What Are the Steps to Buying a House in Indiana?
Quick answer: Buying a house in Indiana follows ten steps: mortgage pre-approval, a written buyer agency agreement, touring, an offer on the Indiana Association of REALTORS purchase agreement, earnest money, the inspection period, the appraisal, title work, the final walkthrough, and closing. Mark Dietel Realty guides buyers through this sequence every week on the Southside of Indianapolis and in Johnson County, Indiana.
Key takeaways
- Since July 1, 2024, Indiana law requires a written buyer agency agreement with an expiration date before an agent represents you.
- Most Central Indiana purchases run 30 to 45 days from accepted offer to closing when financing is involved; cash can close faster.
- The inspection period and the appraisal are the two points where most deals get renegotiated.
- Property taxes in Indiana are paid a year behind, so file your homestead deduction with the county auditor soon after closing.
What are the steps to buying a house in Indiana?
The Indiana home-buying process has ten steps. You get pre-approved, sign a buyer agency agreement, tour homes, write an offer, deposit earnest money, complete inspections, wait for the appraisal, let the title company clear title, do a final walkthrough, and sign at closing. The order rarely changes. The timing does.
Here is how it runs in Marion County and Johnson County, Indiana.
Steps 1 to 3: Pre-approval, the buyer agency agreement, and touring
Start with the lender, not the listings. A pre-approval tells you what price range is realistic and tells a seller in Greenwood or Franklin that your offer can close. In our experience on the Southside, offers without one are set aside when there are multiple offers. Ask about conventional, FHA, VA and USDA loans, and about Indiana Housing and Community Development Authority (IHCDA) programs such as First Place, Next Home and the Mortgage Credit Certificate; terms change, so confirm at in.gov/ihcda. For context, Freddie Mac's Primary Mortgage Market Survey reported an average 30-year fixed rate of 6.66 percent for the week of August 27, 2026.
Next comes the buyer agency agreement. Indiana Code 25-34.1-12-2, added by House Enrolled Act 1068 and effective July 1, 2024, requires that buyer representation be in writing with a definite expiration date, with a copy to you within three business days of signing. Separately, National Association of REALTORS rules effective August 17, 2024 require a written agreement before an agent tours a home with you. The agreement spells out what your agent does and how the agent is paid. Commissions are fully negotiable and are not set by law.
Then tour. Showings in Central Indiana are scheduled through the MIBOR Broker Listing Cooperative (BLC). The Indianapolis metro had 2.7 months of supply in July 2026 according to MIBOR, so well-priced homes still move quickly, but you have more choices than a year ago.
Steps 4 to 6: The offer, earnest money, and the inspection period
Most Indiana residential offers are written on the Indiana Association of REALTORS Purchase Agreement (Improved Property). The key items are price, closing date, financing type, earnest money, inspection period, any appraisal or sale-of-home contingency, requested seller concessions, and what stays with the house. The seller can accept, reject or counter.
Earnest money is your good-faith deposit. It is held in escrow by the listing broker or title company, not handed to the seller, and credited to you at closing. Whether you get it back depends on which contingency you cancel under and by what date; our earlier post on earnest money in Indiana covers that.
The inspection period is where you learn what you are buying. A general inspection covers roof, structure, electrical, plumbing, HVAC and appliances; on the Southside, buyers often add a sewer scope, radon test and termite inspection. Then you have three choices: accept as-is, ask for repairs or a credit on the inspection response form, or cancel within the period and request your earnest money. Around this time you also receive the Indiana Seller's Residential Real Estate Sales Disclosure, State Form 46234, and, for homes built before 1978, the federal lead-based paint disclosure.
Steps 7 to 10: Appraisal, title work, the final walkthrough, and closing
Once inspections are settled, the lender orders the appraisal. If it comes in below the contract price, the options are a price reduction, the buyer covering the gap, a split, or cancellation under an appraisal contingency.
Meanwhile the title company searches county records, clears old liens and issues a title insurance commitment, and the underwriter gives final approval. Federal rules require that you receive the Closing Disclosure at least three business days before closing.
Twenty-four to forty-eight hours before closing you walk through the home to confirm agreed repairs are done and nothing was damaged in the move-out. At closing, usually at the title company, you sign the note, mortgage and the Indiana Sales Disclosure Form 46021, which records the sale price with the county. Funds arrive by wire, the deed is recorded, and you get the keys.
One Indiana-specific step comes after closing. Property taxes are billed a year behind, and the seller's homestead deduction does not transfer to you. Deduction applications must be completed and dated by December 31 and filed by January 5 to apply to the next year's bill, according to the Indiana Department of Local Government Finance. File with your county auditor once your deed is recorded.
What does this look like in Central Indiana?
Here is a hypothetical example. A buyer is pre-approved and finds a three-bedroom ranch listed at $285,000 in Greenwood, Indiana, ZIP 46143. That is close to the Johnson County median sale price of $333,498 reported by the Indiana REALTORS Housing Data Hub for July 2026, when homes went from listing to pending in a median of 30 days.
The buyer offers list price with a 10-day inspection period, an appraisal contingency and a 35-day closing. The seller accepts on a Friday. Earnest money goes to the title company on Monday. The inspection on day five finds an aging water heater and two failed window seals; the buyer asks for a credit, the seller agrees to a smaller one, and the inspection response is signed on day nine. The appraisal comes in at contract price on day 20. The Closing Disclosure arrives on day 32, the walkthrough is day 34, closing is day 35, and the homestead deduction is filed with the Johnson County Auditor the next week. No two files run exactly alike, but this is the rhythm most of our Southside and Johnson County buyers experience.
When this doesn't apply
This sequence assumes a financed purchase of an existing home listed on the MIBOR BLC. Cash buyers skip the appraisal and underwriting and can close in one to two weeks. New construction in Bargersville, Whiteland or Franklin uses the builder's contract, not the IAR purchase agreement, and follows the build schedule. Foreclosure and sheriff sales in Indiana have their own rules and often no inspection period. Homes on wells and septic systems in rural Johnson County or Morgan County add inspections city buyers never see. And buying and selling at the same time means coordinating two timelines, which deserves its own plan.
What to do next
If you are early in the process, the most useful first step is a lender conversation to get pre-approved and a written buyer cost estimate so you know what cash you will need at closing. If you want a second set of eyes on an offer, an inspection report or a Closing Disclosure, the Mark Dietel Realty team is glad to walk through it with you. Call (317) 426-9911 or visit markdietelrealty.com. Offices in Southside Indianapolis, Greenwood and Bloomington, Indiana.
Frequently asked questions
Do I have to use the seller's title company in Indiana?
No. In Indiana the choice of title company is negotiated in the purchase agreement, and buyers commonly select the company that issues their lender's policy. If the seller has already opened title with a company, using the same one can simplify closing, but you may request a different one before the contract is signed.
Can I back out after my offer is accepted in Indiana?
You can cancel without losing earnest money only through a contingency written into the purchase agreement, such as inspection, appraisal or financing, and only within its deadline. Canceling for a reason not covered by a contingency usually means the seller can claim the earnest money. Read every date in the contract before you sign.
Do I need to attend closing in person?
Not always. Many Indiana title companies allow a mobile notary, a mail-away closing or a remote online notarization for buyers who are out of state. Your lender must approve the method for loan documents. Tell your agent and the title company early so the paperwork and wire instructions can be arranged in advance.
When do I get the keys after closing in Indiana?
Typically the same day, once the title company confirms that all funds have been received and the deed is sent for recording. Some purchase agreements allow the seller to stay for a short period after closing, called possession after closing, which is negotiated in advance and written into the contract with a specific date.