Cost to Sell a House in Indiana: Realtor Fees and Closing Costs Revealed

• 

  Written by Greg Isaacson

• 

  Edited by Steve Nicastro

Cost to sell in Indiana | Realtor commission | How to save | Closing cost calculator | FAQs

The average cost to sell a house in Indiana is 6.36% of a home’s final sale price, which includes realtor fees (5.66% of the sale price) and seller closing costs (0.7%).

It costs home sellers in the Hoosier State an average of $14,018 to sell a home priced at $217,394 (Indiana’s average home price).

You can get matched up with a top-rated local realtor and save thousands on your home sale by using an agent matching service like Clever Real Estate. Clever has negotiated a reduced listing commission of 1.5% with agents in its network, which is far lower than the Indiana average of 2.96%.

Here’s a complete breakdown of the average costs of selling a house in Indiana, including tips on how to save on your sale.

Cost of selling a house in Indiana

*Costs assume a sale price of $217,394. Numbers are rounded off and may not be 100% precise.

The cost of selling a home in Indiana is about average for the U.S. The table above shows that sellers pay 6.36% of the home’s purchase price when factoring in realtor commissions and seller closing costs.

That’s slightly higher than the national average of 6.53%. And with Indiana’s relatively low home values, it’s much cheaper to sell on a total cost basis compared to the national average.

Overall home prices in Indiana are average for the region. Kentucky and Ohio are less expensive states, while homes in Michigan and Illinois are pricier.

Indiana’s cost to sell as a percentage of the home price is low compared with most neighboring states at 6.36%. Sellers pay an average of $14,018 in Indiana.

Home values vary quite a bit across the state, so your total home sale costs will also vary. Among Indiana’s five largest counties by population, the median sale price in August ranged from $200,000 in St. Joseph County to $405,250 in Hamilton County, according to Redfin data.

Here’s an example of your potential costs at various price points, including realtor fees and seller closing costs. (You can get a free, instant home value estimate to learn what your home might sell for in today’s market.)

The main factors impacting your Indiana home sale costs include: 

Typical real estate agent commission in your area

While the statewide average rate is 5.66%, rates may be higher or lower depending on what’s normal in your area.

Your success (or failure) in negotiating rates

Realtor fees aren’t fixed — they are completely negotiable. You may be able to negotiate a rate lower than what’s typical in your area.

How successful you are in negotiating realtor fees depends on a variety of factors, including your property value, local market demand, and your agent’s relationship with their brokerage.

How you find a realtor

You can potentially save thousands in realtor fees (without sacrificing service) by finding an experienced realtor through an agent-matching service like Clever Real Estate. 

Clever has pre-negotiated a 1.5% listing agent fee with agents in its network, much lower than the typical listing agent commission rate of 2.96%.

Optional costs

The estimated total cost to sell of 6.36% in Indiana does not include other potential costs like home staging, deep cleaning, and pre-listing repairs, which could add thousands more to your home sale costs.

Your negotiated contract

Indiana home sellers are typically responsible for covering all commissions, prorated property taxes, owner’s title insurance, title company fees, and a deed preparation fee.

Sellers may also be responsible for home preparation costs, a pre-listing appraisal and inspection, attorney fees, homeowners association (HOA) fees, and a mortgage payoff.

Buyers take on the remaining expenses, which generally include appraisal and inspection fees, lender’s title insurance, a home warranty, and buyer closing costs for the mortgage such as an origination fee.

Sellers may offer to cover certain buyer closing costs to motivate potential buyers to submit an offer. This practice is more likely if your housing market currently favors buyers over sellers.

Here’s a deeper look at your expected home sale costs.

1. Indiana realtor commission (5.66%)

Using a realtor costs Indiana home sellers an average of 5.66% of the home’s sale price.

It costs sellers an average of $12,304 in realtor commissions, based on the average Indiana home value of $217,394. That includes both the buyer’s agent and the seller’s agent commission, which sellers are responsible for paying in Indiana.

Your actual commission cost depends on your home’s final sale price. Here’s what you might expect to pay in realtor fees at various price points.

*Median sale prices as of August 2022 according to Redfin. Commission costs assume an average realtor commission of 5.66%.

How to save on Indiana realtor fees

Here are some tips on how to save money on your home sale. 

Use a discount broker

A discount real estate broker offers sellers a reduced commission fee with no strings attached. The broker’s listing agents charge less than the average rate, such as a 1% listing fee vs. the typical 2.5% to 3% rate.

Selling at a higher price point leads to even bigger commission savings using a discount broker versus finding a realtor through traditional sources, like through a family member or friend.

For example, Clever offers listing fees of just $3,000 or 1.5%, compared to the average Indiana listing commission rate of 2.96%. Clever could save you nearly $6,000 on a $200,000 home sale, for example.

Agents that partner with these firms also provide all of the services you’d expect to receive from a traditional realtor. The service is free to try with no obligation, so it’s worth starting here. 

