How to Buy a House in Colorado: A 10-Step Guide
Last Updated: February 2026
Buying a house in Colorado follows a 10-step process: get pre-approved, hire a buyer's agent, define your priorities, tour homes, make an offer, go under contract, complete inspections, review the seller's disclosure, clear the appraisal, and close. The entire process typically takes 30-45 days from accepted offer to keys in hand, and 2-6 months from search to close. Buyer closing costs in Colorado run 2-5% of the purchase price — on a median Broomfield home at $650,000, that's $13,000 to $32,500 on top of your down payment.
That's the summary. But Colorado has quirks that national home-buying guides completely miss — metro district taxes that don't show up on Zillow, mandatory radon considerations, expansive clay soils that can crack foundations, and a seller disclosure form (the SPD19) that was completely rewritten effective January 1, 2026. I walk buyers through this process every week in Broomfield and the North Denver metro. Here's exactly how it works.
Step 1: Get Pre-Approved for a Mortgage
Pre-approval is the foundation of your entire home purchase — skip this step, and everything else falls apart. Pre-approval means a lender has verified your income, assets, credit history, and employment. It tells you exactly how much house you can afford, and it tells sellers you're a serious, qualified buyer.
Pre-approval is not the same as pre-qualification. Pre-qualification is a surface-level estimate based on self-reported numbers. Pre-approval involves pulling your credit, reviewing tax returns, and confirming your debt-to-income ratio. In a competitive market, sellers routinely ignore offers without a pre-approval letter attached.
For Colorado specifically, talk to your lender about these line items early: property tax estimates (which vary wildly depending on metro district status), homeowners insurance (Colorado rates have risen 8%+ recently due to hail and wildfire risk), and HOA fees if you're looking at master-planned communities like Anthem or Anthem Highlands. These recurring costs affect your monthly payment and your qualification amount.
Most Colorado lenders can issue a pre-approval letter within 1-3 business days. Have these documents ready: two years of tax returns, two months of bank statements, recent pay stubs, and a valid ID.
Step 2: Hire a Buyer's Agent
Since August 2024, Colorado requires a written buyer agency agreement before an agent can show you properties. This was a major industry shift — it means you need to choose your agent before you start touring, not after.
A good buyer's agent does far more than open doors. In Colorado, they identify metro district taxes that don't appear on listing sites, flag expansive soil risk based on neighborhood history, negotiate inspection objections using Colorado Real Estate Commission standardized forms, and coordinate the 15+ deadline dates baked into a typical Colorado purchase contract.
Interview 2-3 agents. Ask how many transactions they closed in the last 12 months, whether they specialize in your target area, and how they handle multiple-offer situations. The best agents know street-level details — which side of a neighborhood has better mountain views, which HOA is well-managed, which builders have a history of foundation issues.
If you're buying in Broomfield or the North Denver metro, I can help.
Step 3: Define Your Non-Negotiables
Before you see a single house, get clear on your priorities. This prevents "shiny object syndrome" — falling in love with a home that doesn't actually fit your life.
Build your list across these categories:
Location: School district, commute time to work, proximity to trails or amenities, neighborhood vibe
Home features: Minimum bedrooms/bathrooms, garage size, yard requirements, basement (finished or unfinished)
Financial boundaries: Maximum monthly payment (including taxes, insurance, HOA), maximum purchase price, willingness to pay metro district taxes
Lifestyle factors: Walkability, proximity to dining and shopping, community pool or recreation center, pet-friendliness
In the Broomfield area, the non-negotiable conversation often comes down to three communities: Anthem Anthem Highlands, and Baseline. Anthem's median price sits above $1 million with resort-style amenities. Anthem Highlands averages around $615,000 with a quieter mountain feel. Baseline comes in around $566,000 with modern builds and a walkable town center. Same zip code, very different monthly payments.
Step 4: Tour Homes Strategically
Now the fun part — but approach it strategically. I recommend touring 5-10 homes before making an offer. Fewer than five, and you don't have enough comparison data. More than fifteen, and decision fatigue sets in.
During tours, go beyond the cosmetic. Colorado-specific things to watch for:
Foundation cracks: Colorado's expansive clay soils (called bentonite) expand when wet and shrink when dry, creating movement. Hairline cracks are normal. Stair-step cracks in brick or gaps above door frames are red flags.
Hail damage: Colorado is one of the top hail states in the country. Check the roof age, look for dimpled gutters, and ask when the roof was last replaced.
Basement moisture: Look for efflorescence (white mineral deposits) on basement walls, musty smells, or signs of a sump pump.
Radon mitigation systems: Many Colorado homes already have passive or active radon systems installed. A PVC pipe running from the basement through the roof is a good sign.
Bring a checklist. Take photos. After each tour, rate the home on your non-negotiables while it's fresh.
