What does it cost to sell a home in Colorado Springs?
Short answer: Your costs come from four places: agent compensation (which is negotiable), closing costs such as the owner's title insurance policy that Colorado sellers customarily pay, credits to the buyer for property taxes and any concessions or repairs you agree to, and the cost of getting the home ready and carrying it until it sells. Your mortgage payoff comes out of the proceeds too. Ask for an estimate of your net proceeds with and without buyer concessions, so you plan your next move around a realistic range instead of one number.
The costs in one place
| Cost | Who usually pays | What to know |
|---|---|---|
| Listing agent compensation | Seller | Negotiable; set in your listing agreement |
| Buyer's agent compensation | Negotiated | Since 2024, it's no longer offered through the MLS; a buyer may ask you to cover it as part of the offer |
| Owner's title insurance policy | Seller, customarily in Colorado | The contract says who pays; it protects the buyer's ownership |
| Closing fee | Often split | Set by the contract; charged by the title company for handling closing |
| Documentary fee | Set by the contract | One cent per $100 of the price, collected when the deed is recorded |
| Property tax credit | Seller | Taxes are paid a year behind, so you credit the buyer for this year's taxes through closing |
| HOA status letter and fees | Set by the contract and HOA | Status letters, transfer fees, and any payoff of dues |
| Concessions and repair credits | Seller, if agreed | Negotiated with the buyer; can change your net significantly |
| Mortgage payoff | Seller | Includes interest through the payoff date |
| Preparation and moving | Seller | Repairs, cleaning, staging, photos, movers, and storage |
| Carrying costs | Seller | Mortgage, utilities, insurance, and HOA dues until closing |
For how agent fees work now, see how buyer agent fees work when buying or selling in Colorado Springs. If you're weighing selling on your own, see selling yourself or using a discount brokerage.
The two costs that surprise sellers most
In my experience, title insurance is one of the biggest surprises. Everybody works hard for their money, and it is a real cost. Relative to the price of the home it's typically not significant, but it needs to be in your plan.
The second is concessions. When a buyer asks you to pay some of their closing costs, or you agree to repair credits after the inspection, that can grow the bill and change your net proceeds significantly.
That's why I like to present two sets of numbers: your estimated net without concessions, and your estimated net with them. That gives you a range. When the deal actually comes together, people aren't as surprised, and they can make personal planning decisions for their next phase, wherever they're going, based on that range.
What's specific to Colorado Springs
Property taxes are paid a year behind. In El Paso County, the taxes you pay this year are for last year. So at closing, you credit the buyer for the current year's taxes from January 1 through the closing date, and the buyer pays that bill the following year. If you've never sold a home in Colorado, that line on the settlement statement can be unexpected. See how property taxes work in El Paso County.
Colorado's withholding for sellers who don't live here. If you aren't a Colorado resident when you sell a Colorado property for more than $100,000, the title company generally must withhold the smaller of 2% of the sales price or your net proceeds and send it to the Colorado Department of Revenue as an estimated income tax payment. It isn't an extra tax; you claim it when you file a Colorado return. There are exceptions, including when the property is your principal residence or you sign an affirmation that no Colorado tax is reasonably expected to be due. This comes up often with military families who PCS'd away and are now selling a home they kept as a rental. Ask the title company and your CPA about it early, so it doesn't surprise you at closing.
HOAs and metro districts. Many Colorado Springs neighborhoods have an HOA, and some also have a metro district. The HOA's status letter and transfer fees show up in your closing costs, so ask your HOA what it charges before you list.
Taxes on your gain
Selling your home can create a taxable gain. If you owned and lived in the home as your main home for at least two of the five years before the sale, you may be able to exclude up to $250,000 of gain from federal income tax, or $500,000 if you're married filing jointly. Members of the uniformed services on qualified official extended duty can suspend that five-year window for up to 10 years, which matters if you PCS'd and rented the home out. A rental or investment property follows different rules. I'm not a CPA, so talk with yours before you list, especially if the home was ever a rental.
How much equity do you need to sell?
Start with the estimated net proceeds. It frames the whole conversation. Subtract your mortgage payoff and the costs above from a realistic sale price, and you'll see whether you'd walk away with money, break even, or need to bring money to closing.
