What is the Real Estate Commission in Indiana?


|5 min read

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According to a poll of FastExpert agents, the average real estate commission in Indiana is 6.08%, slightly above the average real estate commission in the US, which is 5.5%.

However, keep in mind that home values in Indiana are below the National average, and the slightly higher commission rate is a percentage of a relatively lower purchase price, resulting in an average income that is slightly below the norm for real estate agents.

In addition, the Indiana real estate commission covers the realtor fees for both the listing agent and the buyer’s agent and is generally split equally between the two agents. The agent’s real estate brokers also take a portion of the commission.

It can feel complicated to understand the financial aspects and the closing costs of a real estate transaction. Whether you’re buying or selling a home, it’s important to understand every aspect of the fees that you will pay.

In this article, we’ll break it down for you, and examine the real estate agent commissions or realtor fees. Read on to find out all that you need to know about commission payments so that you can have confidence in your real estate transaction.

Home Values in Indiana Are Below the National Average

On average, home values in Indiana are the fourth lowest in the United States, with a median list price of $266K, according to Realtor.com data. Given the affordability of homes in Indiana, a slightly higher commission rate is understandable. Even at a commission rate of 6.08%, this yields a total real estate agent commission payment of $16,173, which is generally split between four parties.

Let’s take a deeper dive into Indiana real estate commissions and realtor fees to understand where the money goes and how agents get paid.

Realtor Fees are Divided Between Four Parties

The four parties involved in every real estate transaction are the listing agent, the listing agent’s brokerage, the buyer’s agent, and the buyer’s agent’s brokerage. Therefore the commission, or realtor fees, are split between the four parties involved.

Let’s further understand the commission payment.

First, the commission is the payment for the real estate agent’s services and is based on a percentage of the purchase price. Real estate agents do not get paid a salary and are only paid after the sale of a home.

In the example above, the sales price for the home is $500K, and the commission rate is 6%, yielding a $30,000 commission payment. Often that payment is divided equally between the real estate brokers; therefore, each brokerage receives $15,000.

The brokerage keeps a portion of the commission or realtor fees and pays a portion to the listing agent or buyer’s agent. If the payment is split equally among all four parties, then each would receive $7,500.

Commission Payment for an Average Indiana Home

Indiana real estate transactions follow the same typical path as outlined above; however, the median home price is about half of the average United States home.

With a median list price of $266K and a commission rate of 6.08%, the total commission paid by Indiana sellers is $16,173.

The real estate brokers typically split the commission. Therefore, each managing broker would receive $8,086.

If the listing agent and their brokerage split the commission equally, the listing agent’s commission payment will be $4,043.

If the buyer’s agent and their managing broker split the commission 70/30, the buyer’s agent’s commission will be $5,660, and the managing broker will receive $2,423.

While the commission rate can be varied, and the managing broker can keep less of the realtor fees, this example can provide a general understanding of the typical real estate agent commission payment that an Indiana client will face.

>>MORE: How Does a Real Estate Agent Get Paid?

Average Income of a Real Estate Agent in Indiana

Indiana real estate agents earn an average of $84,279 per year, which is 11% below the National average, according to Indeed. Yet, it’s important to keep in mind that the cost of living in Indiana is also below the National average.

In addition, experience plays an important part in the earnings of a real estate agent. Agents with less than two years of experience earn an average of $75,982 per year, and agents with more than 10 years of experience earn, on average, $99,694 per year.

Furthermore, the location within Indiana can impact the median sale price and, therefore, the commission payment. Other factors that can affect the realtor fees are the state of the housing market, the type of property, and the work involved in selling the property.

Top Paying Cities for Agents in Indiana

  1. Indianapolis – $91,349
  2. Fishers – $91,099
  3. Avon – $86,736
  4. Zionsville – $84,740
  5. Carmel – $81,144
  6. Jeffersonville – $77,464
  7. Evansville – $77,103
  8. Greenwood – $71,369
  9. Auburn – $71,151

Location Impacts the Indiana Real Estate Market

Indiana’s largest city, Indianapolis, takes the top spot for highest paying cities in Indiana. Generally, larger cities have more turnover, higher median home prices, and more inventory, which results in a relatively higher salary.

Indiana also has more rural areas with lower home values and less turnover. These homes can sit on the market for slightly longer than city or suburban homes. In fact, Indiana home sellers outside of Indianapolis sit on the market for 6 days longer than in the city.

Approximately 97% of homes sell for their list price, and 18% sell above the list price, revealing a market that is somewhat competitive.

Reach Out With Questions

Buying or selling a home is a big decision. It often comes with uncertainty or questions. New agents can also come across unique issues that leave them with questions. Ask a licensed real estate agent any question on FastExpert’s advice page or search for a topic that interests you.


The Responsibilities of a Real Estate Agent in Indiana

A real estate agent’s job is to act as a middleman between buyers and sellers. They are responsible for handling all of the paperwork and legwork involved in buying or selling a property.

Real estate agents are required to maintain a license from the state in Indiana. To get a license, agents must take an exam and complete a certain amount of continuing education credits.

Once licensed, agents must adhere to a strict code of ethics set forth by the state. This code of ethics requires agents to act in their client’s best interests and to disclose any potential conflicts of interest.

Still, personality, experience, knowledge of building codes, and work ethic play important roles in your choice of a realtor.

How to Choose a Real Estate Agent in Indiana

Selling your home is a big decision. You want to make sure you are working with an experienced agent who knows the ins and outs of the industry, and who will work hard to get you the best possible price for your home.

At FastExpert, we can connect you with top-rated real estate agents in your area, who will provide you with a free, no-obligation consultation.

FastExpert can help you find the perfect Indiana real estate agent for your needs. We can connect you with top-rated real estate agents in your area, who will provide you with a free, no-obligation consultation. FastExpert’s free service allows you to browse the profiles of top-rated agents in your area. Consider interviewing several agents and look at their experience, credentials, and customer reviews.

You can also choose to let us do the work for you and match you with agents that meet your needs. FastExpert is here to help you make your home dreams come true!

Real Estate Experts

FastExpert is a real estate agent directory that ranks agents by location according to client ratings and past home sales history. Our goal is to give you all the information you need to choose the right real estate agent for your needs. Users can search by specific traits that are important to them as well as see specific addresses of homes agents have sold in the past.

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