How to Sell a House By Owner in New Mexico

Why sell a house by owner in New Mexico?

To weigh your FSBO decision, it’s helpful to ask yourself why you are choosing to sell without a Realtor. The top three reasons most homeowners cite are:

1. Do not want to pay the agent commission (31%)
2. Selling the house to a relative, friend, or neighbor (36%)
3. Buyers contacted the seller directly to request the purchase (20%)

If commission fees are your top reason, consider the proceeds statistics. Sales data from NAR shows that FSBO houses sold last year at a median of $310,000, much lower than the median price of agent-assisted homes, which was $405,000. That’s up to $95,000 less proceeds to save $9,000-$12,000 in agent fees.

Simply put, if your motive is to save money, selling a house by owner in New Mexico may not be the best choice for you.

Next, let’s look at some key pros and cons of selling a house by owner.

Pros of selling a house by owner

• Save around 3% on the listing agent commission fees.
• You can take full control of the home sale process.
• You deal directly with buyers without “go-between” communications.

Cons of selling a house by owner

• FSBO homes typically sell for less money.
• If you don’t already have a prearranged buyer, FSBO listings can take longer to sell.
• You’re managing time-consuming, complex communications, and negotiations.
• Without skilled negotiation support, you may get caught in a bad deal.
• Setting a proper listing price is both challenging and risky.
• Marketing your property requires significant time, effort, and money.
• You will still incur selling costs and settlement fees, and may face expensive seller concessions without a Realtor by your side.
• There are safety risks when showing your home to unvetted strangers.
• You might face costly legal liabilities related to seller home disclosures.

Even with these formidable drawbacks, we’re here to guide you through the entire FSBO process in New Mexico. For some, selling a house by owner is a rewarding challenge, offering success that can’t be measured by proceeds alone.

Steps to sell a house by owner in New Mexico

Next, we’ll provide a detailed step-by-step list demonstrating the entire FSBO process you can expect when selling a home by owner.

1. Prepare your New Mexico home for sale

Whether you’re selling with an agent or by owner, you’ll want to get your New Mexico home ready before any tours, open houses, or showings. This is crucial to increase your chances of receiving a fair price. According to a recent HomeLight survey of more than 1,000 experienced agents, a well-staged home can sell for up to 13% more than an unstaged home.

Here are some priority home preparations to put on your FSBO to-do list.

Inside the house

• Declutter key rooms and spaces, including floors, shelves, and surfaces.
• Make targeted repairs, such as leaky faucets, broken handles, and torn screens.
• Update lights and other fixtures, such as sinks and cabinet hardware.
• Clean and/or refinish scratched or worn hardwood floors.
• Repaint excessively bold or overly dingy walls with neutral colors.
• Reduce furniture in cramped rooms, and possibly rent a storage unit.
• Stage the house with visual garnish like fresh flowers or a basket of fruit.
• Use throw rugs to strategically define rooms and living spaces.
• Thoroughly clean the house until it shines and smells good.
• Open up blinds or drapes to bring in natural light and highlight views. Replace dim or missing light bulbs with brighter ones.
• Create a dedicated area for a home office to appeal to remote workers.

Outside the house

HomeLight transaction data shows that homebuyers typically pay 7% more for a house with positive-impact curb appeal.

• Mow and trim the lawn and pull up the weeds.
• Apply fresh mulch for a renewed look.
• Improve your landscaping, possibly with a stone walkway or flowerbeds.
• Repaint the outside of the home if needed.
• Consider putting in a new garage door if the current one is in bad shape.
• Check for storm damage that might need fixing, such as loose shingles or gutters.
• Clean decks and patio areas, perhaps rent a powerwash unit.
• Check that the AC system is well-maintained for New Mexico’s hot summers.

2. Research the proper selling price before you list

Setting the listing price is one of the most critical steps in the entire FSBO process. You don’t want to leave money on the negotiating table, yet you want to encourage positive buyer activity.

If you were using a local New Mexico real estate agent, they would do what’s known as a comparative market analysis (CMA). This is a comprehensive report of nearby comparable properties, called comps. The Realtor would research similar recently sold or pending houses to see how your property matched up. In some areas, they might even compare homes that were pulled off the market without a sale to make certain your price is right.

