How Real Estate Commissions Work in Indiana (2025 Updated Explanation)Real estate commissions in Indiana have changed dramatically due to new rules, lawsuits, and industry reforms. Sellers today need a clear understanding of who they pay, why, and what is and isn’t required anymore.
1. Commissions Are No Longer Shared Automatically Between Listing and Buyer AgentsBefore 2024, sellers typically paid one commission that was split between the listing broker and the buyer’s broker through the MLS.
This is no longer allowed.
MLS systems can no longer display offers of compensation, and commissions cannot be bundled or pre-shared between the two sides.
2. Sellers Now Decide ONLY the Listing Broker’s CommissionWhen you hire a listing broker, you agree on your fee only — for example:
3. If the Buyer Wants Their Agent Paid, That Is Between the Buyer and Their AgentUnder the new rules, a buyer must have a written contract with their agent explaining:
4. Sellers Can Offer Money Toward the Buyer’s Agent — But Only If They Want ToEven though it’s no longer required, sellers may choose to offer a concession to help the buyer pay their agent.
Why might a seller do this?
5. Buyers Cannot Roll Their Agent Commissions Into Their Loan
Sellers can negotiate:
7. How Commissions Are Paid at ClosingAt closing:
1. Commissions Are No Longer Shared Automatically Between Listing and Buyer AgentsBefore 2024, sellers typically paid one commission that was split between the listing broker and the buyer’s broker through the MLS.
This is no longer allowed.
MLS systems can no longer display offers of compensation, and commissions cannot be bundled or pre-shared between the two sides.
2. Sellers Now Decide ONLY the Listing Broker’s CommissionWhen you hire a listing broker, you agree on your fee only — for example:
- %
- A flat fee
- Another negotiated amount
3. If the Buyer Wants Their Agent Paid, That Is Between the Buyer and Their AgentUnder the new rules, a buyer must have a written contract with their agent explaining:
- What the agent charges
- Whether the buyer is responsible for paying
- Whether the buyer wants the seller to cover any portion
4. Sellers Can Offer Money Toward the Buyer’s Agent — But Only If They Want ToEven though it’s no longer required, sellers may choose to offer a concession to help the buyer pay their agent.
Why might a seller do this?
- To attract more buyers
- To strengthen offers
- To help buyers who are short on funds
- To stay competitive with other listings
5. Buyers Cannot Roll Their Agent Commissions Into Their Loan
- This is why it is usually advisable for the seller to offer to pay some or all of the buyers agent commission to take this burden off of the buyer who is also trying to come up with a downpayment and quiet their accounts to be approved for a loan.
Sellers can negotiate:
- Their listing broker’s fee
- Whether they offer buyer concessions
- How much (if anything) goes toward a buyer’s agent
7. How Commissions Are Paid at ClosingAt closing:
- The title company pays the listing broker their agreed fee
- Any seller concessions toward buyer-agent fees are paid separately
- No “split” happens automatically
Use the Net Sheet Calculator below to see how much you can save on your net payout from the sale of your home by adjusting commission rates
Home Seller Net Sheet Calculator (Indiana)
Estimated Net Proceeds:
Itemized Breakdown:
*Closing costs calculated using a 2% industry average for Indiana.
**Calculator results are estimates only. Actual fees vary by lender, title company, taxes, commissions, and contract terms.