Why trust us: Our data is based on a survey of 650 real estate agents and brokers across the U.S. We also interviewed a local Indiana real estate broker for this piece. Learn how we researched.
In this guide: Realtor fees in Indiana | How Indiana agents set rates | How to save on commission in Indiana | FAQ | Research methodology
The average total real estate commission in Indiana is 5.66%. This includes a 2.96% listing agent commission and a 2.70% buyer’s agent commission. In Indiana, sellers typically cover the real estate commission fees for both agents out of their sale proceeds at closing.
On the average Indiana home price of $327,514, you’d pay $12,304 in real estate commission fees as a seller.
Realtor commission rates vary considerably by region, city, or even neighborhood. The agent and brokerage you choose, as well as the specifics of your sale — like your home’s value, location, and condition — are also factors.
This guide breaks down how much commission sellers can expect to pay in Indiana. We’ll also explain why Indiana commissions are what they are (and offer up some tips that could help you save).
Indiana real estate commission: How much will you pay?
Here’s what you can expect to pay in realtor commission based on the average home price of $327,514.
|Listing agent commission||2.96%||$6,435|
|Buyer’s agent commission||2.70%||$5,870|
|Total realtor fees||5.66%||$12,304|
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How much are realtor fees in Indiana?
The average Indiana real estate commission is 5.66% of the home’s sale price, which is typically paid by the seller at closing. Indiana’s average is slightly higher than the national average of 5.37%.
However, Indiana realtor fees vary across the state. As with most things in big cities, realtor commissions tend to be more expensive — particularly in the Indianapolis metro area.
Ryan Radecki, a broker at Highgarden Real Estate in Indianapolis, said he typically sees a total of 6–7% commission in the Indy market. But even his rates are proof that there’s no real standard.
“I’ll go as low as 4.5% in certain situations, but I probably average around 5.5%,” said Radecki.
That’s why it’s important to ask multiple agents in your local area, regardless of what the local or statewide average is.
Average realtor commission can also shift over time due to changes in the housing market — namely, whether it’s a buyer’s or seller’s market.
Take the buyer’s agent commission, for example. In the hot market of early 2022, sellers could easily offer 2.5% in buyer’s agency fees because sellers had the upper hand.
“But the market is different now,” said Radecki. “For buyer’s agents in a market where buyers have the upper hand, offering a 3% commission catches their eyes. We’re now seeing as high as 3.5% in some cases.”
The good news for sellers is that realtor commission in Indiana has been trending down over the last two years from 5.9% in 2021 to 5.66% today.
Remember: Realtor fees aren’t the only costs of selling a home. You also need to factor in the cost of repairs, your mortgage payoff amount, and closing costs.
Learn what expenses to budget for and estimate how much it’ll cost to sell your house in Indiana.
How real Indiana agents and brokers set commission rates
There’s no true hard-and-fast standard for real estate commission in Indiana (or anywhere in the U.S.), and agents we’ve interviewed on this topic said it all depends on the situation.
When setting realtor fees, the sale price of your home is a major factor.
“Price range is #1,” Radecki said. “If a house is on the higher end for our market ($500,000 or more), I’m more willing to negotiate the listing fee if the seller asks for it.”
Other things your Indiana real estate agent might consider are:
- What’s competitive in the local area
- How much work the home needs to be ready to sell
- What level of advertising you want
- Whether or not you’re also buying a home in the same market
Real estate agents in Indiana have a bottom line to meet, too. They pay up front for photography and advertising and spend time coordinating showings and open houses, all without getting paid until the home sale closes.
Their realtor fees cover overhead expenses like:
- Taxes: Real estate agents must pay a self-employment tax of 15.3% on all commission earned
- Association and MLS fees: Up to $1,000 annually
- State license fees: $60 per year
- Administrative staff: Assistants can help with bookkeeping, scheduling, and other day-to-day operations
- Marketing costs: Professional photos, advertising, open houses, and staging
The market shifting to favor buyers is also playing a role in rising buyer’s agent commission rates.
“We’re having to advertise more and hold open houses again,” Radecki said. “Selling a house takes more effort now than it did a year ago.”
How can I save on realtor fees in Indiana?
While it may take some outside-the-box thinking, there are a few ways you can save on realtor fees:
- Negotiate with a traditional real estate agent or broker
- Work with a discount real estate broker
- Sell without a realtor
Negotiate with a traditional realtor
Radecki says that when it comes to negotiating, some real estate agents are open to it, and some aren’t.
“Some agents take the client for granted and won’t negotiate at all,” Radecki said. “But a starving agent who’s new and has the flexibility from their broker might work with you on price.”
There’s no harm in asking. Many agents like Radecki “look at the big picture,” outside of one single transaction.
“I also look at whether or not I’ll get repeat business from a client,” Radecki said. “Is it a client I might work with on their next purchase?”
Ways to negotiate lower realtor fees
- Offer to sell and buy with your realtor. With a promise of more of your business, your realtor might be willing to lower your listing fee.
- Opt for fewer services. If your home is in great shape in a desirable area, you may not need maximal advertising or professional drone photography to sell it.
- Make necessary repairs and upgrades ahead of time. If your realtor sees that home is ready to sell with minimal work, they may be willing to budge on listing fees.
Negotiating can be awkward and uncomfortable. If you’d rather avoid it, you can find an agent through Clever Real Estate. They’ve already pre-negotiated a 1.5% listing fee with experienced agents in Indiana, so you don’t have to. Find an Indiana agent for less.
Work with a discount real estate broker
Some brokerages offer discounted realtor fees up front. These companies can help you save money, but some come with risks or worse-than-average customer service. Do your research to understand what you’ll get for the discounted fee. See how we ranked discount real estate brokers in your area based on savings, customer reviews, and our experience mystery shopping with each company.
To save an average of $7,000 on your listing fee without sacrificing service, Clever Real Estate is your best option.
Sell without a realtor
The ultimate way to save on realtor fees is to sell without a realtor — though we don’t recommend this to most Indiana sellers.
You’ll avoid paying a listing commission, but you’ll have to do all of the work of a listing agent on your own. Plus, you’ll still want to pay a full buyer’s agent commission to incentivize other agents to show your home to their buyers.
Learn more about how to sell a house without a realtor in Indiana.
Other FAQs about Indiana real estate commissions
How much does a real estate agent make in Indiana?
In 2020, the average real estate agent made $47,410, but some top-selling agents can bring in six- or seven-figure salaries. Learn about how much money real estate agents earn.
What percentage do realtors make in Indiana?
In Indiana, realtors take home 5.66% of a home's sale price in each transaction. However, that total fee is split between the buyer's agent and the seller's agent and their respective brokers. A single agent may take away as little as 1.35% from a home sale's proceeds. Learn more about real estate commissions in Indiana.
We regularly survey our pool of 14,000 partner agents nationwide on the commission rates they use for buying and selling. These data points are averages based on responses we’ve received from 16 agents across Indiana.
We also interviewed broker Ryan Radecki of Highgarden Real Estate in Indianapolis.
- Zillow Home Value Data
- Clever Real Estate Commission Survey Data
- Indiana Professional Licensing Agency
- Internal Revenue Service
- Indiana Association of REALTORS®
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