Is the Real Estate Commission Negotiable in Indiana?
Yes. In Indiana, real estate commissions are fully negotiable and are not set by law. What you pay depends on the listing agreement you sign, the services you choose, and the market you are selling in. Mark Dietel Realty puts every number in writing for sellers across Southside Indianapolis, Greenwood, and Johnson County, Indiana.
Key takeaways
- No Indiana statute, MIBOR BLC rule, or association sets a commission rate. The number comes from your listing agreement, and since July 1, 2024 that agreement must be in writing under House Enrolled Act 1068-2024.
- Since August 17, 2024, the MLS no longer displays offers of buyer-agent compensation. Sellers decide what, if anything, to offer, and how.
- The number moves with the services included, the price point, the condition of the home, and the pace of your local market, so compare what is included before you compare rates.
- The only way to know your true cost of selling is a written net sheet built for your address before you sign anything.
What does "fully negotiable" actually mean in Indiana?
Negotiable means the commission is a contract term, the same as your list price or your closing date. You and the listing brokerage agree to it before the home goes on the market. The National Association of Realtors' own settlement materials require the plain statement that broker fees and commissions are fully negotiable and not set by law.
In our experience on the Southside, most sellers walk into a listing appointment assuming there is a going rate they have to accept. There is not. Every brokerage in Indiana prices its own services, and every listing agreement is its own negotiation. Two brokerages can quote the same number and include very different work, or quote different numbers for nearly identical work. That is why we tell Greenwood and Southside Indianapolis sellers to treat the conversation the way they would treat a contractor bid: get the scope in writing first, then talk about the number.
Who decides what the commission is on an Indiana home sale?
You and the listing brokerage do, in the listing agreement, and no one else. The Indiana Real Estate Commission licenses brokers under Indiana Code 25-34.1, but it does not set or review what brokerages charge. The MIBOR BLC publishes listing data, not pay. Nothing in Indiana license law fixes a rate.
Indiana's licensing rules govern conduct, not pricing. For example, 876 IAC 8-1-8 requires the brokerage's name on advertising, which is why "Mark Dietel Realty" appears on every sign and every page like this one. But you will not find a rule anywhere in the Indiana Code or the administrative code that tells a brokerage what to charge a seller in Franklin, Bargersville, or Beech Grove. If someone tells you a rate is "standard," ask them to show you where that standard is written. No such document exists.
What does Indiana law require to be in writing?
House Enrolled Act 1068-2024 added Indiana Code 25-34.1-12, effective July 1, 2024. It requires written agency agreements on both sides of a sale: listing agreements with sellers and buyer agency agreements with buyers. Each must carry a definitive expiration date, and the broker must give you a copy within three business days of signing.
The Indiana Professional Licensing Agency announced the change on June 27, 2024, and it matters for your wallet: the document that states what you will pay is now required, dated, and in your hands early. Before you sign a listing agreement in Johnson County or Marion County, read four things closely: the services the brokerage commits to, the term and its expiration date, what happens if you cancel early, and exactly how the brokerage is paid, including what happens if you find the buyer yourself. If any of those four is vague, ask for it in writing before you sign, not after.
What changed with the NAR settlement in August 2024?
Since August 17, 2024, buyers must sign a written agreement before touring homes with an agent, and that agreement states exactly what their broker will be paid, in specific and objective terms. That broker cannot collect more than the agreed amount from any source. Offers of buyer-agent pay no longer appear on the MLS.
For Indiana sellers, the practical change is this: the question of paying the buyer's side moved out of the MLS and into the offer itself. A seller can still choose to offer concessions on the BLC, agree to terms off the MLS, or wait and respond to whatever a specific offer requests. Nothing requires any of those, and nothing forbids them. We cover the seller's side of that decision in a separate post, Do Sellers Still Pay the Buyer's Agent in Indiana?, because it has become its own conversation on nearly every Central Indiana sale we handle.
What actually moves the number when you negotiate?
Four things, mostly: the scope of services and marketing included, the price point of the home, its condition and how much coordination it needs, and how fast your local market is moving. A brokerage's pricing usually reflects the work it expects to do, so change the work and the number can change too.
