How much are Colorado closing costs? | Colorado seller closing costs calculator | How to save when you sell | Methodology
For sellers, average closing costs in Colorado are 2.48% of the home's final purchase price. For a $537,600 home — the median home value in Colorado — you'd pay around $13,324.
Both the buyer and seller pay closing costs in Colorado
Colorado home sellers' typical closing costs include the title and closing service fees, owner's title insurance policy, real estate transfer tax, and recording fees at closing. Optional costs for sellers include buyer incentives, the prorated property tax bill, or real estate attorney fees.
Colorado home buyers, on the other hand, pay mortgage related closing costs such as a loan application fee and other processing fees, an appraisal fee, and a home inspection fee. Learn more about buyer closing costs.
Keep in mind that closing costs in Colorado do not include realtor fees. These are an extra 5.52% on average — and they're nearly always paid by the seller. Realtor commission fees are usually the biggest expense for sellers in Colorado.
However, agent commission is also the one fee that you can easily save on. By using an agent-matching service like Semya-Moya, you can reduce your listing agent commission by thousands.
You can control your costs
You don't have to hire the first agent you interview. Talk to multiple real estate agents beforehand to find the best fit for your needs with the most competitive rate. You may be able to negotiate a lower rate with a conventional realtor. Or you can hire a discount real estate agent to get built-in commission savings.
Want to find a top local agent without overpaying on realtor fees? Clever negotiates 1.5% listing fees with top-rated realtors from trusted brokerages like Keller Williams, RE/MAX, and Berkshire Hathaway.
Get guaranteed full service for a fraction of the 3% rate agents typically charge. Schedule a free, no obligation consultation with a top local agent today!
How much are seller closing costs in Colorado?
Seller closing costs are fees and taxes you pay during the final real estate transaction on the sale of your home in Colorado. These include the costs of verifying and transferring ownership to the buyer, so most closing costs are unavoidable.
» LEARN: How real estate commission works in Colorado
Closing costs vary: these are only estimates. While closing costs will always have to be paid, your real estate agent can often negotiate who pays them — you or the buyer.
If you want to get the most out of negotiations, you'll need an experienced agent who has your best interests in mind. Clever can help by matching you with a top agent in your area who can score you a great deal.
» MORE: See how Clever can help match you with the perfect agent
Title service fees: 0.21%
Title fees cover the costs of the title search and title transfer.
When you sell your home, you have to transfer legal ownership of the property to the buyer. To ensure there are no claims or liens on your home, your settlement agent will complete a title search.
In Colorado, buyers and sellers usually pay for their own title company or closing agent, but don't expect this for every sale. Ask your realtor if you're not sure.
Owner's title insurance: 0.20%
Owner's title insurance protects the buyer if there's a problem with the property title. It will pay for any legal fees if mistakes are found — or potentially even reimburse the value of the home.
In Colorado, it's more common for the seller to pay for owner's title insurance.
If you do pay part of the bill, owner's title insurance usually costs around 0.2% of a Colorado home's final sale price — or $1,053 for a $537,600 home. However, title companies in Colorado often use tiered pricing to determine how much you'll pay for a policy based on your home's value.» MORE: What is title insurance, and why do you need it?
Lender's title insurance: N/A
Just like owner's title insurance protects the buyer, lender's title insurance protects the bank or financial institution that issued the buyer a mortgage.
In Colorado, the buyer usually pays for lender's title insurance, so you're off the hook. Still, it's always possible the buyer will try to get you to pay for this in negotiations, so make sure you have a quality real estate agent looking out for your best interests.Documentary fee: 0.02%
In Colorado, transfer tax is usually covered by the buyer, meaning you shouldn't need to pay this expense. However, you may still need to cover the taxes if you give your buyer a closing cost credit.
Some cities and counties also charge their own transfer taxes. Check with your realtor and title company to see what taxes you'll owe in your area.
