Selling a Home As Is in New Mexico (A-to-Z Guide)

Selling your house ‘as is’ tells potential buyers that what they see is what they’re buying. You don’t want to do any repairs or fixes to the property.

New Mexico law offers a few ways to sell your house. One way uses a real estate attorney to create a real estate contract for the transaction.

Another type of sale uses a purchase agreement. Real estate agents use purchase agreements.

The standard purchase agreement doesn’t contain an ‘as is’ condition clause, but there are ways to sell your property ‘as is’ in New Mexico.

Yes, you can sell a home ‘as is’ in New Mexico. You must, however, allow your potential buyers to do their due diligence in inspecting the property.

You must also allow them access to bring in a professional inspector — at their own expense.

Inspections don’t mean you have any liability to fix anything. The reports are an inventory of defective items or conditions so buyers can make an informed decision about their purchase.

How does selling a house ‘as is’ work in New Mexico? The first thing we’ll outline is the property disclosure requirements in the Land of Enchantment.

New Mexico sellers must disclose things that would negatively impact the value of the property. Anything potentially dangerous or hazardous to the health of the new owner must also be disclosed.

The disclosure used by Realtors is a checklist of conditions that the owner must share with potential buyers by marking either a “yes” or a “no”.

If the owner checks “yes” next to a disclosure inventory item, the form then asks the owner to provide more details.

Selling a home with mold, foundation issues, unpermitted work, fire damage or water damage, septic system failure, or the presence of radon, lead pipes, or asbestos must be disclosed.

Sellers of property with radioactive materials, animals kept in the residence, or termite damage must explain the details on the disclosure form.

When selling a house in a flood zone, an area of environmental assessment, or a property that is used (or has ever been used) in mining operations, you must disclose those facts.

In addition to the checklist, sellers must disclose the estimated amount of assessed property taxes.

While selling a house with polybutylene pipes isn’t specifically mentioned in the disclosure, a house with a well must answer a number of detailed questions.

Hydraulic fracturing also isn’t a specific category on the disclosure for people selling a house, but fracking operation disclosures would be classified as mining or drilling on the disclosure form.

Haunted houses and bed bugs aren’t state-mandated disclosure requirements, but you may want to inform potential buyers about any issues to be fully transparent.

Selling a house built before 1978 requires a federal disclosure for the presence of lead paint. The New Mexico Realtor property disclosure checklist also asks about lead paint in a house of any age.

You can leave stuff behind when you sell your New Mexico house ‘as is’, but you’ll need to state that on the purchase agreement, not on the disclosure form.

The buyer will also need to agree to accept your items on the official purchase agreement.

The first thing you’ll need to decide on before listing your house is, “Should you sell your New Mexico house ‘as is’ or fix it up?”

Let’s explore the advantages and disadvantages of each option.

Why sell a New Mexico house ‘as is’? There are many advantages.

Pros of Selling Your House As Is

• ‘As is’ sales help you avoid spending time and effort to find a repair person and supervise the work on your house. You also won’t pay the costs of these repairs.

• Skipping repairs means you can market and sell the house sooner, particularly if you sell it to a New Mexico cash house buyer.

• You’ll also avoid the tedious task of negotiating with picky buyers after they receive the report from a New Mexico home inspector.

• Under New Mexico disclosure laws, any professional home inspections must be shared with any potential buyers. Skipping home inspections means you won’t have reports to share.

• Many ‘as is’ buyers will allow you to leave items behind. This saves you time and potential expense.

There are also a few disadvantages to selling ‘as is’.

Cons of Selling Your House As Is

• Typically ‘as is’ sales don’t bring the same price as a similar move-in-ready house. Turnkey houses typically bring a much higher sales price compared with comparable fixers.

• Most buyers aren’t looking for a fixer, so you’ll be limiting your pool of potential buyers if listing your house ‘as is’.

When considering to fix or sell ‘as is’, you’ll also need to factor in the “hidden costs” that you’ll have during the time you’re getting your house ready by repairing or replacing things.

During the repair period, you’ll still be paying for utilities, property tax, mortgage interest, and any association fees. Mechanical systems can also break down during this period and add to the repair list.

