If you're preparing to sell your home in Albuquerque, you'll encounter terms that sound straightforward but carry significant weight in how your sale unfolds. Understanding these concepts isn't just about vocabulary—it's about making informed decisions that protect your interests and maximize your outcome.

Here's what you need to know about the most common home selling terms and how they apply to today's Albuquerque market.

List Price vs. Sale Price

What it means: Your list price is what you advertise your home for, while the sale price is what it actually sells for. The relationship between these two numbers tells an important story about your pricing strategy and market positioning.

How it affects you: In Albuquerque's current market, with median home prices around $346,000 and homes taking an average of 35-52 days to sell, pricing strategy matters more than it did during the overheated market of 2021-2023. With inventory up 38% year-over-year, buyers have more choices, which means overpricing can result in your home sitting while competitors receive offers. The gap between your list and sale price indicates whether you priced competitively from the start or had to adjust to market reality.

Days on Market (DOM)

What it means: This tracks how long your home has been actively listed for sale. The count starts the day your listing goes live and continues until you accept an offer.

How it affects you: February 2026's Albuquerque market shows homes averaging 35-52 days on market—a significant shift from the frenzied pace of recent years. While this isn't cause for concern, it does mean buyers are taking more time to evaluate options. Extended DOM can signal to buyers that your home may be overpriced or has issues, potentially weakening your negotiating position. Fresh listings typically generate the most interest, so it's critical to price right and present well from day one.

Price Per Square Foot

What it means: This metric divides your home's price by its total square footage, creating a standardized way to compare properties of different sizes.

How it affects you: In Albuquerque, the median price per square foot currently sits around $206. This number helps you understand whether your pricing aligns with comparable homes in your neighborhood. However, it's not the only factor—updates, location, lot size, and condition all influence value. Use this as a benchmark, not an absolute rule. A home with premium finishes and a sought-after location will command a higher price per square foot than one needing updates, even in the same zip code.

Comparative Market Analysis (CMA)

What it means: A CMA examines recently sold homes similar to yours—same neighborhood, similar size, comparable features—to determine a competitive list price. Your agent analyzes what these homes sold for, how long they took to sell, and current active listings.

How it affects you: This is your reality check. With Albuquerque's market transitioning from a hot seller's market to a more balanced environment, a thorough CMA prevents the costly mistake of overpricing based on what your neighbor's home sold for in 2022. Your agent should look at homes sold in the last 3-6 months, adjust for differences in features and condition, and factor in current inventory levels. The CMA isn't a guarantee but a data-driven starting point for pricing strategy.

Contingencies

What it means: Contingencies are conditions that must be met for a sale to proceed. Common ones include financing (buyer must secure a loan), appraisal (home must appraise at or above sale price), inspection (buyer can request repairs or credits based on inspection findings), and sale of buyer's current home.

How it affects you: Each contingency represents a potential exit point for the buyer. In today's Albuquerque market, where buyers have more negotiating power than they did two years ago, you'll likely encounter offers with multiple contingencies. A cash offer with no contingencies is stronger than a financed offer with multiple conditions, even if the cash offer is slightly lower. Understanding which contingencies are standard (inspection, appraisal) versus which signal a risky buyer (unusual conditions, vague timelines) helps you evaluate offer quality beyond just the price.

Appraisal and Appraisal Gap

What it means: An appraisal is an independent professional assessment of your home's market value, required by the buyer's lender. The appraisal gap is the difference between the agreed sale price and the appraised value.

How it affects you: Here's where pricing strategy meets reality. If your home appraises below the sale price, the buyer's lender will only finance based on the appraised value. In Albuquerque's current market, with prices stabilizing after years of rapid appreciation, appraisals are coming in more conservatively. If there's a gap, someone needs to cover it—either the buyer brings more cash, you reduce the price, or you meet somewhere in the middle. Pricing your home accurately based on solid comparables reduces appraisal risk significantly.

Earnest Money Deposit (EMD)

What it means: This is money the buyer deposits (typically 1-3% of the purchase price) to demonstrate they're serious about buying your home. It's held in escrow and applied to their down payment or closing costs at closing.

How it affects you: Earnest money protects you if a buyer backs out without a valid contingency. A larger EMD signals a committed buyer who's less likely to walk away on a whim. If a buyer terminates the contract for a reason covered by a contingency (failed inspection, financing falls through), they get their earnest money back. If they cancel outside those protections, you may be entitled to keep it as compensation for taking your home off the market.

Closing Costs

What it means: These are fees and expenses paid at closing to complete the sale. They include title insurance, escrow fees, transfer taxes, recording fees, and potentially other costs depending on your situation.

How it affects you: In New Mexico, sellers typically pay for the owner's title insurance policy, real estate commissions (usually 5-6% of the sale price split between listing and buyer's agents), and any agreed-upon repairs or credits. Total seller closing costs typically range from 6-10% of the sale price. Budget for these expenses upfront so you know your actual net proceeds. Buyers may also request you contribute to their closing costs—a common negotiating point in balanced markets like we're seeing now.

Seller Concessions

What it means: These are costs the seller agrees to pay on the buyer's behalf, typically applied toward the buyer's closing costs, prepaid expenses, or interest rate buydowns.

