H
istorically, home sellers in Colorado paid commissions to both their own real estate agent and the buyer's agent, typically amounting to 5-6% of the selling price. However, a recent lawsuit settlement changed this rule, allowing parties to negotiate who pays for which commissions.
In Colorado, combined Realtor commissions average 5.29%, slightly lower than the national average. For a median-priced home in Colorado ($626,700), this would total $33,152 in agent fees. Listing agents earn an average of 2.67% (or $16,733) while buyer's agents average 2.62% (or $16,420).
Median home prices vary across the state, affecting commission costs. Here are examples for Denver ($587,500), Colorado Springs ($465,000), and Boulder ($913,500):
* Denver: Total agent commission ($31,079), listing agent commission only ($15,686), buyer's agent commission only ($15,392)
* Colorado Springs: Total agent commission ($24,598), listing agent commission only ($12,415), buyer's agent commission only ($12,183)
* Boulder: Total agent commission ($48,324), listing agent commission only ($24,390), buyer's agent commission only ($23,934)
Real estate agents provide various services, including market analysis, marketing, showings, and negotiations. In Colorado, the standard practice was for sellers to cover both agent commissions, but new rules allow buyers to pay their own agent directly.
Whether or not to work with a Realtor is up to individual preference. While there are cost savings without an agent, experienced agents can help navigate complex transactions and negotiate better terms.
To save on fees:
* Negotiate agent commissions: Ask if they're willing to lower their commission rate.
* Look into discount agents: Companies like Clever and Redfin offer low-commission rates (1-1.5%).
* Consider a flat-fee agent: Charges a fixed rate for services instead of a percentage of the sale price.
* Go "for sale by owner": Handle all work yourself to avoid paying a seller's agent commission.
* Use cash-homebuying companies: Purchase properties in any condition without fees or commissions, but typically offer lower market value.
