Buying or selling a home in Denver comes with a long list of numbers, and closing costs are among the most confusing. You want to know what you’ll pay, what’s optional, and what you can negotiate so there are no surprises at the closing table. In this guide, you’ll learn what closing costs typically include in Denver, how much buyers and sellers often budget, and smart ways to estimate and reduce your total. Let’s dive in.
What closing costs include in Denver
Closing costs are the fees and prepaid items collected when a real estate deal closes. They cover lender charges, third-party services, title and recording, taxes and prorations, and sometimes negotiated credits.
- Buyers often budget about 2%–5% of the purchase price for closing costs, separate from the down payment.
- Sellers often plan for about 6%–10% of the sale price, which includes real estate commission plus other fees.
- The exact amount in Denver depends on price, loan type, who pays which items, and local fees.
Buyer costs at a glance
Common buyer line items include loan origination and underwriting, appraisal and inspections, title search and the lender’s title policy, prepaid interest, homeowners insurance, property tax escrows, HOA-related fees, and county recording.
Seller costs at a glance
Sellers usually pay real estate commission, closing or escrow fees as negotiated, owner’s title insurance as a local custom, prorated property taxes and HOA dues, and any agreed credits or repairs.
Typical buyer fees in Denver
Loan-related fees
If you’re getting a mortgage, you may see an origination fee (often a percentage of the loan amount), plus underwriting and processing fees. Discount points are optional and can lower your rate for an upfront cost. Some loans also include upfront mortgage insurance.
Third-party services
Expect an appraisal, typically ranging from a few hundred dollars depending on property type and size. A general home inspection is common, with optional specialty inspections for items like radon or roofs. You’ll also see a credit report fee and possible flood certification or survey costs.
Title, closing, and insurance
You’ll pay for a title search and closing or escrow services performed by the title company. The lender’s title insurance policy is required with most loans. The owner’s title insurance policy is customary for the seller to provide in Colorado, but this is negotiable.
Prepaid items and escrows
You’ll prepay daily mortgage interest from your closing date to your first payment. Lenders typically collect the first year of homeowners insurance and set up an escrow account for future taxes and insurance. If the home is in an HOA, you may see prorated dues, setup fees, or reserves.
Government and recording
The City and County of Denver charges recording fees for the deed and loan documents. Colorado does not have a statewide real estate transfer tax. Some local jurisdictions may assess fees, so always confirm current Denver requirements when you get close to closing.
Typical seller costs in Denver
Commission and title
The largest seller expense is usually real estate commission. Nationally, a 5%–6% range is common, and the exact number is negotiated with your listing agent. In Colorado, it is customary for the seller to pay for the owner’s title insurance policy, though it can be negotiated.
Prorations and standard fees
Property taxes are prorated to the closing date based on Denver’s tax schedule. HOA dues are also prorated, and a transfer fee may apply depending on the association. Sellers may share or cover closing or escrow fees as negotiated.
Credits and repairs
If a buyer requests seller concessions, you may agree to a credit at closing that helps offset the buyer’s costs. You can also offer repair credits or complete agreed work before closing. These are strategic tools to keep a deal moving while managing your bottom line.
Denver and Colorado rules to know
Title insurance oversight
Colorado’s Division of Insurance regulates title insurance, which affects premiums and how they are quoted. Your title company can provide accurate, current premium figures for both lender’s and owner’s policies.
HOA resale certificate
For homes in common-interest communities, Colorado law requires the association to provide a resale disclosure. Buyers typically pay any new HOA transfer fees at closing. Review the resale package early so you understand dues, rules, and any upcoming assessments.
Taxes and recording
Property taxes in Denver are handled by the Assessor and Treasurer, and they are prorated at closing according to the county schedule. Recording fees for deeds and mortgages are set by the City and County of Denver. Ask your title company to include the latest amounts in your estimate.
How much to budget in Denver
Budget ranges help you plan, but your exact number depends on your price point and loan.
- Buyers: 2%–5% of the purchase price is a common range. For a $500,000 home, that could be about $10,000–$25,000 in closing costs, excluding the down payment.
- Sellers: 6%–10% of the sale price is a common all-in range when you include commission. At $500,000, that often means around $30,000 or more in total costs.
These figures are illustrative. Always confirm with your lender and title company for the most accurate local numbers.
How to estimate your costs
For buyers
- Request Loan Estimates from 2–3 lenders and compare total costs and APR.
- Ask lenders to separate their origination from third-party fees.
- Get a title quote for both lender’s and owner’s policies plus closing fees.
- Budget for appraisal, inspections, prepaids, and HOA-related items.
- Confirm Denver recording fees and any local charges with your title team.
For sellers
- Discuss commission structure and marketing strategy with your listing agent.
- Ask the title company for owner’s policy and closing fee estimates.
- Review prorations for taxes and HOA dues based on your target closing date.
- Decide early whether to offer concessions to buyers and set limits.
Ways to reduce closing costs
- Shop lenders to compare origination fees and rate options.
- Consider lender credits in exchange for a slightly higher rate.
- Compare title and closing fees and ask about available rate breaks.
- Negotiate who pays which fees in your contract, including concessions.
- Limit optional services to what you truly need after inspection.
Timeline and who pays what
Closings occur after final loan approval, title clearance, HOA disclosures, and agreed repairs. Buyers bring collected funds for the down payment and their closing costs unless credits cover them. The lender wires funds to the seller, and the seller’s mortgage and costs are paid from proceeds.
Property taxes and HOA dues are prorated to the day of closing. If one party prepaid an amount that covers time after closing, the other party provides a credit on the settlement statement. After closing, documents are recorded with Denver County, and you receive final statements and title insurance policies.
Ready for next steps?
You deserve a smooth, well-explained path to the closing table. If you want clear numbers tailored to your price point, loan, and neighborhood, let’s talk through your goals and build a plan that fits your timeline. For thoughtful guidance and hands-on support from search through close, connect with Emelie S Griffith.
FAQs
How much should a Denver buyer budget for closing costs?
- A common range is 2%–5% of the purchase price, excluding the down payment, with exact amounts based on loan, title fees, and timing.
What do Denver sellers usually pay at closing?
- Sellers often pay real estate commission plus closing costs, with a common all-in range of 6%–10% of the sale price including commission.
Who typically pays the owner’s title insurance in Denver?
- In Colorado it is customary for the seller to pay the owner’s title policy, but it is negotiable and should be confirmed with your title company.
Does Denver charge a transfer tax on home sales?
- Colorado has no statewide real estate transfer tax; confirm any local Denver fees and documentary charges with your title company before closing.
How are property taxes handled at closing in Denver?
- Taxes are prorated to the closing date based on Denver’s schedule, so each party pays its share for the period it owns the home.
When will I see my final closing cost number?
- Buyers receive a Loan Estimate early and a Closing Disclosure at least three business days before closing; title provides the final settlement statement at closing.
