The New Mexico Home-Selling Process: Your Step-by-Step Checklist

In New Mexico, agents are required to use the state Real Estate Commission's approved Purchase Agreement form unless an attorney is drafting a custom contract. Read it line by line with your agent so you understand the price, the earnest money amount, the financing terms, the contingencies, the timelines, and the proposed closing date. If anything is blank or confusing, ask before you respond.

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Look at the buyer's pre-approval letter or proof of funds. A pre-approval from a real lender is stronger than a pre-qualification, and a cash offer with a recent bank statement is the strongest of all. A higher price from a weak buyer can be worth less than a slightly lower price from a buyer who can actually close, so weigh both numbers together.

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Since the NAR settlement took effect on August 17, 2024, offers of buyer-agent compensation cannot be advertised on the MLS. You can still choose to pay the buyer's agent, but it now has to be negotiated outside the MLS — usually inside the purchase agreement itself or as a seller concession. Talk with your listing agent about whether offering compensation will help you attract more or stronger offers in your market.

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You can accept, reject, or counter any offer. Common things to counter on include price, earnest money amount, closing date, what stays with the home (appliances, window coverings), and how long the buyer has for inspection and financing. Each counter resets the clock, so move quickly while the buyer is still excited.

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Once both sides agree, you sign the final purchase agreement. Your agent delivers signed copies to the buyer's agent, and the executed contract date is the start of every deadline in the deal. Save a clean digital copy for yourself — you will refer back to it many times over the next few weeks.

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New Mexico is a title-company closing state, not an attorney-close state, so a licensed title company runs the closing. The title company opens an escrow file, orders a title search, and prepares a preliminary title commitment that shows any liens, easements, or other issues against your property. Review the commitment when it arrives and ask about anything you do not recognize.

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The buyer's earnest money must be deposited into the trust account named in the purchase agreement, usually held by the listing brokerage or the title company. In New Mexico, the broker holding the funds has to deposit them within three business days of receipt. Ask your agent for the deposit receipt so you know the money is actually in the account.

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New Mexico requires your agent to give you an Estimated Cost Disclosure that shows a good-faith estimate of your closing costs, including the brokerage fee, any title charges you are paying, prorated taxes, and the payoff for your existing mortgage. It is your best preview of how much money you will actually walk away with at closing. If a number looks off, ask now — fixing it later is harder.

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If your home was built before 1978, federal law requires you to give the buyer the lead-based paint disclosure form and the EPA's 'Protect Your Family from Lead in Your Home' pamphlet, along with any records of past lead testing or repairs. Deliver any other state or local disclosures your agent flagged at the same time so the buyer's review period starts cleanly.

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The buyer will schedule a general home inspection and may add specialized inspections such as roof, sewer scope, septic, well, radon, mold, or pest. Work with your agent to coordinate days and times so the buyer's inspector can get into the home, the crawlspace, the attic, and any outbuildings. Leave the utilities on so the inspector can test everything.

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A licensed home inspector hired by the buyer will spend 2-4 hours walking through the home, checking the roof, attic, crawlspace, foundation, plumbing, electrical, HVAC, and major appliances. Leave the property and take any pets with you so the inspector and buyer can work freely. Make sure all utilities are on and that access panels are clear.

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If your home has a private well, the buyer will likely test water quality and flow rate, and ask for the well's registration record with the New Mexico Office of the State Engineer. If you have a septic system, the buyer may pump and inspect it. Buyers in flood-prone or older neighborhoods may also order radon, mold, or methamphetamine residue tests. Cooperate with reasonable test access — refusing usually kills the deal.

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After the inspections, the buyer will send a written list of items they want fixed, credited, or accepted as-is. Read the full inspection report alongside the request list so you know which findings are serious and which are minor. Some buyers ask for everything; you do not have to agree to all of it.

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Decide how to respond: do the repairs yourself before closing, give the buyer a credit at closing, lower the sale price, or refuse and let them either accept or walk. Credits are usually cleaner than repairs because the buyer controls the work and you avoid liability for shoddy fixes. Get any agreement in writing as an addendum to the purchase agreement.

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If the inspection turns up an issue you genuinely did not know about — active leak, prior fire damage, structural movement, a non-permitted addition — New Mexico's material fact rule requires you to disclose it once you actually know. Have your agent send an updated Property Disclosure Statement or an addendum to the buyer. Hiding a known issue after the fact creates legal exposure long after closing.

