NEW MEXICO
LAND FOR SALE

Between a steadily growing population in cities such as Albuquerque, Rio Rancho, Santa Fe and Las Cruces combined with large rural counties which have remained affordable, New Mexico is quickly becoming one of the better-positioned western states for rural land appreciation and hence, investment.

For buyers thinking long-term, these circumstances are ideal: steady demand pressure on the metros lifts the floor on rural land values, while remote counties remain accessible at affordable prices. Additionally, aside from the cost of annual property taxes, raw land in New Mexico carries near-zero ongoing cost. It doesn't suffer from tenant turnover, ongoing maintenance and repairs, and can be held with owner financing while you pay it off or develop it over time. For investors, off-grid buyers, those looking ahead toward retirement, or anyone who wants considerable acreage in the Southwest at a price that still makes sense, New Mexico delivers value other western states can no longer boast nor afford.

One of the surprising things about buying land in New Mexico is that the most affordable, or “cheapest” land in the state tends to be within close proximity of the fastest growing metropolitan areas. This is a product of developers from past generations whose ambitions, until only recently, exceeded the pace of population growth.

Areas like the Rio Communities in Valencia County, once far removed from metro Albuquerque, now serve as bedroom communities of this thriving area. In addition, towns such as Los Lunas and Belen, little more than rural outposts when these residential subdivisions were first created, now boast their own considerable populations, business and industry.

Subdivisions like Rancho Rio Grande, Rio Grande Estates and Rio Del Oro (all located south of Albuquerque in nearby Valencia County), Rio Rancho in Sandoval County, Estancia Ranchettes (located east of Albuquerque in nearby Torrance County), Carson Estates and Ranchos De Taos in Taos County and even areas like Deming and Sunshine Valley Ranchettes (located west of Las Cruces in nearby Luna County) consistently offer entry-level parcels at the most accessible prices in the state. These are the areas where you can still find 1-to-5-acre lots in the low four figures, with manageable monthly payments available through owner financing and annual property taxes that don't strain a budget.

The trade-off in these regions, however, is that affordable New Mexico land is usually raw. This means dirt road access of varying quality and condition, power and underground telecom typically some distance removed from the lot line of the property, and water which needs to be acquired either through well drilling or regular hauling and storage. For off-grid buyers, recreational owners, and long-term investors, however, that's exactly the right trade-off.

Yes — every property we sell in New Mexico is offered with affordable owner financing directly through The Hemingway Land Company. This means no bank, no employment verification, no debt-to-income review and no credit check. You work with us, not a lender. And as long as you can afford the down payment, we will work with you to make your dreams of land ownership a reality.

The range of prices for undeveloped land across New Mexico is considerable — from a few hundred dollars per acre in remote or rural communities to tens of thousands per acre in more developed towns and metropolitan areas.

In some of the rural residential subdivisions we focus on — for instance Rio Grande Estates, Tres Piedras Estates and Carson Estates, to name just a few — prices rarely exceed a four-figure purchase cost for all but the largest combination of adjacent parcels.

Land in the forested rural counties such as Catron, Cibola, Otero or Rio Arriba can run higher per acre. This normally has to do with the desirability of the region for hunting, fishing and other outdoor attractions.

Land in the eastern part of the state, which flattens into the great plains, tends to be home to large ranching or agricultural operations. So while this area doesn’t boast major cities or large populations, the value of the land comes from what it’s capable of producing.

And in the southeast part of the state, where the oil and gas industries have a strong presence, land tends to be most expensive on a price per acre basis.

As a general rule of thumb, when it comes to rural land, prices tend to correspond to the availability of water or accessibility of the water table. In a state like New Mexico, which has a diverse climate and terrain that ranges from sun-baked deserts to snow-capped mountains, prices can vary greatly. Here at Hemingway Land, however, we strive to provide a wide variety of options for our buyers across all of New Mexico’s diverse and desirable regions.

New Mexico has one of the lowest effective property tax rates in the western United States — typically a fraction of one percent of assessed value. On a small rural parcel in counties such as Socorro, Valencia, Luna and Torrance, annual property taxes can be as low as fifty, twenty or even five dollars and rarely exceed one hundred dollars per year.

