|
Why trust us: To create this guide, we surveyed and interviewed Colorado real estate agents, studied Colorado real estate law, and researched more than 20 FSBO companies and alternatives. Learn more about why you can trust our advice. |
In Colorado, the average realtor commission rate is 4.78% to 6.26%. If you sell a house worth $528,300 — the median home value in Colorado — that’s over $16,500, which is a huge chunk of your potential profits.
Selling without a real estate agent, known as listing For Sale By Owner (FSBO), is a viable option for experienced home sellers who are willing to put in the time and effort.
However, selling FSBO has risks. Research shows that FSBO homes typically sell for about 6% less than those listed with agents AND you'll still usually be on the hook for offering a competitive buyer's agent commission. FSBO homes also often take longer to sell and are more likely to fall out of contract after accepting an offer.
If saving money on realtor commission is what you’re after, it’s worth looking into real estate agents who’ll work at a lower-than-typical commission. Semya-Moya matches sellers in Colorado with experienced, local agents who offer traditional service for just 1.5%. You can save money and the headache of doing it all on your own.
In addition to looking into FSBO, reach out to Clever to connect with multiple agents in your area. You can interview agents and get a free home valuation so you’ll know you’ve explored all of your options.
Connect with top, local agents in Colorado!
What FSBO sellers in Colorado need to know
🔑 Key benefits of selling FSBO
|
Real estate laws, processes, and trends vary greatly across the country. Understanding the details of your market and getting accurate information can make a FSBO sale complicated.
We'll go into more details about what you need to do in Colorado, but here's an overview of the state's laws and regulations.
Colorado FSBO overview
| Real estate attorney required? | No |
| Required state disclosures? (learn more) |
|
| FSBO yard sign allowed? | Yes |
| Competitive Buyer's Agent Commission (learn more) | 2.42% to 3.16% |
Additionally, you'll need to know and understand all of your responsibilities as a FSBO seller, which include:
- Preparing your home by making necessary repairs, cleaning, and staging your home.
- Accurately and competitively pricing your home.
- Marketing your home by writing a listing description, taking high-quality photos, posting the listing on different sites (free and/or paid), and promoting your home on social media, in print ads, and via word of mouth.
- Vetting buyers to ensure they're qualified, from a financial perspective. Accepting an offer from an unqualified buyer will cause your sale to fall through.
- Negotiating the final price, contingencies, repair concessions, and other aspects of the purchase agreement.
- Properly filling out all necessary paperwork for a real estate transaction in Colorado.
If you're thinking about listing your home for sale by owner, you probably don't want to pay high real estate fees. We get it. That's why we started Clever.
Clever connects you with a top agent that will provide a full-service listing for a 1.5% fee — half the typical rate!
Listing with Clever gets you the benefits of a top agent and maximizes your sales price while saving you thousands in commission.
It's free to meet with an agent, and if you decide FSBO's a better fit, you can still use the professional price analysis the agent provides.
How to price your home
Pricing strategy is often make-or-break for FSBO sellers. List your home for too little and you leave money on the table. Price it too high and the listing goes stale, forcing a price drop that could make buyers wary of the home.
To get an accurate idea of your home's fair market value, look at comparable listings in your area.
For example, if you live in Denver and think your house is worth about $567,000, search Zillow for active listings that are about $50,000 more and less than that. Analyze details about the houses and how they compare to yours. Ask yourself:
- Is the school district better or worse?
- Does it have the same number of bedrooms and bathrooms?
- Has the house been renovated more recently than yours?
- How do the neighborhoods and nearby amenities compare?
Answering these questions honestly will help you see if your price is in the right ballpark.
From there, be realistic about what pricing strategy will lead to higher offers. Here are some key pricing metrics that will help you decide the best listing price for your home and market:
State of the Colorado real estate market
How to list your Colorado home for sale by owner
Once you've decided on a price, it's time to write a listing description that speaks to local buyers. Understanding their priorities will help you identify what features of your property to highlight in your listing and attract more interest.
Top buyer priorities in Colorado
When it comes to advertising and posting your listing, you have several options as a FSBO seller. Each choice has its own pros and cons as well as costs:
- For Sale By Owner yard sign: You can buy a FSBO sign from most hardware stores or online for $20-$50. Be sure to choose one that allows you to add your phone numbers so interested buyers can contact you for property information and showings.
