The Indiana Home-Selling Process: Your Step-by-Step Checklist

Most Indiana residential offers come in on the IAR (Indiana Association of REALTORS) Purchase Agreement, which is the dominant standard contract used by licensed brokers across the state. Read each offer carefully: price, earnest money amount, financing type, contingencies (inspection, appraisal, financing, sale of buyer's home), closing date, and what personal property is included. Don't fixate on price alone — a slightly lower offer with cleaner terms often closes more reliably.

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If the buyer is getting a loan, make sure the offer includes a pre-approval letter from a lender. If it's a cash offer, ask for proof of funds (a recent bank or brokerage statement). Without one of these, you have no real reason to believe the buyer can actually close — and pulling the home off the market for a buyer who can't perform is expensive.

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Post-settlement, the dominant way Indiana sellers handle buyer-broker compensation is the seller-concession route: you agree to pay a defined dollar amount or percentage as a concession at closing, and the buyer applies it toward what they owe their broker under their buyer brokerage agreement. This is a negotiation, not a requirement — but in many Indiana markets, offering some concession is what makes a listing competitive with buyers using broker representation.

Cost: Negotiated — often 2-3% of price if offered

Counteroffer in writing. Common things to negotiate: the final price, the size of the earnest money deposit, the length of the inspection period, whether the buyer is waiving any contingencies, what stays with the house (appliances, fixtures, window treatments), and the closing date. Try to align the closing date with your move-out plans — Indiana title companies typically need at least 30-45 days to schedule a residential closing.

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Once you and the buyer agree on every term, both sides sign the purchase agreement. The signed contract is the legal trigger that starts every other phase: the buyer's inspection period, the financing timeline, and the title company's work toward closing. Keep a fully signed copy for your records — you'll reference it many times before closing day.

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If you didn't already give the buyer your completed disclosure before they made their offer, deliver it now. Under IC 32-21-5, if the form is delivered after offer acceptance, the buyer has a statutory right to rescind the purchase agreement within a short window after receiving it. Getting the form to the buyer fast — and getting written acknowledgment — closes that rescission window.

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The buyer should deposit their earnest money — often 1-3% of the purchase price — with the agreed escrow holder shortly after acceptance. In Indiana, earnest money held by a licensed broker has to go into a dedicated trust account that's separate from the broker's own funds; commingling those funds is one of the most serious violations a broker can commit. Ask for written confirmation that the deposit cleared.

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If your home was built before 1978, the federal lead-based paint disclosure has to be signed by you and the buyer and attached to the purchase agreement. Make sure the buyer also gets the EPA pamphlet and acknowledges their 10-day inspection right in writing. HUD and EPA actively enforce this rule, so don't treat it as a formality.

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If your home is in a condominium or a homeowners association, Indiana law requires you to provide the buyer with the governing documents. For condos under IC 32-25, that means the declaration, bylaws, rules, current budget, most recent financial statement, and disclosure of any pending special assessments or litigation. For HOAs and planned developments under IC 32-25.5, a parallel disclosure package applies. The buyer has a defined review period to rescind after receiving the full package.

Cost: $50-300 for HOA document fee

Beyond the standard disclosure form, you have an ongoing duty to disclose material facts you actually know about. Indiana-specific items that often come up: methamphetamine manufacturing history (IC 13-14-7.5), severed mineral rights, underground storage tanks under IC 13-23, and any sex offender registry questions a buyer specifically asks about. If you actually know something material, disclose it in writing rather than relying on the buyer to find it.

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The buyer will hire one or more inspectors — typically a general home inspector, plus possibly specialists for radon, mold, sewer scope, well, septic, or termites. Plan to be away during inspections so the buyer and their team can talk freely. Make sure utilities are on, pets are secured, and the inspector has access to the attic, basement, crawl space, and electrical panel.

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After inspections, the buyer typically submits a written response asking for repairs, credits, a price reduction, or some combination. Read it with your agent and separate must-fix items (safety, structural, code) from cosmetic wish-list items. You don't have to agree to everything — but if you decline major items, the buyer may have the right to terminate the contract under the inspection contingency.

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Respond in writing through your agent. Common moves: agree to fix specific items yourself, offer a closing-cost credit so the buyer can handle repairs after closing, or reduce the price. Closing-cost credits are usually cleaner than repairs because they avoid disputes over workmanship — but they also reduce your net proceeds dollar-for-dollar.

Cost: Varies — often $0-5,000+

If the inspection reveals something you didn't previously know about — say, an underground storage tank, evidence of past methamphetamine manufacturing, or active mold — your disclosure duty under IC 32-21-5 updates the moment you become aware. Add the new information to your written disclosure rather than treating the inspection report as the buyer's problem. If the deal falls through and you re-list, future buyers are entitled to the same information.

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The buyer's lender will order an appraisal to confirm the home is worth at least the loan amount. The appraiser will visit, measure, photograph, and compare your home to recent sales. Make the home presentable, list any recent upgrades for the appraiser (new roof, HVAC, kitchen), and clear easy access to every room. You don't get to set the value, but a well-kept, well-documented home gives the appraiser fewer reasons to come in low.