In a recent HomeLight survey, nearly 30% of agents reported that the most common mistake sellers make is overpricing their homes. A CMA from an experienced professional can remove this misstep. However, with some time and effort, a FSBO seller can research comps and set a competitive listing price.

Conduct your own “CMA Lite”

If you’re willing to invest some time in research homework, we’ll show you how you can do a simplified CMA, or what could be called a “CMA Lite.”

Start with getting an online value estimate

Search the internet and locate some reputable property value estimators to check your home’s value. HomeLight’s free Home Value Estimator automatically compares available transaction data (tax records, county assessments), your home’s most recent sale price, and recent sales records for other nearby houses.

We also provide an extra layer of property information to our free estimates using a short questionnaire. Tell us a few details about your New Mexico home, such as:

• How much work does it need?
• What type of home is it (single-family, condo, townhouse, or other)?
• Roughly when was your house built?
• Are you planning to sell soon?

Using these insights, our innovative valuation tool will provide you with a preliminary estimate of home value in less than two minutes.

Whether you use HomeLight’s home value estimate or other estimators, it’s important to think of any online home pricing tool as a preliminary “get started” step. The data used in these tech-driven tools can be limited.

Narrowly filter your search for comps

When you’re ready to find your own comps, we recommend you choose an established home listing site like Zillow. You’ll need to filter your property searches to the area very near your home  — even within a few blocks if possible. You’ll also want to search for homes with similar characteristics as yours. If you’re not finding proper comps, expand the site’s search map.

You should filter results by details like these:

• Listing status (review recently sold, pending, and active)
• Number of bedrooms
• Number of bathrooms
• Square footage
• Home type (single-family, condo, etc.)

In addition to the above criteria, the more homes you find with floor plans and an age similar to yours, the better.

Use a site like Zillow to collect your data

To illustrate this step, let’s examine how to filter your search for comps on Zillow.

• Navigate to Zillow.
• Type in your New Mexico address. If a pop-up with your home’s specs appears, close it with the “X” on the top right (or sometimes you must click “Back to search” on the top left).
• Filter by “sold.” Yellow dots should appear on the map surrounding your house, and you will see all the recently sold homes on the right.

• Now, filter by the number of bedrooms and bathrooms and check the box “Use exact match.”

• Next, filter by home type.

• Next, select the “More” box. Here you can specify square footage, lot size, year built, and — crucially — the “sold in last” (time period) category.

• While still in the “More” filter box, scroll down and select to view houses that sold in the last 30 days. If you find there are not many results in your area, try expanding to 90 days. However, the further back you go, the less relevant the comps.
• If necessary, click the plus or minus buttons to widen the search area.
• Once you’ve collected data for sold houses, revise or restart the search to view active and pending listings, as well.

Invest in a home appraisal

If you want to reduce the home price guesswork, consider hiring a professional appraiser to provide an expert opinion of value for your home. Like an agent’s CMA, an appraiser will combine recent property data, research of the surrounding market, and information collected from a walkthrough of your home to determine an appraised value.

A professional appraisal will cost between $300 and $550 for a typical single-family house. However, it’s well worth the investment to avoid potentially over- or underpricing your home by thousands of dollars.

Make sense of your comp research

Compare your New Mexico home’s features against the nearby comps you collected. If you’ve been successful in your reserach, the houses you studied will give an indication of an appropriate price range for your home.

From there, you can make adjustments based on characteristics that add value (e.g., home office, energy-efficient appliances, an extra bedroom, finished basement) versus detracting from it (e.g., a loud or overly busy street, deferred maintenance, less livable square footage). A fenced backyard, hardwood deck, or media room are some of the most valuable home features buyers are looking for in New Mexico.

Consider the differences and similarities of your comps with the appraised value of your home to select a final listing price that will encourage buyers to take action. Keep in mind that if your price is set too high, it may feel out of reach to buyers concerned about high interest rates or upfront costs. You need to balance these concerns with your proceeds objectives. This is a tricky tightrope for most FSBO sellers.

3. Photograph your home

The quality of your listing photos will play a significant role in achieving a successful sale. Great photos will draw in buyers for showings, while poor photos can push them away.

