After you hire a realtor in Colorado Springs to buy or sell a home, you’ll likely have plenty of questions. One of the main questions we hear about is the concern of who pays realtor fees. Let’s discuss the realtor’s commission, show you who exactly pays the realtor after a sale is complete, and cover how much realtor fees typically are in the State of Colorado.
What are Realtor Fees?
The realtor doesn’t work for free, even though nothing is paid upfront. Instead, the realtor’s commission is paid at the time of the sale based on a percentage of the sale price. If nothing is ever bought or sold, the realtor won’t make any money.
Home Buyer or Seller: Who Pays Realtor Fees?
Do buyers pay realtor fees? Not typically. But who pays the realtor’s commission for the buyer’s agent? The seller is responsible for paying both the home buyer’s real estate agent and their real estate agent who is helping them sell the property. You might be asking what a realtor does for a seller if they work for the buyer as well. The buyer agent brings someone to purchase the home. Without them, there would be no sale.
How Much are Realtor Fees?
The average real estate commission in Colorado is 5.46% of the sale. Knowing who pays the realtor means you only need to think about this if you are selling a property. The realtor fees for the seller may vary slightly, so it’s important to talk to your real estate agent before signing any paperwork.
Average Realtor Fees: Colorado vs. the United States
In comparison to the rates across the country, the realtor fees in Colorado run average. In the United States, the average real estate commission cost is 5.45%. Missouri has the highest average realtor fee sitting at 6.07% and the District of Columbia has the lowest rate at 4.90%. Sometimes, in Colorado, real estate agents in major cities like Denver might charge a little more than the 5.46% average. It’s important to research the average in your local area before you agree to anything.
How to Calculate Realtor Fees & Closing Costs
Only the home seller is responsible for paying the real estate agent or agency. If you are buying a home, you don’t need to worry about the fees. However, if you are selling, you can follow this formula to get a benchmark for your real estate agent’s cost: Final Home Sale Price x Realtor Commission Percentage = Total Realtor Fees/Cost.
Here’s an idea of what you might have to pay. Let’s assume you will be responsible for paying 6% of the sale to your realtor. Your $350,000 home sells, so you figure out 6% of this price for realtor commission. In this equation, you will owe $21,000 to the realtors. If you are unsure what you are responsible for, be sure to discuss your concerns with the realtor first.
Are Realtor Fees Different from Real Estate Agent or Broker Fees?
Some agents might require a retainer, but the majority of realtors, agents, and brokers work on a commission basis from the sale price. However, these fees can vary between the different professions, as well as the State, so it’s important to ask for details before signing any contracts. You want to know who pays the real estate agent and how much will be owed.
Best Colorado Realtor for Buying & Selling Homes
If you are looking for a qualified realtor for your buying or selling needs in Colorado, Rene Beshear has the experience you seek. Don’t trust just anyone with your most precious asset. Rene has grown to build a community of clients that trust and respect her because of her expertise. Coloradans know if they want help with their dream home, they can trust her. Contact Rene today to discuss your home buying or selling needs. She is also available for open houses, staging services, and consulting.