4 Best Ways for Selling a Home in New Mexico

Property owners interested in a fast sale find the private sales method a beneficial option, since it’s completed without the delay involved in mortgage-financed real estate transactions.

There’s also a benefit for people who want to avoid making their sale public.

Homeowners opting to sell a property in New Mexico through a traditional sale have a sign on the lawn letting the world know the home is on the market.

They’ll have a parade of people traipsing through their home. Owners will see their home furnishings splashed across print ads, flyers, and online advertising for the world to see.

A home sale doesn’t have to happen that way. You can use the private sales option to sell.

What Are Home Buying Companies?

Home buying companies are investors. They use cash to buy investment properties in New Mexico so they can close quickly.

Some New Mexico property investors focus on buying a home for rental income, while others are interested in purchasing fixers and repairing them to resell or use as rental properties.

Investors also have a range of interests in the types of properties they buy.

Some buy single-family homes exclusively, but others purchase a variety, including attached units, mobile homes, manufactured housing, and even multifamily properties and vacant land.

The same diversity is true when looking at property conditions. Most investors aren’t concerned with cosmetic niceties.

They look for structural integrity and the prospects for the property to be used as a rental or, after repairs, as a resale to other buyers. Some investors will even take on foundation or structural repair.

One common thread with cash home buyers is they can close quickly because they make all-cash offers.

They either have cash on hand, or they arrange for a private money loan that’s much quicker to obtain than a conventional mortgage, which a typical buyer would use.

While a fast close is a dream for all homeowners, some people have a greater urgency for a speedy transaction, including:

• homeowners selling a house before it goes into foreclosure
• landlords selling a home with tenants
• property owners selling a house to avoid bankruptcy
• homeowners selling a damaged house
• heirs selling a house after death
• property owners selling a house with unpaid property taxes
• families selling a hoarder’s house
• seniors downsizing to smaller houses
• former couples selling a house after divorce
• workers selling a house for a job relocation
• out of state relatives selling a family member’s property
• homeowners selling a home privately

Cash buyers typically use investor-friendly title companies in New Mexico who understand the details of a cash sale and can move the transaction to quickly close.

Pros of Selling to a Home Buying Company

• You’re able to close quickly when selling to fast cash house buyers.
• New Mexico cash home buyers don’t have the delay involved in using traditional home mortgages.
• You can sell your property as is to a home buying company. That saves effort and time.
• If you don’t use a Realtor, you’ll save paying commissions.
• Your investor will typically pay the real estate closing costs for sellers. That’s another major cash savings for you!

Cons of Selling to a Home Buying Company

There’s a potential downside to selling a home in New Mexico to a cash investor.

• You typically won’t receive a market value offer from New Mexico real estate cash buyers.

There are several reasons for the pricing. The first is the cash buyer considers the amount of money necessary for repairs and then adds room for some profit into the offered price.

Investors are in business and must make some profit to continue to operate, but here’s something more to consider from the seller’s side.

Your cash buyer will pay your closing costs. You won’t need to pay for repairs or upgrades to your home. You also will skip paying commissions that real estate brokerages charge.

When you look at the balance sheet considering all those costs, the investor’s offer may come closer than you think to your net proceeds from a sale with an agent!

How to sell a house to an investor? Let’s explore that option now.

How to Find an Ethical Home Buying Company

Just like real estate agents, not all home buying companies operate ethically. However, there are a number of cash investors who are highly reputable and operate professionally.

The question is how to separate the ethical ones from the others. This segment provides some tips to vet your home buying companies.

The first tip is to collect names of local investors with at least three years of experience working in your local area.

Look for signs, billboards, snail-mail, and online ads, and ask for recommendations from coworkers, friends, and family for companies they may be familiar with.

Do an internet search to round out your list of prospects. Use search terms such as “cash home buyers in (your town)” or “cash home investors” in your query.

The next tip is to do your vetting. This step is critical. Investigate the websites of the investors on your list of prospects.

Look for a detailed “Our Company” or “About Us” page that introduces the buyers and provides information about the person or investment firm. If there isn’t a page on the website, scratch that name off from your prospect list.

Check for local ties to your community. This might include membership in local organizations or clubs, or professional associations and memberships in real estate groups.

The next tip is to check with state agencies for complaints filed against the investors on your list. The New Mexico Department of Justice’s office can assist with that information.

The New Mexico Secretary of State’s website allows you to do a basic business check on your list of prospects.

The next tip is to check consumer feedback about the firms and investors on your list.

