R
eal estate commissions play a significant 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 buyers and sellers to understand fees and negotiate confidently.

    Whether you're a first-time homebuyer or seasoned seller, understanding real estate commissions is crucial. Here's what you need to know:

    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)

    Real estate commissions refer to the payment made to real estate agents upon a successful home sale. These fees are usually calculated as a percentage of the final sale price and are paid at closing, compensating agents for their efforts throughout the transaction process.

    In Indiana, buyers used to cover both their agent's fee and the seller's agent's fee. However, as of August 17, 2024, buyers must sign an agreement specifying their agent's fee before touring homes. While buyers can still ask sellers to cover their agent's commission, this new update makes the buyer's agent fee more flexible and open for negotiation.

    Average real estate commission rates in Indiana vary significantly depending on the transaction details and agreements between parties. These fees are fully negotiable, giving both parties the opportunity to find a commission structure that aligns with their preferences.

    Key factors such as property location, current market conditions, and agent services can impact the final commission. For example:

    - Indianapolis: $250,000 (1.5% = $3,750, 3% = $7,500, 5% = $12,500)

    - Fort Wayne: $220,000 (1.5% = $3,300, 3% = $6,600, 5% = $11,000)

    - Evansville: $155,000 (1.5% = $2,325, 3% = $4,650, 5% = $7,750)

    At Redfin, we offer a listing fee as low as 1%. Buyers can also negotiate real estate commissions in Indiana, considering factors such as agent services and property appeal.

    Tips for successful negotiation:

    - Interview multiple agents to compare fees and services

    - Propose performance-based incentives to motivate your agent

    - Use your property's appeal to encourage agents to adjust their commission

    Indiana real estate commission FAQs:

    - What are the changes to real estate commission? Buyers must agree to their agent's fee before touring homes, and buyer agent commissions are no longer visible on MLS listings.

    - How do the changes impact buyers in Indiana? Buyers need to sign an agreement specifying their agent's fee before starting home tours.

    - 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.

    To find a real estate agent in Indiana, connect with a Redfin agent for expert guidance through the entire process.