If the margin is thin, we look at the full spectrum of options. That can mean bringing money to the table, keeping the home and renting it out, or, if you can't or don't want to bring money to closing, a short sale. My goal is to make sure we understand your full situation and that you've explored every option before you have to bring money to the table. For the rental route, see whether to sell or rent your home when you PCS.
Knowing your margin ahead of time pays off later, too. When a buyer asks for concessions or inspection repairs, you already know your decision space: how much you can give and still meet your goals.
Plan your next move around the range
I never recommend making significant commitments until the house is sold, unless it's part of your overall plan and you've mitigated the risks, such as potentially carrying two mortgages or paying to move before you have the proceeds.
I also recognize that sometimes people just have to make a decision and leave, whether the home is sold or not, because of a job, orders, or a family need. The question then is how to manage it, and that's where we try to help. See whether you can buy before you sell.
A simple way to estimate your net
- Start with a realistic price. Base it on recent comparable sales, not the highest online estimate. See how to price your home and how to find out what your home is actually worth.
- Get your mortgage payoff from your lender, including any second mortgage or home equity line.
- Ask for a net sheet with two scenarios: without concessions and with a realistic concession or repair credit.
- Add preparation and moving costs. See how to prepare your home to sell.
- Add carrying costs for the months you expect the home to be on the market.
- Check the tax side with your CPA: capital gains, and Colorado withholding if you no longer live here.
What could change the answer
- The market. When homes take longer to sell, buyers ask for more concessions and your carrying costs grow.
- What you negotiate. Agent compensation, who pays which closing costs, and repair requests are all negotiable.
- Your loan. Prepayment terms, a second mortgage, or a home equity line change your payoff.
- Your tax situation. Rental use, residency, and how long you lived in the home affect what you owe.
- The property. HOA and metro district fees, needed repairs, and the home's condition change the numbers.
When to talk with a professional
A CPA can tell you whether you'll owe tax on the gain and how Colorado withholding applies to you. Your lender can give you an exact payoff. The title company can explain its fees and the withholding forms. If you're considering a short sale or facing a hard deadline to move, a real estate attorney or a HUD-approved housing counselor can help. If you'd like to see your own numbers, let's put together a net sheet for your home, with and without concessions.
About the author
Weldon Hobbs is a Colorado Springs REALTOR® and co-founder of Team Hobbs Realty. He is a member of The Platinum Group, REALTORS®, Colorado Springs' #1 independent brokerage, which pairs deep local expertise with premium marketing exposure. A U.S. Air Force Academy graduate and retired Air Force veteran, he and his family made more than 10 military moves. Since 2006, he and his wife, Kristen, have bought and sold their own homes, managed a portfolio of rental properties, and guided others through their own real estate decisions. He has also helped both family members and clients downsize, where the decisions are often complex and the process can feel overwhelming. Drawing on his background as a PMP® (Project Management Professional), he helps people break those decisions into clear, manageable steps.
Since beginning his real estate career, he has ranked in the top 7% by sales volume among the more than 4,000 members of the Pikes Peak Association of REALTORS®. He works with military families, seniors and downsizing clients, luxury and premium home sellers, and people relocating to Colorado Springs. He developed the Life → Wealth → Real Estate™ method, hosts the national YouTube channel Life & Real Estate Without Regret, and holds an MBA along with the SRES® (Seniors Real Estate Specialist®), MRP (Military Relocation Professional), and Certified Financial Coach credentials. More about Weldon
Sources
- Colorado Department of Revenue, DR 1083, Information with Respect to a Conveyance of a Colorado Real Property Interest (withholding rules and exceptions): https://tax.colorado.gov/sites/tax/files/documents/DR1083_2025.pdf
- Colorado Department of Revenue, FYI Income 5, Nonresident Real Estate Transactions: Required Withholding: https://tax.colorado.gov/sites/tax/files/Income%205.pdf
- IRS Publication 523, Selling Your Home (exclusion of gain and the uniformed services suspension): https://www.irs.gov/publications/p523
- Colorado Division of Real Estate, Contract to Buy and Sell Real Estate (Residential), educational copy: https://dre.colorado.gov/sites/dre/files/documents/Contract%20to%20Buy%20and%20Sell%20Real%20Estate%20(Residential)%20Clean%20Educational.pdf
- National Association of REALTORS®, What the NAR Settlement Means for Home Buyers and Sellers: https://www.nar.realtor/the-facts/what-the-nar-settlement-means-for-home-buyers-and-sellers