Selling a Home in Indiana: Disclosures, Closing Costs, Taxes and Timeline
Selling a home in Indiana comes with its own rules: a required seller disclosure form, property taxes that are a year behind, and closing costs that are shared differently than in other states. This guide walks South Bend and Michiana sellers through the process, the costs, the inspections and the tax questions to plan for.
Step by step: how selling a home in Indiana works
Price it right. Start with a comparative market analysis of recent sales near your home. Pricing too high is the most common reason homes sit.
Prepare the home. Make key repairs, declutter and stage. Consider a pre-listing inspection for older homes.
Complete your disclosures. Fill out Indiana's Seller's Residential Real Estate Sales Disclosure form, plus the federal lead-based paint disclosure if the home was built before 1978.
List and market. Professional photos, the MLS and targeted marketing bring in qualified buyers.
Review offers. Compare price, financing, earnest money, inspection terms, credits requested and closing date, not just the top number.
Inspections, appraisal and closing. Respond to the buyer's inspection requests, support the appraisal and close with a title company.
Indiana's seller disclosure form
Indiana law requires most sellers of homes with one to four units to give buyers a completed Seller's Residential Real Estate Sales Disclosure form before an offer is accepted. It asks about the condition of the roof, foundation, systems, water, sewer or septic, and other known problems. Answer honestly and completely. The form is about what you actually know, and clear disclosure protects you after the sale. If the home was built before 1978, federal law also requires a lead-based paint disclosure.
Closing costs for sellers in Indiana
Seller costs vary by sale, but plan for these common items:
Real estate commissions. Commissions are negotiable. Since 2024, the buyer's agent compensation is negotiated separately, and sellers may choose whether to offer a buyer-agent fee or a credit.
Owner's title insurance. In many Indiana sales the seller pays for the buyer's owner's title policy, though it can be negotiated.
Property tax proration. Because Indiana taxes are paid a year behind, sellers usually credit the buyer for taxes that built up during their ownership but haven't been billed yet.
Mortgage payoff and release. Your remaining loan balance and any release fees.
Closing fees and any agreed credits for repairs or the buyer's closing costs.
Indiana does not charge a state real estate transfer tax, which keeps seller costs lower than in many states. I'll give you a net sheet before you list showing what you can expect to walk away with.
Inspections: what to expect as a seller
Most buyers hire a licensed home inspector during the inspection period in the purchase agreement. In St. Joseph County, radon testing is common because about one in four homes has elevated radon, according to the county health department. Homes on well and septic will often have those inspected too. After the inspection, buyers may ask for repairs, a credit or a price reduction. A credit is often simpler than repairs because it avoids reinspection and contractor scheduling.
Want to avoid surprises? A pre-listing inspection lets you fix issues on your timeline. See my guides to getting your home ready to list and what not to fix before selling.
Taxes when you sell a home in Indiana
Property taxes: Indiana bills property taxes in arrears, usually due around May 10 and November 10. Expect a proration credit to the buyer at closing.
Capital gains: Under federal tax law, many homeowners who lived in the home as their primary residence for at least two of the last five years can exclude up to $250,000 of gain ($500,000 for married couples filing jointly). Indiana generally taxes gains as income, so talk with a tax professional about your situation.
Homestead deduction: Your homestead deduction ends when you sell. If you're buying another Indiana home, file for the homestead deduction on the new one.
Read more in my guide to St. Joseph County property taxes.
Frequently asked questions
Is a seller disclosure required in Indiana?
Yes. Most sellers of homes with one to four units must provide Indiana's Seller's Residential Real Estate Sales Disclosure form, plus a federal lead-based paint disclosure for homes built before 1978.
Who pays property taxes when you sell a house in Indiana?
Because Indiana taxes are paid a year behind, the seller typically credits the buyer at closing for taxes accrued during the seller's ownership. The purchase agreement sets the details.
Does Indiana have a transfer tax on home sales?
No. Indiana does not charge a state real estate transfer tax.
How long does it take to sell a home in South Bend?
It depends on price, condition and season. Once you accept an offer, closing usually takes 30 to 45 days for financed buyers. See what it takes to close in 30 days.
Ready to sell in South Bend or Michiana?
I'm Jennifer Lillie, a REALTOR® with Cressy & Everett Real Estate, with 18 years of experience helping sellers across South Bend, Granger, Mishawaka and Michiana. I'll price your home with real local data, help you prepare it, and negotiate the best terms. Contact me for a free market analysis or call 574-286-9667.
More seller guides
This guide is general information, not legal or tax advice. Laws and tax rules change. Confirm details with your title company, a real estate attorney or a tax professional.