After months of uncertainty, Colorado real estate is back with a bang. This year has seen record sales figures and home prices across the state, with areas such as Denver rising to become one of the most competitive markets in the entire country. Whether you are looking for Colorado real estate for sale or are looking to sell your home, now is the time to take the plunge.
However, selling a home is a multi-layered process, one that you must understand in order to get it right and get the best possible price. One of the most important things to understand is the Colorado real estate commission.
The commission in Colorado may differ from other states and will have an impact on how much a seller actually receives for their home. With that in mind, here is everything you need to know about the Colorado real estate commission.
Colorado Real Estate Commission: How Does it Work?
First, let’s break down how the real estate commission actually works in the state of Colorado. In Colorado, as in much of the US, there is typically a two-agent process for buying and selling a home.
There is a buyer’s agent representing the home buyer and a seller’s agent representing the seller. The commission is usually split between these two agents, with half going to each. Despite this, you will often see the commission percentage lumped together as a single figure.
Regardless, it is the home seller that pays the commission for both the buying and selling agent. This is to incentivize the buyer’s agent to show a buyer their home. A home buyer never pays the commission in Colorado.
How Much is the Real Estate Commission in Colorado?
There is no hard-written rule when it comes to the size of a real estate commission in Colorado. However, the average you can expect to pay across the state for residential homes is 6% of the sale price. This means that, if you were to sell a home for $600,000, the commission paid in total would be $34,800. Of course, commission sizes vary.
If you are looking at Denver Colorado real estate, where the market is hot right now, you will be able to find agents that will accept a lower commission. Meanwhile, if you are looking at Colorado Spring real estate, where there is less demand, it is unlikely that agents will be willing to budge on commission.
To get a better idea of what you will pay in commission, you can search MLS databases to find out about sales in your area. You can click for more info on this process here. By doing your research and seeing what the sales prices and commissions in your target area typically are, you can ensure that you get a fair deal.
Colorado Real Estate Hacks at Your Fingertips
Now that you know everything you need to know about Colorado real estate commission, you are ready to begin your buying or selling journey. For this, we are here to help. Make sure to consult our expert Real Estate Guides to find out everything you need to know about buying or selling a home at the right price for you.