Selling a house in Indiana can be expensive. Between repairs, realtor commissions, closing costs, moving, and more, your total expenses can easily eat up 10% or more of your home’s final sale price.
In this guide, we’ll cover some of the most common expenses for Indiana home sellers. We’ll also offer up some tips and tricks that will help you save on home selling costs without sacrificing your final sale price!
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Average cost to sell a house in Indiana
If you sell your home for $168,000 (the average home value in Indiana), you could end up paying upwards of $29,000 to make it happen.
While your actual out-of-pocket total will vary based on your situation, expect to pay 10% or more of your home’s final sale price — that is, if you opt to do a standard listing with a traditional, full-service realtor.
» LEARN: about alternative, low-cost home selling options
The chart below breaks down some of the most common expenses for home sellers in Indiana, helping identify the most (and least) costly aspects of the home selling process.
Common expenses for home sellers in Indiana | Typical % of sale price | Estimated cost* |
|---|---|---|
Preparing your home for sale | 2-3% | $3,000 to $5,000 |
Realtor commission fees | 5-6% | $8,000 to $10,000 |
Buyer incentives | 1-3% | $2,000 to $5,000 |
Closing costs | 1-3% | $2,000 to $5,000 |
Relocation expenses | 1-2% | $2,000 to $3,000 |
Total | 10-17% | $17,000 to $29,000 |
*Based on a $168,000 home — a typical home value in Indiana, (Zillow Research data, October 2020) | ||
Keep in mind these costs are highly variable — particularly the home prep and relocation expenses categories. Talk to your realtor for a more accurate and tailored estimate of your costs versus final sale price.
Home sale calculator: How much will I make selling my Indiana house?
How much you walk away with at the end of your sale will depend on a variety of factors, including:
- How you choose to go about selling your home (e.g., realtor, cash buyer, for sale by owner, etc.)
- Which repairs, improvements, and listing preparations you choose to invest in
- Whether you make any concessions or offer incentives to buyers
- State and/or regional closing and tax-related expenses
Below is a quick overview of how these costs could break down for a $168,000 home (the average home value in Indiana), accounting for some variation in a few of the factors mentioned at the beginning of this section.
Type of expense | Estimated cost* | % of home value |
|---|---|---|
Staging | $2,000 | 1% |
Improvements and renovations | $5,000 | 3% |
Realtor commission | $9,000 | 5.5% |
Seller concessions | $3,000 | 1.5% |
Closing costs | $4,000 | 2.5% |
Relocation | $3,000 | 2% |
Total | $26,000 | 15.5% |
Total Proceeds | $142,000 | 84.5% |
*Based on a $168,000 home — a typical home value in Indiana, (Zillow Research data, October 2020) | ||
If you owned 100% of your home, you’d be left with approximately $142,000 after closing; however, most people will have some of their mortgage left to pay off.
Ideally, your proceeds will cover your remaining balance, but if that balance doesn’t include prorated interest — or your loan has a prepayment penalty for paying it off early — they may not be enough. In cases like these, you may have to write your lender a check.
Be sure to talk to your lender and look into the terms of your original loan before you sell your home to avoid any nasty surprises.
Home selling costs: an in-depth breakdown
Common pre-listing expenses | Typical % of sale price | Estimated cost* |
|---|---|---|
Home Improvements/Cleaning | Variable — expect min. of ~1% | ~$2,000 |
Landscaping | ~1% of sale price | ~$2,000 |
Staging | ~0.3% of sale price | ~$500 |
Total | 2-3% | $3,000 to $5,000 |
*Based on a $168,000 home — a typical home value in Indiana, (Zillow Research data, October 2020) | ||
Unless you’re planning to sell your Indiana house “as-is” or to a cash buyer, you’ll need to spend some money to get your home market-ready to attract qualified buyers.
These costs will vary considerably depending on factors like:
- The age and condition of your home
- Your home’s size and layout
- The level of demand or competition for homes in your neighborhood
- Your yard’s size and layout
- Which repairs/improvements your realtor thinks matter most to local buyers
At minimum, you’ll want to invest in some basic pre-listing improvements — e.g., interior repainting; carpet cleaning/replacement; professional cleaning service; a handyman to make minor repairs; etc. Refer to the table below for rough cost estimates for a few of the most common pre-listing expenses.
Type of expense | Average project cost (national)* |
|---|---|
Home staging | $1,251 |
Cleaning service | $168 |
Carpet cleaning | $177 |
Handyman | $386 |
Interior repaint | $1,813 |
Landscaping (installing) | $3,316 |
*National averages from HomeAdvisor’s TrueCost Guide 2020 | |
If you’re considering any bigger projects, it’s best to discuss with your realtor before pulling the trigger. Unless you fully understand the cost versus resale value of each project you take on, you could easily end up in the red.
For example, it’s well-known that kitchens are top considerations for most home buyers. According to Remodeling’s 2020 Cost vs Value Report, in Indiana, a minor kitchen remodel costs $24,080 on average, but the resale value is only $16,840 — meaning you only stand to recoup about 70% of your initial investment. Depending on your situation, it may make more sense to leave your kitchen as it is and let the buyer handle the updating, if they feel so inclined.
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Breakdown of realtor commission fees in Indiana | Typical % of sale price | Estimated cost* |
|---|---|---|
Listing fee | 2.5-3% | $4,000 to $5,000 |
Buyer’s agent fee | 2.5-3% | $4,000 to $5,000 |
Total | 5-6% | $8,000 to $10,000 |
*Based on a $168,000 home — a typical home value in Indiana, (Zillow Research data, October 2020) | ||
In a standard real estate transaction — one involving traditional, full-service listing and buyer’s agents — you (the seller) will likely be on the hook for the full commission fee. The average real estate commission in Indiana is between 5-6% of the home’s final selling price and is typically split between the two agents handling the sale.
