Colorado Real Estate Closing Costs Statistics (2024 Survey)
A new RealEstateBees.com survey of over 1,000 active real estate professionals found average closing costs for sellers and buyers in Colorado.
We reached out to over 1,000 active real estate professionals from Colorado to collect their insight on the real estate closing costs across the state.
The results are part of the large-scale survey—Nationwide Real Estate Closing Costs Index—conducted by the Real Estate Bees, a leading online real estate platform.
What Is Included in Closing Costs for a Seller in Colorado?
Costs included in seller’s closing costs most commonly across Colorado.
What Are Average Closing Costs for a Seller in Colorado When Selling with a Realtor?
The most common amounts of seller’s closing costs across the state of Colorado in an agent-assisted sale.
What Are Average Closing Costs for a Seller in Colorado When Selling 'by Owner'?
The most common amounts of seller’s closing costs across the state of Colorado in a FSBO sale.
How to Reduce Closing Costs for a Seller in Colorado?
1. Have the buyer agree to pay closing costs and select the title company.
2. Reduce any concessions to the buyer.
Going “for sale by owner” is one way. Without using a realtor, you can avoid a handful of typical closing costs.
Negotiate commissions with a realtor, or do a private sale without a realtor involved.
Can a Seller Avoid Paying Closing Costs in Colorado?
The seller will likely still need a title company or legal advice when selling their home. This will still result in closing costs.
If they did the sale completely alone with no Colorado real estate agents at all involved, no title company or legal representation from a Colorado real estate attorney, and they made the buyer pay for the previous year’s taxes and any HOA fees due, then maybe they could get away with no closing costs.
However, the legal ramifications may cost them more in the end. They would also have to find a buyer that was okay with this.
Not typically in this market, but 18 months ago, some aggressive buyers were offering to pay many or all closing costs.
Closing costs and who pays for them can be negotiable. However, rarely do sellers avoid paying them outright.
If using a realtor, the seller will need to negotiate with the realtor or they can try to sell the property for sale by owner.
If they can’t afford it right now, it may not be the right time to sell.
If they have to sell for financial reasons, they may need to look at other options.
In Colorado, almost every seller saw incredible appreciation the past few years, so they are sitting on a mountain of equity.
There are very few transactions in Colorado where a seller would be unable to pay these costs.
What Is Included in Closing Costs for a Buyer in Colorado?
Costs included in buyer’s closing costs most commonly across the state of Colorado.
What Are Average Closing Costs for a Buyer in Colorado When Buying with a Realtor?
The most common amounts of buyer’s closing costs across the state of Colorado in an agent-assisted sale.
What Are Average Closing Costs for a Buyer in Colorado When Buying Without a Realtor?
The most common amounts of buyer’s closing costs across the state of Colorado in a FSBO sale.
What Are Average Closing Costs for a Cash Buyer in Colorado When Buying with a Realtor?
The most common amounts of closing costs paid by cash home buyers in Colorado in an agent-assisted sale.
What Are Average Closing Costs for a First-Time Buyer in Colorado When Buying with a Realtor?
The most common amounts of a first-time home buyer’s closing costs across the state of Colorado in an agent-assisted sale.
How to Reduce Closing Costs for a Buyer in Colorado?
Buyers can negotiate with sellers to have them pay part of their closing costs.
Many buyers may also qualify for programs that help them pay part or all of their closing costs. These programs are income-based.
If buyers pay cash for their home, they can also forego the loan fees which is the largest chunk of their closing costs.
The bulk of buyers’ closing costs are fixed in Colorado: taxes and insurance are the big ticket items and must be collected by the Colorado lender at closing, unless a seller agrees to pay these via a seller concession.
How to Negotiate Closing Costs With a Seller in Colorado?
It will depend on the market as to how buyers negotiate closing costs.
In the hectic market from 2019-2021, buyers were offering more for the home than asking for closing cost assistance. This gave a buffer for the seller to still make the same amount.
As the market quieted, we saw buyers paying less than listed price and negotiating closing costs on top of that.
It is often dependent on the market, how long a home has been sitting on the market, and how quickly the seller needs to sell.
Buyers need to take all factors into account when negotiating closing costs with a seller.
Buyers can also look at rent backs, inspection items, and appraisal gaps to help make it more palatable for the seller to give up some money in the closing cost arena.
A good realtor can help buyers navigate this with the seller.
Buyers can often convince sellers to take on more of the closing costs in exchange for cash offers or quicker sales.
Write it into the offer so the seller can agree, in writing, to the buyer’s terms.
Can a Buyer Avoid Paying Closing Costs in Colorado?
They can pay cash for the home but will still need to pay a small fee with the Colorado title company (usually less than $300).
They may also qualify for an assistance program.
A buyer may be able to avoid paying closing costs if they can convince the seller to take them on. However, most buyers can’t avoid all of the costs included in this.
If the seller pays a seller concession, the buyer can avoid paying some or all of their closing costs.
Are There Closing Costs Assistance Programs Available for Buyers in Colorado?
Yes, there are several options available in Colorado. These can vary county by county.
Some will help with just the down payment, and others will help cover downpayment and closing costs.
A buyer needs to be aware of the fine print. Often these assistance programs have time limits on them.
For example, if you sell within a certain time period, you may need to pay some or all of the assistance back.
There are. There are federal, state, and local programs and grants available to help qualifying candidates.
Yes, some banks, Colorado home builders, and state/county programs exist to provide funds to certain buyers.
Who Pays Closing Costs in a Conventional Sale in Colorado?
Who Pays Closing Costs in a Cash Sale in Colorado?
Are Closing Costs Negotiable in Colorado?
What Are the Available Ways to Pay Closing Costs in Colorado?
Why Are Closing Costs So High in Colorado?
Colorado has the 15th highest rate for closing costs, across all states, within the US. These costs add up to 0.78 percent of the home price.
When buying with a mortgage, the lender will also be collecting anywhere from 6-12 months of Colorado home insurance and placing it in an account with a Colorado escrow company, alongside the property taxes estimated owed for the year.
Buyer’s agent commissions, however, typically are paid by the seller.
Closing costs for a buyer include all of their mortgage fees. These are set by the Colorado mortgage broker they work with and many of these fees are not negotiable.
However, it is up to each individual mortgage company what they pay for on behalf of the buyer.
What Are the Transfer Taxes in Closing Costs in Colorado?
I am based in Colorado, and the transfer taxes here cannot surpass 2% of the sale price. The average transfer tax is $.02 per every $100 of property value.
Who Pays Transfer Taxes in Closing Costs in Colorado?
In Colorado, the buyer is responsible for paying the transfer taxes. Of course, this is something that can also be negotiated, resulting in the seller paying for them or the buyer and seller splitting the cost.