- Craigslist: Posting your home on Craigslist is free and simple. Just go to the Colorado page, find your city, and create a "real estate — by owner" listing.
- FSBO websites: There are multiple FSBO listing websites that allow you to post your home for free or a few hundred dollars. But each differs in how many photos you can include, how long the listing is live, and the changes you can make — do your research before choosing a for sale by owner site.
- Flat-Fee MLS companies: Flat-fee MLS services will list your house on your local Multiple Listing Service (MLS) for significantly less than a realtor. However, they provide few additional services unless you opt for their most expensive packages, which often cost more than using a discount brokerage.
If you choose to use a flat-fee MLS company, you'll have to offer a buyer's agent commission. The MLS is how real estate agents find homes for their clients, and typically a buyer's agent commission is included to incentivize these realtors to show the house to their clients.
List with a top agent for just 1.5%.
Sell your home for top dollar and save on commission.
How realtor commissions work in Colorado
Traditionally, both the buyer's agent and the listing agent are paid a commission by the homeowner. When sellers work with a realtor, they negotiate a commission as part of the listing agreement.
Based on the average commission rates in Colorado, this typically ranges from 2.36% to 3.10% of the sale price.
In a typical sale, the seller also agrees to a commission rate for the realtor who brings the buyer to the table, which runs between 2.42% to 3.16%.
As a FSBO seller, you automatically avoid paying a listing commission. However, there is a solid argument for offering a buyer's agent commission.
A buyer’s agent's commission is an incentive for realtors to show your house to their clients. If you don't offer a commission that is competitive compared to similar homes in your area, then your home could be shown less. Agents may prioritize taking buyers to homes with a commission.
The best way to avoid paying any commission fees is to sell to an unrepresented buyer. However, know that nearly 87% of buyers work with a realtor. If you decide not to offer a buyer's agent commission, you may severely restrict your pool of buyers.
Further, if you list FSBO, you'll likely receive multiple calls from agents offering to connect you with their buyers...if you pay them a competitive buyer's agent commission (typically 2.79% in Colorado).
» LEARN: How real estate commissions work
How commission costs break down in Colorado
When you sell your home, there are four common scenarios when it comes to commissions:
- List FSBO and sell to a buyer without an agent: Pay no commission
- List FSBO and sell to a represented buyer: Cover the buyer's agent commission
- List with a traditional agent and sell to a represented buyer: Cover both agents' commissions
- List with a discount agent and sell to a represented buyer: Cover the buyer's agent commission, but save on the listing commission.
The table below shows how this could break down in Colorado:
Paperwork to sell a house by owner in Colorado
Once you find a buyer for your house, it's time to start the closing process. In a typical real estate transaction, your agent will make sure you fill out all the necessary documents and forms. As a FSBO seller, you'll have to navigate the paperwork by yourself.
This process varies by state — here’s a quick breakdown of Colorado’s requirements.