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An appraiser hired by the buyer's lender will visit the home, measure it, take photos, and compare it to recent nearby sales. Clean and tidy the home the same way you would for a showing. If you have made significant improvements like a new roof, new HVAC, or kitchen remodel, leave a short written list with receipts on the counter so the appraiser sees the value you added.

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If the appraisal comes in below the agreed price, the buyer's lender will only loan against the appraised value. You then have four options: lower the price to the appraised value, meet the buyer somewhere in the middle, ask the buyer to bring extra cash to closing, or let the contract terminate. Talk through your bottom line with your agent before the appraisal lands so you can respond quickly.

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The buyer's lender may need information from you — for example, a copy of the HOA documents, a paid-receipt for a repair, or proof of a permit. Turn these requests around within a day or two. Slow seller responses are one of the most common reasons closings get delayed past the contract date.

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If you are not a U.S. citizen or resident alien, federal law (FIRPTA) requires the buyer to withhold a portion of your sales price and send it to the IRS. The standard rates are 15% on prices above $1,000,000 and 10% on prices between $300,001 and $1,000,000 when the buyer will live in the home. Tell your title company early so they can prepare the withholding paperwork; you may also want a tax advisor.

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Ask the title company to request a payoff statement from your current mortgage lender. The payoff shows the exact amount needed to satisfy your loan on the closing date, including any prepayment interest. The title company will use it to pay off your loan from the sale proceeds before any money comes to you.

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Confirm with your agent and the title company the exact commission amount you are paying. In New Mexico, brokerages owe Gross Receipts Tax on every commission they earn, and some brokerages pass that tax through to the seller on the settlement statement. Ask whether your commission already includes that tax or whether it appears as a separate line item so you are not surprised at closing.

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Call each utility — electric, gas, water, sewer, trash, internet — and schedule final reads or transfers for the day after closing. Tell your homeowners insurance carrier the date you are selling so the policy cancels and any unused premium is refunded. Do not cancel before closing; if the deal slips a day, you still need coverage and working power for the buyer's final walkthrough.

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Most buyers walk the property one last time in the 24-48 hours before closing to confirm the home is in the agreed condition and that any negotiated repairs were done. Have the home empty, clean, with all utilities on. Leave the agreed personal property (appliances, window coverings) in place and remove everything else. Save receipts for any repairs you promised so you can show them.

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The title company will send a seller settlement statement (sometimes called a Closing Disclosure) at least a day before closing. It shows the sale price, mortgage payoff, prorated property taxes, commissions, title charges, any seller credits, and your net proceeds. Compare every line to your earlier Estimated Cost Disclosure and call the title company immediately about anything that does not match.

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Collect every key, garage door remote, gate clicker, mailbox key, alarm code, appliance manual, and any active warranties on systems like the HVAC, roof, or water heater. Put them in a labeled bag or envelope to hand to the buyer or leave at the title company. Buyers usually remember the missing mailbox key for years.

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In New Mexico, the title company runs the closing — an attorney does not have to be there unless you want one. Bring a government-issued photo ID and any documents the title company requested. You will sign the deed transferring ownership to the buyer, an affidavit confirming you are not a foreign person (unless FIRPTA applies), and the final settlement statement.

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After the buyer's funds arrive, the title company pays off your existing mortgage, pays the commissions and other closing costs, and wires the remaining proceeds to you (or hands you a cashier's check). Check your bank a few hours after closing to confirm the wire arrived. If it has not arrived by the end of the next business day, call the title company.

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Once the title company confirms the deal has officially funded and recorded, hand the buyer (or leave at the title company for the buyer's agent) all keys, remotes, codes, manuals, and warranties. Do not hand over keys before funding — if anything stalls at the last minute, you do not want the buyer in your house yet.

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The title company will record the signed deed with the county clerk where the property sits. Recording is what makes the ownership change official in the public record. Ask the title company to email you the recorded deed and the recording number once it comes back, usually within a few business days.

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Keep a copy of the final settlement statement, the signed deed, the buyer's lender's IRS Form 1099-S (if issued), and all the receipts for improvements you made to the home. You will need them when you file your taxes for the year of the sale, especially to calculate any capital gain or exclusion. Keep them for at least 7 years.

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