How Do Real Estate Commissions Work? | Indianapolis REALTOR®

Real estate commission rules changed in 2024. Learn how agent compensation works in Indiana, who pays, and what changed with the NAR settlement.

Quick Answer

In Indiana, real estate commissions are negotiable and typically total 5–6% of the home's sale price. Sellers traditionally pay both their agent and the buyer's agent, though the 2024 NAR settlement changed how compensation is disclosed and negotiated.

Watch: How Commissions Work — Beau’s Explanation

Real estate commissions changed significantly in 2024 following the NAR settlement. This video breaks down the old model, the new model, and what it means for buyers and sellers in Indianapolis.

The Old Model (Pre-2024)

The traditional commission structure worked like this:

  • Seller lists the home and agrees to a total commission (e.g., 6%)
  • At closing, that 6% is split between the listing agent and the buyer’s agent (e.g., 3% each)
  • Buyer pays nothing directly for their agent

What Changed in 2024

Following the NAR settlement, several rules changed:

  1. Buyer representation agreements required — agents must now have a written agreement with buyers before showing homes, specifying the agreed compensation
  2. MLS cannot require seller-paid buyer commission — listing agents can no longer advertise buyer-agent compensation on the MLS
  3. Negotiation is front and center — compensation is now explicitly discussed and agreed upon early in the process

What This Means for Indianapolis Buyers

In practice, most Indianapolis sellers still offer buyer-agent compensation as part of their listing strategy — it attracts more buyers and buyer’s agents. When sellers don’t offer it, buyers can negotiate to have it covered in their offer, or agree to pay their agent directly.

Beau Benjamin Realty Group will walk you through the current norms for your specific target area and price range before you ever tour a home.

What This Means for Indianapolis Sellers

Commission is now fully negotiable. The key questions to ask any listing agent:

  • What is your marketing plan for my home?
  • What is your track record in this price range and neighborhood?
  • How do you justify your commission relative to the results you deliver?

Beau’s answer: Presidents Club recognition every year, proven negotiation skills, and a boutique team that gives your listing maximum attention.

Frequently Asked Questions

Historically, sellers paid a total commission (typically 5–6%) that covered both their listing agent and the buyer's agent. The 2024 NAR settlement introduced new rules requiring buyer-agent compensation to be negotiated and documented in a buyer representation agreement before touring homes. In practice, many sellers still offer buyer-agent compensation as a concession — your agent will advise you on the current market norms.
Under the current rules, buyer-agent compensation must be agreed upon in writing before touring. In many Indianapolis transactions, sellers still cover this as a concession, meaning buyers pay nothing out of pocket. In competitive situations, buyers may need to contribute. Beau Benjamin Realty Group will always be upfront about compensation before you sign anything.
Yes — commissions have always been negotiable and the 2024 NAR settlement reinforced this. There is no standard rate. What you should evaluate is the value your agent delivers relative to their fee: negotiation skill, marketing reach, transaction management, and local expertise. Beau Benjamin's Presidents Club track record reflects the value he consistently delivers.

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