Additionally, because New Mexico is a Non-Disclosure state, it means that when property changes hands, buyer and seller are not required to report the sale price. This makes it difficult for County Assessors to get an accurate sense of how valuations may be increasing in their local region, and thus how they should adjust their assessments and tax rate to keep pace. This further advantages land owners in the state as their property taxes are rarely an accurate reflection of the actual value of their land.

It should be noted that here at Hemingway Land, as a service to our customers, we never report the sale prices of land purchased from us.

We’ve never encountered a piece of land in New Mexico that couldn’t be developed and if we ever did we wouldn’t buy it and offer it for sale. The better question, however, is not “can I build” but “can I build the thing I want on the property I’ve selected to purchase.” The answer to that question is always a little more complicated.

All land is going to be subject to laws, state building codes, environmental regulations and local zoning. And then, depending on the property, there may be covenants and restrictions that govern how the land is developed and used or even a Home or Property Owner’s Association with their own set of rules and bylaws. Familiarizing yourself with each of these is important when determining if the property is right for you.

As an example, here are some restrictions or limitations one might encounter when developing raw land:

If your goal is to build a traditional single family home of at least 1,200 square feet and 35 feet height, you are likely to encounter little difficulty when applying for permits. This is especially true if you’ve hired a professional contractor familiar with state building codes and local zoning regulations.

If your goal is to live in a mobile or modular home on the property, it’s important to find out if such structures are allowed – either by County Zoning, deed restrictions, or if applicable, the HOA. Furthermore, while such a structure may be permitted it may be under certain conditions such as installing a permanent foundation. Some regions may even have restrictions on the age of the mobile home or its square footage.

If your goal is to build an unconventional or “non-conforming” structure such as a tiny home, shipping container, earthship, yurt, geodesic dome, barndominium or other trendy build-type you will want to be extra careful when doing your research as all of these are likely to run afoul of one or more building requirements in all but the most permissive communities.

Pro Tip: For these structure types you’ll want to find land in a region with no HOA, no covenants or restrictions and local zoning which ranges anywhere from very permissive to largely indifferent. Don’t be discouraged though, these areas do exist and some communities even try to foster such non-traditional and environmentally friendly lifestyles.

If your goal is to not build on the land but rather, use it recreationally for seasonal camping and hunting trips, you’ll want to research how long temporary camping and RV’ing is permitted in a given area. If the property is part of an HOA this is almost always forbidden or limited to small time periods like seven or fourteen days in a calendar year. If there is no HOA you may encounter deed restrictions or local zoning which also place limitations on such activities. And even if both of these are fairly permissive, you’ll want to find out what the State Environmental Agency requires when it comes to septic systems permitted for proper waste disposal. Learning this information may also allow you to use the land recreationally for longer periods of time.

It’s important to keep in mind that while this information may seem daunting and the research required to make an informed decision exhaustive, here at Hemingway Land we do a lot of this research for you, providing detailed listing pages with significant insight into local zoning, covenants and restrictions and when applicable, HOA regulations and bylaws. Additionally, our listing pages also provide further contact information for whatever governing bodies have jurisdiction over the land. This way if we can’t answer your question, you’ll be able to direct it to the individual or entity that can. We provide all of this as a way to help our customers make the best and most informed decision when searching for the property that best fits their goals.

To be clear, while the expression “off grid” has come to mean many things to many people, its most literal definition is a short-hand way of saying “without being connected to electricity” or connected to “the grid.” In this case, we’ve never encountered a piece of property where it was mandatory that the owner connect to local utilities. If we take the expression as it’s more commonly used – as a substitute for camping, RV or recreational living – then the answer becomes more complicated.

Most vacant land is subject to either state environmental regulations, local zoning codes, the covenants and restrictions of an informal subdivision or the bylaws of an owners association governing a formal one. Depending on where you want to purchase land, the property may be subject to some or all of these governing bodies and their various regulations. Because of this, it’s important to do your research and know how many, if any, of these authorities have some amount of say over the property you’re looking to purchase. Note: All land is subject to some form of regulation. There are some that are less restrictive than others, but that doesn’t mean they are devoid of rules. And anyone suggesting otherwise is doing a tremendous disservice to their customer or client.

