What’s a fair realtor fee in New Mexico? | How much does commission cost? | Who pays realtor fees? | Budget-friendly tips to save on realtor fees
The average realtor commission in New Mexico is 5.59%, which equates to a typical realtor fee of $16,647 for home sellers in the state.
Knowing the standard commission rate in your area can help you avoid overpaying for a realtor and accurately estimate costs when you sell your home.
You might be thinking, “Wow! $16,647 is a lot of money!” Well, luckily there are companies like our friends at Clever Real Estate that offer listing fees as low as 1% in New Mexico.
The average New Mexico home seller saves $5,220 when they find their realtor through Clever, while still getting guaranteed full service from a top agent at a trusted brokerage like Keller Williams or RE/MAX.
đź’° SAVE: Find a top local agent and get a 1% listing fee!
✍ Why should you trust our numbers?
Our team strives to provide the most accurate data possible. We regularly survey real estate agents from across the country to gather the most current and accurate database of realtor commission rates on the web.
What is a fair commission for a real estate agent in New Mexico?
Since realtor commission is negotiable, what’s fair will ultimately come down to whatever rate you and your agent are comfortable with.
That said, our data showed that a majority of realtors expect between 4.68% to 6.49% with the statewide average being 5.59%.
| Commission rate | Percentage | Cost* |
|---|---|---|
| Low tier | 4.68% | $13,937 |
| New Mexico average | 5.59% | $16,647 |
| High tier | 6.49% | $19,328 |
So why does total realtor commission cost so much? Well, there are a couple of factors:
- Agents split their commission – The listing agent typically only takes home a fraction of the realtor fees.
- Listing a home involves risk – Realtors pay upfront for marketing costs (e.g. professional photos, advertising, staging, etc.) and only get paid when your home sells.
- Finding clients can be hard and costly – Real estate agents spend time and money generating new business, an expense that’s often passed along to home sellers.
Luckily, most New Mexico home sellers can avoid paying the full 5.59% commission rate.
Some real estate companies — like our friends at Clever — aim to make agents’ jobs easier so that they’re able to charge lower rates without sacrificing any hands-on service. By matching home sellers directly with realtors, Clever is able to reduce the cost of acquiring clients and negotiate lower realtor fees.
Sellers who work with Clever get agent matches from well-known brokerages like Century 21 and Berkshire Hathaway — and pay just a 1% listing fee when their home sells!
How much do realtor fees in New Mexico cost?
Realtor fees in New Mexico typically cost around 5.59% in total. This includes both the listing fee and buyer’s agent fee.
Realtor fees are generally paid by the seller out of their proceeds at closing. You typically don’t owe agents anything until your house sells. But remember, sellers typically cover the costs for both their listing agent and the buyer’s agent.
Here’s and example of how commission costs would affect a seller’s net profit on an average home in New Mexico:
| Category | Amount |
|---|---|
| Sale price | $297,808 |
| Realtor fees | $16,647 |
| Seller closing costs | $2,359 |
| Mortgage payoff | $28,590 |
| Seller net | $250,266 |
How are realtor fees split in New Mexico?
When you sell a home with a realtor in New Mexico, your listing agent will typically take home 1.38% of the total sale price.
Less than you thought, right? Even though the typical realtor fee in New Mexico is 5.59%, that money is actually split between your agent, the buyer’s agent, and each of their brokers.
Here’s an example of how commission is often split on a sale in New Mexico:
| Category | Percentage |
|---|---|
| Seller's agent take home | 1.38% |
| Seller's agent's broker split | 1.38% (~50% of the seller's agent's commission ) |
| Buyer's agent take home | 1.415% |
| Buyer's agent's broker split | 1.415% (~50% of the buyer's agent's commission ) |
| Total commission | 5.59% |
Who pays realtor commission in New Mexico?
In New Mexico, the home seller typically pays the realtor fees for all agents involved in the sale. This is the standard nationwide.
Realtor fees are baked into the price of the home and are paid out of the proceeds when it sells. So home sellers don’t have to pay real estate commission up front; the agents get their cut when the deal closes.
Why are sellers responsible for paying the buyer’s agent commission? Think of it as a marketing cost for your home. By offering a competitive buyer’s agent commission, you give realtors an incentive to show your home to their clients.
How to save on realtor fees in New Mexico
Our Tips for Saving on Commission
Though currently a seller’s market, the increasing inventory and lengthening turnaround times for sales show that New Mexico is on its way to being a pretty neutral market. You can try selling with an agent and negotiating for a lower rate — but if you want more expensive marketing, know that over 50% of agents would charge more commission for that. Consider working with a real estate company that comes with built-in listing savings to help you save.
Keep in mind that local markets vary, so do your research before you decide on selling your home.
Advice current as of June 24, 2022
The average home seller in New Mexico will pay around $16,647 in realtor commissions. But there are several ways that you can get a lower rate and keep more of your hard-earned equity in your pocket when you sell your home.