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If the appraisal comes in below the contract price, the buyer's lender will only loan against the appraised value. You have a few options: lower the price to the appraised value, meet the buyer somewhere in the middle, ask the lender to reconsider with additional comps your agent provides, or let the buyer cover the gap in cash. If you can't agree, the buyer can typically walk away under their financing contingency and keep their earnest money.

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The buyer's lender (and underwriter) may ask for additional documents from the seller side as the loan moves to final approval — for example, an HOA insurance certificate, proof of recent repairs, or a survey if the title company requests one. Respond fast. A buyer's loan can be delayed by missing seller documents just as easily as by missing buyer documents.

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The purchase agreement gives the buyer a deadline to either lock in financing or walk away. Have your agent confirm in writing when the buyer's financing contingency is released — that's the moment the deal becomes meaningfully harder for the buyer to back out of without losing earnest money. Until that release, your home is technically at risk of falling out of contract.

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If you committed to specific repairs as part of the inspection negotiation, hire licensed pros where required, keep all receipts and invoices, and ask the contractor to note the work in writing. Buyers will inspect repaired items during the final walkthrough, and missing or shoddy work can delay closing or trigger a credit demand at the closing table.

Cost: Varies based on repairs

Indiana is not an attorney closing state. Residential closings here are routinely handled by title companies under IC 27-7.3, without an attorney unless you choose to have one. The title company orders the title search, issues the title commitment, prepares closing documents, and disburses funds. Confirm the closing date, time, and location with the title company and ask what you need to bring.

Cost: Title company fees split per contract

Your lender will issue a payoff statement showing exactly how much it takes to satisfy your mortgage on the planned closing date. The title company needs this so they can wire off the loan from your sale proceeds. Do the same for any home equity line, judgment lien, or tax lien on the property. Missing payoff statements are one of the most common reasons closings get pushed back a day or two.

Cost: $0-50 lender payoff fee

If you are an out-of-state seller, Indiana requires withholding of state income tax on the sale of Indiana real property under IC 6-3-4-16.5. The current rate is 3.23% of the net selling price (after adjusted basis and certain selling expenses), reported on Indiana Form WH-18 by the closing agent. Indiana residents are exempt, and other exemptions can apply. The title company usually handles the mechanics, but you need to give them complete residency information well before closing.

Cost: 3.23% of net selling price if applicable

If you are a non-U.S. person (a non-resident alien, foreign corporation, foreign partnership, or foreign trust), the federal FIRPTA rules under 26 U.S.C. 1445 require the buyer to withhold 15% of the gross sales price and remit it to the IRS using Form 8288 unless an exemption applies. The buyer (not you) is personally liable for the tax if they fail to withhold, so they have a strong incentive to verify your status early. Give the title company complete documentation well before closing.

Cost: Up to 15% of gross sales price withheld if applicable

The buyer usually walks the home one last time within 24-48 hours of closing. Make sure agreed repairs are finished, the home is broom-clean, included personal property is still there, and excluded items have been removed. Leave keys, garage door openers, mailbox keys, manuals, and warranties in an obvious spot. Turn the home over the way you would want to receive it.

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Show up at the agreed time with a government-issued photo ID. The title company will walk you through and have you sign the deed transferring ownership, the closing disclosure showing the math, an affidavit of title, and any tax or withholding forms. Read each document before signing — your closer will explain anything that's unclear. Spouses or co-owners typically need to sign too, even if only one name is on the mortgage.

Cost: Title and recording fees split per contract

Indiana requires a Sales Disclosure Form (SD-1) to be filed with the county assessor for every real property transfer under IC 6-1.1-5.5. The form is different from the Seller's Residential Real Estate Sales Disclosure — it's a tax-administration document used to update assessed values and compile sales data. In most Indiana counties the recorder will refuse to record the deed without an SD-1 attached, so the title company will have you and the buyer sign it as part of closing.

Cost: $10-20 filing fee typical

Possession transfers per whatever you and the buyer wrote into the purchase agreement — usually at closing, sometimes a few days after if you negotiated a post-closing occupancy. Leave every key, opener, code, fob, and remote in the home or at the title company. Also leave the trash bins, recycle bins, manuals, paint cans for touch-ups, and any warranties that transfer with the home.

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After the title company pays off your mortgage, any liens, commissions, taxes, withholding, and other closing costs, your net proceeds get wired to the account you specified. Confirm the wire is in your account before leaving the closing or shortly after. Be extremely careful with wiring instructions — wire fraud targeting real estate closings is common, so verify any wiring details by calling a phone number you already know, not one in an email.

Cost: Wire fee $15-50 typical

Keep a digital and a physical copy of every closing document — the signed deed, the closing disclosure, the SD-1, your seller's disclosure, repair receipts, and any withholding forms. You'll need these when you file your federal and Indiana income tax returns for the year of sale, especially if you owe capital gains, claimed the principal-residence exclusion, or had nonresident or FIRPTA withholding applied.

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