How to Sell a House by Owner in Colorado
When the time comes to move, some tenacious homeowners in Colorado are eager to take over the reins of their home sale and figure out how to sell a house by owner.
Often, the decision to go for sale by owner (or “FSBO”) is motivated by a desire to save on agent commissions. While FSBO can work, it does come with some risks, including the possibility of selling your house for less than market value.
In this guide on how to sell a house by owner in Colorado, we’ll cover what can be the most difficult aspects of selling by owner, including the steps that might be harder than you think. We’ll also provide a comprehensive overview on the full process to prep, market, and close on your home without the assistance of a real estate agent.
Note: Once you’ve seen what’s required, you can roll up your sleeves and get started with your FSBO sale in Colorado. Or — in the event you’d prefer to work with a real estate agent — HomeLight would be happy to introduce you to highly-rated professionals who can help you command top dollar and provide a low-stress selling experience.
Fast Facts for Selling Real Estate in Colorado
Median home sales price:
$586,425 (July 2024)
Average days on market:
43 (July 2024)
“For Sale” signs:
Generally allowed, but check local regulations for permitting, sizing, placement, and other regulations.
Real estate transfer taxes:
0.02%
Real estate attorney required?
Real estate attorneys are not considered essential for closing in Colorado. However, it’s almost always advisable to work with a real estate attorney when selling FSBO to avoid potential legal risk.
Quick FSBO overview
FSBO is a method of selling your home without the involvement of a listing agent. In a FSBO scenario, the seller assumes the responsibilities that would normally fall to their agent, such as pricing the home, arranging showings, and negotiating the deal.
In an agent-assisted sale that was closed before the implementation of the National Association of Realtors (NAR) lawsuit settlement terms, the seller typically pays a commission amounting to around 6% of the sale price, which is then split 50/50 with the buyer’s agent. That 6% is deducted from the seller’s proceeds at closing. By selling FSBO, a seller can eliminate the cost of the listing agent commission (so around 3%), though they may still need to offer a buyer’s agent commission.
Finally, a FSBO sale does not mean that a seller won’t need any professional assistance. Most people who sell by owner will need to hire an attorney to review and prepare key documents and make sure paperwork is filled out properly, such as the seller’s disclosures and purchase contract.