Required for all Colorado real estate sales
| 2 Forms of ID | In most cases, a valid passport, driver's license, or other form of Colorado-issued ID. |
| Copy of Purchase Agreement and Any Addendums | Copy of the original, signed sales agreement as well as any agreed upon changes. |
| Closing Statement | A detailed list of all the costs associated with the sale and who pays them. This is often prepared by your escrow agent or title company. |
| Signed Deed | To legally transfer your property, you'll need the deed that proves you're the rightful owner. At closing, you'll sign the deed over to the buyer. |
| Bill of Sale | This is basically a receipt that includes both your information and the buyer's. It will also list the final price of the home and what was included in the sale. |
| Affidavit of Title | A notarized document that states you own the home, that there are no liens on the property, that you are not simultaneously selling the home to someone else, etc. |
Possible additional documents
| Loan Payoff Information | If you have a mortgage on your home, you'll need documentation of exactly how much you still owe and any payoff fees. If you've already paid your mortgage in full, you'll need documentation proving that. |
| HOA Forms and Guidelines | If your home is part of an HOA, you'll need to give the buyer documentation on the HOA's Covenants, Codes, and Restrictions, financial history, required fees, approval process, etc. |
| Survey Results or Survey Affidavits | A survey (or an affidavit verifying a previous survey) proves exactly where the property lines are. |
| Home Inspection Results | If you had a pre-sale inspection, you'll want the results to compare to the buyer's inspection. If having a buyer inspection was part of the sales agreement, you should receive a copy of the results before closing. |
| Proof of Repairs or Renovations | Documentation proving any major repairs or changes to the house help verify its value. These receipts also provide the buyer with information about who to contact if they discover issues with the repairs in the future. |
| Home Warranty Information | The home warranty service agreement will explain what is covered, for how long, and any costs associated with the policy. |
| Copies of Relevant Wills, Trusts, or Power of Attorney Letters | If you are selling an inherited property, you'll need copies of all legal documents that passed ownership to you. |
| Relevant Affidavits (Name Affidavits, Non-Foreign Affidavit Under IRC 1445, etc.) | You may need additional affidavits like a name affidavit (which lists all of your or the buyer's previous names) or an affidavit proving you are not a foreign citizen and therefore exempt from certain property sales taxes. |
| Closing Disclosure | If your buyer is taking out a mortgage and you agreed to certain seller's concessions, you may need a copy of their closing disclosure to verify the lender approved your concessions. |
| Correction Statement and Agreement | In the event forms are lost or errors are discovered in the future, a correction statement and agreement requires you, the buyer, or their lender, to replace or fix those documents if need be. |
Colorado disclosure forms
| Seller Property Disclosure | The seller disclosure statement details any known issues with your home and its major appliances and systems. |
| Green (Energy) Disclosure Form | Informs the buyer of energy-related features of the property like having energy-efficient appliances. |
| Flood Zone Statement | With some mortgages (like federally backed ones), your buyer's lender might require information of the property's flood risk. |
| Lead-Based Paint Disclosure | Federal law requires that if your home was built before 1978, you disclose information about the dangers of lead-based paint to your buyer. |
Many closing documents are legally binding agreements. Any errors can derail your sale and cost you thousands in fees or in costs to re-list your house.
To avoid an expensive mistake, consider working with a low commission realtor instead.
Selling your home is time-consuming, and fraught with potential legal issues.
There's a better option. Clever pre-negotiates lower listing fees with top agents in your area. You still save on commission, while getting the support of a full-service agent.
- Clever partner agents offer full-service support for half the typical cost: a pre-negotiated 1.5% listing fee
- Clever sellers save an average of $7,000 on commission AND they get offers 2.8x faster than the national average
Ready to find real estate agents who can help you save thousands on your sale? Enter your zip code below to get started!
FSBO alternatives to consider
If saving money is your main reason for selling your home by owner, there are alternatives.
Semya-Moya
Clever is a nationwide real estate service that connects sellers with top, local agents. You pay Clever nothing and only pay your full-service agent 1.5% if and when your home sells.
Semya-Moya
Get Started💲 Listing Fee
💰 Buyer Savings
⭐ Avg. Customer Rating
Clever is a quick, easy, and free way to find a top-rated local agent. And, unlike many similar companies, Clever pre-negotiates big discounts on your behalf, so you can save thousands without sacrificing on service.
- Clever is a free, nationwide agent matching service that partners with full-service local agents from conventional brokerages like Keller Williams, Century 21, and RE/MAX.
- You get multiple agent matches so you can interview several, compare marketing plans, and choose the best fit.
- Clever pre-negotiates low rates on your behalf — you get full service for just a 1.5% listing fee ($3,000 minimum).
- If you buy with Clever, you can get cash back to help pay for your move.
- You may not get matched with an agent from your preferred real estate brokerage.
- Agents may not provide premium services like drone photography and professional home staging.
As of 11/6/2023, Clever has a 5.0 out of 5 rating on Trustpilot, based on 2,589 reviews.
Clever has pre-negotiated low commission rates with top agents in all 50 states and Washington, DC.
Discount real estate services in Colorado
While pricing and services vary, discount real estate companies will help you sell your house for less than a traditional realtor. In most cases, you'll still need to offer a competitive buyer's agent commission, but you'll save on listing fees.