Yelp, the local branch of the Better Business Bureau, and Real Estate Bees post consumer feedback. Skim those sites to see what former clients say about the cash house buyers.

All this vetting takes time and effort, but we can help with that. We’ve prescreened the cash investors partnering with us.

We’ve researched our investor partners for professionalism, the ability to close quickly, and for expertise in the local market.

Simply complete a short online form to request a cash offer on your home.

You’ll then be contacted by local investors interested in your property. That narrows your research down significantly!

There’s never any charge to you. You don’t pay commissions. You aren’t on the hook for any vetting or referral fees.

Plus, there’s never an obligation to sell to any of the investors whose offers you receive.

Selling a home in New Mexico in a traditional sale involves the homeowner turning over all of the sales duty to an agent who works under the supervision of a licensed real estate broker.

Agents can be an invaluable resource to suggest a listing price based on comparable sales in your neighborhood.

They’re also an experienced marketer, a seasoned negotiator when you have an offer, and a guide to take you through the steps after you accept an offer.

Who Are Real Estate Agents?

Real estate agents are professionals who are licensed by the state to serve as your legal fiduciary. They must pass courses on real estate law and practice.

They must also put your interests ahead of all others when selling a house in New Mexico.

Agents who call themselves Realtors belong to the National Association of Realtors (NAR) and the local branch that supervises their behavior to ensure it meets the group’s code of ethical practices.

Pros of Using a Real Estate Agent

• Agents have the training and experience in selling a property in New Mexico, and they can assist you in following the law during the marketing and the sales transaction.

• Agents are particularly important to sellers in New Mexico due to legal restrictions on divulging the price of prior sales to the general public. Agents have proprietary access to MLS databases with prices that can assist in helping set a price for your home.

• A real estate agent is your fiduciary who will take over every detail of the sale, allowing you to focus on your life.

Cons of Using a Real Estate Agent

There are some things to seriously consider before using a real estate agent, including:

• The costs of selling your house with a Realtor are your largest expense as a seller.

• Your agent will continue to market your home while you wait for a buyer to appear. That means open houses, broker preview, and continually advertising.

• Agents mostly bring potential buyers who typically need mortgages. Loans require weeks of delay, while the buyer applies and qualifies for a mortgage.

Our next segment suggests ways you can select the best qualified agent to serve as your fiduciary.

How to Find a Good Real Estate Agent

Your house is probably one of your most valuable financial assets, so how do you find an agent that will protect that investment during the sale?

Start by asking friends, family, relatives, coworkers, and neighbors for recommendations. Look for experienced agents with a history of marketing and selling homes in your neighborhood.

Collect names from “sold” signs, and check the New Mexico board of the National Association of Realtors for licensed members representing your area.

The next stop is the New Mexico Regulation and Licensing Department’s Discipline and Enforcement page on their website to search for the agents on your list of prospects.

Agents on that list have violations or have been disciplined by the state licensing agency.

It’s wise to also collect client feedback for the agents on your list of prospects. Steer clear of agents with negative comments.

The Real Estate Bees, Yelp, and the Better Business Bureau (BBB) websites might feature comments from former clients.

The last step is the most time-consuming, but it’s essential. Set up interviews with three agents and ask them to do a formal listing presentation — complete with a marketing plan for your property.

Keep interviewing until you find a good match for you and your house, and then sign the listing contract.

Our next sales option is attractive for homeowners who like to take on major challenges.

Working to sell your house without the assistance of a real estate agent is known as a “for sale by owner” listing, or an FSBO.

Homeowners take on all of the duties of an agent in exchange for avoiding real estate commission fees.

The first required duty is to complete the New Mexico property disclosure. This lists any material damage to the home that impacts the value, and also inventories any risks to health or safety.

Federal law requires homeowners to inform potential buyers of the risks of lead paint when buying a property constructed before 1978.

The next step is to set your asking price by using the value of your home. An online calculator can assist in doing that.

You’ll need to review state and local real estate regulations, contract law, and how to complete filings and paperwork involved in the transaction.

Maybe the most difficult step is locating a buyer.

Ways to Market Your House Yourself

• Place a “for sale” sign on your property listing the ways potential buyers can contact you.
• Film a video tour of your home to post on places like YouTube and Instagram.
• Develop a printed flyer with your home’s amenities and features to distribute to potential buyers.
• Post images and a description of your home on FSBO listing sites.

If you’re still unsure about going it alone in a home sale, considering the pros and cons might help make up your mind.