Based on the median home value in Indiana, that comes to roughly $9,000 — potentially more than half of your total home selling expenses!
Common buyer incentives | Typical % of sale price | Estimated cost* |
|---|---|---|
Seller concessions | ~1.5-2% | $3,000 to $3,000 |
Paying for buyer’s home warranty | <1% | $300 to $600 |
Total | 1.5-3% | $3,000 to $5,000 |
*Based on a $168,000 home — a typical home value in Indiana, (Zillow Research data, October 2020) | ||
Once you’ve listed your Indiana home and accepted an offer, it’s time to start negotiating. Depending on your property and demand in your area, you may choose to offer incentives or make concessions to keep the buyer motivated and ensure the deal goes through.
When a seller makes a concession, that means they’ve agreed to pay specific costs — e.g., help with inspection fees, certain closing costs, repair credits, etc. — on the buyer’s behalf to sweeten the deal. It’s worth noting that buyers will likely have limits on how much they can request based on their loan type. On average, seller concessions range between 1.5-2%, but some loan types allow for up to 9%.
Another commonly offered (but totally optional) incentive is paying for a buyer’s home warranty. Unlike homeowner’s insurance, these policies cover repair or replacement if a major appliance or home system (electrical, plumbing, HVAC, etc.) breaks within the first 1-2 years following the sale. Home warranties typically cost between $300 and $600.
Closing costs: ~1-3%
Common closing costs for sellers in Indiana | Typical % of sale price | Estimated cost* |
|---|---|---|
Title insurance | ~0.5% | $840 |
Loan payoff (and early payoff fee, if applicable) | Variable | Variable |
Outstanding bills, taxes, fees | Variable | Variable |
Transfer taxes (learn more) | No transfer tax in Indiana | N/A |
Recording fee | No recording fee in Indiana | N/A |
Attorney fee (required in Indiana) | <1% | $150 to $500 |
Total | ~1-3% | ~$2,000 to $5,000 |
*Based on a $168,000 home — a typical home value in Indiana, (Zillow Research data, October 2020) | ||
Closing costs are a blanket term for the various fees and expenses (not including realtor commission) paid by both parties at the close of a real estate transaction.
While the buyers will typically be responsible for the lion’s share, sellers should expect to pay between 1-3% of the home’s final sale price at closing. Based on the average home value in Indiana of $168,000, that roughly translates to $2,000 to $5,000.
The above list represents common closing costs that are typically the seller’s responsibility; however, in a real estate transaction, the question of “who pays what” is up for negotiation and will depend on the circumstances of the sale. Talk to your realtor at the outset to get a sense of how much you should expect to pay come closing time.
» READ: the in-depth guide to closing costs here!
Moving expenses: ~1-2%
Common moving expenses | Typical cost* — local move | Typical cost* — long-distance move (over 1,000 miles) |
|---|---|---|
Packing supplies | $500-630 | $500 to $630 |
Moving | $1,250 | $4,890 |
Overlap and carrying costs | Variable (~1%) | Variable (~1%) |
Total | $1,750+ | $5,390+ |
*2-3 bedroom move of approximately 7,500 lbs (Moving.com, 2020) | ||
Many people forget to factor in moving costs when calculating their home sale profits. But depending on factors like the distance of your move, the extent of your DIY ethos, and how much stuff you have, these expenses can really add up.
Moreover, don’t forget to account for potential overlap periods. If there’s a gap between when you move out of your current home and close on your new one, you may need to pay for a storage space and/or temporary housing. Or you may have to pay carrying costs (e.g., utilities, HOA fees, property taxes, etc.) on two properties at once in the reverse scenario.
3 tips to maximize profits on the sale of your Indiana home
1. Time your sale to get top dollar for your Indiana home
No matter how hot the market is in Indiana, figuring out the best time of year to list your home can help you receive the best price for your property. In fact, timing your listing right can help you sell your home for more than market value.
Since real estate markets tend to fluctuate throughout the year, it’s a good idea to talk to your realtor about the best time of year to sell your home. Overall, the U.S. typically receives the highest number of home buyers and home price increases in May. Indiana follows this trend, reporting the highest number of home sales above asking price during the month of May, as well as throughout late spring and early summer.
When selling during this peak time, Indiana sellers typically will see their home close in as little as 58 days. It’s also recommended that sellers list on a Friday or Saturday to improve the chances of their home being sold quickly.
It’s important to note that this trend can vary depending on your specific location in Indiana, so talk to your real estate agent to learn more about your local market’s specific trends.
>> LEARN when is the best time to sell a house in Indiana?
2. Negotiate like a pro
Once an offer has been made, it’s time to negotiate. Even if the buyer is meeting your asking price (or exceeding it), it’s important to team up with a real estate agent who will advocate for your during the negotiation process.
During this process, agents will determine the final sales price of the home and work through any fees or repairs that need to be taken care of. Having a trustworthy agent to fight for you will ensure you receive the best deal possible.
3. List with a low-commission real estate agent
Realtor commission fees are a huge expense for Indiana home sellers, often making up 50% or more of their total home selling costs. In other words, finding a way to save on commission is one of the best ways to increase your profit margins.
You can negotiate commission rates on your own, but the easiest option by far is to find a low-commission real estate agent through Clever. These are full-service, local realtors who usually charge full commission, but we send them a high volume of new business in exchange for pre-negotiated, discounted rates.
The result? You could save up to 33% on realtor fees, leaving thousands of dollars in your pocket after closing.
» LEARN: about Clever's free service and read reviews from real home sellers!