To give your listing an extra edge, consider hiring an experienced real estate photographer. This might cost you $160 to $200 an hour, but the ROI is typically exceptional. Ask the photographer about including a video tour in their service quote.

But if you do go the DIY photographer route, make sure to:

• Use a quality camera with a wide-angle lens.
• Pay close attention to the lighting in each room.
• Include a photo of every space, including garage and storage areas.
• Take multiple photos of living areas, kitchens, and bathrooms.
• Try shooting from different angles (camera held up high or down low).

For more tips, see our handy guide on how to take quality real estate photos.

4. Create a compelling listing with plenty of details

Along with eye-catching photos, write an informative and compelling listing description for your home. Take advantage of the listing description field (a paragraph highlighting key features) and the property details field to tell home shoppers all about your property and what makes it desirable.

Tell a story with your description

Draw in buyers with a potent listing description that tells a story about your New Mexico house, including specific details like:

• Your home’s unique and desirable features, like a cute breakfast nook or mudroom
• Favorable upgrades like a kitchen or bathroom remodel, new roof, or HVAC
• High-end or energy-efficient appliances, sustainable materials, or luxury finishes
• Sought-after outdoor features like a swimming pool, hot tub, or covered patio
• Great neighborhood characteristics and amenities
• Nearby parks, walking or hiking trails, restaurants, and attractions
• Highlights in larger areas (Albuquerque or Las Cruces), such as the best restaurants, sports venues, historic sites, museums, or other cultural opportunities.

Your home’s listing description is a chance to describe what a photograph may not be able to show. Be certain to also write a magnetic headline. The main listing photo and headline are often your first shot at getting a buyer to call. You might refer to it as your “online curb appeal.”

Include lots of property details

Aside from writing the description, you may be prompted to enter information like:

• Age of the home
• Square footage
• Architectural style (i.e., split-level, rancher, craftsman)
• Appliances included
• Exterior building materials
• Flooring types
• HOA fees
• School zone information
• Lot size

Real estate agents and potential buyers will read the “fine print” on your listing, so it’s important to include accurate details — and plenty of them.

5. List your home online

Now it’s time to post your New Mexico home online. While you can create FSBO listings for free on popular search sites, you’d have to painstakingly post site by site, and your listing wouldn’t reach the majority of buyers and agents.

To give your property the most exposure, pay to have it included on your local multiple listing service (MLS). This is an industry platform real estate agents use to share properties with one another. But more importantly, posting on the MLS will feed your listing to buyers’ agent databases and to popular real estate search websites where buyers are already looking.

Only licensed New Mexico real estate agents and brokers who are MLS members can post to the local MLS. As a FSBO seller, you have two options to gain access: paying an agent to post for you or using a sell-by-owner online platform.

Pay an agent to list your FSBO home on the local MLS

An agent in your area may be willing to list your home on the MLS for a flat fee without any other contracted involvement in the transaction. If you decide to go this route, ask the agent whether the fee includes updating your listing later if necessary.

Use a FSBO platform with an MLS option

You can use any number of paid websites to list your New Mexico house online as “for sale by owner.” These sites offer packages ranging from about $100 to $400 for just a basic listing or a higher flat fee of $3,000 to $5,000 that includes a variety of additional service options such as signage, flyers, and other professional marketing materials.

Some of these companies put their rates on their websites, but others won’t quote a fee until you provide your address or select a state and city. A few examples include:

• unrealestate.com
• mlsmyhome.com
• ISoldMyHouse.com
• FSBO.com
• Houwzer
• Houzeo
• Homie Real Estate
• Assist-2-Sell
• Help-U-Sell

Keep in mind that most of these companies serve FSBO sellers throughout the U.S., which can cause challenges if the representatives you contact don’t have a sufficient understanding of the local market trends in your New Mexico community.

Whatever option you select, read the fine print on the service agreement carefully. Some FSBO service providers have hidden or complex fee structures. Other platforms may require a percentage of your home’s final sale price.

If you’re not willing to pay to market your home on the MLS

If you’re determined to save money by foregoing the MLS, creating a free FSBO listing on Zillow may be your best non-MLS option. You can post a video and photos, and get fairly good online exposure through Zillow and the Zillow-owned search site, Trulia.