» MORE: The Best Discount Brokers for Every Budget

List your home without a realtor

You can avoid paying Indiana listing commission entirely by selling without a realtor. Expect to save 2.96% off of your home sale, since you avoid paying listing agent commission.

However, the typical FSBO home sells for close to $60,000 less than agent-listed homes, according to the National Association of Realtors, so you might lose money on the sale. You’ll also be on the hook for all of the tasks normally handled by a listing agent, which can eat up a lot of your time.

Negotiate a lower rate

Agent commissions aren’t set in stone. There’s no law setting a fixed realtor fee in any part of the country, including Indiana, so you can try to negotiate a lower commission rate with your realtor.

You may have more luck reducing the commission rate if you plan to buy a new home with the same agent that’s helping you sell, since the agent will earn commission on both transactions.

Negotiating commission may also work on a high-value property, since the agent will still earn a substantial commission on the home sale, despite the lower rate.

“The best way to negotiate for a lower real estate commission is to have a home that is easy to sell and to demonstrate you are ready to make progress,” advises Northwest Indiana realtor Chuck Vander Stelt.

“An easier to sell home is clean, in good condition, not cluttered, and the seller is ready to put a marketable list price on the home.”

» LEARN how Clever can do the negotiating for you 

2. Closing costs for sellers in Indiana (0.7%)

Seller closing costs typically add another cost of 0.7% or more to the home’s final sale price, according to our data. (Closing costs do not include realtor commission.)

Based on the average Indiana home value of $217,394, the typical home seller pays $1,714 in closing costs.

Indiana seller closing costs typically include prorated property taxes, owner’s title insurance, title company fees, and a deed preparation fee.

The seller might also be responsible for attorney fees, home preparation costs, a pre-listing appraisal and inspection, a land survey, HOA fees, and a mortgage payoff.

Buyers are on the hook for everything else, which could include appraisal and inspection fees, title insurance, a home warranty, and buyer closing costs for the mortgage.

The exact breakdown of closing costs between the buyer and seller varies with each transaction. The purchase and sale agreement spells out who is responsible for paying each cost.

If the local market is more favorable to buyers, the seller may agree to cover certain buyer closing costs, such as the loan origination fee, title insurance policy, or home inspection cost.

Fortunately for sellers and buyers, Indiana is one of a handful of states that don’t impose a transfer tax on real estate sales.

Prorated property taxes

Indiana home sellers must pay property taxes on the days they’ve owned their home in the calendar year. Taxes are prorated and split between the seller and buyer.

The tax is due at closing. Actual costs depend on your annual taxes, and how many days you live in your home up until the closing date.

Speak with your realtor or attorney for more details on what you might owe in prorated taxes.

Owner’s title insurance

An owner’s title insurance policy costs Indiana home sellers about 0.25% of the sale price, according to Vander Stelt. This amounts to an average cost of $660, our data shows.

Title insurance protects home buyers or lenders from possible losses arising after the transaction due to issues with the property’s ownership or title. An owner’s policy protects the buyer’s interest in the property, whereas a lender’s policy protects the lending institution.

Both policies are issued at closing. Sellers generally pay for owner’s title insurance in Indiana, while buyers pay for lender’s insurance.

Title company fees

Closings are handled by title companies in Indiana. Title companies charge a closing service fee, ranging from about $450 to $650, according to Vander Stelt. This fee is normally split half and half between the buyer and seller.

In addition, title companies charge a settlement service fee which is typically less than $100 for sellers.

Deed preparation fee

Indiana title companies typically have a staff attorney who will write the new deed that is transferred from the seller to the buyer at closing. The cost of this service is typically between $50 and $200.

Recording fee

County governments in Indiana charge a fee for registering the sale of a property. Recording fees cost an average of $125 in Indiana.

3. Other potential costs

Attorney fees

The average hourly rate for real estate attorneys in Indiana is $261, according to legal technology firm Clio.

Indiana law does not require an attorney to review the transaction documents in a home sale or be present at closing. (An attorney is required to write the new deed, but this is typically handled by the title company’s staff attorney.)

While it’s not required in Indiana, buyers and sellers have the option of an attorney to offer legal advice, review their documents, and represent them at the closing. It’s a good idea to consult an experienced lawyer if your home sale involves any legal issues, from easements to title defects.

“So long as it is a ‘business as usual’ transaction, there is no need to hire an attorney” when selling a home in Indiana, notes Vander Stelt. “However, I do advise a client who has any trouble understanding the outcomes of their obligations in the offer to contact an attorney.”

» LEARN: Do I Need a Lawyer to Sell My House?

Home preparation costs

Preparing your home for sale could add thousands more to your upfront costs.

Home staging costs between $745-2,659 on average in the U.S., according to HomeAdvisor. Actual costs vary widely based on your location, the size of the home, and the number of rooms furnished.

