How to Sell a House By Owner in New Mexico
3 min read
If you’re like most U.S. homeowners, when the time comes to buy a new house, you’ll need the proceeds from your current home sale to make it happen. To save on Realtor fees, some ambitious sellers in New Mexico will take the DIY approach and learn how to sell a house by owner.
These venturesome homeowners are taking a road far less traveled. Of the millions of houses sold each year, only 7% of sellers list “For Sale By Owner,” or FSBO (pronounced fizz-bow). Of those, nearly 60% already have a relationship with the buyer, according to the National Association of Realtors (NAR).
In this guide to selling FSBO, we’ll cover what you need to know about selling by owner in the Land of Enchantment. We’ll share the complete process to prepare, market, and close the sale of your New Mexico home without the help of a real estate agent.
Consulting tip: No matter how you choose to sell your home, if you’d like to consult with a top agent first, HomeLight can connect you to highly-rated professionals in your New Mexico market. Transaction data shows that the top 5% of agents sell homes for 10% or more than average agents.
How does selling by owner (FSBO) work in New Mexico?
Taking the FSBO route means selling your home without the assistance of a real estate professional, formally known in the industry as as a listing agent. In a FSBO sale, the seller assumes all the duties that would usually be managed by the agent. These include pricing the house, marketing the property to potential buyers, arranging tours and showings, handline negotiations, and closing the sale.
In a regular home sale, the seller typically pays a Realtor fee or commission. Historically, this amounts to around 6% of the sale price. However, a recent NAR settlement has changed the commission playing field. Depending on the agreement the buyer makes with their agent, the fees paid by the seller can vary.
If the seller agrees to pay the combined fees, the commission is usually split with the buyer’s agent, for example, 50/50 or 60/40. That 6% is usually deducted from the seller’s proceeds at closing.
By selling FSBO, the seller can remove the cost of the listing agent’s commission, which might be about 3%. However, they may still need to offer the buyer’s agent commission. This depends on the arrangements of the sale.
Regardless of how Realtor fees play out, buyers’ agents will expect compensation for the time and effort they dedicate to finding you a qualified buyer. In addition, the buyer’s agent may end up carrying more of the workload to get a FSBO sale to the closing table.