Pros of Marketing Your House Yourself

• Your FSBO closing costs in New Mexico won’t include a listing agent commission.

• You’re in charge of all aspects of the sale, from listing through closing.

• You can devote all of your time to your home listing. Agents must divide their time between clients, but you have only one client to represent — yourself.

Cons of Marketing Your House Yourself

• Unless you’ve mastered real estate law and regulations, selling your home by yourself can be an overwhelming undertaking.

• You are alone, without any experts to consult about the transaction.

• Uncertainty leads to delay, and your buyer may walk away from the sale. If you make a major error, that puts you in court.
• You may end up paying too much for your FSBO closing costs when you aren’t aware of fees that can be negotiated.

The last sales method we’ll cover is used more often than you might think.

You’ve found the perfect home for your family, but you have a problem: you already have a house, and it’s not on the market.

You could make a contingency offer and ask the seller to wait while you sell your current home.

That risks losing your new home to another buyer, and you generally don’t receive the best price when you’re asking the seller to wait.

There’s an alternative to a contingency offer, and that’s selling to an iBuyer. Some of them will buy your property and immediately give you the cash equity to purchase your new home.

After that sale is complete, the iBuyer will close the sale on your former home.

iBuyer companies in New Mexico pay cash, so the transaction can move fast, and you can close on your new property quickly. There’s no waiting for loan applications or lender underwriting.

That completes the list of common sales approaches.

This segment details the steps involved in how to sell a house in New Mexico.

Before Signing a Purchase Contract

Before signing a listing agreement, most owners will begin a process of upgrading, deep cleaning, and decluttering to make the property ready for public scrutiny.

You may decide to have your home undergo a total remodeling or rent staging furniture and accessories to make your listing stand out from other properties on the market.

You won’t need any of these steps when you sell to an investor. Cash buyers don’t look at cosmetic problems, decor, or temporary staging.

You’ll sign a listing contract and complete a property disclosure that must be presented to potential buyers.

If you’d like to know more about the required disclosures, consult our article that details what happens when you sell a house as is in New Mexico.

Marketing the Property

Once you’ve listed your property, the marketing begins. You’ll need to develop a comprehensive campaign, particularly if there’s a flood of homes for sale in your price range, or your home is a fixer.

Your plan might include mailers, online advertising, broker previews, holiday open houses, special promotions, mid-week open houses, and weekend showings.

If you sell to an investor, you’ll skip all of that. To request an offer, simply ask for one!

Accepting an Offer

Accepting an offer may involve the back and forth of counter offers.

Once you’ve accepted one, you’ll place the buyer’s earnest money deposit with an escrow firm and start the closing process.

Escrow is handled by a neutral third party who supervises the paperwork and money transfer following the sales contract.

A title company isn’t necessarily a firm that can handle the escrow for your transaction in the Land of Enchantment State. New Mexico escrow companies are licensed to do that specific duty.

You may open your sale with either title or escrow offices, depending on the license the agency holds.

Buyer Due Diligence Period

Your buyer takes charge of their side of the transaction in the due diligence period, starting with contracting for home inspections, obtaining a home mortgage, and hiring a title company to conduct a title search.

Buyers also need to obtain a hazard insurance policy on the home during this time.

If you’ve sold to an investor, you’ll skip the delay of applying for a mortgage and the parade of detailed home inspections.

Your investor brings cash and has done the necessary inspections before making an offer.

Federal law requires you to review your closing costs at least three days prior to signing your final documents.

These list your commission, fees, taxes, and a host of other small billings involved in the transaction.

You won’t see commissions and closing costs billed to you when you sell to a cash home investor. They pay those fees for you.

Your buyer then does the final walkthrough, and you’re ready for the closing.

Closing

Your escrow officer has buyers and sellers sign the final documents, and your keys are transferred to the new owner. That’s the process. You’ve sold your home!

The new property deed will then be notarized and filed with the county clerk’s office in the county where the home is located.

It’s recommended that you follow up on the title transfer to ensure the new deed on your property has been filed and the county has a record of the transfer.

We’ve covered four common ways to sell your New Mexico home. We’ve also reviewed the steps involved in how to sell a home in New Mexico.

The only thing remaining is for you to start assembling your lists of agents, iBuyers, and cash home investors.

We can assist with that! Our national online platform partners with local investors we’ve prescreened for professionalism and expertise.

Request cash offers and then wait for interested investors to contact you for an easy and speedy transaction.

You won’t pay a dime for this! And there’s absolutely no obligation to sell!