2024

What’s included in a real estate agent’s commission?

Real estate agents provide a variety of services no matter which side of the transaction they’re on. For sellers, an agent’s duties include conducting a market analysis to help establish a competitive sale price, marketing the home, hosting showings and helping negotiate the best price possible with prospective buyers. For buyers, a Realtor’s responsibilities would include identifying homes that meet their client’s budget and living needs, scheduling property visits, offering expert advice about homes under consideration and negotiating on behalf of their client.

Who pays agent commissions in Colorado?

It depends. The standard practice for many years — throughout the United States, including Colorado — was for the home seller to cover the entire cost of both agent’s commissions, which would come out of their sale proceeds. However, under new rules put in place after a 2024 lawsuit, buyers may now be responsible for paying their own agent directly. This is up for negotiation, and who is paying for what will be decided and written into the purchase and sale contract ahead of time. While some sellers will still offer to cover the buyer’s agent’s fee as a way to sweeten the deal, some may refuse.

Are Colorado real estate agents worth it?

There is no requirement that you work with a Realtor, whether you’re buying or selling a home in Colorado. And it can be appealing to go it alone, given the cost savings of not having to pay a Realtor’s commission.

However, agents are licensed professionals who have extensive knowledge of their local market, and there are big benefits to having one by your side during what is one of the largest financial transactions most people ever engage in. Real estate transactions are complex, and experienced agents can help you negotiate the best sale or purchase terms possible. It is their job to help you navigate the process smoothly and it’s usually worth the money.

Saving on fees

If the cost to sell a home in Colorado seems daunting, here are a few ways to help trim these expenses.

• Negotiate agent commissions: Most everything in real estate is negotiable, including a Realtor’s commission. Before signing a contract with a prospective agent, ask if they are willing to lower their commission rate. Even half or a quarter of a percentage point can amount to thousands of dollars in savings, especially on a higher-priced home.
• Look into discount agents: Rather than hiring a traditional agent, consider working with a low-commission agent instead. For example, agents with companies like Clever and Redfin work for fees as low as 1 or 1.5 percent. Another option is a flat-fee agent, who charges a fixed rate for the services they provide instead of a percentage of the home’s sale price.
• Don’t use an agent at all: If you’re selling a home and want to avoid a Realtor’s fee altogether, you can always go the “for sale by owner” route. Taking this approach means you will have to do all of the work yourself, from marketing the home to hosting showings and negotiating a final deal. But in exchange for doing the work, you’ll avoid paying a seller’s agent commission.
• Cash homebuyers: Cash-homebuying companies will purchase a property in nearly any condition, which saves you having to sink any money into repairs. They also typically charge no fees or commissions. However, they typically do not offer full market value for the homes they buy, so you won’t pocket as much money from the sale using this option.

Find a Colorado real estate agent

If maximizing your profits is the goal of your Colorado home sale, research local Realtors who can help make that happen. Look for someone who has in-depth knowledge of your specific corner of the Colorado housing market, and talk to several before deciding on one to make sure you’re a good fit. To get the ball rolling, get referrals from family or friends who have had a good experience with a Realtor, and look into the names you see on “for sale” and “sold” signs around your neighborhood.