Step 5: Make a Competitive Offer
When you find the right home, your agent will help you write a competitive offer using Colorado Real Estate Commission standardized forms. Key components of your offer include:
Offer ComponentTypical Range in ColoradoNotesEarnest money deposit1-2% of purchase priceHeld in escrow; applied to closing costsInspection objection deadline10-15 daysYour window to negotiate repairsAppraisal deadline20-25 daysTied to your lender's timelineClosing date30-45 days from acceptanceCoordinate with your lenderLoan commitment deadline25-30 daysWhen your lender must confirm approval
Earnest money in Colorado is typically 1-2% of the purchase price. On a $650,000 home, that's $6,500 to $13,000 deposited into the listing broker's escrow account within a few days of contract acceptance. This money is credited toward your closing costs if the deal closes.
Your agent will also advise whether to include seller concessions — asking the seller to pay a portion of your closing costs. In the current market, this is a reasonable negotiation point, especially for homes that have been on the market for more than 30 days.
Step 6: Go Under Contract
Once the seller accepts your offer, you're officially "under contract." The clock starts ticking on every deadline in the contract. Colorado purchase contracts have 15+ individual deadlines, and missing one can cost you your earnest money or your right to negotiate.
Your agent should provide a deadline tracking sheet or calendar with every date mapped out. The most critical deadlines are:
Inspection objection deadline: Your last day to request repairs or credits based on inspection findings
Inspection resolution deadline: The date by which buyer and seller must agree on inspection items
Appraisal objection deadline: Your window to renegotiate if the appraisal comes in below your offer price
Loan commitment deadline: When your lender must confirm final loan approval
Colorado is a "deadline-driven" state. If you miss the inspection objection deadline, for example, you've accepted the home's condition as-is. A good agent keeps you ahead of every date.
Step 7: Schedule Inspections (Colorado-Specific)
This is where Colorado diverges significantly from other states. A standard home inspection is just the starting point. I recommend every buyer in Colorado order three inspections:
Inspection TypeTypical CostWhat It CoversWhole-home inspection$400-$600Structure, electrical, plumbing, HVAC, roof, foundationRadon test$150Measures radon gas levels in the lowest livable areaSewer scope$150-$250Camera inspection of the sewer line from house to street
Radon is a big deal in Colorado. The state has some of the highest radon levels in the country — a naturally occurring radioactive gas that seeps up through the soil into homes. The EPA considers levels above 4 pCi/L (picocuries per liter) actionable. If your test comes back elevated, radon mitigation systems cost $800-$1,500 and are highly effective. This is a standard negotiation item — sellers often agree to install a system or credit the cost.
Sewer scopes catch a problem that's invisible from the surface: root intrusion, bellied pipes, or deteriorating clay sewer lines. A sewer line replacement in Colorado runs $5,000-$15,000+. A $150 camera inspection is the cheapest insurance you'll ever buy.
Expansive soils deserve special attention. Colorado's Front Range sits on heavy clay that expands and contracts with moisture. Ask your inspector specifically about foundation movement, and look for signs like sticking doors, sloped floors, or cracks wider than 1/4 inch.
Step 8: Review the Seller's Property Disclosure
Colorado sellers are required to complete the Seller's Property Disclosure (SPD) form. Effective January 1, 2026, the Colorado Real Estate Commission rolled out a completely rewritten version — the SPD19 — which is the most significant overhaul of this form in over 20 years. (Source: Colorado Division of Real Estate / DORA)
Key things to know about the new SPD19:
Sellers must disclose conditions that "EVER EXISTED" — including problems that have been fully repaired. Past foundation work, flooding, mold remediation, and roof replacements must all be disclosed.
The legal standard is "current actual knowledge" — sellers disclose what they genuinely know, not what a professional inspection might reveal.
The form now covers additional categories including insurance claims history, previous environmental testing, and known neighborhood nuisances.
Read every section carefully. If a seller marks "Don't Know" on a question where they've lived in the home for 15 years, that's worth a follow-up conversation. If they disclose past foundation work, ask for documentation of the repair and any transferable warranty.
Step 9: Complete the Appraisal and Final Underwriting
Your lender orders an independent appraisal to confirm the home's market value supports the loan amount. The appraiser visits the property, measures it, evaluates the condition, and compares it to recent comparable sales in the area.
If the appraisal comes in at or above your purchase price, you're in good shape. If it comes in below, you have options: renegotiate the price with the seller, make up the difference in cash, or walk away (if you're within your appraisal objection deadline).
Appraisals in Colorado typically cost $500-$700 for a single-family home. The turnaround time is usually 7-14 days.
While the appraisal is underway, your lender completes final underwriting — the last review of all your financial documents before issuing a "clear to close." Keep your finances stable during this period: don't open new credit cards, don't make large purchases, don't change jobs, and don't move large sums of money between accounts without a paper trail.
