What is the Realtor Commission in New Mexico?
Selling a home in New Mexico comes with a lot of important decisions, one of which is planning for closing costs and agent commissions. According to a poll of FastExpert agents, the average commission in New Mexico is 5.83%, slightly above the national average of 5.57%.
Remember, the average commission is just that – an average. You may find an agent who charges less or more depending on their experience and the location of your home.
When you’re ready to start talking to agents, be sure to ask about their commission structure. This will help you understand what you can expect to pay when completing your real estate transaction.
Understanding the Realtor Commission in New Mexico
Before entering the real estate market, it is critical to understand the costs you will incur.
The largest cost of selling a home is the commission rate. Oftentimes the commission rate is also referred to as realtor fees. These fees are the payment for the services given to sell your house. The realtor commission rate is calculated as a percentage of the purchase price of the home.
These realtor fees can vary from agent to agent; however, they generally fall between 4-6%.
Putting Realtor Fees into Perspective
We typically tip 20% for the services received at a restaurant, so a commission rate of 5.83% may feel like a low percentage. However, the bill for the service of selling a house is significantly higher than that of a meal. Therefore, the total commission payment to the real estate agents is a substantial cost.
Yet, working with a realtor is well worth the costs incurred. Real estate agents will be able to seamlessly walk you through the complicated real estate transaction. In addition, the best agents will work tirelessly for an outcome that benefits you.
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Commission Payment for an Average New Mexico Home
The median sale price of a home in New Mexico is approximately $350,000, according to Redfin.
With an average real estate commission rate in New Mexico of 5.83%, the realtor fees paid would be $20,405.
However, one realtor does not receive the entire commission payment.
Typically the realtor commission payment is split between four parties.
How Do Realtors Get Paid In New Mexico?
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There are four parties involved in real estate transactions: the listing agent (selling agent), the listing agent’s broker, buying agent, and buying agent’s broker.
Given the median home value of $350K and a commission rate of 5.83%, the total realtor commission payment on a New Mexico home is $20,405.
That total is split equally between the real estate broker for each agent. Therefore, the listing agent’s brokerage and buyer’s agent’s brokerage each receive $10,202.
That amount is further divided between the real estate broker and the agent.
If, as shown in the infographic, the brokerage and real estate agent are equally splitting the commission, then the listing agent, listing agent’s brokerage, buyer’s agent, and buyer’s agent’s brokerage would each receive $5,101.
What impacts the commission in New Mexico?
The most influential factor in the New Mexico real estate commission rate received by an agent is experience. Not only do more experienced agents charge a higher commission rate, but they also keep a larger percentage of the payment.
For example, if the seller’s agent is an experienced agent, they may keep 80% of the commission, and the brokerage would keep 20%. With our example, the seller’s agent would then earn a payment of $8,162. The brokerage would keep $2,040.
In addition, the location, type of home, sales price, and real estate market can all impact the commission rate.
Licensed Agents Answer:
What factors affect the amount of commission you pay?
Is the Housing Market Strong in New Mexico?
Yes. The housing market is currently strong in New Mexico.
Home prices have risen sharply over the past few years, similar to many areas in the Nation. The rapid growth in home values in New Mexico has likely leveled off for a time. Yet, more people are moving to New Mexico, and the demand for homes only continues to grow. The lack of supply and the everpresent demand for homes will bolster home values in New Mexico.
Should I Sell My Home Now?
The current market conditions are favorable for sellers in New Mexico.
If you’re thinking about selling your home, now is a good time to do it. Home prices have been rising, and they are predicted to continue to rise in the coming years. Yet, the rising interest rates have caused some uncertainty in the housing market.
Homes are sitting on the market longer, and more homes are being forced to drop their price. However, this is more in keeping with a normal housing market. The Pandemic years caused a frenzy in the housing market. Now we’re seeing a return to a more reasonable era.
Ultimately, the best time to sell is when it’s best for you. The housing market will fluctuate, but that should not dictate your living situation.
Ready to Buy a New House?
If you’re ready to list your home on the market, the first step is finding a great real estate agent. The FastExpert network of experienced local agents can help you sell your home quickly and for the best possible price.
Home buyers can also be assured that they are receiving the best service from FastExpert agents that work tirelessly to find your home.
FastExpert makes it easy to find a top-rated real estate agent in New Mexico. Browse our directory of real estate agents in your area, read reviews, and easily message agents to find your perfect match!