When you decide to sell your house in Denver, one of the biggest expenses you’ll likely face is the realtor commission. This fee, typically a percentage of your home’s final sale price, directly eats into your net proceeds—the cash you walk away with. While many people talk about a standard 6% commission, it’s good to know what the figures truly look like in our local market and how much of your hard-earned equity might go towards these selling costs. 💰
It’s true, the 6% figure is often thrown around, but recent data for Denver shows the average is closer to 5.29%. Don’t let that slightly lower number fool you, though! On a median-priced Denver home, 5.29% still amounts to tens of thousands of dollars. Thinking about ways to reduce this can mean a lot more money stays in your pocket. Understanding these costs is the first step towards learning How to Avoid 6% Realtor Commissions When Selling Your Denver House.
“When selling a house in Colorado, you’ll pay an average of 5.29% of the home’s sale price in realtor fees.” -List With Clever
“Realtor commission is usually the largest cost you’ll face when selling your home — but you don’t have to pay the full 5.29%.” -List With Clever
So, where does all that commission money go? Usually, the total commission isn’t pocketed by just one agent. It’s commonly split, often 50/50, between your agent (the listing agent) and the agent who brings the buyer (the buyer’s agent). This split is a long-standing practice in the real estate field, designed to compensate both parties for their work in the transaction.
These fees are meant to cover a wide array of services. For listing agents, this includes marketing your home (photos, listings, showings), pricing strategy, negotiation, and managing paperwork. Buyer’s agents are compensated for finding suitable properties for their clients, arranging viewings, helping with offers, and guiding them through closing. Historically, these percentage-based fees became common as a way to align the agent’s incentive with getting the best price for the seller, though the fixed percentage model is now facing more scrutiny.
“Average real estate fees in Colorado are 5.29% of the home sale price. This includes an average of 2.67% for the selling agent plus 2.62% for the buyer’s agent.” -Anytime Estimate
Yes, absolutely! 🥳 One of the best-kept secrets (that’s not so secret anymore) is that realtor commissions are often negotiable. You, as the home seller, have the power to discuss fees with any agent you consider hiring. Recent legal developments, like the National Association of Realtors (NAR) settlement, are bringing even more transparency and bargaining power to consumers across the country, including right here in Denver.
Agents might be more open to adjusting their rates under certain circumstances. For example, if you have a high-value home, if the market is particularly hot and your home is expected to sell quickly, or if you’re a repeat client, an agent might be willing to offer a more competitive rate. Don’t be shy about having this conversation upfront before signing any listing agreement. It’s a key part of learning How to Avoid 6% Realtor Commissions When Selling Your Denver House.
“Real estate commission is always negotiable. Among the realtors we spoke to, most said they’re open to negotiating commission for the right reasons.” -List With Clever
If the thought of paying around 5-6% in commissions makes you wince, you’re not alone, and thankfully, there are several paths you can take. Popular alternatives include directly negotiating a lower rate with a traditional agent, as we just discussed. Another route is to work with discount or flat-fee brokerages that offer services for a reduced commission or a set price. And then there are direct-offer companies, sometimes called iBuyers or cash home buyers, who purchase your home directly, often cutting out agent fees altogether.
Each of these methods has its own set of benefits and drawbacks for Denver home sellers. Negotiating might save you some money while keeping full service. Discount brokers can offer substantial savings but may provide less hands-on support. Direct buyers offer speed and convenience with no commissions, but their offers might be slightly below top market value if you went the traditional route. Weighing these can help you pick the best path for your situation.
