Most real estate agents in Colorado get paid through commissions. Commissions are typically calculated as a percentage of a property’s sale price, though some brokerages will charge a flat fee. The average agent commission rate nationwide is 5.8% of the home sale price, according to HomeLight’s real estate transaction data of thousands of home sales each year. But how does that compare to the average real estate commission rate in Colorado?
In this post, we’ll help you determine how much commission you might pay on your Colorado home sale, and what options are available to earn the highest proceeds possible.
What’s the average real estate commission in Colorado?
According to top real estate Robert Hryniewich, who has 19 years of industry experience in the state, you can expect to pay between 5.6% and 6% in agent commissions when selling a home in Colorado, with some variation based on location within the state. On a property worth the current statewide median home sale price of $565,000, that amounts to between $31,640 and $33,900 in commission costs.
“Over the past two to three years, the commission had dropped below 6% due to an influx of agents who were working for as little as 1%,” says Hryniewich. However, he noted that the rates have picked back up again, largely due to the complexity of selling a home in today’s market. “These days, you can’t just stick a sign in the yard and have your house sell,” he added.
Using an overall statewide average of 5.8%, here’s a breakdown of how much you might pay in real estate commissions based on what a home sells for in six of the largest cities in Colorado:
|Colorado city||Median home price||Typical commission at 5.8%|
Median home prices calculated from multiple public sales data sources.
HomeLight gathers agent commission data from cities throughout the U.S. To see if we have commission rates for your city, try our Agent Commissions Calculator. You might also be interested in our Home Value Estimator.
Still curious about commission rates in Colorado? Here are the answers to common questions about real estate agent commissions:
Who pays real estate commission fees?
The commission is typically paid by the home seller, and the seller’s agent will then split the commission with the buyer’s agent.
As Hryniewich explains, “The shifting landscape of real estate has led to adjustments in the standard commission rate in Colorado. While 6% has traditionally been the standard commission rate for real estate transactions in the state, the figure has experienced some fluctuations in recent years.”