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Selling a Colorado Home From Out of State or Deployed

Brian Lee BurkeBrian Lee Burke
Aug 18, 2020 • 7 min read
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Selling a Colorado Home From Out of State or Deployed

You do not have to fly back to Colorado to sell a house here. Colorado accepts electronic signatures on the listing agreement, the contract and every disclosure, has allowed remote online notarization since the end of 2020, lets a seller sign the deed anywhere in the world before a notary and mail it to the title company, and records a power of attorney with the deed for a seller who cannot sign at all. The Kenna Real Estate Group sells homes every year for owners in Texas, California, Arizona and overseas, and for service members deployed from Fort Carson, Buckley Space Force Base and Peterson.

This guide covers the full remote sale from the owner's side: hiring the agent, getting the house ready without being there, pricing, showings, the contract, the closing, and the two Colorado tax rules that hit nonresident sellers.

Who sells a Colorado home remotely

  • The relocated owner who took a job in Austin or Phoenix and kept the Centennial house as a rental for a few years.
  • The deployed service member with a house in Colorado Springs, Fountain or Aurora and a change-of-station order.
  • The heir or trustee settling a parent's home in Littleton from another state.
  • The out-of-state landlord selling a Denver or Greeley rental.
  • The snowbird who wants the Lakewood house sold before the next winter.

Step 1: hire the agent by video

Interview two or three Colorado agents on a video call. Ask each for closed sales in your ZIP code in the last 12 months, the vendors they manage for remote owners (cleaners, handyman, landscaper, stager, photographer), how they report showing feedback, and who holds the keys. The listing agreement, the Colorado Exclusive Right-to-Sell, is e-signed. The Kenna Real Estate Group assigns one agent as the owner's single contact and manages every vendor visit under a lockbox with a logged entry.

Step 2: get the house ready without being there

The agent walks the house on a video call with you, then sends a written prep list with a price per item. Items are done by vendors the group schedules and pays through the listing, or by your credit card on file with the vendor:

  • Clean-out and deep clean: $300 to $800; a full clean-out of a furnished house $1,500 to $4,000.
  • Paint and repairs: handyman at $60 to $100 an hour; a full interior repaint on a 2,000 square foot home $4,000 to $7,000.
  • Pre-listing inspection, sewer scope and radon test: $700 to $1,100 together, so nothing on the buyer's inspection is news.
  • Staging a vacant home: $2,000 to $5,000 for 60 days.
  • Photography, floor plan, video and 3D tour: included on a Kenna Real Estate Group listing.

The preparing and adding value before selling page ranks which items return their cost on a Front Range home.

What a vacant Colorado house needs while listed

  • Heat on at 55 degrees from October through April. Freeze-thaw cycles on the Front Range burst pipes in unheated houses.
  • Utilities on: Xcel Energy and the water provider stay in your name; a dark, cold house does not show.
  • Snow removal: Denver requires residential sidewalks cleared within 24 hours after snow stops, and suburbs have their own deadlines. The agent puts a snow contract in place by November 1.
  • Lawn and irrigation: a weekly mow from May to October and a sprinkler blowout before the first freeze.
  • Insurance: standard homeowner policies restrict coverage once the house sits vacant 30 to 60 days. Ask your carrier for a vacancy endorsement.
  • Hail season: after a May to September storm, the agent has a roofer check the roof and starts the claim if there is damage.
  • HOA notices: forward the mail so a compliance letter about a fence or weeds does not become a lien.

Selling with a tenant in place

A tenant-occupied Denver rental sells either to an investor with the lease in place or to an owner-occupant after the lease ends. Give the tenant the notice the lease and Colorado law require before showings, offer a rent credit for keeping the house show-ready, and schedule showings in two or three blocks a week. Photograph the house before the tenant's furniture goes in if you have that window. The Colorado real estate investing guide covers selling to investors with a lease attached.

Pricing from out of state

Do not price from a portal estimate. Price from closed sales in the neighborhood over the last 90 days, adjusted for the condition your house is in after the prep list. The Smart Pricing Report is delivered as a PDF and reviewed with you on a video call, and it is updated the week the listing goes live.

Showings and feedback

Showings run through an appointment system on a lockbox. The owner gets a text for every showing request, written feedback from the buyer's agent within 24 hours, and a weekly report with the showing count, online views and the price of any new competing listing. The showing your Colorado home page explains the rules for a vacant house.

The contract, e-signed from anywhere

Colorado's Uniform Electronic Transactions Act makes an electronic signature on a real estate contract as binding as ink. The Contract to Buy and Sell, the Seller's Property Disclosure, the lead-based paint disclosure on a pre-1978 home, the inspection resolution and every amendment are signed from a phone. The contract's dates and deadlines are set on a calendar you both see, and a deployed seller with a 12-hour time difference gets deadlines set 48 hours out so nothing expires overnight.

Closing without being in Colorado

Three closing paths work for a remote seller, and the title company sets it up 10 days before closing:

  • Remote online notarization: a Colorado-commissioned notary meets you on a recorded video session, verifies your ID and notarizes the deed electronically. Colorado has allowed this since December 31, 2020.
  • Mail-away closing: the title company overnights the deed and closing documents; you sign before any notary in your state or at a U.S. embassy or consulate, and overnight them back. Sign 5 to 7 days before closing.
  • Power of attorney: a specific POA for this sale, approved by the title company and recorded with the deed. A military power of attorney prepared by a legal assistance office is valid in Colorado under federal law, and legal assistance offices notarize for free.

On closing day the buyer's funds land at the title company, the deed records with the county clerk and recorder, and your proceeds wire the same day. The what is needed to close on a house in Colorado post lists every document.

