New Mexico Real Estate Closing Costs for Buyers


Jamie Ayers


May 2nd, 2019


Considering purchasing a home in the enchanting state of New Mexico? It would behoove potential buyers to have a fundamental understanding of closing costs of real estate transactions throughout the state’s various counties before making an offer.

The down payment isn’t the only out-of-pocket cost that home buyers must come up with when purchasing a new property. Closing costs can often add up to equal almost a year’s rent, making the ability for home renters to become homeowners less realistic. But don’t lose hope just yet! Partnering with a local real estate agent who has local market knowledge, negotiating skills, and trustworthy connections could end up saving you money during closing time.

Looking to buy a house with the help and guidance of a top-rated, New Mexico buyer’s agent? Clever can help! Fill out our online form and we’ll be in touch to answer any questions you might have and connect you to one of our local Partner Agents for a no-obligation consultation.

Closing Costs for New Mexico Homes: What to Expect

According to recent data from Bankrate, average closing costs in New Mexico were around $2,051 when combining origination fees and third-party fees. This isn’t bad when compared to states like Hawaii and New York. This average does not account for variable closing costs of additional expenses like title insurance, title search, taxes, other government fees, escrow fees and discount points.

Buyers can safely estimate what they should expect to pay in closing costs before even making an offer. Usually, closing costs come out to around 2-5% of the home’s final sale price. Now, if you’re home sells for $100,000, this could mean you may pay $2000 or you may pay $5000 in closing costs. A realtor can help paint a better picture of estimated closing costs.

Let’s say you purchase a house in Albuquerque for $250,000 - the current average listing price is $253,795 so you offer a bit below market value and score. Your typical down payment of 20% would set you back $50,000. Next, if you paid the lower end of closing costs, you’d tack on $5,000 to your out-of-pocket cash expenses.

Common Closing Costs for New Mexico Home Buyers

In New Mexico, it is customary for the buyer and seller to pay certain closing costs but everything is up for negotiation. Typically, buyers purchasing property in New Mexico will pay for the following items:

  • Loan origination fees - if you’re planning to pay for the house in cash, you’ll avoid a chunk of closing costs via loan origination fees. However, if you’re like the majority of home buyers and take out a loan, you’ll pay a miscellaneous laundry list of documentation fees, filing fees, etc.
  • Third party fees - attorney fees, appraisal costs, and credit report are usually paid for by the buyer.
  • Prorated property tax and homeowner association fees - If the seller pays these yearly, they will have to pay for both fees up to the point that the home sells. Afterwards, the buyer takes over both payments.

New Mexico doesn’t have transfer taxes, so the buyer is off the hook for those. They also stick to the customary practice that the seller pays realtor commissions, inspection fees, and a 1-year home warranty that will cover any wear and tear on the home for the new buyer’s first year in the house.

Other Costs to Consider

Even if you’re not planning to install a hot tub on the roof, home repairs, upgrades, maintenance, and utilities can pack a punch if you aren’t used to emotional and financial roller coaster that is homeownership. There’s no calling the front desk or maintenance man when a pipe bursts at 4 am or if you’re refrigerator craps out and ruins all your food.

You’re responsible for everything in that home, inside and out. It’s important to set aside a home repairs fund to cover anything that goes wrong throughout your first few years of homeownership. This is when you’ll also find out that the single-pane windows don’t seal warmth in for anything and your basically heating your backyard, for a hefty monthly charge. At least the squirrels will thank you.

Homeownership is more than a down payment and closing costs, it’s monthly upkeep that a lot of new home owners don’t realize costs a lot of money. It’s vital to be financially sound when transitioning from a renter to an owner.

How to Save on Closing Costs in New Mexico When Buying a Home

Now that you’ve listened to the Debbie Downer monologue, here’s some good news — home buyers in New Mexico are eligible for a home buyer rebate. Clever Partner Agents offer buyers a rebate of $1,000 back to help cover closing costs. Not only are you saving the seller money on realtor commissions — which you can remind them during other financial negotiations — but you’re also saving money right out of the gate. Instead of increasing your out-of-pocket expenses, Clever’s home buyer helps minimize them.

New Mexico offers subsidies and grants that help buyers pay for closing costs. To see if you qualify for one of their numerous grants, check out the list of available options here.

Clever Partner Agents can help minimize closing costs by driving negotiations between you and the seller, interpreting the area’s real estate market, and understanding the actual value of the home. Partner Agents put their knowledge and expertise to work for you.


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