Local pace is real leverage in both directions. In Johnson County, the median sale price was $330,000 in August 2026, homes went pending in a median of 24 days, and sellers received an average of 95.2% of list price, per the Indiana Association of REALTORS Housing Data Hub. A home that is priced right in that market needs strong marketing up front and tight coordination after the offer. A harder property, or a slower pocket, needs a longer campaign. When you talk with any brokerage, including ours, ask how the plan, and the number, would change for your specific house. Mortgage rates shape it too: Freddie Mac's survey put the 30-year average at 6.76% for the week of September 10, 2026, which keeps buyers careful and makes pricing and presentation matter more, not less.
What is included varies more than sellers expect: professional photography and video, staging help, BLC entry and syndication, showing coordination, weekly reporting, negotiation, and transaction management through closing. We walk through that full scope in What Does a Listing Agent Actually Do for the Fee?
How do we suggest sellers handle the commission conversation?
Ask every brokerage the same five questions, get the answers in writing, and compare complete packages rather than single numbers. A lower rate with weak marketing can cost more at the sale price than it saves at closing, and the reverse can be true as well. Written answers make the comparison honest.
One honest note: we are a listing brokerage, so we have a side in this conversation. That is exactly why we think every seller should collect the answers above from more than one brokerage, including from flat-fee and limited-service models, which are legal in Indiana and fit some sellers well. We would rather earn the listing against a fair comparison than a fuzzy one.
What does this look like in Central Indiana?
Here is a hypothetical example, not a quote: a ranch in Greenwood, Indiana listed at $330,000, the Johnson County median for August 2026. The worked example below shows where each closing-day number comes from. Notice that the agent line is blank on purpose: it comes from your own signed agreement, nowhere else.
Every line above except the sale price is knowable before you list. That is the whole argument for doing this on paper first: at a median of 24 days from list to pending in Johnson County, decisions come fast once you are live, and the sellers who already understand their numbers negotiate better.
When this doesn't apply
This post is about listing a home with a brokerage in Indiana. It does not apply if you are selling without an agent, which some sellers do successfully, and which we compare honestly in Is Selling Your Home Without a Realtor Worth It in 2026? It also does not apply to builder purchase contracts on new construction, to court-ordered sales such as a sheriff sale, or to selling directly to someone you already know without either side using an agent. And if your priority is speed or certainty over top dollar, a cash sale or guaranteed sale structure changes the conversation entirely; read What Happens After I Accept an Offer on My House in Indiana? once you are under contract.
What to do next
If you are thinking about selling in the next year, ask us, or any brokerage you are considering, for two documents: the written list of included services and a written net sheet for your address. That is an education, not a commitment. Call or text Mark Dietel Realty at (317) 426-9911 or visit markdietelrealty.com. We have offices in Southside Indianapolis, Greenwood, and Bloomington, and we will put every number in writing.
Questions sellers ask us about commissions
Is there a standard commission rate in Indiana?
No. No Indiana law, licensing rule, or MLS policy sets a rate, and the NAR settlement requires agents to state plainly that broker fees and commissions are fully negotiable and not set by law. Any number you hear is one brokerage's pricing for one scope of work, not a standard.
Can I renegotiate after the listing agreement is signed?
Only by written amendment that both you and the brokerage agree to. That happens, for example, when the scope changes mid-listing or a price strategy shifts. It is far easier to negotiate the terms you want before signing, which is why Indiana's written-agreement law works in your favor.
Am I required to pay the buyer's agent when I sell?
No Indiana law requires it. Since August 17, 2024 it is negotiated in each transaction, usually through the purchase agreement. You can offer help up front, respond offer by offer, or decline. Each choice has trade-offs, which we cover in a separate post in this series.
Are flat-fee and limited-service listings legal in Indiana?
Yes. Licensed brokerages offer them across Central Indiana, and they fit sellers who want to handle parts of the sale themselves. The comparison that matters is the written scope of services against the total cost, for your specific house and timeline, not the label on the model.
Does a more expensive home change the conversation?
Often, yes. The work to market a home does not scale in a straight line with its price, so structure and number are both worth discussing at any price point. The principle does not change: everything is negotiable and everything belongs in the written agreement.
Do I owe anything if my home never sells?
That depends entirely on your listing agreement, which is why we tell sellers to read the term, expiration, and cancellation language before signing. Ask the direct question and get the answer in writing. Under Indiana Code 25-34.1-12, the agreement must state when it ends.
Where do these numbers show up at closing?
On your settlement statement from the title company, line by line, alongside the payoff, prorations, and title charges. Indiana closings also record the sale on the State Sales Disclosure Form 46021. Your net sheet should have predicted the statement closely; ask about anything that moved.