Regardless of your choice, you need high-quality photos of your house to display online. Professional photos can cost $100–300, but your real estate agent will likely arrange and pay for this.

Expect to spend at least $300 for a deep cleaning, if required. Finally, pre-listing home repairs and improvements could add hundreds, if not thousands to your budget, depending on your home’s condition.

Pre-listing appraisal and inspection

An appraisal is a professional estimation of a home’s value. Buyers usually pay for appraisals in Indiana, but obtaining a pre-sale appraisal can give you a more accurate starting point for pricing your home.

The cost of an appraisal for a single-family home in Indiana ranges from $223–354, averaging $289, according to ProMatcher.

You may also want to consider ordering a pre-listing inspection to identify any problems with the house before the buyer can discover them, so there are fewer surprises during negotiations.

Home inspection services in Indiana typically range from $233–326 for a 2,000 square foot house, averaging $279, according to ProMatcher.

Land survey

A land survey defines the legal boundaries of your property. You should hire a surveyor if you’re unsure about the precise location of your property’s lot lines. In many cases, the buyer’s lender requires a land survey for the mortgage loan.

In Indiana, the buyer typically pays for a survey, but who covers this cost may be negotiable. The cost of a survey varies based on the surveyor and the individual property. ProMatcher reports that a residential boundary survey for a half-acre lot ranges in cost from $392–792 in Indiana.

Homeowners association dues

You may owe homeowners association (HOA) dues if your home is located in an HOA community. Sellers are typically responsible for covering a prorated amount of their annual membership dues at closing.

If the HOA charges fees to transfer homeownership records to the buyer at closing, the seller usually pays them. Costs vary between communities, but they commonly range from $150-500. Check with your agent, attorney, or HOA board for more information on what you might owe.

Buyer’s closing costs

In addition to the above costs, buyers may request that sellers cover some of their closing costs. Seller concessions include anything the seller gives the buyer to close the deal.

Seller concessions often come in the form of seller credits towards the buyer’s closing costs — 2–3% of the sale price is common — or home warranty policies. However, they can also include compromises that don’t hold monetary value, such as an agreement to close on a date that’s preferable to the buyer.

Appraisal and inspection fees

Most Indiana home buyers pay for an appraisal and inspection to determine the value and condition of the property.

Lenders require an appraisal as part of the approval process for most home purchase loans. Appraisals for single-family homes in Indiana range in cost from $223–354, according to ProMatcher.

Although home inspections are not mandatory in Indiana, prospective buyers may hire a licensed inspector to uncover any serious issues with the property, from a cracking foundation to a leaky roof.

Sellers may offer to pay for inspections as a buyer incentive, and some sellers purchase their own pre-listing inspections. Indiana home inspections range from $233–326 for a 2,000 square foot house, according to ProMatcher.

Lender’s title insurance

If the buyer is taking out a mortgage, their lender will require them to purchase a lender’s title insurance policy. In Indiana, owner’s title insurance is customarily paid for by the buyer, but the seller may offer to cover it as an incentive.

Home warranty

A home warranty offers protection from high repair costs on major appliances and electrical and plumbing systems. The homeowner pays an annual or semi-annual premium and enjoys reduced service rates when a technician comes to evaluate or fix a problem.

Homebuyers can purchase a home warranty for themselves, but some sellers offer to buy a home warranty plan for the buyer if components of the home such as the air conditioning or water heater are worn out.

Annual premiums for a home warranty in Indiana average $575 for a single-family home, according to Review Home Warranties.

Capital gains tax

The IRS offers a tax break on capital gains from the sale of your primary residence, as long as you meet certain requirements:

• Single homeowners can deduct up to $250,000 of gains from the sale of their property;
• Married couples can deduct up to $500,000 of gains. 
• You must have occupied the property for at least two of the past five years. 
• You can also deduct certain repairs and improvements from your home’s cost basis. 

» LEARN: How to avoid capital gains on a home sale

Cost of selling a house in Indiana calculator

Use our calculator to get a rough estimate of what you might walk away with in your home sale. Change the home sale price and closing costs to fit your particular situation.

For more accurate numbers, we recommend finding a local realtor to provide you with a free seller’s net sheet: a personalized document that estimates how much you may earn in your home sale.

Indiana seller closing costs: FAQs

Recommended reading

The True Costs of Selling a Home Revealed: What does it really cost to sell a house in the U.S.? We explore all the common expenses in a home sale, and how you can save thousands.

How to Sell a House Without a Realtor in Indiana: Selling a home For Sale by Owner (FSBO) in Indiana means you avoid paying a listing commission, but there are challenges you should learn about first.

How to Find a Realtor: Find out how you can connect with a great real estate agent. We help you zero in on the best approach, whether you’re selling or buying.

Seller Net Sheet Guide: Learn how a net sheet can help you estimate your potential home sale proceeds, and how to get one for free.

Negotiating Realtor Commission: Knocking your real estate commission down just one percentage point could save you a ton of money on your home sale.