How commission works | Commission calculator | Best ways to save | Methodology
📊 The data:
Our December 2023 survey of local agents found that the average real estate commission in New Mexico is 5.90%, which is higher than the national average of 5.49%. Calculate your estimated commission in New Mexico.
The average total real estate agent commission rate in New Mexico is 5.90% of the final sale price. Based on the latest median home sale price in New Mexico ($292,280), that translates to a total cost of roughly $17,245.
Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In New Mexico, the average listing agent fee is 3.00%, while the average buyer’s agent fee is 2.90%.
Real estate agent commissions make up a significant portion of the closing costs for New Mexico home sellers. But you don't have to pay the full 5.90% to a traditional agent. If you're selling a home in New Mexico, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 33% on realtor fees, or about $5,768 on average.
⚡ Find top agents and save: Answer these five simple questions to get matched with the best local agents offering reduced commission rates. Compare agents from top brokerages like Keller Williams and RE/MAX, and get a discounted rate through Clever’s partner network.
How real estate commission works in New Mexico
| Average listing commission | 3.00% |
| Average buyer's agent commission | 2.90% |
| Total average commission | 5.90% |
There are usually two real estate agents involved in the real estate transactions of a home sale:
- The seller's agent (also called the listing agent), who represents the home seller
- The buyer's agent, who represents the person buying the home
Based on our research, the average real estate commission paid in New Mexico for listing agents is 3.00% of the final home price and 2.90% for buyer's agents, for a total of 5.90%.
» LEARN: How do real estate broker commissions work?
Real estate commission calculator for New Mexico
Use this commission calculator to estimate how much you'll pay in realtor fees when you sell your home in New Mexico. Enter an estimate of your home's sale price, and see how much you'll pay at different commission rates.
Looking to cut down on realtor commission fees? Clever can pair you with a leading local listing agent who offers a competitive rate of just 1.5%. By choosing this route, you'll retain more of your home's selling price for yourself.
» SAVE: Sell with Clever for 1.5% listing fees and save thousands in commission!
Who pays realtor fees in New Mexico?
In New Mexico, when you sell your home, the commission fees for the buyer's and seller's real estate agents come directly from the final sale price. There's no need to worry about paying these fees upfront.
The seller's agent justifies their commission through services such as conducting market analysis and managing the closing process. On the other side, the buyer's agent earns their commission by finding a qualified buyer who agrees to the contract terms and completes the purchase on schedule.
These commissions won't require any out-of-pocket expenses from you. Much like closing costs, the real estate agent commissions are subtracted from the proceeds of the sale once the transaction finalizes.
Why do sellers pay the buyer's real estate agent commission?
Covering the buyer's agent commission can significantly boost interest in your property. By handling this cost, you make your home a more appealing prospect for buyers, who might otherwise struggle to pay their agent's commission on top of the hefty down payment and closing costs. For many buyers, covering these additional expenses is a financial stretch.
By offering a competitive rate to pay the buyer's agent commission, you effectively incentivize real estate agents to bring your home to their clients' attention. This strategy can lead to a higher number of showings and, potentially, multiple offers on your property. Real estate experts suggest offering a buyer's agent commission that's within 0.5% of the local average to stay competitive. In New Mexico, the average is 2.90%.
Will the NAR lawsuit change how real estate commission works?
On March 15, 2024, the National Association of Realtors agreed to pay $418 million in damages to settle a real estate commission lawsuit the industry group lost in November 2023.
While the full impact of the settlement is yet to be determined, experts believe that the change will eventually lead to lower buyer's agent commissions and give buyers the ability to negotiate those commissions based on the services they need.
The terms of the settlement are scheduled to take effect in mid-July 2024. But, the settlement hasn't been officially approved yet, and it could be delayed or changed by objections. We'll continue to monitor the status of the settlement and the effects it has on the real estate industry.
» READ MORE:
How to save on realtor fees in New Mexico
Commission rates are not set in stone. In fact, we found that while 3.00% is the average listing commission in New Mexico, rates typically fall between 3.00% and 3.00%. You can save money by negotiating a lower rate with your listing agent or by working with a discount real estate brokerage.
| Listing commission range | 3.00%– 3.00% |
| Buyer's agent commission | 2.50%– 3.00% |
| Total commission range | 5.50%– 6.00% |
» LEARN: What's the commission on a $1 million home?
Can I negotiate realtor commission in New Mexico?
Real estate commission is always negotiable. Nationwide, the 630 agents we surveyed said these were their most common reasons for agreeing to lower their commission.
| Would you lower your commission for…? | Agents who answered yes |
|---|---|
| Homeowners who also plan to buy with you | 72% |
| Homeowners who are repeat clients | 70% |
| Homeowners with more than one property to sell | 67% |
| Seller’s situation (e.g. divorce or death in the family) | 48% |
| Higher property values | 47% |
| High competition for clients | 37% |
| Homes expected to sell quickly | 37% |
| Periods of low housing inventory | 23% |
| High buyer demand in the area | 22% |
| Houses in excellent condition | 19% |
| Highly experienced home sellers | 13% |
Negotiating realtor fees in New Mexico depends on two main factors: your situation and the housing market.
| Factor | You may have an easier time negotiating low rates if... |
|---|---|
| Your situation |
|
| The New Mexico housing market |
|
Your specific situation will definitely have an impact, but the real estate dynamics in New Mexico influence every seller in the area.
In a seller's market, where sellers have the upper hand, listing agents often have an easier time selling homes and might be more open to reducing their commissions. On the flip side, in a buyer's market, agents tend to stick to their standard rates.