Wire fraud and the out-of-state seller

Wire fraud targets remote sellers because every instruction arrives by email. The rule is fixed: the title company confirms your wiring instructions by phone at a number you gave them in person or on the video call, never from an email, and nobody changes those instructions by email. If an email asks you to update where the proceeds go, call the title company at the number on the title commitment.

Two Colorado tax rules for nonresident sellers

The 2% withholding. When a seller who is not a Colorado resident sells Colorado real estate for more than $100,000, the title company withholds 2% of the sale price or the net proceeds, whichever is less, and sends it to the Colorado Department of Revenue with Form DR 1083. It is a prepayment, not a tax; you get the excess back when you file a Colorado nonresident return for that year. On a $500,000 sale that is up to $10,000 held at closing, so plan for it.

The capital gains exclusion. The federal exclusion of $250,000 of gain ($500,000 married) requires 2 years of ownership and use as a primary residence in the 5 years before the sale. A service member on qualified official extended duty suspends that 5-year test for up to 10 years, so a house you left on orders 7 years ago still qualifies. A relocated civilian owner who moved out 3 years ago is inside the window; at 4 years the exclusion is gone. A Colorado CPA confirms your dates before you list.

The payoff and the next purchase

The title company orders your Colorado mortgage payoff and pays it from the proceeds, with interest through the funding date. A seller returning to Colorado later, or keeping a second Front Range home, gets pre-approved before the sale closes so the proceeds land where the next loan needs them. Mike Oswald, VP of Mortgage Lending at Rate, NMLS 261003, Equal Housing Lender, pre-approves Colorado buyers by phone and e-signature from any state. You are free to use any lender. Details on the Colorado home financing page.

Estates and trusts

A house in a Colorado estate needs Letters Testamentary or Letters of Administration from the district court before it lists, and the personal representative signs everything remotely the same way an owner does. A house in a trust sells on the trustee's signature with a certification of trust. The selling an estate home in Colorado post covers the probate steps.

How long a remote sale takes

StageTime
Agent hired, prep list, vendors scheduled1 to 2 weeks
Clean, repairs, staging, photography2 to 3 weeks
Listed to under contract (Denver metro)2 to 6 weeks
Under contract to closing, financed buyer30 to 45 days
Mail-away documents signed and returnedInside the last 10 days

Where to go next

Talk to the Kenna Real Estate Group

The Kenna Real Estate Group at Keller Williams DTC runs the whole sale for owners who are not here: one agent as your contact, every vendor scheduled and logged, weekly video updates, and a closing arranged for the time zone you are in. Call or text 303-955-4220. A live person answers. Not a robot, not a phone tree. Owners coming back to Colorado can search every home for sale in Colorado.

Homes for sale that match this post

Guides

Questions about any home in Colorado? Call or text 303-955-4220. A live person answers.

Quick answers

Do I have to be in Colorado to close on the sale of my house?

No. You sign by remote online notarization with a Colorado notary on video, by mail-away before a notary in your state or at a U.S. consulate, or through a recorded power of attorney. Proceeds wire to you the day the deed records.

Is a military power of attorney accepted at a Colorado closing?

Yes. A military POA prepared by a legal assistance office is valid in every state under federal law. Send it to the title company 10 days before closing so it is approved and recorded with the deed.

How much does Colorado withhold from an out-of-state seller?

2% of the sale price or the net proceeds, whichever is less, on sales over $100,000 by a nonresident, sent to the Colorado Department of Revenue with Form DR 1083. The excess comes back on your Colorado nonresident return.

Do I lose the capital gains exclusion if I rented the house out after moving?

You keep it if you lived in the house 2 of the 5 years before the sale. Deployed service members on qualified extended duty suspend that 5-year window for up to 10 years.

Who takes care of a vacant house while it is listed?

The listing agent, through logged vendor visits: snow removal within Denver's 24-hour rule, weekly mowing, heat at 55 degrees in winter, a sprinkler blowout before the first freeze and a roof check after hail.

Can I sell a Denver rental with a tenant in it from another state?

Yes. Sell to an investor with the lease in place, or list after the lease ends for owner-occupant buyers. Give the notice your lease and Colorado law require before showings and offer the tenant a rent credit for show-ready condition.

How do I protect my sale proceeds from wire fraud?

Give the title company your wiring instructions by phone or video, never by email, and treat any emailed change as fraud. Call the title company at the number printed on the title commitment to confirm before closing.

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WRITTEN BY
Brian Lee Burke
Brian Lee Burke
Team Leader and Licensed Broker, REALTORĀ® since 2002, Author

Brian Lee Burke is the founder and team leader of Kenna Real Estate Group, a real estate team at Keller Williams DTC. A licensed REALTORĀ® since 2002, Brian helps Colorado buyers and sellers navigate residential real estate, new construction, pricing, and negotiation. He is also the author of The Real Estate Playbook and Mastering Real Estate: Your Guide to Becoming a Top Agent.

View Brian Lee Burke’s full profile.

WRITTEN BY
Brian Lee Burke
Brian Lee Burke
Team Leader and Licensed Broker, REALTORĀ® since 2002, Author

Brian Lee Burke is the founder and team leader of Kenna Real Estate Group, a real estate team at Keller Williams DTC. A licensed REALTORĀ® since 2002, Brian helps Colorado buyers and sellers navigate residential real estate, new construction, pricing, and negotiation. He is also the author of The Real Estate Playbook and Mastering Real Estate: Your Guide to Becoming a Top Agent.

View Brian Lee Burke’s full profile.