Indiana Real Estate Commissions: What You Can Expect in 2024
Real estate commissions play a pivotal role in determining the overall costs of buying or selling a home in Indiana. New changes introduced in 2024 have brought more transparency to the process, making it easier for both buyers and sellers to understand fees and negotiate more confidently. These updates are aimed at making real estate transactions clearer for everyone involved.
Whether you’re a first-time homebuyer or a seasoned seller, this guide will cover the essential details about real estate commissions in Indiana.
Current state of the Indiana housing market
Before diving into commission specifics, it’s helpful to look at the current state of Indiana’s housing market:
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 refer to the payment made to real estate agents upon the successful completion of a home sale. Usually, these fees are calculated as a percentage of the final sale price and are paid at the time of closing, compensating agents for their efforts throughout the transaction process.
Who pays the commission?
In the past, sellers typically covered both their agent’s fee and the buyer’s agent’s fee. However, as of August 17, 2024, buyers are now required to sign a document specifying their agent’s fee before they start touring homes.
While buyers can still ask the seller to cover their agent’s commission, this new update makes the buyer’s agent fee more flexible and open for negotiation. Sellers are no longer automatically expected to cover these costs.
Average real estate commission rates in Indiana
In Indiana, real estate commission rates can vary significantly depending on the details of the transaction and the agreements made between the buyer, seller, and their agents. While there are standard expectations for commission rates, these fees are fully negotiable, giving both parties the opportunity to find a commission structure that aligns with their preferences.
Key factors such as the property’s location, the current market, and the level of service provided by the agent can all impact the final commission. This flexibility allows buyers and sellers to adjust fees based on their specific needs and financial goals. Below is an example of typical commission rates based on median home prices in some of Indiana’s major cities.
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
At Redfin, we’re dedicated to delivering exceptional value to consumers. Sellers can benefit from a listing fee as low as 1%*. For buyers, our fees vary by location but are designed to remain competitive, helping your offer stand out and increasing your chances of success in the homebuying process.
Can you negotiate real estate commissions in Indiana?
Definitely! There are no laws in the U.S. that set commission rates, meaning agents are often open to negotiating lower fees based on the specifics of the transaction, the services needed, and the client relationship.
When negotiating, it’s essential to consider the services being offered by the agent, such as their marketing plan and local expertise. These factors can impact the fee structure. Additionally, homes in high-demand areas may offer more room for negotiating a lower commission rate. In cases of dual agency, where one agent represents both buyer and seller, it may also be possible to reduce the overall commission costs.
Tips for a successful negotiation
Interview multiple agents to compare their fees and services.
Propose performance-based incentives to motivate your agent to secure a faster sale or higher sale price.
Use your property’s appeal, especially if it’s in a desirable location, to encourage agents to adjust their commission.
Indiana real estate commission FAQs
What are the changes to real estate commission? Two key changes took effect: buyers must agree to their agent’s commission before touring homes, and in many markets, buyer agent commissions are no longer visible on MLS listings. Learn more about the real estate commission changes here.
How do the changes impact buyers in Indiana? Buyers now need to sign an agreement that specifies their agent’s fee before starting home tours. However, they can still negotiate with sellers during the offer process to cover the agent’s fee.
How do the changes impact sellers in Indiana? Sellers can work with their listing agent to determine if they’ll cover any of the buyer’s agent commission. Sellers should be prepared to negotiate these costs with potential buyers.
How do you find a real estate agent in Indiana? When you’re ready to buy or sell in Indiana, connecting with a Redfin agent will give you expert guidance through the entire process.
How can you avoid fees? One way to avoid commission fees is to sell your home as a For Sale By Owner (FSBO). However, handling all the marketing, showings, and legal paperwork yourself can be challenging without the help of a professional.
*Listing fee subject to change, minimums apply. Any buyer’s agent fee the seller chooses to cover not included. Listing fee increased by 1% of sale price if buyer is unrepresented. Sell for a 1% listing fee only if you also buy with Redfin within 365 days of closing on your Redfin listing. We will charge a 1.5% listing fee, then send you a check for the 0.5% difference after you buy your next home with us. Learn more here.
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