New Mexico Real Estate Commissions: What You Can Expect in 2024
Navigating real estate commissions is crucial for managing your budget and making informed decisions when buying or selling a home in New Mexico. In 2024, new national guidelines were introduced, changing how real estate commissions are disclosed. These updates aim to make it easier for buyers and sellers to understand associated costs and negotiate accordingly, ultimately creating greater transparency in real estate transactions.
Whether you’re entering the housing market for the first time or have experience selling homes, this guide covers what you need to know about real estate commissions in New Mexico.
Current state of the New Mexico housing market
Before we dive into commission details, it’s essential to take a quick snapshot of New Mexico’s housing market:
Median Home Sale Price
$377,100
Housing Supply
4,899 (+18.2% YoY)
Homes Sold Above List Price
5.4% (-1.6 pts YoY)
Understanding real estate commissions in New Mexico
What are real estate commissions?
Real estate commissions are fees paid to agents by the buyer or seller once a home sale is finalized. The commission, typically a percentage of the sale price, is paid during closing and compensates the agents for their work throughout the transaction.
Who pays the commission?
Historically, sellers paid both their agent’s commission and the buyer’s agent’s fee. However, as of August 17, 2024, buyers must now sign an agreement outlining their agent’s fee before starting home tours.
Though buyers can still negotiate for the seller to cover their agent’s commission, the outcome is entirely negotiable and dependent on the agreement between both parties.
Average real estate commission rates in New Mexico
Commission rates in New Mexico can vary depending on the location and current market conditions. While there are general expectations for commission fees, they are not fixed and can be negotiated between the parties involved. Factors like the property’s specifics and the services provided by the agent play a role in determining the commission structure.
Below is an example of how commissions may look in some of New Mexico’s largest cities:
City
Median Home Sale Price
1.5% Real Estate Commission
3% Real Estate Commission
5% Real Estate Commission
Albuquerque
$345,000
$5,175
$10,350
$17,250
Las Cruces
$298,950
$4,484
$8,969
$14,948
Rio Rancho
$373,000
$5,595
$11,190
$18,650
At Redfin, we provide excellent value to consumers, offering sellers a listing fee starting as low as 1%*. For buyers, our fees vary but location but are competitive, helping your offer standout, increasing your chances of success.
Can you negotiate real estate commissions in New Mexico?
Yes! Real estate commissions in New Mexico are negotiable. There are no laws or regulations mandating a specific commission rate, giving you the flexibility to discuss and adjust these fees.
When negotiating, keep in mind the range of services offered by the agent, from marketing efforts to local expertise, as these factors influence commission rates. If your property is in high demand or expected to sell quickly, you may have more room to negotiate a lower rate. Additionally, when a single agent represents both the buyer and the seller, known as dual agency, there might be further opportunities to reduce the overall commission cost.
Tips for a successful negotiation
Interview multiple agents to compare services and commission rates.
Explore performance-based incentives like offering a higher commission for faster sales or exceeding a target price.
Leverage the appeal of your property, especially if it’s in a desirable location, to encourage agents to reduce their rates.
New Mexico real estate commission FAQs
What are the changes to real estate commission? Two significant updates have been introduced. First, buyers must now agree to their agent’s fee in writing before starting home tours. Second, in many markets, the buyer’s agent commission is no longer listed on MLS sites. Learn more about the real estate commission changes here.
How do the changes impact buyers in New Mexico? Buyers must sign an agreement that outlines their agent’s commission before viewing homes. However, you can still negotiate for the seller to cover this fee as part of the overall offer.
How do the changes impact sellers in New Mexico? Sellers still work with their listing agent to decide if, and how much, they will offer to the buyer’s agent. Be prepared to negotiate based on buyer requests during the offer process.
How do you find a real estate agent in New Mexico? If you’re ready to buy or sell in New Mexico, connect with a Redfin agent today for expert guidance through the entire process.
How can you avoid fees? One way to avoid paying commission fees is to sell your home without an agent, a process known as For Sale By Owner (FSBO). However, this requires you to handle all aspects of the sale, including marketing, showings, and paperwork, which can be overwhelming without professional assistance.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.
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