🧾 Closing Costs in Indiana: What Buyers & Sellers Should Expect

Whether you’re buying your first home or preparing to sell in Indiana, closing costs are one of those things that can catch people off guard — especially if they don’t know what to expect. Today we’ll break down what closing costs are, who pays what, typical ranges in Indiana, and smart ways to prepare.

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📌 What Are Closing Costs?

Closing costs are the fees and expenses that both buyers and sellers pay at the end of a real estate transaction, in addition to the purchase price. These cover services required to transfer ownership — such as title work, loan processing, taxes, and insurance.

Unlike your down payment or asking price, closing costs are separate — and they vary based on your situation, county, lender, and even the type of loan you’re using.

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🧑‍💼 Buyer Closing Costs in Indiana

As a buyer in Indiana, you’ll likely pay between 2% and 5% of the purchase price in closing costs. Here’s what goes into that total:

🧾 Common Buyer Closing Costs

🔹 Loan Origination Fee
Charged by your lender to process your loan. This usually ranges from 0.5%–1% of the loan amount.

🔹 Appraisal Fee
Required by lenders to determine the property’s market value ($350–$600 on average).

🔹 Title Search & Title Insurance
Ensures the property’s title is clear. Title services typically cost $500–$2,000+ depending on price and county.

🔹 Property Taxes Prorated
Buyers often pay a prorated share of taxes for the year.

🔹 Homeowner’s Insurance
Lenders require you to pre‑pay your first year’s policy at closing.

🔹 Escrow Fees
Handled by the title company for closing management.

🔹 Recording Fees
Charged by the county to officially record the transfer.

🔹 Prepaid Interest
Interest accrued between closing and your first mortgage payment.

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🏡 Seller Closing Costs in Indiana

Sellers traditionally pay around 6% of the sale price — but the only required cost is the real estate commission. Here’s how seller costs typically break down:

🔹 Real Estate Commission

The largest seller expense — generally 5%–6% of the sale price, shared between listing and buyer’s agents.

🔹 Title & Transfer Fees

Sellers pay the title company for paperwork and preparation of the deed.

🔹 Prorated Property Taxes

Sellers pay property tax up through the closing date.

🔹 Other Possible Seller Costs

• Home inspection repairs (if negotiated)
• Home warranty contributions
• HOA transfer fees
• Mortgage payoff / prepayment penalties (rare but possible)

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📊 Typical Cost Examples (Indiana)

Transaction	Estimated Closing Costs
Buyer (2–5%)	Example on $300,000 home: $6,000–$15,000
Seller (5–6% + fees)	Example on $300,000 home: $18,000–$20,000+

👉 Keep in mind these are typical ranges. Your actual costs will vary based on your lender, county, loan type, and negotiation.

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💡 Ways to Reduce or Manage Closing Costs

✔ Ask the Seller for Credits

Buyers can negotiate seller concessions to offset some costs.

✔ Shop Lenders & Title Companies

Closing fee structures differ — comparing options can save money.

✔ Understand Loan Types

Some government loans (FHA, VA, USDA) allow certain fees to be paid by the seller or wrapped into the loan.

✔ Get a Good Faith Estimate (GFE) Early

Your lender must provide an estimate of your closing costs early in the process so you can plan ahead.

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🧠 Why Closing Costs Matter

Many buyers forget to budget for closing costs — and that can lead to stress at the worst possible time. Likewise, sellers who don’t anticipate agent fees, title fees, and prorated taxes can misprice their net proceeds.

Knowing what to expect helps you plan your budget confidently and avoid surprises.

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📞 Ready to Break Down Your Closing Costs?

Every situation is unique — and closing costs can vary by price, location, loan, and more.

If you’re buying or selling in Indiana, we’d love to help you:

✅ get a personalized estimate
✅ strategize negotiation or credits
✅ plan your move with confidence

👉 Contact Jeanette & Doug Hammel for a complimentary closing cost review!