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If you’re buying or selling a home in Indiana, understanding closing costs upfront keeps your budget on track and avoids surprises. Here’s a simple, friendly guide for Hoosier buyers and sellers.
What Are Closing Costs?
Closing costs are the fees and expenses due when ownership transfers. They’re separate from your down payment and include lender fees, title services, taxes, and prepaid items.
Closing Costs for Buyers in Indiana
Buyers typically pay 2%–4% of the purchase price.
Example: For a $400,000 home, expect $8,000–$16,000 in closing costs.
Common Buyer Closing Costs Include:
- Loan origination and lender fees
- Appraisal and credit report
- Title insurance (usually buyer-paid)
- Recording fees
- Survey fees (if required)
- Prepaid insurance and taxes
Property taxes vary by county, affecting prepaid amounts.
Closing Costs for Sellers in Indiana
Sellers usually pay 1%–3% of the sale price, not including agent commissions.
Example: On a $400,000 home, seller closing costs are about $4,000–$12,000.
Common Seller Closing Costs Include:
- Title services and settlement fees
- Owner’s title insurance (if applicable)
- Transfer taxes (if applicable)
- Prorated property taxes
- HOA fees, if any
- Realtor commissions (typically 5%–6%)
Closing Cost Perks You May Get When Buying New
Unlike resale homes where closing costs can vary, new construction homes usually come with set closing costs. Builders also tend to offer seasonal incentives, such as contributing toward closing costs, to help lower the financial burden for buyers.
The Bottom Line
- Buyers: Budget 2%–4%
- Sellers: Expect 1%–3%, plus agent commissions
- Everyone: Costs vary by county and contract terms
M/I Financial can guide you through the costs of homebuying. We provide personalized mortgage options, competitive rates, and step-by-step support so your closing goes smoothly. (NMLS# 50684)
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