How to Buy a House in Colorado
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$567,724
Closing Costs
$13,034
2.3% of price
Property Tax Rate
0.5%
$2,017/yr median
Days on Market
38
Median
FHA Loan Limit
$472,030
Attorney Required
No
Foreclosure Type
Non-Judicial
Transfer Tax
0.01%
$0.01 per $100
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Key Facts About Buying in Colorado
- ✓Very low transfer tax at 0.01%
- ✓Hot market in Denver metro and mountain communities
- ✓Low property tax rate at 0.51%
- ✓Strong first-time buyer assistance through CHFA
The Home Buying Process in Colorado
Buying a home in Colorado follows a 10-step process. Colorado does not require an attorney at closing, though you may choose to hire one.
1
Check Your Credit Score & Finances
2
Get Pre-Approved for a Mortgage
3
Find a Real Estate Agent
4
Search for Homes & Make an Offer
5
Get a Home Inspection
6
Secure Your Financing
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First-Time Buyer Programs in Colorado
CHFA First Step Program
Down payment assistance grant
Up to 4% of first mortgage amountIncome: Varies by county and household size
Cost of Buying a Home in Colorado
| Down Payment (3.5% FHA) | $19,870 |
| Down Payment (20% Conventional) | $113,545 |
| Average Closing Costs | $13,034 |
| Transfer Tax | $57 |
| Annual Property Tax (est.) | $2,839/yr |
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Legal & Regulatory Details in Colorado
Homestead Exemption
Available
Up to $250,000
Licensing Authority
Colorado Division of Real Estate
Colorado Real Estate Law Overview
| Conveyance Document | Warranty or special-warranty deed |
| Security Instrument | Deed of trust or mortgage |
| Foreclosure Process | Non-Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | Yes |
| Redemption After Sale | No |
| Reinstatement Available | Yes |
| Seller Disclosures | Required disclosures include special taxing districts, potable-water source, planned transport projects, meth-lab history, oil/gas activity, surface and mineral rights and common-interest community matters. |
