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Thinking about selling your Indiana home? You’re not alone: The number of single-family houses sold in the Hoosier State has increased by nearly 10 percent since last year, according to July Redfin data. But keep in mind that selling a home isn’t all profit. There are many closing costs and other expenses to consider when listing a home — read on to understand the cost to sell a house in Indiana.
Sellers’ closing costs
Both buyers and sellers pay their share of closing costs in a real estate transaction. In Indiana, these are on the lower end of the spectrum, averaging 0.9 percent of the home’s sale price (not including real estate agent commissions), per data from CoreLogic. By contrast, neighboring states Illinois and Ohio run 2.1 percent and 2.0 percent, respectively. Here are some common seller closing costs that Indiana home sellers can expect:
- Property taxes and HOA fees: Sellers are responsible for all property taxes and homeowners association fees (if applicable) right up until closing day.
- Transfer tax: Indiana sellers are off the hook for this common real estate tax, as the state does not levy a tax to transfer ownership to the buyer.
- Legal fees: Unlike some states, Indiana also does not require you to hire a lawyer to sell your house. However, legal representation is probably a good idea in a financial transaction of this magnitude — it’s worth the money to have peace of mind that your interests are properly protected.
- Escrow fees: If funds related to the transaction are held in escrow, there will likely be a fee associated with managing the escrow account. In Indiana, buyers and sellers most often split the escrow fees.
- Title-related fees: There are usually costs surrounding running a title search on the home and obtaining title insurance protection for both the lender and the buyer. Who pays these fees is often negotiable, but sellers typically cover the cost of the new owner’s title insurance policy.
- Concessions: If you offer seller concessions, such as paying for certain repairs requested by the buyer, that amount will be due at closing.
Real estate agent commissions
Sellers who use a real estate agent can also expect to pay their agent’s commission. This typically runs between 2.5 and 3 percent of the home’s sale price, so it’s lucky for Indiana sellers that the state’s median sale price (as of July 2024) was a relatively low $267,200. On a sale of that price, 2.5 percent comes to $6,680.
However, sale prices can vary widely depending on your location within the state (as well as factors like the size and amenities of the home). For example, the median in Indianapolis was very close to the statewide median at $250,000, but in Bloomington it was higher at $313,000, and in Muncie it was significantly lower at just $114,500.
Keep in mind, too, that depending on the details of your deal, you may be responsible for paying your buyer’s agent as well as your own. If so, the commission percentages would double.
Home prep and moving costs
The costs of selling a home don’t just come when you close — there can be expenses in getting it ready for the market, too. If any obvious repairs are needed, it can be smart to get that leaky faucet or broken doorknob fixed before potential buyers see it. And if your home could use some design love to make the rooms as appealing as possible to house-hunters, it can be worth paying for a professional home stager’s touch. Outside, too, updated landscaping and some fresh paint can go a long way toward upping your curb appeal.
Don’t forget that once your home is sold, you’ll need to move all your belongings to your new place. Moving costs can add up depending on how much stuff you have and how far it has to be transported — expect to pay much more for a long-distance move than you would for a local one.
How much do I get from selling my house?
After you pay all the closing costs, commissions and other expenses — including paying off your existing mortgage, if you have one — what’s left will be your net proceeds. Depending on your marital and tax status (among other criteria), sellers who make a very significant profit may incur the federal capital gains tax. Check with a tax professional if you’re not sure whether this applies to you.
Reducing costs
These cost-reducing strategies can help home sellers lower their costs and maximize their profit:
- Negotiate commissions: Realtor commissions aren’t necessarily set in stone. If you can negotiate a lower rate with your agent, you could save plenty of money. That’s especially true for higher-priced homes, since the commission is usually a percentage of the final sale price.
- Sell as-is: If the home requires a lot of work to get ready to sell, and you don’t want to spend the money, consider selling it as-is — meaning, any repairs needed are the responsibility of the buyer. This may result in a lower sale price, though.
- Shop around: When hiring professionals to help with tasks like landscaping or repairs, ask for multiple quotes and compare several options to find the best price.
- Do it yourself: DIY’ing whatever you can (within reason) will save the money it would take to hire a professional.
Alternatives
If you’re on the fence about a traditional agent-assisted home sale, consider these alternatives:
- Sell to a cash-homebuyer or iBuyer: A local cash homebuying company or online iBuyer can make a fast cash offer — within a day or even sooner — and close remarkably quickly, too. However, the tradeoff for this speed and convenience is that they won’t offer as high a price for your home as you might be able to get on the open market.
- Sell by owner: A FSBO sale (short for for sale by owner) saves you money because you don’t have an agent, so there’s no agent commission to pay. But it’s a lot of work to do on your own, and you may still have to pay your buyer’s agent.
- Rent it out instead: If you have someplace else to live, you might consider renting to a tenant instead of selling. This can bring in a steady monthly income, but being a landlord is not for everyone.
- Leverage your home equity: If you’ve built up significant equity in your home, you may be able to get the cash you need without selling by taking out a home equity loan or line of credit.
Next steps
If you’re ready to sell your Indiana house, finding a knowledgeable Indiana agent is a great next step. A local real estate agent will know your market well, offer expert advice and guide you through the entire process. If you’re interested in selling at top speed, though, look for local cash-homebuyers instead to see who can offer you the best price and most convenient timeline.
FAQs
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The exact amount of closing costs varies based on many factors, including specific location and sale price. In Indiana, closing costs average 0.9 percent of the home’s sale price, not including Realtor commissions — on a $300,000 home, 0.9 percent would come to $2,700. Keep in mind that both the buyer and the seller will bear some of this amount, it’s not paid for entirely by one party or the other.
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Yes. You can sell your home without a Realtor in any state, including Indiana, with a for sale by owner (FSBO) listing. Selling this way means you don’t have to pay a listing agent’s commission, but it also means you’ll have to do all of an agent’s typical work on your own, including researching prices, marketing the home and negotiating contract terms.
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