How it affects you: With mortgage rates still elevated (6.5-7.5% range), buyers are increasingly requesting seller concessions to help offset their financing costs. You might be asked to contribute 2-3% of the purchase price toward their expenses. While this reduces your net proceeds, it can be the difference between a sale and no sale. In negotiations, concessions can be more attractive than reducing your asking price since they help the buyer with immediate cash needs while keeping the sale price higher for appraisal purposes.

Home Inspection

What it means: After you accept an offer, the buyer hires a professional inspector to evaluate your home's condition—roof, foundation, electrical, plumbing, HVAC, and more. They produce a detailed report identifying any issues.

How it affects you: The inspection period is when many deals encounter turbulence. Even well-maintained homes reveal issues—it's the nature of inspections. In Albuquerque's climate, inspectors often flag evaporative cooler conditions, stucco cracks, or roof wear. Buyers can request repairs, credits, or price reductions based on findings. Major issues (structural problems, roof needing replacement) warrant negotiation. Minor items (loose doorknobs, cosmetic issues) typically don't. Your agent should help you distinguish between legitimate concerns and buyer's remorse disguised as repair requests.

As-Is Sale

What it means: Selling as-is means you're offering the property in its current condition and won't make repairs or offer credits based on inspection findings. Buyers still have the right to inspect—they just can't negotiate repairs.

How it affects you: This isn't a magic wand that eliminates buyer concerns. In New Mexico, you're still required to complete a Seller's Disclosure Statement honestly reporting known issues. As-is sales typically attract investors or buyers looking for value-add opportunities, and they often result in lower offers since buyers factor in repair costs. In today's Albuquerque market, where buyers have options, an as-is strategy works best if you're pricing below market value to account for needed work or if your home has significant issues you can't or won't address.

Multiple Offer Situation

What it means: When more than one buyer submits an offer on your home, you're in a multiple offer situation. You can accept one, counter any or all, or reject all offers.

How it affects you: While less common than during the peak seller's market of 2021-2023, multiple offers still occur for well-priced, well-presented homes in desirable Albuquerque neighborhoods. When evaluating competing offers, look beyond just price. Consider contingencies, financing strength, proposed closing timeline, earnest money amount, and proof of funds or pre-approval strength. A cash offer at $5,000 less might be stronger than the highest financed offer with multiple contingencies. Your agent should help you analyze the full picture of each offer's risk and benefit.

Escrow Period

What it means: This is the time between contract acceptance and closing, typically 30-45 days. During escrow, the buyer secures financing, completes inspections, finalizes insurance, and the title company ensures clear ownership transfer.

How it affects you: This period is governed by specific deadlines outlined in your purchase agreement—inspection deadline, appraisal deadline, loan approval deadline, final walkthrough. Missing deadlines can give the other party negotiating leverage or even grounds to cancel. Stay on top of these dates. In today's market, financing can still fall through if rates jump or the buyer's financial situation changes, so don't make major financial commitments until you've closed.

Pre-Approval vs. Pre-Qualification

What it means: Pre-qualification is an informal estimate of what a buyer could potentially borrow, while pre-approval involves actual verification of income, assets, and credit. Pre-approval is far more reliable.

How it affects you: When comparing offers, a pre-approved buyer is significantly more likely to close than a pre-qualified one. Some buyers present pre-qualification letters hoping to appear competitive while they're actually still working on their finances. Ask your agent to verify the buyer's financing strength with their lender. In a market where financing contingencies remain common, understanding the solidity of a buyer's financing protects you from wasted time with buyers who can't actually close.

Clear to Close

What it means: This is formal notification from the buyer's lender that all conditions have been met and they're cleared to fund the loan. It's the final green light before closing.

How it affects you: Until you hear "clear to close," nothing is certain. Buyers can lose financing approval right up until closing day if their financial situation changes—new debt, job loss, large purchases. Don't book the moving truck or make other commitments until you receive confirmation that the buyer is clear to close, ideally a few days before your scheduled closing date.

Closing Disclosure (CD)

What it means: This three-page document details all the final numbers—sale price, loan terms, closing costs, and funds due at closing. By law, buyers must receive it at least three business days before closing.

How it affects you: While the buyer's CD details their costs, you'll receive a settlement statement showing your proceeds. Review this carefully with your agent before closing. Verify the sale price, agreed-upon credits or concessions, payoffs of existing mortgages, and all deductions are accurate. This is your last chance to catch errors before money changes hands.

Final Walkthrough

What it means: The buyer has the right to inspect the property one final time, typically 24 hours before closing, to ensure it's in the same condition as when they made their offer and that any agreed-upon repairs were completed.

How it affects you: Leave the home clean and in the agreed-upon condition. Remove all personal belongings unless you've negotiated otherwise. If you agreed to leave appliances, make sure they're still there and functioning. Ensure agreed-upon repairs were properly completed and documented. Problems discovered at the final walkthrough can delay or even derail closing at the eleventh hour. Make the buyer's walkthrough smooth by delivering exactly what the contract promises.

Understanding Your Bottom Line

The most important "term" in any home sale is your net proceeds—what you actually walk away with after all costs and payoffs. When evaluating offers and making decisions throughout the process, always calculate how each choice affects your bottom line.

Work with your Sandi Pressley Team agent to run the numbers on different scenarios so you're making decisions based on financial reality, not just the excitement of a high offer price.

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