Redfin
Full Review💲 Listing Fee
💰 Avg. Savings
⭐ Avg. Customer Rating
Redfin offers real savings and is a proven brand. But sellers could compromise on service — especially agent experience and availability.
- If you buy and sell with Redfin, you'll get a 0.5% listing fee discount.
- Redfin gives its listings premium placement in its popular home search app.
- If finding the right agent is a top priority, you'll have limited options — Redfin only has a few agents in each of its markets.
- Redfin agents handle more customers at once than the average realtor, so they may not be able to provide as much personalized service.
Redfin has a 2.9 out of 5 rating (331 reviews) across popular review sites like Google and Yelp.
Redfin is available in 80+ U.S. markets (see all locations).
Homie
Full Review💲 Listing Fee
💰 Avg. Savings
⭐ Avg. Customer Rating
Homie offers legit flat-fee savings — but may provide less personalized service than a traditional agent.
- The flat-fee pricing model offers big commission savings on higher-priced homes.
- The self-service listing process lets you get your home on the market quickly.
- Homie agents provide no in-person services or support.
- Agents juggle up to 10 times as many customers at once, which increases the risk you'll have a bad experience.
Homie has a 4.3 out of 5 rating (1,317 reviews) across popular review sites like Google and Yelp.
Homie is available in the following areas: AZ, CO, ID, NV, UT.
Redefy
Full Review💲 Listing Fee
💰 Avg. Savings
⭐ Avg. Customer Rating
Redefy’s flat fee could offer big savings. But hands-off service and non-refundable upfront fees make it a hard sell over other, less risky options.
- Flat $3,500 listing fee is an excellent value for higher-priced homes
- Agents provide more in-person services than some similarly-priced low commission brands
- Redefy charges an upfront, non-refundable $500 fee (most companies don't make you pay anything until your house sells)
- Your agent will not host an open house for you
Redefy has a 4.6 out of 5 rating (300 reviews) across popular review sites like Google and Zillow.
Redefy is available in the following areas: CO, FL, GA, IL, NC, SC, TN, TX, VA.
» LEARN: About discount real estate services
Flat-fee MLS services in Colorado
As mentioned before, a flat-fee MLS service will post your listing on the local MLS, usually for a low, upfront fee. In Colorado, this will typically cost you a couple hundred dollars.
Here are some Colorado flat-fee MLS companies to compare:
Home Savings Realty
Home Savings RealtyBest For
Price Range
Pros:
- The broker is involved in all parts of the selling process as long as your listing is active.
- Your listing package includes professional photos of your home.
Cons:
- The listing terms are short compared to other Colorado flat-fee MLS companies.
HybridMLSListings
HybridMLSListingsBest For
Price Range
Pros:
- You can add as many photos as the MLS allows with all listing packages.
- The broker will handle all your offer negotiations for you.
Cons:
- The basic package doesn't include any pricing assistance.
Flat Fee Group
Flat Fee GroupBest For
Price Range
Pros:
- The broker will review your contracts and title documents, offering you advice throughout the process.
- You'll work with a local broker backed by the reputation of a national company.
Cons:
- You have to sign up for the premium package to receive any pricing assistance.
» LEARN: About flat-fee MLS services in Colorado
iBuyers
iBuyers will buy qualifying homes for cash, meaning you avoid realtor fees — and the stress of listing on the open market entirely. While these companies make fair-market offers, they will deduct any required repairs after an on-site visit. They also charge a service fee typically ranging between 6-14%.
» LEARN: How to sell to an iBuyer
5 tips for selling your home without a realtor in Colorado
Pulling off a FSBO sale successfully is a difficult feat to accomplish. Here are some helpful tips from Clever CEO and real estate investor Ben Mizes, who has experience listing homes without an agent.
1. Make minor repairs
Small upgrades and repairs can do a lot to sway potential buyers. The key is knowing how and where to spend your money to get higher offers. Simple DIY projects like a fresh coat of paint or new cabinet pulls have a high return on investment, whereas pricier improvements like adding a new bedroom may not.
Overall, the most important factor is knowing where the line is between necessary and over-the-top. You want your house to meet buyers' expectations.
