Real estate commissions impact the costs of buying or selling a home in Indiana. Recent changes in 2024 have improved transparency to help both buyers and sellers understand and negotiate fees confidently, making real estate transactions clearer for all parties involved.
Whether you’re a first-time homebuyer or an experienced seller, this guide provides essential information on real estate commissions in Indiana.
Current state of the Indiana housing market
Before delving into commission specifics, understanding the current state of Indiana’s housing market is crucial:
| Median Home Sale Price | $267,100 |
| Housing Supply | 24,023 (+15.8% YoY) |
| Homes Sold Above List Price | 22.3% (-5.8 pts YoY) |
Understanding real estate commissions in Indiana
What are real estate commissions?
Real estate commissions are payments to agents upon completing a home sale, typically calculated as a percentage of the final sale price, paid at closing to compensate agents for their services.
Who pays the commission?
Previously, sellers covered both their agent’s and the buyer’s agent’s fees. With changes post-August 17, 2024, buyers now agree to their agent’s fee before home tours, allowing negotiation flexibility. Sellers are no longer automatically responsible for these costs.
Average real estate commission rates in Indiana
Commission rates in Indiana vary based on transaction details and agreements. While standard rates exist, fees are negotiable for buyers and sellers to align with their needs and financial goals. See typical commission rates in Indiana’s major cities based on median home prices.
| City | Median Home Sale Price | 1.5% Real Estate Commission | 3% Real Estate Commission | 5% Real Estate Commission |
| Indianapolis | $250,000 | $3,750 | $7,500 | $12,500 |
| Fort Wayne | $220,000 | $3,300 | $6,600 | $11,000 |
| Evansville | $155,000 | $2,325 | $4,650 | $7,750 |
Redfin offers a listing fee as low as 1% for sellers, with competitive fees for buyers to increase success chances in the homebuying process.
Negotiating real estate commissions in Indiana
Commission rates are negotiable and not regulated by U.S. laws. Agents are open to adjusting fees based on transaction specifics and services offered, providing flexibility for buyers and sellers.
Consider agent services, market demand, and the possibility of dual agency when negotiating for lower commission rates. Here are tips for successful negotiation:
- Compare fees and services of multiple agents
- Propose performance-based incentives
- Utilize property appeal for negotiation leverage
Indiana real estate commission FAQs
What are the changes to real estate commission? Buyers now agree to agent fees before tours, and buyer agent commissions are often not visible on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Indiana? Buyers need to stipulate agent fees before tours, but can still negotiate with sellers to cover fees during offers.
How do the changes impact sellers in Indiana? Sellers work with listing agents to decide on covering buyer’s agent commissions and should prepare for negotiations with potential buyers.
How do you find a real estate agent in Indiana? Connect with a Redfin agent for expert guidance throughout the buying or selling process in Indiana.
How can you avoid fees? Consider selling as a For Sale By Owner, but be aware of the challenges in handling the process without professional assistance.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee not included. Listing fee increased by 1% if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days. Learn more here.
