Negotiating a home sale without the help of an agent can have serious legal repercussions in the Land of Enchantment. The process requires that you know all the state and local regulations. Before selling your home in New Mexico, there are a number of things you should keep in mind.
Why Do I Need a Real Estate Agent?
A real estate agent has the tools and knowledge to accurately assess the current value of comparable homes in your area. An agent can help you effectively market your house.
Where to Locate a Real Estate Agent
Locate a licensed real estate agent at IQRealEstate.com.
Real Estate Listings
There are three kinds of real estate listings:
- Open listing: Owners retain the right to sell the home and pay no commissions.
- Exclusive agency listing: Owners execute a listing agreement with a broker and pay a commission only if the broker is the cause of the sale.
- Exclusive right to sell listing: The seller pays a commission to the listing broker regardless of who brings in the buyer.
How is a Sales Price Set?
Your agent determines the sales price of your property by comparing prices of similar homes that have been listed or sold in your immediate area.
Contents of the Listing Agreement
- Price and commission
- Items included or not included in the sale
- Duties and obligations of the seller and the agent
Seller’s Mandatory Disclosures
The seller must disclose known defects in the home’s structure, as well as other issues, such as:
- Zoning and title issues
- Environmental hazards
Your failure to make required disclosures can expose you to a lawsuit. New Mexico home sellers generally use the Realtors Association of New Mexico Property Disclosure Statement.
An Offer and Counteroffer
An offer is a proposal to pay a certain price for your home based on specified terms and conditions. It's a legally binding contract when the seller accepts the offer and notifies the buyer of its acceptance.
A counteroffer is one that rejects the original offer and presents new terms.
After an offer is agreed on, the transaction goes into escrow and the buyer deposits funds into an escrow account.
Contents of the Purchase Agreement
A purchase agreement is a a legally binding contract. It includes terms and conditions such as:
- The identities of the parties
- Price and financing terms
- Guarantee of clear title
- Date of closing and inspection
Generally, if an inspection turns up material defects, the buyer can insist that you pay to remedy them or lower the purchase price accordingly.
What Happens at Escrow?
At the close of escrow, several events occur, such as:
- The buyer signs a promissory note.
- Costs and fees are paid.
- All documents are signed and transferred.
- The deed is recorded.
Sellers don't have to be present at closing as long as all costs are paid and all documents are signed ahead of time. You must typically turn over the keys to the buyer the same day if the deed is recorded that day.
Consult with an Attorney
This article briefly explains New Mexico real estate law. Each state has its own real property laws and regulations. Consult with a qualified attorney before you sell your home.