Step 10: Close on Your New Home
Closing day is when ownership officially transfers. You'll attend a closing appointment at a title company (Colorado doesn't require a real estate attorney, though you can hire one if you want). Here's what happens:
You'll sign the final loan documents, the deed of trust, and the closing disclosure. You'll pay your remaining closing costs and down payment via wire transfer or cashier's check. The title company records the deed with the county, and you get your keys.
Buyer closing costs in Colorado typically include:
Cost CategoryTypical AmountLoan origination fee0.5-1% of loan amountTitle insurance (lender's policy)~0.5% of purchase priceAppraisal fee$500-$700Home inspection$400-$600Radon test$150Sewer scope$150-$250Prepaid property taxesVaries (prorated)Prepaid homeowners insurance$1,200-$2,000/yearRecording fees$50-$100Total buyer closing costs2-5% of purchase price
On a $650,000 home in Broomfield, budget $13,000 to $32,500 in closing costs on top of your down payment. Your lender provides a Loan Estimate early in the process with your specific numbers — review it carefully and ask questions about any line item you don't recognize.
The Colorado-Specific Gotcha Most Buyers Miss: Metro District Taxes
If I could tattoo one piece of advice on every Colorado buyer's forehead, it would be this: check for metro district taxes before you make an offer.
Metro districts are special taxing districts that fund infrastructure — roads, parks, water systems — in newer communities. They add an additional mill levy on top of your standard property taxes, typically adding $2,000-$6,000+ per year to your tax bill. Some high-mill-levy districts add even more.
Here's the problem: metro district taxes do not appear on Zillow, Realtor.com, or most listing sites. The monthly payment estimate you see online is often missing this entirely. I've seen buyers budget based on Zillow's estimate, only to discover their actual monthly payment is $300-$500 higher than expected.
Communities in Broomfield with metro districts include portions of Anthem, Anthem Highlands, and Baseline. The mill levies vary by specific district. Your agent should pull the exact mill levy for any property you're considering before you write an offer.
Ready to start your home search in Broomfield?
I walk buyers through this 10-step process every week — from pre-approval strategy to closing day. Email me your wish list and I'll set up a custom MLS search that hits your inbox before Zillow.
📧 Email Nick directly: nick@youranthemhome.com
🏠 Browse listings: https://www.zillow.com/profile/NickAhrensRealEstate
Nick Ahrens is a Broomfield real estate expert with the North Denver Report, specializing in Anthem, Anthem Highlands, Baseline, and the North Denver metro.
Frequently Asked Questions
How much are closing costs for buyers in Colorado?
Buyer closing costs in Colorado typically range from 2% to 5% of the home's purchase price. On a $650,000 home in Broomfield, that's approximately $13,000 to $32,500. Major costs include the loan origination fee (0.5-1% of loan amount), title insurance (~0.5% of purchase price), appraisal ($500-$700), and prepaid property taxes and homeowners insurance. In the current market, negotiating seller concessions to offset a portion of closing costs is common, especially for homes that have been listed for more than 30 days.
Is radon testing required when buying a home in Colorado?
Radon testing is not legally required in Colorado, but it is strongly recommended and nearly universal in practice. Colorado has some of the highest radon levels in the country — the gas seeps naturally through the soil and can accumulate in basements and lower levels. The EPA considers radon levels above 4 pCi/L actionable. A radon test costs approximately $150, and mitigation systems typically run $800-$1,500 if elevated levels are found. Mitigation is highly effective and is a standard negotiation item during the inspection period.
What are metro district taxes and how do they affect buyers?
Metro districts are special taxing districts used to fund infrastructure in newer Colorado communities. They add an additional property tax mill levy on top of standard county taxes — typically adding $2,000-$6,000+ per year to your property tax bill. The critical issue for buyers is that metro district taxes do not appear on Zillow or most listing sites, so the monthly payment estimate you see online may be significantly lower than your actual payment. Always ask your agent to verify metro district status before making an offer. (Source: Broomfield County Assessor)
How long does it take to buy a house in Colorado?
From accepted offer to closing day, buying a home in Colorado typically takes 30-45 days. Cash offers can close faster since they skip the mortgage process. The full process from starting your home search to receiving keys usually takes 2-6 months, depending on market conditions, your price range, and how quickly you find the right property. Getting pre-approved before you start touring can significantly speed up the timeline.
Do I need a buyer's agent to buy a house in Colorado?
While not legally required, using a buyer's agent is strongly recommended. Since August 2024, Colorado requires a written buyer agency agreement before an agent can show you homes. A buyer's agent negotiates on your behalf, identifies Colorado-specific issues like metro district taxes and expansive soils, and guides you through the state's standardized contract process. In many transactions, the seller offers a concession to cover the buyer's agent commission, meaning you pay nothing out of pocket for representation.