6. Market your home

Now, it’s finally time to spread the word about your New Mexico home.

Seasoned New Mexico real estate agents know that posting a home on the MLS is just the beginning of the marketing stage. A successful home sale requires a carefully crafted marketing plan to reach qualified buyers and attract the best purchase offers.

You’ll want to put together a far-reaching, targeted marketing plan that blends paid advertising, flyers, social media, yard signs, and open houses. The goal is to reach as many buyers as possible, which will boost your odds of receiving multiple offers and, ultimately, higher proceeds.

Below are some key steps to market your FSBO property:

Install a professional-looking FSBO sign

Purchase a custom yard sign rather than using a cheap handwritten sign. You can order custom signs online with services like Vistaprint for as little as $25 plus shipping. But ask questions before you post your sign. Some MLS providers in New Mexico may have rules about whether you can put up a FSBO yard sign while your home is on the local MLS.

While you’re asking questions, check the laws in your New Mexico community as well as your HOA’s rules about posting yard signs. For example, your city or HOA may limit the size or placement of for-sale or open-house signage.

Share your listing on social media

This is often a free strategy. Post your home listing on social media platforms and ask your friends to share them as well. Many New Mexico home shoppers look at social media platforms like Facebook and Instagram. These sites expand your buyer fishing net.

Hold a FSBO open-house event

Try these strategies for a successful open house event:

• Share event details on sites like Facebook and Nextdoor.
• Update your MLS listing with the open house dates and details, or update your DIY FSBO listing.
• Place open-house signs at nearby intersections.
• Clean up the house before home shoppers come through.
• Pass out info sheets with the address, home features, and your contact info
• Collect visitor info so you can follow up later to ask if they have any questions.

To find more expert open house tips, see our post: How to Do an Open House Right.

7. Manage home showings

If your marketing efforts are successful, you’ll now have confirmed appointments to show the home to prospective buyers. For most FSBO sellers, this is the busiest stage of the home sale process. A major reason some owner-sellers change their minds and hire an agent is that they underestimate the immense amount of time, effort, and expense needed to market and manage these steps. An experienced agent can bring a comforting level of added security to the process.

Here are some tips to help manage the logistics of home showings:

• Respond to buyer inquiries right away
• Set clear end times if you need to fit multiple showings in one day. This will also create a sense of demand and urgency for buyers to place offers.
• Remove or secure your valuables within the home.
• Make sure the house is clean and tidy for showings (and remember the yard).
• Follow up with buyers’ agents after the showing to get their feedback.

Should you be present for home showings?

If you would prefer not to be present for every showing, consider using a lockbox with a code to let buyers’ agents enter your house. This is standard industry practice among agents. However, be certain you’re working with a legitimate real estate professional. Use Google or sites like arello.com to check the agent’s real estate license number.

With unrepresented buyers, plan to be on the property for the home showing. During a buyer tour, we recommend you:

• Point out some of the key highlights of the house.
• Let buyers look without hovering too closely.
• Be prepared to answer their questions.
• Avoid the temptation to say too much; let the house and listing do the talking.

Keep things organized by setting appointments in a calendar and then following up with potential buyers afterward. Yes, it’s your home, but try to remain detached and neutral if a potential buyer shares feedback you don’t like.

8. Evaluate offers, negotiate a deal, and make disclosures

Before signing a purchase contract, make sure the buyers are prequalified by a reputable mortgage lender. Consider these safeguards:

• Vet potential buyers by requiring a mortgage pre-approval letter or proof of funds.
• Require everything in writing.
• Remember, you can counter-offer and negotiate as needed.
• Look for an experienced and trusted real estate attorney. (See the next step.)

Property condition disclosure

In New Mexico, home sellers are required by law to complete the state’s Property Condition Disclosure Statement. This form provides buyers with information about the condition of the house and property, including known defects and other facts that could affect value.

Some FSBO sellers may prefer to provide the disclosure form before an offer has even been presented so that a prospective buyer is more informed and less likely to withdraw from a deal later in the process.

