What Is the Cost to Sell a House in Colorado?

What are common expenses for home sellers in Colorado?

Usaj shares a list of expected (and possibly unexpected) expenses that Colorado home sellers should be prepared to manage. It all starts with the cost of preparing your home.

“Preparation is everything,” she says. “You want to have your home enter the market in its peak condition. Just like a job interview, first impressions matter, and having your home ready to go with proper curb appeal and projects completed — really putting the property in its best light from the first moment a potential buyer steps in — is so important.”

Many factors influence the cost of preparing your home for sale, including the home’s size, age, and level of wear and tear. The following prices are a guide to assist you in preparing to sell your Colorado home.

1. Preparing your Colorado house for sale

Based on averages, prepping your home for sale can cost between $9,000 and $16,200, or 1.5% and 2.7% of your home’s final sale price.

• Depending on the year the home was built, repairs typically run $4,500-$5,400, including but not limited to:
  • Exterior replacement improvements
  • Flooring
  • Insulation
  • Kitchen and bath remodels
  • Room additions
  • Outside attachments
  • Outside property and disaster repairs
• Staging the house for buyers and photos: $1,500-$4,000
• Professional cleaning services: $118-$236, depending on home size
• Paint for interior spaces: $3,581
• Paint for the home’s exterior: $5,530
• Landscaping work: $1,254-$6,047
• Pre-listing inspection: $250-$500 if desired or needed

“We also have a lot of hail in Colorado, and before they sell — when they’re going through the inspection process — a lot of people are finding that their homes need new roofs,” Usaj cautions. “So, taking the time up front to get a pre-inspection of some of the major mechanical components of the home or the roof really might be advantageous so that you don’t have a surprise once you’re under contract.”

Before undertaking any large renovation projects or repairs, consult with your Realtor. An experienced Colorado agent will know what needs to be fixed and what repairs you can skip.

2. Realtor fees in Colorado

Agent commissions are among the largest selling costs in a real estate transaction. In Colorado, Realtor fees currently average between 5% and 6%. However, these averages are expected to change due to the landmark settlement terms of a recent National Association of Realtors (NAR) lawsuit, which are expected to take effect starting mid-August 2024 but may take time to refine.

Based on a median home value of $600,000, you can expect to pay between $30,000 and $36,000 in real estate agent commissions in Colorado.

If the buyer’s agent and seller’s agent split the commission evenly:

• Listing agent fee: $15,000-$18,000
• Buyer’s agent fee: $15,000-$18,000

The cost of agent commissions may seem like a lot, but partnering with a proven professional in Colorado can make a big difference in your final net proceeds. Our data shows that the top 5% of agents across the nation sell homes for as much as 10% more than the average real estate agent.

For illustration, let’s look again at our example median-price home valued at around $600,000. If you use a top agent, you may sell your home for as much as $60,000 above the asking price, and you net more than $24,000 in additional profit even after paying a 6% commission.

In this scenario, a 10% higher selling price can help offset the cost of a Realtor’s fee. Plus, the journey is easier with a professional guiding you every step. See how commissions impact total selling costs in our overview example chart later in this story.

3. Seller concessions

In addition to the direct costs of preparing your property to sell and Realtor fees, indirect costs may occur during the transaction. These indirect costs can include seller concessions and buyer incentives.

A concession is when a seller agrees to use part of the proceeds from their home sale to cover some or all of a buyer’s final closing costs. The amount of these costs will depend on your market and selling situation.

Rising interest rates and increased home prices have shifted Colorado’s housing market and seller strategies.

“Right now, it is fairly common in the first-time homebuyer price points to have a rate buydown,” Usaj explains. “A rate buydown makes it so the monthly payment is a little bit more affordable for buyers who are entering into real estate for the first time. We’re seeing around $10,000 as a concession for, let’s call it, under a million in purchase price on average. That’s primarily just for those closing costs or for a rate by down.”

Although sellers don’t have to make concessions to make the sale, maybe you want to make your house stand out from the rest. If that’s the case, you should at least be aware of common seller concessions or buyer incentives and how these can contribute to the cost to sell a house in Colorado:

• Home inspection fees: $296-$423 depending on square footage
• Buyer’s home warranty: $450-$600
• Repair credit: Credits vary (which reduces your net proceeds)

Closing costs and additional fees

What closing costs do sellers pay in Colorado? We’ll respond with the same answer we started with in this post, “It depends.” Without including agent commissions, home sellers typically pay 2%–6% of the home’s sale price in closing costs.

Closing costs are fees associated with a home purchase that buyers and sellers pay at the close of a real estate transaction. Using our $600,000 median-price home, your seller closing costs and additional fees may cost $12,000-$36,000. That’s an average of $24,000, or 4%.

Your final closing costs might fall into a wider range because of variable high-dollar factors such as mortgage loan payoff amounts and prorated taxes.