When you balance the “hidden costs” with the lower sales price, it might be more cost-effective to simply sell ‘as is’. These “hidden costs” are encountered in addition to the estimated closing costs for sellers.

Now we’ll consider the question, “How do I go about selling my house ‘as is’ in New Mexico?” There are three main ways to list and sell your house in the Land of Enchantment.

Let’s start with selling your property to a New Mexico cash property buyer.

How to Sell a House As Is, Fast and For Cash Directly to an Investor

Who Are Cash House Buyers?

Cash house buyers are individuals or companies with cash or partners who lend them quick cash. They buy investment homes in New Mexico.

Real estate investors in New Mexico buy houses that need repair or updates to rehab and resell them to other buyers. These investors are called “flippers”.

Many cash house investors also specialize in buying property for rental business.

Investors look for:

• heirs selling a home in probate
• homeowners selling a house in poor condition
• couples selling a house in a divorce situation
• seniors looking to downsize
• workers selling a house for job relocation
• owners selling a house with a tax lien

Investors typically work with a local New Mexico investor-friendly title company to conduct closings.

Before we explore the details of selling to a cash house buyer, it helps to consider the pros and cons of selling your house to an investor.

Pros of Selling Your House As Is Directly to an Investor

• Selling to a cash home buyer is typically a speedy sale. Investors and investment firms have experience in closing quickly on ‘as is’ properties.

• Cash offers mean you skip the formal appraisals and the wait time for loan approval. Investors also typically don’t ask for professional inspections.

• If you and the investor pass on using a Realtor, you’ll avoid any real estate commissions. Investors don’t usually use realtors.

• Many investors pick up both sides of the closing costs — seller’s and buyer’s. That can mean major savings.

Those advantages must be balanced with a few drawbacks of selling to an investor.

Cons of Selling Your House As Is Directly to an Investor

• Investor offers typically are lower than market value. Investment buyers deduct the cost of repairs from their offer.

• If you don’t use a realtor, which is usually the case when selling to an investor, you won’t have a real estate professional to protect your interests. However, an investor or investment company with years of experience has a history of being a fair dealer or they probably wouldn’t still be in business. Doing research will help you find reliable and ethical cash house buying investors.

Finding the Best Cash House Buying Company

The easiest way to locate a cash house buying company is to use your favorite search engine and these general terms:

• we buy houses Santa Fe New Mexico
• sell my house fast Santa Fe New Mexico
• cash house buyers Santa Fe New Mexico
• sell my house for cash Santa Fe New Mexico
• iBuyer companies Santa Fe New Mexico

Once you have a list of at least three, it’s time to start the investigation.

How to Choose an Ethical Investor?

It’s best to request a few cash offers from different investors and choose one to deal with. However, the highest offer doesn’t always mean the best deal, especially if the investor is unethical.

To understand if you can trust an investor, start by looking at their website. Look for an “About Us” page where the investor or company provides a resume for their expertise and experience.

Look for a company or investor with a minimum of three-years experience in the real estate investment field. This gives them time to develop expertise in buying homes.

Investigate at least three companies to compare experience before you ask for offers on your property.

Check with the local branch of the Better Business Bureau (BBB) to see if any clients were unhappy with the service and filed complaints.

Consult the New Mexico Department of Finance and Administration to determine if past clients filed complaints with that office.

Also look at review websites where consumers weigh in on services. If you see complaints on these sites, it’s time to select a different prospective investor.

If this sounds like too much work to do, request cash offers from HouseCashin’s investors by submitting a quick online form in a few clicks.

HouseCashin vets and screens its partnering companies, to whom your cash offer request will be sent, to make sure you’ll deal with ethical professionals.

How to Sell a House As Is by Listing It by Owner

Selling a home in New Mexico as a “for sale by owner” (FSBO) means you take the reins in the entire selling process, from listing to negotiating with buyers.

It’s crucial to know what your house is worth to price it competitively — too high, and buyers might steer clear; too low, and you risk losing money.

When you handle the sale on your own, understanding your home’s value becomes your foundation for everything, including marketing and closing the deal.

Let’s check out some ideas where you can place your home as an FSBO listing.

Where Can You List a House For Sale by Owner?