Familiarizing yourself with the above-mentioned regulations will help you to determine if a property can be used for such recreational activities and if so, for how long. Fortunately, here at Hemingway Land we do this research for you and provide detailed information about the various regulations a property may be subject to. We provide insights into local zoning, the covenants and restrictions created when the land was first subdivided and, where applicable, the regulations enforced by the community Owners Association.

It’s important to remember that most communities and counties will want to be accommodating to people looking to use their property seasonally or recreationally. But those same organizations and entities have a responsibility to other landowners to make sure the lifestyle of one person does not negatively impact the property values of another.

For undeveloped land in regions of New Mexico without city utilities, accessing water works similarly to other Southwest states, which is to say that it follows prior appropriation water law. This means surface water rights are typically held by long-established agricultural users while most rural parcels and platted subdivision lots - such as the ones we specialize in here at Hemingway Land - are sold without separate adjudicated water rights.

Fortunately, what matters for the owners of most rural parcels is groundwater access through domestic well permits. These are issued by the New Mexico Office of the State Engineer which tends to cooperate with landowners looking to develop property in their state. Domestic wells for household use are generally permitted on rural parcels, with occasional restrictions on draw rates and use categories.That said, it’s important to keep in mind that the State Engineer’s office is there to help residents of the state acquire water, not prevent it. Meaning however much bureaucracy they might present, they’re on your side.

For those looking to develop their land with a well the better or more relevant questions to ask are ‘how deep is the water table in this area’ and ‘how much will it cost me to access it.’ These are the types of questions that anyone serious about developing a property should direct to well drillers local to the land in question prior to purchase. These companies and individuals usually have expert knowledge and keen insights into the water table in their region and the potential logistical challenges and cost realities from one subdivision to another. They can be an excellent resource when selecting a property and pricing out building costs.

The short answer is it depends on the land. The longer answer is as follows…

While many people purchase undeveloped land specifically for the purpose of seasonal vacations in their RVs or extended camping trips, the amount of time they can spend doing so is, in most communities, limited to little more than two weeks or fourteen days in a calendar year. Some communities may allow recreational use of property for upwards of thirty days, and in particularly relaxed regions it’s possible to extend that stay longer with the proper permits. Those permits, however, are usually contingent on a site inspection or adequate state-approved systems for waste disposal.

While this may seem unfair it’s important to keep in mind that if someone owns a home they’ve spent time and money to build, they want the value of that home to appreciate over time. Seasonal tourists showing up every few months on the lot next to theirs – even if they’re well behaved – can drive down property values for tax paying locals. If those visitors are not well behaved it could create even greater problems via noise disruptions, unsightly littering or environmental contamination. Because of this, most states, counties, subdivisions and particularly HOAs will have rules in place to prevent long-term or even indiscriminate recreational use of land. This can take the form of State Environmental laws dictating what waste disposal systems are required, County Zoning regulations which either place strict timelines on recreational stays or prohibit it entirely, covenants and restrictions which attach to the land and usually either mirror or supersede what local zoning demands and HOAs which tend to forbid it entirely. This is why it’s important to familiarize yourself with the laws, codes, regulations and covenants that govern a piece of land you’re considering purchasing.

As recreational use of land is important to our buyers, we here at The Hemingway Land Company take the time to research and provide detailed information about it for each of the properties we sell. And given the number of people who consistently request such properties, it is also why we focus on offering land in communities with fewer restrictions, whether that be Counties without formal zoning, subdivisions without covenants and restrictions or Owners Associations that are more permissive about RV use.

One Final Thing: Despite everything written above, all county governments, subdivisions and even HOAs are incredibly permissive, understanding and cooperative with residents who are looking to develop their land and need a temporary place to live during the time that permanent home site is being constructed. Because of this, building permits will always allow for extended RV stays of up to 12 Months as long as that RV has been outfitted with a state-approved waste disposal system.