“Fortunately, there are ways to spend less on realtor commission and increase your profit.” -Anytime Estimate
Low commission and flat-fee brokerages are shaking up the traditional real estate model. These companies typically offer to list your home and provide a range of services for a commission rate lower than the Denver average, or for a fixed, upfront fee. The level of service can vary widely, from basic MLS listing services to more comprehensive packages, so it’s important to understand exactly what you’re getting for your money. 🧐
These alternative brokerage models are definitely catching on in Denver and across Colorado. Why? Sellers are becoming more cost-conscious and are actively looking for ways to keep more of their home equity. With information more readily available online, some sellers feel comfortable handling parts of the selling process themselves and prefer to pay less for agent services. This trend points towards a greater demand for flexibility and choice in how homes are sold.
“You can use a low commission real estate broker to save on listing fees.” -List With Clever
Going ‘For Sale By Owner,’ or FSBO, means you take on the entire job of selling your home yourself, without hiring a listing agent. The biggest appeal? You potentially save the entire listing agent’s commission, which could be 2.5-3% of the sale price. You’d still likely need to offer a commission to the buyer’s agent to attract buyers, but the savings can still be considerable. Your responsibilities would include pricing your home, marketing it, scheduling showings, handling negotiations, and managing all the paperwork.
While the savings sound great, FSBO isn’t for everyone, and Denver sellers might find it a tricky path. You’ll need a lot of time, marketing know-how, and strong negotiation skills. Without access to the MLS (Multiple Listing Service) through an agent (unless you pay for a flat-fee MLS listing), your home’s visibility might be limited. Plus, studies sometimes show FSBO homes sell for less on average than agent-assisted sales, potentially offsetting some of those commission savings. It’s a big commitment! 😓
Here’s a fantastic option for those wondering How to Avoid 6% Realtor Commissions When Selling Your Denver House: working with a direct home buyer. Companies like us, New Era Home Buyers, purchase properties directly from sellers. This means there are no listing agents involved on your side, and therefore, no listing commissions to pay. It’s a very different approach from the traditional, often lengthy, process of listing on the open market.
With New Era Home Buyers in Denver, you can completely bypass realtor commissions. We make you a fair cash offer for your house as-is. If you accept, you choose the closing date. It’s straightforward, fast, and you don’t have to worry about showings, repairs, or the uncertainty of buyer financing falling through. This is a key way we help Denver homeowners keep more of their money and avoid the typical selling hassles. 🎉
You might have heard news about a major lawsuit settlement involving the National Association of Realtors (NAR). This is a big deal for home sellers! Essentially, the settlement is bringing changes to how agent commissions are handled, particularly the buyer’s agent commission. It aims to make commission rates more transparent and negotiable.
For Denver sellers, this settlement reinforces your ability to negotiate commission rates. A key change is that sellers might no longer be required to offer compensation to the buyer’s agent through the MLS. This could mean sellers have more control over whether they pay buyer agent fees, or how much they pay, opening up new avenues for savings. It’s a developing situation, but it definitely empowers sellers looking to reduce selling costs. 💪
“Sellers and buyers must negotiate realtor fees with their agents separately (as required by the 2024 NAR lawsuit settlement).” -List With Clever
Before you jump into any selling agreement, whether it’s with a traditional agent, a discount service, or a direct buyer like New Era Home Buyers, it’s smart to ask some pointed questions. For agents, ask about their experience in your Denver neighborhood, their marketing plan, their full commission structure (including any admin fees), and if they’re flexible on their rate. For discount brokers, clarify exactly which services are included and what might cost extra. What’s their track record?
When considering a direct buyer, ask how they determine their offer price, if there are *any* fees or costs involved (with New Era Home Buyers, there are no hidden fees or commissions!), and how quickly they can close. You want to be sure about the total costs, the level of support you’ll receive, and what you can realistically expect as an outcome. Getting clear answers will help you choose the best route for sell your Denver property and maximizing your profit. 📝
Let’s talk numbers to see what avoiding that ‘typical’ commission could mean for your bank account. The quote below mentions that for a $440,000 home, you’d typically pay around $23,276 in realtor fees (at 5.29%). If you could reduce that by even 1-2% through negotiation, or by using a discount broker, you could save thousands. For instance, a 1.5% reduction saves you $6,600!
