{"id":96617,"date":"2024-09-18T14:48:28","date_gmt":"2024-09-18T21:48:28","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=96617"},"modified":"2024-09-18T14:48:28","modified_gmt":"2024-09-18T21:48:28","slug":"new-mexico-real-estate-commissions","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/new-mexico-real-estate-commissions\/","title":{"rendered":"New Mexico Real Estate Commissions: What You Can Expect in 2024"},"content":{"rendered":"

Navigating real estate commissions is crucial for managing your budget and making informed decisions when buying or selling a <\/span>home in New Mexico<\/span><\/a>. In 2024, <\/span>new national guidelines<\/span><\/a> 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.<\/span><\/p>\n

Whether you’re entering the housing market for the <\/span>first time<\/span><\/a> or have experience selling homes, this guide covers what you need to know about real estate commissions in New Mexico.<\/span><\/p>\n

\"Downtown<\/p>\n

Current state of the New Mexico housing market<\/span><\/h2>\n

Before we dive into commission details, it\u2019s essential to take a quick snapshot of <\/span>New Mexico\u2019s housing market<\/span><\/a>:<\/span><\/p>\n\n\n\n\n\n
Median Home Sale Price<\/b><\/td>\n$377,100<\/span><\/td>\n<\/tr>\n
Housing Supply<\/b><\/td>\n4,899 (+18.2% YoY)<\/span><\/td>\n<\/tr>\n
Homes Sold Above List Price<\/b><\/td>\n5.4% (-1.6 pts YoY)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Understanding real estate commissions in New Mexico<\/span><\/h2>\n

What are real estate commissions?<\/span><\/h3>\n

Real estate commissions<\/span><\/a> 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 <\/span>closing<\/span><\/a> and compensates the agents for their work throughout the transaction.<\/span><\/p>\n

Who pays the commission?<\/span><\/h3>\n

Historically, sellers paid both their <\/span>agent\u2019s commission<\/span><\/a> and the buyer\u2019s agent\u2019s fee. However, as of August 17, 2024, buyers must now <\/span>sign an agreement<\/span><\/a> outlining their agent\u2019s fee before starting home tours.\u00a0<\/span><\/p>\n

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.<\/span><\/p>\n

\"adobe<\/h2>\n

Average real estate commission rates in New Mexico<\/span><\/h2>\n

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\u2019s specifics and the services provided by the agent play a role in determining the commission structure.<\/span><\/p>\n

Below is an example of how commissions may look in some of <\/span>New Mexico’s largest cities<\/span><\/a>:<\/span><\/p>\n\n\n\n\n\n\n
City<\/b><\/td>\nMedian Home Sale Price<\/b><\/td>\n1.5% Real Estate Commission<\/b><\/td>\n3% Real Estate Commission<\/b><\/td>\n5% Real Estate Commission<\/b><\/td>\n<\/tr>\n
Albuquerque<\/span><\/a><\/td>\n$345,000<\/span><\/td>\n$5,175<\/span><\/td>\n$10,350<\/span><\/td>\n$17,250<\/span><\/td>\n<\/tr>\n
Las Cruces<\/span><\/a><\/td>\n$298,950<\/span><\/td>\n$4,484<\/span><\/td>\n$8,969<\/span><\/td>\n$14,948<\/span><\/td>\n<\/tr>\n
Rio Rancho<\/span><\/a><\/td>\n$373,000<\/span><\/td>\n$5,595<\/span><\/td>\n$11,190<\/span><\/td>\n$18,650<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

At Redfin, we provide excellent value to consumers, offering sellers a <\/span>listing fee starting as low as 1%<\/span><\/a>*. For buyers, our fees vary but location but are competitive, helping your offer standout, increasing your chances of success.<\/span><\/p>\n

Can you negotiate real estate commissions in New Mexico?\u00a0<\/span><\/h2>\n

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.\u00a0<\/span><\/p>\n

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. <\/span>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 <\/span>dual agency<\/span><\/a>, there might be further opportunities to reduce the overall commission cost.<\/span><\/p>\n

Tips for a successful negotiation<\/span><\/h3>\n