Colorado Real Estate Commission

On the surface, Colorado real estate commissions seem to be a very confusing thing. 


How exactly does a real estate agent get paid?

How does the person selling the house get paid?

Does the bank make any money up-front?

As with everything in the world, Colorado real estate commission used to be earned every step of the way. Consequently, it was a reward for the mighty efforts your real estate agent put into selling your home or finding you one.  Agents generated “hot-sheets” and were the only people with secret access to the insider information on homes and properties, now known as the MLS. Therefore, they spent their days scouring the data sheets and finding  perfect homes for their clients, scheduling showings, and hard-nosing negotiations to get deals completed. In brief, agents and brokers earned every penny of their commission back then. 

Things really opened up for the general public once the internet fully came into swing. For instance, people now have access to these types of systems and properties without the help of a real estate agent. As a result, those “hot-sheets” are now what is known as the MLS system. Essentially, this is an online database used by millions to look up the most updated info on homes and properties in Colorado. Agents still work hard on your deals, just not nearly as hard as they used to.

So naturally, real estate agent’s commission should decrease since they are not putting in nearly the amount of work for the same bonus, right?

Colorado real estate agents make the exact same amount of commission as they did back when the work was endless. Consequently, Your Equity Real Estate feels as though it is time for an enormous change in our industry; starting with our own commissions.

Real estate commission topper


Your Equity Real Estate

Seller's Agent


Buyer's Agent


Total Cost to YOU


Traditional real estate agent

Seller's Agent


Buyer's Agent


Total Cost to YOU


Total Traditional Real Estate Fees


Total Your Equity Real Estate Fees


Your Savings Listing With Your Equity Real Estate


Residential Real Estate Commission

6.0% of the home or property’s sale price is the standard real estate commission in Colorado. 

Usually, that 6 percent is divided equally between both sides of the deal – sellers & buyers.

The Colorado real estate market is so competitive, agents and brokers habitually lower their commission fees to get a deal in the door. Most commonly, sellers negotiate with their agent to obtain lower commissions. Being that, the sellers typically pay the entire commission themselves.

Northern Colorado is a high velocity market, and the demand for homes far outreaches the supply.  As a result, this is great news for a seller, because agents and brokers may be willing to reduce their own commission in exchange for closings.

Real Estate Commission Payouts

Before understanding how the payouts work, you must first realize who is getting them.  Colorado real estate agents cannot work on their own or individually. They cannot accept direct payment of commissions or fees by law. However, brokers may work independently and hire agents to work under them. 

Both the buyer and the seller have an agent, who works for a broker. As a rule, only brokers can accept money.  

The sellers typically pay out the commission amounts to the agents and brokers involved with the real estate deal.  So, the 6% commission is paid to two different people on the deal.  3% goes to the buyer’s agent’s broker, and 3% goes to the seller’s agent’s broker.  Thereafter, each broker splits the 3% commission between their agency and the actual agent representing them. 

The final split of that 3% number can vary from broker to broker. Thus, agents typically negotiate this split at the time of employment.

According to, as of March 2018 the average annual earnings for real estate agents was $40,587.  In this case, it depends on the amount of commission paid to the agent’s employing broker, and how much was split between the broker and the agent.

Changing Real Estate

A few years ago, there were a select few companies wanting to change the real estate market in Colorado.  More specifically, change the way real estate commissions in Colorado were treated.  Your Equity Real Estate is one of those pioneer companies. Thereby, leading the way in the fight to give more money back to their sellers and buyers!

​There are many competitors attempting to design their Colorado real estate agencies around a strategy like ours. Generally, they don’t want to actually give up their profits in order to earn your trust and future business. however, we are 100% dedicated to your experience with our company and strive to save you every dollar we can throughout the entire listing and purchase process. 

Essentially, we believe good business now leads to better business in the future, period.

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