» FIND: Learn more about transfer taxes in Colorado
Colorado recording fees: 0.00%
Your city or county will charge a recording fee to legally record your property's deed and mortgage information. The exact amount will vary based on your location, but you can expect to pay around $10 in Colorado — although you might be able to negotiate for the buyer to cover this cost.
Buyer incentives: 2%
Buyer incentives can help you secure a sale in tough markets by making it easier or more appealing for a buyer to purchase your property. You can pay some of the buyer's closing costs, offer repair credits, or include valuable items in the sale of the home.
The average amount sellers spend on buyer incentives in Colorado comes to about $10,752.
Don't forget about property taxes!
When you sell a home in Colorado, you'll still have to pay property taxes for the months you owned the property. Using this prorated system, you won't be on the hook for the full 12 months of taxes. However, this does make it more difficult to estimate how much you'll owe at closing.
The average property tax rate in Colorado is 0.51%, but this can vary quite a bit depending on your county.
For instance, Broomfield County has the highest property tax rate in the state at 0.67%. Meanwhile, Gilpin County residents have the lowest property tax rate at just 0.23%.
Be sure to check with your real estate agent so you can find out exactly what you'll need to pay in property taxes.
Other Colorado closing costs for sellers
Every Colorado home sale is unique, and many closing costs come with a few surprise fees. Here are a few of the most common additional costs you may face selling your Colorado home:
- Homeowners Association (HOA) fees
- Mortgage payoff and/or prepayment penalties
- Property appraisal fees (averages $275)
- Attorney fees (optional in Colorado, averages $273)
» LEARN: The total cost of selling a house
Your realtor will have a better idea of the total closing costs you can expect to pay, depending on the Colorado neighborhood you're selling in and other factors.
An experienced agent can do a lot more than market your property and negotiate with buyers. Top realtors — like the ones Clever partners with — will have the local knowledge necessary to maximize your profits and understand what buyers in the area are looking for in a new home.
Get matched with the best local agents from top brokerages and get pre-negotiated listing fees of just 1.5%.
Clever's service is 100% free, with zero obligation. Interview as many agents as you like until you find the perfect fit — or walk away at any time.
Colorado closing costs calculator
Use our tool to calculate closing costs for Colorado.
How to save on Colorado closing costs
While closing costs in Colorado aren't usually the biggest expense for sellers, there are a few ways to reduce these fees.
Negotiate for the buyer to pay
Who pays closing costs is up for negotiation. If you're selling in the middle of a hot seller's market with low housing inventory, you could ask the buyer to cover some of your closing costs.
Competition among buyers is fierce in these market conditions, so they're typically more willing to make concessions so you'll accept their offer on your Colorado home.
When you're selling in a buyer's market, however, they'll likely ask you to make more concessions since you won't be getting as many offers.
» MORE: How to negotiate with buyers before accepting an offer
Shop around for better prices
It might be possible to save some money by shopping around for cheaper rates on services like title insurance and closing fees.
However, these costs are relatively low and tend to be fairly consistent among different companies. When you're already navigating inspections, repair requests, and appraisals, calling several different companies to find a $50 discount probably isn't worth the hassle!
Save on realtor fees
The best way to reduce your closing costs is to find a realtor who charges lower listing fees. In Colorado, real estate commission costs an average of $29,676 — that's usually more expensive than the rest of your closing costs combined!
Thankfully, there's a way to save big by selling with Clever. With listing fees of just 1.5%, you'll save up to 50% on realtor commission, putting more money in your pocket.
» SAVE: Learn more about how much a Clever agent can save you!
Methodology
The Clever team of researchers gathered data for property taxes, transfer taxes, and recording fees using publicly available information. We found averages costs for attorney fees, title insurance, and other services by requesting quotes from local providers.
We gathered our commission rate data from a survey of 623 of our partner agents. Additionally, we utilized the following data from Zillow, Redfin and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of August 2023
- Sale prices and sale-to-list ratios: Based on Redfin data as of February 2023 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of February 2023