- Use a discount brand that offers built-in savings
- Negotiate lower rates yourself
- Sell for sale by owner (FSBO)
NOTE: For all the options below, savings come by lowering (or cutting out) the listing agent commission. Regardless of how you sell, you should offer a competitive buyer’s agent commission, which in New Mexico is 2.83%.
Work with a discount brand like Clever
Our Top Pick
- List for $3,000 or 1%
- Available nationwide
- Connect with top local agents
Clever Real Estate is our top pick because it delivers the best combination of savings and service of any low commission company we’ve reviewed.
Sellers save an average of $7,375 when they list with Clever, compared to a traditional 3% listing fee.*
*Average savings based on listing fees at four common price points: $100,000, $250,000, $500,000, and $750,000.
• Get low rates without having to negotiate or do extra work
• Custom agent matches based on your needs
• No obligation
• If you have a specific agent you want to work with, Clever may not be able to help you
• Premium listing services, like professional staging and drone photography, may not come standard
Often the best way to save on realtor fees in New Mexico is to sell with a discount real estate broker that offers full service at lower rates.
Our top pick is Clever Real Estate, a free service that matches home sellers with top agents in their area for pre-negotiated low rates. You’ll get matched with local agents from trusted brokerages like Century 21 and RE/MAX.
Sellers who work with Clever can sell for a low 1% listing fee — compared to the fee that most New Mexico realtors charge. You’ll receive full service and support from your agent, saving you thousands on realtor fees without any trade-offs. Interview as many agents as you want until you find the right fit, or walk away at any time with no obligation.
Negotiate a lower realtor fee on your own
Good for Some
Negotiating Realtor Commission
Learn More- Pick your own agent
- Negotiate whatever you want
- Difficult to pull off
If you can pull it off, negotiating lower-than-average commission rates is a great way to save money when selling a home. However, you may find that many agents are resistant to the idea of reducing their typical realtor fee.
You may have more luck negotiating if you can argue that your home is going to be easy to sell — e.g. it’s in a really hot market, it’s in great condition, etc. — because that should mean less work for your realtor.
• Negotiate realtor fees as low as you want
• Work with whatever agent you choose (assuming they’ll accept lower-than-average rates)
• Many agents won’t negotiate
• You’ll still likely have to offer a competitive buyer’s agent commission of 2-3%
As a New Mexico home seller, you can always try to negotiate a lower commission yourself — you don’t have to just accept whatever rate an agent quotes you.
Right now, New Mexico homes are selling at a faster pace than the national average, and listing prices have gone up nearly 10% compared to the same time in 2020. There isn’t much inventory in the state either, so prospective buyers are competing for a small pool of homes. All in all, this is a hot market that favors sellers.
That said, there are still agents who aren’t accustomed to reducing their fees. And in many cases, agents are required by their brokerages to charge certain rates. So while it never hurts to ask, be aware that you may not be able to negotiate a large discount with your realtor.
» MORE: How to negotiate your real estate commission
Sell without a realtor
For Savvy Sellers Only
For Sale by Owner
Learn More- No listing commission
- You do the legwork
- High risk
Selling FSBO could cut your commission costs in half, but unless you’re a seasoned real estate veteran it likely won’t be your best option for saving on realtor fees.
FSBO sellers take on more work and risk by forgoing the help of professional real estate agents. They’ll have to attract buyers, negotiate offers, and navigate legal paperwork. Additionally they’ll miss out on the local market expertise that top real estate agents provide, which is critical when trying to sell for as much as possible.
• Cut out listing agent commission (2-3%)
• You get complete control over how your home is marketed, and how the transaction is conducted
• Good if you already have a buyer or are selling to a friend or relative
• You’ll likely still have to offer a competitive buyer’s agent commission of 2-3%
• Commission savings may be offset by lower prices — homes sold without the help of an agent typically have been shown to fetch 5.5% less
Selling your home for sale by owner (FSBO) in New Mexico lets you avoid paying the listing agent’s fee, effectively halving the cost of commission compared to selling with a traditional realtor.
While the potential savings look great, there are many risks that come with selling a home without an agent.
FSBO sellers take on a lot more work than regular home sellers. You’ll have to attract buyers, negotiate offers, list your home on the MLS, and navigate legal paperwork. You’ll also miss out on the local market expertise that top real estate agents provide, which is critical when trying to sell for as much as possible.
In fact, research shows that FSBO homes sell for 5.5% less on average than agent-represented homes. So while you may save 3% by cutting out the listing agent’s fee, you could lose more than that if your home sells for less than market value.
» MORE: Top Flat Fee MLS Companies in New Mexico
Methodology
Data on commission rates comes from a survey of over 630 agents conducted by our partner site, Clever Real Estate.
We also used reputable online sources for the following data points:
- Home values: Zillow
- Average mortgage debt: Federal Reserve Bank of New York
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