Now, consider selling a Denver home valued at $600,000. A 5.29% commission would be a whopping $31,740! If you sell directly to a cash buyer like New Era Home Buyers, where you pay *zero* realtor commissions, you could potentially save that entire amount. Even if a direct offer needs to account for the condition of your home, the net amount in your pocket, plus the speed and convenience, can be very attractive. It really helps to see the actual dollar figures! 🤑
“For context, if you sell a home that costs $440,000, you’d typically pay around $23,276 in realtor fees…” -List With Clever
While we’re focused on How to Avoid 6% Realtor Commissions When Selling Your Denver House, there are situations where working with a full-service, full-commission agent might be the right path for some sellers. If you have a very unique, luxury, or hard-to-sell property, an experienced agent with a strong network and specialized marketing skills might be able to achieve a higher sale price that justifies their fee. Maybe you’re an out-of-state owner and need someone to handle every single detail. 🧐
Or perhaps you’re facing a complex selling situation, like a divorce, estate sale, or a property with title issues. In these cases, the expertise and problem-solving abilities of a seasoned traditional agent could be invaluable. The key is to carefully weigh the potential benefits and services offered against the commission cost and compare this with other options like selling to New Era Home Buyers, especially if speed, certainty, and no commissions are your top priorities.
What is the average realtor commission in Denver?
The average realtor commission in Denver is currently around 5.29% of the home’s sale price. This is typically split between the seller’s agent (listing agent) and the buyer’s agent.
Can I really negotiate commission rates with any agent?
Yes, you absolutely can! Realtor commissions are not set in stone and are negotiable. The recent NAR lawsuit settlement further emphasizes the importance of negotiating these fees with agents.
What’s the difference between a flat-fee brokerage and a traditional agency?
A traditional agency usually charges a percentage-based commission (like the 5.29% average) for a full suite of services. A flat-fee brokerage charges a set dollar amount for particular services, which can range from just an MLS listing to more comprehensive packages, often resulting in lower overall costs.
Is FSBO a good fit for every home seller?
For Sale By Owner (FSBO) can save you the listing agent’s commission, but it’s not for everyone. It requires a lot of time, effort, and expertise in marketing, negotiation, and legal paperwork. It might suit sellers in Denver who are experienced in real estate, have a strong network, and are comfortable managing the entire sales process themselves.
How do I find reputable direct home buying companies in Denver?
Look for direct home buying companies with a strong local presence in Denver, positive reviews, and transparent processes. Check their credentials and ask for proof of funds. Companies like New Era Home Buyers are established in the Denver market, offer fair cash offers with no obligation, and pride themselves on making the selling process simple and commission-free. Always get everything in writing!
Selling your Denver house doesn’t automatically mean you have to kiss a hefty 6% (or even 5.29%) of your sale price goodbye in commissions. You’ve got choices! By understanding your options – whether it’s sharpening your negotiation skills with a traditional agent, opting for a low-commission brokerage, bravely going the FSBO route, or choosing the simplicity of a direct sale – you can keep more of your hard-earned equity. Each path has its points, so think about what matters most to you. 👍
If the idea of a fast, fair, and commission-free sale sounds like music to your ears, then exploring what New Era Home Buyers can offer for your Denver property is a great next step. We specialize in helping homeowners like you learn How to Avoid 6% Realtor Commissions When Selling Your Denver House by simply sidestepping them altogether. Reach out to us for a no-obligation chat or a cash offer, and see how easy selling your house can be without those traditional commission costs weighing you down! 🏡✨
Key Takeaways:
Brett is a real estate investor in Denver, Colorado and has been working in real estate for over 20 years. He grew up in Aurora, Colorado and earned his MBA from the University of Denver. Besides flipping houses, Brett loves spending time with his wife and two daughters. In his free time he loves playing golf, skiing and giving back to his community. He owns New Era Home Buyers in Denver, CO.