Here’s a look at what makes up typical closing costs when selling a house in Colorado:

• Escrow fees: If the buyer places money into an escrow account, which is common, the seller may need to split the fee for maintaining the account.
• Title-related fees: Sellers in Colorado often cover the cost of title insurance, which protects the buyer against potential title issues. The price of these policies can vary based on location and the home’s sale price. There is typically a fee for conducting a title search.
• Legal fees: Although hiring a real estate attorney is not mandatory in Colorado, it can be beneficial due to the significant legal paperwork and financial transactions involved in selling a home.
• Property taxes and HOA fees: Sellers are responsible for property taxes and any HOA fees up until the day of closing since they own the property until that point.
• Seller concessions: As noted above, if the seller has agreed to any concessions, such as covering certain repairs or a portion of the buyer’s closing costs, these amounts will be deducted from the seller’s proceeds on closing day. We’ve included them in this list because they will show up as a closing cost.
• Documentary fee: In Colorado, the transfer tax is known as the documentary fee. This fee is usually 2 cents per $100 of the property’s value, which for a $600,000 home would amount to $120. Some municipalities may also charge their own transfer tax. However, unlike other states, in Colorado, the buyer is typically responsible for the documentary fee.

At-a-glance home-selling cost example

This at-glance analysis is based on the median home price of $600,000 in Colorado. These figures are rough estimates that may be helpful when planning your home sale.

Selling expense	Example cost	% of home sale price
Prepping your home for sale	$12,600	2.1%
Realtor fees (commissions)	$33,000	5.5%
Concessions, closing costs, taxes, fees	$24,000	4%
Total selling cost example	$69,600	11.6%

*Based on Colorado’s median home price of about $600,000 with minimal seller concessions.

Remember to account for your mortgage payoff, which averages around $244,500 or 40.75%. This would bring your actual costs to $314,100.

In the example above, if you successfully sold your home for $600,000, you could potentially make a profit of $285,900. That’s a pretty nice chunk of change, and it can be even higher if you own more equity from your home and have fewer mortgage payments left before selling. Taking the mortgage payoff out of the equation, the cost to sell a house in Colorado using these estimates would be around 11.6% of its list price.

Usaj reminds her clients that the cost to sell a house in Colorado will vary on a case-by-case basis due to a changing market and buyer demands. She recommends sellers work with an experienced local agent to make their house as attractive as possible to generate the most interest from a broad buyer pool.

“I know it’s exciting to get the home on the market and launch the process, but being prepared and taking that time up front is really what helps make a successful sale for top dollar,” Usaj advises.

How can I reduce seller costs in Colorado?

There are several ways to reduce the cost to sell a house in Colorado. Some strategies are more effective than others.

As Usaj recommends, you should spend the time and money to prepare and beautify the inside and outside of your house to help increase the purchase price.

Some of the things that you can do to reduce seller costs include:

• Make DIY repairs where possible
• Negotiate a lower commission with your real estate agent
• Use a discount-commission agent or brokerage
• Put your home up for sale by owner (FSBO)
• Do not offer seller concessions or buyer incentives
• If you agree to pay closing costs or offer a repair credit, raise your home’s purchase price
• Avoid the urge to over-improve or make unnecessary fixes
• Sell your house off-market
• Time your home sale using HomeLight’s Best Time to Sell Calculator
• Use a top-performing agent with a proven list-to-sell ratio

Using a discount broker is not considered ideal. One analogy to explain the risks involved is to imagine getting on a plane and hearing the captain say, “I fly part-time and have a part-time pilot’s license. We might hit heavy turbulence, but I think I can land us safely.”

Usaj says most home sellers do not want this kind of risk with their largest financial asset. There are no second landings.

“When it comes to selling a home in Colorado for the best price, one of the most effective pieces of advice is to enhance your property’s curb appeal,” Usaj says. This is where a top agent who knows how to prepare and market your home can make all the difference. They can guide you every step of the way.

“This includes maintaining a well-manicured lawn, sprucing up flower beds, and ensuring the exterior is clean and inviting. Potential buyers form their first impressions based on what they see from the street, so investing time and effort in these areas can make a significant difference,” she says.

Ultimately, a discount broker will likely offer discount services and may not be able to land the sale safely and at the best price. That means, when all is said and done, you could leave a significant amount of money flapping in the wind.

Know what to expect and partner with a top agent

To get a better handle on the cost to sell your house in Colorado, start with a home value estimate. Then plan to maximize your profits by partnering with a top agent who can help you manage a successful sale from list to close.

“The biggest mistake sellers are making in the market is they mismanage what they think is going to happen or they don’t have an agent that’s helping them understand the market,” Usaj says. “Then they’re disappointed, and that’s never a good experience.”

HomeLight can connect you with a top real estate agent in your Colorado market. Search our data-backed list of top agents in your community.

“Partnering with a local real estate agent can help you navigate market nuances, providing valuable data and expertise to help you maximize your sale,” Usaj says. “This can ensure your home stands out in the competitive Colorado market.”

Writer Dwayne Vega contributed to this post.

Header Image Source: (Curtis Adams/ Pexels)

---

As you look ahead to your next home purchase journey, try these HomeLight tools or services for buyers:

• Home Affordability Calculator
• Down Payment Calculator
• Closing Costs Calculator
• Buy Before You Sell program