How commission works | Getting low rates | Low commission companies | Methodology
📊 The data: We polled local agents and found that the average real estate commission in Colorado is 5.46%, which is about equal to the national average of 5.45%. |
For a house sold for $423,364, this rate translates to $23,116 in real estate agent commission costs.
Realtor commission is usually the largest cost that home sellers face, but the upside is that it also represents the biggest potential for savings.
» MORE: Learn how Clever can help you save on commission.
Below, we cover everything you need to know commission costs in Colorado and also give you tips for getting low rates.
How real estate agent commission works in Colorado
There are two real estate agents involved in a typical home sale:
- The seller's agent (also called the listing agent), representing the home seller
- The buyer's agent, who represents the person buying the home
The seller's and buyer's agent get paid a percentage of the home's final price when the sale is finalized. This payment is called real estate agent commission, and is baked into the sale price of a home and split between the two agents.
» LEARN: More about how real estate commissions work.
Based on our research, the average commission split in Colorado has 49.45% of the commission going to the listing agent and 50.55% going to the buyer's agent.
Who pays for real estate commissions?
Home sellers are responsible for paying the real estate commission of both the agent representing them, as well as the agent representing whoever buys their home.
However, since the realtor commission is baked into the sales price you could say that the home buyer is paying — at least in-part — through a higher sales price.
» MORE: Who pays realtor commission.
How to save on real estate commission in Colorado
💰Best ways to save While there are a number of options for home sellers looking to save on commission, good options for most home sellers include:
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» MORE: Options for saving on realtor commission
Sellers in Colorado may be able to negotiate lower-than-normal commission rates — thanks to the state’s hot seller’s market. In Denver, homes are selling even faster than the rest of the state.
With home values on the rise, sellers and agents alike are well-positioned to close solid deals. Colorado’s median sale price is currently about $60,000 above the 2019 median home value.
Because agents don’t have to work as hard to market homes that are in high demand, they may be willing to offer some flexibility when it comes to commission.
Below we cover how you can negotiate lower rates, and list some of our recommendations of low commission real estate companies that you should consider.
Tips for negotiating realtor commission in Colorado
Successfully negotiating commission rates depends mainly on two factors: your situation and the housing market.
Factor | You may have an easier time negotiating low rates if... |
|---|---|
Your situation |
|
The Colorado housing market |
|
» LEARN: How you can negotiate lower commission rates.
While the personal factors that affect your ability to negotiate commission rates are unique to you, the local real estate market conditions will affect all home sellers in Colorado.
In a seller's market — where home sellers have more leverage than buyers — a listing agent's job is easier and they may be more inclined to offer lower commission rates. The opposite is true in a buyer's market.
📖Definitions Months of inventory, is measured by dividing the homes listed for sale in the most recent month by the number of homes actually sold in that month. It is a key indicator of how much supply and demand there is for houses in a market. Sale-to-list is calculated by dividing the median sale price by the median listing price in a given area. If homes in your area are generally selling for more than their listing price, that is a good indication that you are in a seller's market. Home values rising in your area indicate that demand is growing. Whereas if this figure is falling, then it's more likely that homes in your area are becoming less desirable. |
To judge the current state of the real estate market, you can look at three factors: months of inventory, sale to list price, and home value trends. Below, we've included a current breakdown of these factors in Colorado.
Stats and facts: The current state of the Colorado real estate market
Factor | Trends | Indication |
|---|---|---|
Months of inventory | There's 1 months of housing inventory on the market | Seller's market |
Sale-to-list price | Homes are selling for 100.00% of their listing price | Seller's market |
Home value | Home values have risen/fallen 5.28% year over year | Seller's market |
Low commission real estate companies in Colorado
Home sellers looking to save money when selling their home should consider a low commission real estate company. To help you out, Clever has picked some of the top discount and flat-fee MLS services across the state:
Discount real estate brokers in Colorado
Discount real estate brokers are companies that will list your home for a reduced commission percentage or flat rate. The catch is that the service might not be on-par with what you'd get from a top local agent.
Clever
Clever Real EstateListing Fee
1% (minimum $3,000)
Clever Cash Back
0.5% on homes over $150,000
Avg. Customer Rating
4.8/5 (386 reviews)
- Clever Real Estate is a nationwide, online concierge and agent matching service for sellers and buyers — learn more
- Buyers and sellers are matched with multiple highly rated agents from major brands, such as Keller Williams, Century 21, Compass, RE/MAX, and more
- Sellers choose a full-service agent and pay a flat, $3,000 fee — or just 1% for homes more than $350,000
- Buyers may be eligible for 0.5% back after closing (in qualifying locations)
Clever has pre-negotiated lower commission rates with top agents in all 50 states, D.C., and Puerto Rico
Pros
| Cons
|
As of May 20, 2020, Clever's average customer rating is 4.8/5 based on 386 reviews on Trustpilot.
