How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
Our December 2023 survey of local agents found that the average real estate commission in Denver is 5.10%, which is less than the national average of 5.49%. Calculate your estimated commission in Colorado.
The average total real estate agent commission rate in Denver is 5.10% of the final sale price. Based on the latest median home sale price in Denver ($581,367), that translates to a total cost of roughly $29,650.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Denver, the average listing agent fee is 2.40%, while the average buyer’s agent fee is 2.70%.
Real estate agent commissions make up a significant portion of the closing costs for Denver home sellers. But you don't have to pay the full 5.10% to a traditional agent. If you're selling a home in Denver, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 27% on realtor fees, or about $8,139 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in Denver
| Average listing commission | 2.40% |
| Average buyer's agent commission | 2.70% |
| Total average commission | 5.10% |
There are usually two real estate agents involved in the real estate transactions of a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average real estate commission paid in Denver for listing agents is 2.40% of the final home price and 2.70% for buyer's agents, for a total of 5.10%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for Denver
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in Denver. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Want to keep more money in your pocket? Clever connects you with a leading local listing agent who charges just a 1.5% commission rate. Choosing this option can significantly increase the profit you make from your home sale.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in Denver?
When you list your home in Denver, expect to pay the average realtor commission from your home's final sale price. This fee compensates both your listing agent and the buyer's agent. The good news is you don't have to pay any of these fees upfront.
Your listing agent justifies their commission through delivering a detailed market analysis, expertly marketing your home, and navigating you through a smooth closing. Meanwhile, the buyer's agent earns their keep by finding a qualified buyer who agrees to your terms and seals the deal.
As the home seller, you won't pay these commissions out of pocket; instead, they're simply subtracted from your sale's proceeds once the deal closes.
Why do sellers pay the buyer's real estate agent commission?
In Denver, when you sell your home, the commission fees for both the buyer's and seller's real estate agents come directly out of the home's final sale price. This means you can relax, knowing there's no need to pay these fees upfront.
The seller's agent justifies their commission by conducting a thorough market analysis and managing the closing process efficiently. Meanwhile, the buyer's agent earns their keep by bringing in a qualified buyer who adheres to the contract and ensures the sale closes on schedule.
Rest assured, these commissions won't require any out-of-pocket expenses from you. Similar to how closing costs work, the real estate agent commissions are paid from the proceeds of the sale once everything is finalized.
Looking to save on realtor commission fees? Clever offers a smart solution by pairing you with top-notch local listing agents who provide a competitive commission rate of just 1.5%. By choosing this option, you get to pocket a larger share of your home's selling price.
Will the NAR lawsuit change how real estate commission works?
On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023.
While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need.
The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.
» READ MORE:
How to save on realtor fees in Denver
Commission rates are not set in stone. In fact, we found that while 2.40% is the average listing commission in Denver, rates typically fall between 2.00% and 4.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 2.00%– 4.00% |
| Buyer's agent commission | 2.50%– 3.00% |
| Total commission range | 4.50%– 7.00% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in Denver?
Real estate commission is always negotiable. In Colorado, the 23 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who are repeat clients | 91% |
| Homeowners who also plan to buy with you | 77% |
| Homeowners with more than one property to sell | 72% |
| Higher property values | 50% |
| Seller’s situation (e.g. divorce or death in the family) | 41% |
| Homes expected to sell quickly | 41% |
| High competition for clients | 27% |
| Houses in excellent condition | 27% |
| High buyer demand in the area | 18% |
| Highly experienced home sellers | 18% |
| Periods of low housing inventory | 14% |
Negotiating realtor fees in Denver depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The Denver housing market |
|
Your particular circumstances will differ, but the real estate dynamics in Denver affect every seller in your region.
When you're in a seller's market and hold more power than buyers, listing agents often have an easier time selling homes and might be more open to negotiating lower commission rates. Conversely, in a buyer's market, agents tend to adhere to their standard fees.
Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.
To gauge the health of your local housing market, look closely at these critical indicators:
- Months of inventory
- Sale to list price ratio
- Home value trends
If these factors indicate that Colorado is currently a seller's market, you're in a stronger position to negotiate a lower commission rate with your agent. But if the market shows mixed signals or favors buyers, it may be tougher to persuade your realtor to accept a reduced fee.
The current state of the Denver real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.23 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 91.36% of their listing price | Buyer's market |
| Home values | Home values have fallen 15.58% year over year | Buyer's market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in Denver
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For those in Denver aiming to cut down on realtor fees without losing out on professional service, Clever stands out as a prime choice.
✅ Benefits and features: Benefit from up to a 50% reduction in rates compared to traditional realtors with Clever. Their acclaimed matching service is complimentary, obligation-free, and well-regarded in the industry.
🏠 How it works: Clever pairs you with leading local real estate agents from well-known brokerages, including RE/MAX and Compass. You'll have the opportunity to select the agent who best meets your needs while enjoying a reduced listing fee of 1.5%—the same rate offered by Redfin, regardless of the agent you choose.
Pros
- Partner with a conventional agent from a reputable brokerage, avoiding discount agents
- Agents offer services at up to half their usual rate exclusively through Clever
- Extensive selection of agents—access to a broad range of top Denver real estate professionals
Cons
- No certainty of partnering with a particular agent or brokerage of preference
- Additional services such as professional staging, aerial photography, and virtual tours might incur extra fees (details provided during the agent's listing presentation)
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Redfin presents a fairly attractive option for Denver-based home sellers looking to economize on real estate services without sacrificing quality.
✅ Benefits and features: With a listing fee of just 1.5%, Redfin stands out for its potential cost savings. Plus, there's an opportunity to save an additional 0.5% on the listing fee if you both sell your current home and purchase your next one through Redfin within a year. As a well-known entity in the discount real estate market, Redfin offers a broader selection of agents compared to other local services.
🚩 Potential red flags: Redfin's model, which leans heavily on technology and involves a team-based service structure, may not align with every seller's preferences. The process is largely conducted online, and while you'll have a primary agent, much of the work is handled by a support team. Redfin also has a minimum $5,500 commission fee in Denver. So if your home sells for below $366,000, you’ll pay slightly more than the advertised 1.5% rate.
Pros
- Notable savings on listing fees
- Reputable brand with a wider choice of agents
- A tech-centric service that could be attractive to certain sellers
Cons
- Minimum commission fee is higher than other local alternatives
- The high-volume, team-based service model might not suit all sellers
- Fewer agent options compared to Clever's offerings
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Trelora stands out in the Denver real estate market for its notably low listing fees, presenting a cost-effective option for sellers keen on budget-friendly solutions. However, the high volume of clients per agent may lead to a less individualized service experience.
✅ Benefits and features: Trelora's flat 1% listing fee structure is a standout feature, offering substantial savings to homeowners. The firm has garnered a reputation for customer satisfaction, supported by strong ratings and positive reviews.
🚩 Potential red flags: The team-based service model employed by Trelora means clients interact with various team members rather than having a single point of contact. This can bring a breadth of expertise to the table but might lack the personalized touch some clients prefer. Additionally, the workload of Trelora agents is typically higher than that of traditional realtors, which could impact the level of attention and service provided. In the past, some local agents preferred not to show Trelora-listed homes.
Pros
- A comprehensive full-service brokerage that includes open houses, 3D tours, and advanced marketing resources.
- High levels of customer satisfaction, as reflected in the company's ratings.
Cons
- The team-based service model may not provide the personalized attention some clients expect.
- The potential for a diluted service experience due to agents managing a larger number of clients.
» LEARN: How do discount real estate brokers offer lower fees?
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with Denver's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Methodology
We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of February 2024
- Sale-to-list ratios: Based on Zillow data as of February 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of March 2024