Let’s take a quick look at the type of things you will need to disclose. In New Mexico, you can expect to disclose any significant defects or issues you’re aware of concerning the following:

• Structural condition and any known defects
• Roof condition and any known issues
• Plumbing system condition and any known leaks or defects
• Electrical system condition and any known issues
• Heating and cooling systems condition
• Presence of termites, pests, or infestations
• Condition of appliances included in the sale
• Water supply source and any known issues
• The presence of hazardous materials like lead paint, asbestos, or radon
• History of flooding or water damage
• Previous fire or smoke damage
• Any known zoning violations, unrecorded liens, or legal disputes
• Covenants or restrictions affecting the use of the property (or HOA.)
• Environmental hazards or contamination
• Issues with the septic system or sewer connection
• Any known easements, encroachments, or boundary disputes
• Fireplace, wood stove, or chimney flue (and last cleaning date)

If you’re in doubt about a possible problem with the home’s condition, most real estate agents recommend you disclose it. If you know of a significant issue and choose not to disclose it, and that defect is later discovered, you could be held liable for damage or subsequent costs.

9. Close the sale — with professional help

If all has gone well, this ninth step is where you finally close the deal. You may not want to take this step alone.

While some states require FSBO sellers to hire a lawyer to wrap up the sale, New Mexico does not. However, it’s wise to invest in the services of an experienced real estate attorney. This is likely the largest and most complex transaction of your life. By hiring an attorney, you’ll minimize your legal and financial risk. You will also simplify the process and gain peace of mind.

Real estate attorney fees vary depending on where you live and how much assistance you want or need. In New Mexico, they generally range from $150 to $350 per hour — well worth it for expert guidance and legal protection.

FSBO mistakes to avoid in New Mexico

On your FSBO adventure, watch out for these major seller pitfalls:

• Missing out on the MLS.
• Forgetting or refusing to pay the buyer’s agent commission.
• Over- or under-pricing.
• Letting your house sit on the market too long.
• Not getting enough marketing exposure.
• Being overly fixated on any one detail.
• Not showing your home’s full potential if you don’t declutter and remove personal decor.

Alternatives to selling by owner in New Mexico

If you decide you don’t want the hassle or pressure of a FSBO home sale, you’ve got other options that can help you reach your selling objectives.

Hire a top-performing, trusted Realtor

If you look at the bigger picture, the services and price gains you can get with an agent will often put more money in your pocket than selling FSBO. A top agent is also better equipped to help you achieve your selling and moving timelines.

Interested in such expertise? HomeLight can connect you to top-performing agents in your New Mexico market who have built a network of trusted local professionals. Our free tool analyzes over 27 million transactions and thousands of reviews to determine which agent is best for you based on your unique needs. It only takes about two minutes to receive no-obligation recommendations.

Request a cash offer to buy your New Mexico home

If you’d like to skip the sale preparation work altogether — and still avoid paying agent fees — you can opt to sell your home as-is to an all-cash buyer instead.

For convenience and peace of mind, consider requesting a cash offer from HomeLight’s Simple Sale platform. Tell us a few details about your New Mexico home, and within 24 hours, we’ll send a no-obligation all-cash offer your way. If you choose to accept the offer, you can close in as little as 10 days.

Without leaving the Simple Sale platform, you’ll also be able to compare your cash offer to an estimation of what your house might sell for on the open market with a top agent. This way, you can make a more informed and confident decision.

Ready to sell your New Mexico home?

Unless you already have a buyer on deck, selling a house by owner in New Mexico requires a major investment of time and effort. You’ll need to:

• Locate your own comps
• Get professional photos
• Create a top-notch listing
• Market the home online and on the MLS
• Field buyer inquiries
• Host showings and open houses
• Handle legal disclosures and purchase contracts
• Negotiate the sale and concessions
• Close the deal

…and that’s after repairing and preparing the house itself. You also have to consider that FSBO listings tend to sell for less than agent-assisted sales.

Finally, our sale transaction data shows that the top 5% of real estate agents sell homes for as much as 10% more than average, and we’d be happy to introduce you to some of the best agents in your New Mexico market.

Disclaimer: This post is intended for educational purposes. HomeLight recommends you research your area’s real estate regulations and consult a trusted advisor.

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