- Trustpilot: 4.8/5 (379 reviews)
- BBB: An A rating
Redefy
Redefy Real EstateListing Fee
$3,500
Buyer Rebate
N/A
Avg. Customer Rating
4.3/5 (115 reviews)
- Redefy is a multi-state real estate franchise that offers flat-fee listing services for home sellers and standard services for home buyers
- Redefy is currently available in select cities in Colorado, Florida, Georgia, Illinois, North Carolina, South Carolina, Tennessee, Texas, and Virginia
- When you sell with Redefy, you'll pay a nonrefundable $500 fee up front, then $3,000 at closing, for a total fee of $3,500.
- You should also expect to pay a buyer's agent commission. Rates vary, but 2.5-3% is typical nationwide
- When you buy with Redefy, you'll get full service and support, but unlike some other discount services, Redefy doesn't offer built-in savings or rebates
- Note: Each Redefy office is an individual franchisee, so experiences may vary considerably by location. Look up reviews specific to your local office for an accurate gauge of customers' experiences
| Atlanta, GA | Jacksonville, FL |
| Augusta, GA | Knoxville, TN |
| Austin, TX | Memphis, TN |
| Charleston, SC | Miami, FL |
| Charlotte, NC | Nashville, TN |
| Chattanooga, TN | Norfolk, VA |
| Chesapeake, VA | Northern Colorado |
| Chicago, IL | Orlando, FL |
| Colorado Springs, CO | Raleigh, NC |
| Columbia, SC | Richmond, VA |
| Dallas, TX | Rock Hill, SC |
| Denver, CO | San Antonio, TX |
| Fort Mill, SC | Tampa, FL |
| Greenville, NC | Virginia Beach, VA |
| Houston, TX |
Pros
| Cons
|
*Homes valued over $1 million may pay a 1% listing fee — check with your local Redefy office.
As of May 20, 2020, Redefy's third-party reviews for its main Denver office average a 4.3/5 rating across Yelp, Google, and Facebook. See the breakdown below.
- Yelp*: 4.5/5 (30 reviews)
- Google*: 4.5/5 (59 reviews)
- Facebook: 3.8/5 (26 reviews)
- Better Business Bureau*: A+
*These reviews are for Redefy's main Aurora, CO office. Reviews vary considerably by location. We recommend conducting your own research for customer reviews specific to your area.
» MORE: About discount real estate brokers.
Flat-fee MLS listing services Colorado
Flat-fee MLS listing services offer to post your home on your local MLS for a low rate often around $100-300. The trade-off is that you'll have to handle almost the entire home-selling process yourself. If you're a real estate novice, this might not be a good option for you.
Flat Fee Realty
Flat Fee RealtyPrice Range
$199 (+0.5% at closing)
Number of Photos
Listing Term
6 months
- Flat Fee Realty is a nationwide flat-fee MLS referral service, licensed in Connecticut, that connects you with Colorado brokers and agents who will list your home on the MLS for a pre-negotiated rate
- You set buyer’s agent commission
- MLS photo upgrade available for $50
- State disclosures and forms available
- Unlimited listing changes
- Buyer leads forwarded to you
- Refund available within 30 days of purchase
$199 + 0.5% at closing - MLS Listing package
- 6-month listing on MLS
- Syndicated to Realtor.com, Zillow, Trulia, and more
- 6 Photos
- Free state disclosures
- Unlimited listing changes
- No cancellation fee
- Buyer leads forwarded to you
MLS photo upgrade available for $50
Pros
- Unlimited listing changes
- No cancellation fee
- Free state disclosures
- Buyer leads forwarded to you
- Refund available within 30 days of purchase
Cons
- No built-in home valuation or market analysis
- Limited coverage in rural areas
As of August 11, 2020, no third-party reviews exist for Flat Fee Realty. We will update when this information becomes available.
HybridMLSListings
HyrbidMLSListingPrice Range
$299-549 (+ 0.5% at closing)
Number of Photos
Unlimited
Listing Term
6 months
- HybridMLSListing is a flat-fee MLS service operated by The Resource Group, LLC, a licensed real estate brokerage in Colorado
- MLS listing typically goes live within 24 hours
- Free, unlimited changes to your listing
- Contract preparation and review
- State disclosures included
$299 - Basic Service
| $399 - Deluxe
$549 - Premium
|
All packages require 0.5% due at closing
A-la-carte services include "For Sale" signs and showing services
Pros
- Work directly with the broker, not a referral service
- Unlimited photos with basic plan
- Make unlimited, free changes to your listing
- Assistance with contracts, disclosures, and negotiations
Cons
- Only 6-month listings available
- No home valuation or pricing assistance with basic package
As of August 11, 2020, HybridMLSListing's broker Denice Niethammer has an average rating of 4.9/5 based on 9 reviews on Zillow.
» MORE: About flat-fee MLS services.
Methodology
Data on commission rates is based on a survey of 554 of our partner agents, in which we asked them to indicate the typical rates for both buyer's and seller's agents in their area.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of September, 2020
- Sale prices and sale-to-list ratios: Based on Redfin data as of September, 2020 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of September, 2020