The easiest way to market a property for-sale-by-owner (FSBO for short) is to put a sign next to the house. This works best in areas with a large amount of vehicle or foot traffic.

You can make fliers and distribute them to neighbors. Some may have friends or relatives who would like to live nearby.

Pass out fliers to nearby businesses. Workers there might enjoy living closer to the workplace.

You can also use FSBO websites to post your listing. Many are free or charge minimal fees to post.

Pros of Selling Your House by Listing It by Owner

• You’ll avoid paying a 2.5-3% listing fee to an agent when you list your own house. That percentage is based on the final sales price.

• When you list yourself, you are the boss of everything in the transaction, from when to list to how you want to close the sale. Everything is up to you.

• You don’t need to wait on an agent who serves many other clients besides you. Since your property is your only focus, you can provide an immediate response to prospective buyers who want to see your property or present an offer on the house.

Cons of Selling Your House by Listing It by Owner

• Your buyer typically will be represented by a Realtor. That means you’ll still be on the hook for the 2.5-3% commission fee charged by the buyer’s agent.

• Most buyers will need mortgages to purchase your house. That means a delay for the loan application approval and then an additional delay as the loan moves through underwriting. You’ll need to go through an appraisal, a risky proposition with a lender in an ‘as is’ property transaction. Appraisers may not see the potential in your ‘as is’ property and fail to assess a value that matches your sales price.

• You won’t have a professional real estate agent to represent your best interests during the sales transaction.

• You’ll be the point person for every aspect of the sale. It takes time to research the sales process. For example, you’ll be on your own to review the closing costs when selling a home by owner. Mistakes at any point in the sales process can cost you time and money. You may even lose the sale if the property drops out of escrow due to delay or errors.

Who Are Real Estate Agents?

Real estate agents help you market and sell your property. They’re licensed by the state and work under the supervision of a trained and licensed broker.

Your agent is your fiduciary. This means they put your interests above all others in a property transaction.

An agent using the title “Realtor” has an additional endorsement from the local branch of the National Association of Realtors (a trade organization promoting ethical real estate practices).

Realtors take an oath to represent you and to follow the law in assisting people to buy and sell houses.

The local board of Realtors enforces that oath by issuing fines and license suspensions for agents who fail to operate ethically.

Pros of Selling Your House As Is with a Real Estate Agent

• New Mexico laws prohibit publishing property sales prices. Realtors, however, have access to a database where member agents report sales prices. This is a legal practice that allows your agent to compare prior sales with your property. This ensures your price reflects market trends — and also means you’ll generally receive the best sales price.

• Real estate agents have a fiduciary duty to put your needs and interests first in a sales transaction. They provide their training and experience to make sure the sales transaction moves smoothly to close.

Cons of Selling Your House As Is with a Real Estate Agent

• The seller’s and buyer’s real estate agents share a commission when the property closes. The typical commission fee is 5-6% of the final sales price, and it’s paid by the seller. This commission adds a considerable amount to closing costs in New Mexico.

• Agent sales are sometimes slower than other sales options. In most real estate markets, Realtors will need to hold broker previews and open houses to sell your property.

• Most traditional buyers will need to apply for a mortgage to buy your property. That means weeks of delay to close the transaction, compared to selling to a cash buyer.

It helps to research the average Realtor cost to sell a home before you decide to go this route to sell your property.

How to Choose an Ethical Real Estate Agent?

New Mexico has a number of professional real estate agents, and you’ll need to choose one who’ll best represent you and your property.

The best way to vet an agent is to ask friends, coworkers, and family members for their recommendations.

Focus first on recommended agents with experience in selling ‘as is’ properties, and also properties in your neighborhood, to ensure you receive the best price for your house.

Check your agent’s license with the New Mexico Regulation and Licensing Department (NMRLD) to make sure the license is current.

The NMRLD has an online “Search for License” tool to help you research agents.

You can also check with the New Mexico Real Estate Commission to see if there are any complaints currently on file against your prospective agent.

Look for any complaints filed by former clients with the local branch of the Better Business Bureau (BBB).

We’ve covered a definition of ‘as is’, listed the ways you can sell your house in New Mexico, and also considered the advantages and disadvantages of each option.

The only thing left now is to decide to fix or sell, and select the way that best suits your situation.