Closing Costs in Colorado: A Guide for Sellers
When selling a home in Colorado, understanding closing costs is important. Closing costs refer to the various fees and expenses that sellers typically incur to finalize the sale of their property. These costs include things like loan payoff amounts, real estate agent commissions, and more.
This concise guide will provide a clear overview of closing costs in Colorado, ensuring you know what to anticipate when finalizing your home sale.
Whether you’re a first-time seller or experienced in the market, this guide will help you manage the closing costs of selling a property in Colorado.
Disclaimer: This article provides estimates of a seller’s closing costs that are meant for educational and research purposes only; our calculations are not a guarantee.
What are closing costs?
Closing costs are the fees you encounter when finalizing the sale or purchase of a property. These costs cover a broad spectrum of expenses, including standard ones like property taxes and insurance. However, some fees, such as transfer taxes, can differ based on the location of your home at the time of sale.
Mortgage/Loan payoff amount
When you’re selling your home, one important step is paying off your existing mortgage. The amount you need to pay to settle your mortgage is known as the loan payoff amount. This figure includes the remaining principal balance, as well as any interest that has accrued over the life of the loan. In addition, the loan payoff amount may also incorporate any additional fees required to finalize the terms of the loan.
Property taxes
According to WalletHub, Colorado ranks 3rd in the country regarding property taxes, placing it above states like Nevada.
In real estate in Colorado, the multi-family residential assessment rate is 6.8% for 2024, with a median home value in the state of $599,000. To get a better idea of what you might owe, consult a property tax calculator.