Not comfortable negotiating with a realtor? Avoid the awkward conversation and let Clever pre-negotiate a lower rate with a top agent for you.
To assess the current state of your local real estate market, look at these three factors:
- Months of inventory
- Sale to list price ratio
- Home value trends
If these signs point to New Mexico being a seller's market right now, you might have the upper hand to negotiate a lower commission with your agent. But if the market is giving mixed messages or tilting towards buyers, it could be tougher to persuade your agent to accept a reduced fee.
The current state of the New Mexico real estate market
| Factor | Trends | Indication |
|---|---|---|
| Months of inventory | There's 1.74 months of housing inventory on the market | Seller's market |
| Sale-to-list ratio | Homes are selling for 98.70% of their listing price | Seller's market |
| Home values | Home values have risen 15.50% year over year | Seller's market |
» LEARN: See state-by-state average commission rates. How does your state compare?
Low commission real estate companies in New Mexico
Negotiating a lower rate with a professional negotiator can be hard! In many cases, home sellers can save just as much (or more!) by selling with a low commission real estate company.
Discount real estate brokers typically offer full-service support for a reduced commission percentage or flat rate. How they create those discounts will depend on the company's model, with some creating more risks and trade-offs than others.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: For property sellers in New Mexico seeking to economize on real estate commissions while maintaining access to professional advice, we consistently advocate for Clever as a superior option.
✅ Benefits and features: Clever sets itself apart by offering significant reductions in traditional realtor charges, up to 50%. Its acclaimed agent matching service is highly esteemed and comes at no cost, with no strings attached.
🏠 How it works: Clever matches you with local agents from well-known agencies, including powerhouses like RE/MAX and Compass. This empowers sellers to peruse and pick their preferred agent while guaranteeing a competitive 1.5% listing fee (comparable to Redfin), irrespective of the agent chosen.
Pros
- Engage with a full-service agent from a reputable brokerage without the hefty price tag.
- Agents commit to a rate cut of up to 50% exclusively when partnering through Clever.
- Access the most extensive array of vetted agents in New Mexico, enhancing your likelihood of finding the perfect match.
Cons
- There's no promise that you'll be matched with a specific agent or firm of your choosing within Clever’s network.
- Additional services such as professional staging, drone photography, and 3D home tours may incur extra charges, which agents will detail in their listing presentation.
Listing Fee
Customer Rating
Availability
Overview
Pricing
Reviews
Contact
Overview: Homeowners in New Mexico who want to save money using a reputable discount brokerage will find Redfin to be a compelling choice. Keep in mind Redfin's minimum commission fees are marginally steeper compared to other local alternatives.
✅ Benefits and features: Redfin's 1.5% listing fee presents a notable cost-saving opportunity, which can be especially advantageous for those aiming to buy and sell within a single year due to an extra 0.5% discount. Selecting Redfin means aligning with a recognized and esteemed brand, offering access to an extensive selection of experienced, discount real estate professionals.
🚩 Potential red flags: Adopting a tech-savvy, team-based service model, your primary contact at Redfin will be a Lead Agent, with additional support provided by a specialized team. This more detached configuration may not resonate with clients seeking highly individualized engagement with their agent. Also, Redfin has a minimum commission fee of $3,500 in New Mexico. If your home’s value is less than $334,000, you may end up paying more than the advertised 1.5% rate.
Pros
- Significant savings on listing fees
- Established brand with a strong lineup of agents
- Remote, team-based approach can benefit certain sellers
Cons
- Not ideal for individuals seeking a personalized agent experience
- Limited agent selection compared to Clever
» LEARN: How do discount real estate brokers offer lower fees?
Next steps
Thinking of selling your home but don't know where to start? Here are some next steps.
Start interviewing local agents
Set up some listing appointments, where an agent visits your home to discuss its estimated value, lay out their marketing strategy, and provide a quote for their fee.
Here's why it's smart to sit down with a few agents before signing with one:
It's completely free to meet with agents: There's no obligation or risk on your end. Just keep in mind that the agent is meeting with you to win your business, and will try to sell you on their service.
You can compare pricing and features: Shopping around helps you find the best fit for your specific needs – in terms of fees, experience, and services provided.
Learn more about your market from an expert: Realtors can provide local data, like how much nearby homes are selling for, how fast they sell, and other current market trends.
Learn about the home sales process: An agent can walk you through the sales process from start to finish, and provide tailored advice for marketing your property to home buyers.
To get started, check out our guide on the best ways to find real estate agents — or you can sign up for Clever’s free agent matching service below to connect with top realtors in your area right now (and save on commission).
Clever has pre-negotiated low commission rates of only 1.5%, with New Mexico's top agents. Contact Clever today to find out how much you can save on commission!
Clever can connect you with top local agents sell your house for a pre-negotiated low rate: just a 1.5% listing fee when your home sells (half the typical rate!).
You can interview your Clever agent matches, get free pricing estimates, and compare marketing plans — all with no strings attached.
Ready to learn more? Click below to take our simple quiz and see your agent matches!
Methodology
We gathered our commission rate data from a survey of 630 of our partner agents. The survey asked about standard local rates for both listing and buying agents. We also asked agents about when and why they're willing to negotiate real estate commissions.
Additionally, we utilized the following data from Zillow and Realtor.com:
- Home values, list prices, and sale prices: Based on Zillow data as of February 2024
- Sale-to-list ratios: Based on Zillow data as of February 2024 (unless specified otherwise)
- Months of inventory: Based on Realtor.com data as of March 2024