"If your kitchen is a disaster, spending more money on a remodel to get it in solid condition will pay off in the end," said Mizes. "But spending money on high-end features to take it from good to extravagant will be a waste."
Also, consider how valuable specific repairs are to buyers in your area. Focus on upgrades that have a higher cost recuperation in your region.
Home repairs with highest resale value in Colorado
Note: A resale value of more than 100% indicates a profitable repair.
2. Price your Colorado home competitively
With the average Colorado home valued at $411,125, the market is pretty neutral in the state. But some homeowners don't seem to have gotten the message. The average listing price is over $495,975 and means that most sellers are pricing their homes at 22% more than their current value. Overpriced homes with few motivated buyers are going to sit on the market too long and drop.
You need to choose a competitive price high enough to show that your home is valuable but not so low as to make your buyers suspicious.
| Bonus tip: A pre-sale appraisal house gives you a more accurate starting point for pricing your home.
Based on our research, in Colorado, appraisals average $340 to $495, but help you walk away with thousands more once your home is sold. |
3. Stage and market your home
If you want to ensure that your home sells quickly, you need to attract buyers. Most buyers will find out about your home for sale for the first time via images they see online, so it is crucial that your home has a visually appealing online presence.
Colorado buyers will want to see great views and a warm and cozy home that seems comfortable in the winter. If your home overlooks the beautiful landscapes of Colorado, show it off. Get a professional photographer to take high quality aerial and landscape shots, helping inspire potential buyers to take the leap.
You might also consider hiring a professional stager to redecorate your home. Staging can cost hundreds of dollars a month per room of your house, but it ensures that your home is filled with furnishings and designed in an appealing way.
| Bonus tip: Hiring a professional stager can help alleviate some of the stress FSBO sellers go through. They know your local market and ensure your home is ready to impress, giving you one less thing to worry about.
Shop around to find out which local stagers offer reasonable rates and have a proven record of getting homes ready for sale. |
4. Prepare for showings
Organization is key when showing your home to potential buyers. You'll need a good system for scheduling showings and saving buyers' and agents’ contact information. You'll want to be flexible and try to show your house at buyers’ convenience.
Keep the home clean and decluttered at all times. The last thing you want is to scramble around with a vacuum after a buyer calls for a last-minute showing.
Also, focus on creating a homey atmosphere for buyers. You want to make a great first impression on as many buyers as possible, so add little touches that speak to most people.
"Bake cookies or light scented candles before a showing," advises Mizes. "Smell plays a huge part in how buyers will perceive and remember your house. Use comforting scents to your advantage so they feel at home the moment they walk through the door."
5. Negotiate for the best possible price
Negotiations are about deciding more than the final sale price. You and the buyer (or their agent) will also have to agree upon contract contingencies, how closing costs are divided, the timeline, and more.
To gain the upper hand, get creative with the seller concessions you offer a buyer. While they might cost you a little more at closing, concessions sweeten the deal for buyers and could lead to a higher final sale price.
The most popular concessions vary from market to market. Knowing what works with buyers in your area will help you strengthen your offer.
For example, a Clever survey of local real estate professionals found that in Colorado, sellers often cover 0.70% to 1.20% of buyers' closing costs. On a home of median value, that equates to $3,698 to $6,339, but can help you close the deal sooner and for more money.
You should also consider offering these popular seller concessions:
Most common seller concessions in Colorado
| Concession | Benefits of Offering Concession |
|---|---|
| Repair Credits | Repair credits are win-wins for buyers and sellers. You'll credit the buyer a set amount to cover the cost of repairs. Once the deal closes, the buyer can personally oversee the project to their liking and you don't have to worry about repairs going over budget. |
| Home Warranty | If your home has major appliances or systems that are on their last leg, a home warranty can give buyers peace of mind. A warranty will cover possible issues and is typically less expensive than paying for the repairs (or accepting a lower offer from a wary buyer). |
| Mortgage Discount Points | While the cost varies between lenders, mortgage points lower a buyer's interest rate and can save them thousands over the years. If you offer to buy mortgage discount points, it can seal the deal for some buyers — especially with buyers who don't plan to move again for several years. |
Get a free professional pricing consultation!
Interview top local agents, get free advice, no obligation to sign.
