How Do Colorado Buyers Agents Get Paid?

colorado buyers agent shaking hands with happy couple in office sitting down with paperwork and computer charts

The simplest answer here is “Out of the transaction at closing”. It is a commission based on the sales price of the home. This allows home buyers and sellers to have their agents working for them for no up-front or hourly costs.

In the past few years more “discount” or “flat fee” services have become available. These services have significant downsides that buyers or sellers should carefully evaluate before signing up.

The vast majority of sellers still sign listing agreements with companies that have a commission rate structure. Listing agreements are generally between 4-7% of the sales price of the home. At closing, about half of that typically goes to the company that “lists”, (or markets) the property, and the other half goes the buyer’s agent’s company. Individual agents will get a split of that.

Example: If a listing sells for $100,000 and is listed for 6% and split evenly, the seller agent company will make $3,000 and the buyer agent company will make $3,000 at closing. At $500,000, the seller’s agent company will make $15,0000 and the buyer’s agent company will make $15,000. The agent will get a portion of that. So, A $500 sale will net out $470,000 to the seller minus his/her closing costs.

Agent commissions vary across the country and between agencies, so consumers are encouraged to ask the simple question, “How do you get paid?” when interviewing agents.

Agent commissions can be a significant amount, so both buyers and sellers are advised to carefully look at what the agent will do for them. Anyone buying or selling real estate should interview at least two agents.

Get Your List of the Best Colorado Real Estate Agents

Get your free list of buyer’s agents for all cities in Colorado including Denver, Boulder, Colorado Springs, Frisco, Boulder, Grand Junction, Evergreen.

our easy-to-use form

Why 1st time home buyers Sarah and Chet used a CEBAA agent

colorado young couple sarah chet testimonial video thumbnail

“He took the extra time, the extra work, to help us find the 100% perfect house. We have a better house with better neighborhoods and better schools.”


Are Here 7 Days a Week
to Answer Your Questions

(303) 679-1621