How Much Does a Real Estate Agent Make in Indiana

Written by: Mary Gerardine

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How Much Does a Real Estate Agent Make in Indiana

Indiana’s real estate market has unique characteristics that can influence a real estate agent’s potential income.

An agent’s earnings in this state can vary significantly, depending on factors like the current market conditions, the number of transactions the close, and their commission rate.

This guide explores the average real estate agent salary in Indiana as well as the possible earnings and additional expenses associated with having a real estate career in the state.

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Real Estate Agent Salary Indiana

Several factors can impact a real estate agent’s salary in Indiana, including:

  • Experience and Expertise: The average salary of a real estate agent in Indiana is $77,845 per year. Real estate agents who’ve been in the business for a longer period of time and built a strong reputation for themselves often earn higher incomes
  • Sales Performance: The number and value of properties sold by a real estate agent will directly affect their earnings. Real estate agents who consistently close more deals and handle high-value properties tend to earn higher commissions and bonuses
  • Local Market Conditions: When the market is “hot” and there’s high demand for properties, agents may have more opportunities to earn higher commissions. Conversely, an agent’s income may decline during a slow market
  • Location: Real estate sales agents working in major cities or affluent neighborhoods generally have access to higher-priced properties, resulting in potentially higher commissions
  • Marketing and Advertising Efforts: The level of investment an agent puts into marketing and advertising their services can influence their salary. Agents who effectively promote themselves and their listings may attract more clients, leading to increased earnings

These factors can interact with each other and vary based on individual circumstances. Market conditions and economic factors also can change over time, which may impact an agent’s salary in Indiana.

Interested in becoming a real estate agent? Check out our How to Get Your Indiana Real Estate License guide.

Understanding Commissions

Real estate commission tends to fall between 5% and 6% of a property’s sale price. The seller’s agent (also called a listing agent) and the buyer’s agent typically split this fee. Therefore, if the commission rate is set at 6%, each agent would generally receive 3%.

Let’s say a home in Indiana sells for $300,000, for example, and the agreed-upon commission is 6%. The total commission would then be $18,000 — half of which usually goes to the seller’s side with the other half going to the buying side. That means each side would get $9,000.

On each side (both listing and buying), agents typically split their commissions with their broker. The exact split agreement can vary, but, for our example, let’s say it’s a 70-30 split in favor of the agent. In this case, the agent would keep $6,300 while the broker would get the remaining $2,700.

Commission structures can sometimes be negotiable, and brokers and agents might offer different models like a flat fee model or a discounted commission model.

Variable Expenses

A real estate agent typically incurs a variety of expenses as part of their work. Below are some of the most common costs:

  • Licensing Fees: Agents must complete continuing education courses regularly to maintain their licenses, and the cost of these courses can vary. Agents also must pay to renew their licenses periodically
  • Office Supplies and Technology Costs: Agents need a variety of supplies and technology tools to do their jobs, including computers, cell phones, internet service, customer relationship management (CRM) software, and more. They also may need to print documents and forms for their clients
  • Marketing and Advertising Fees: These costs can include staging and professionally photographing a listing, creating brochures and flyers, designing offline advertising, building websites, or conducting any form of digital marketing
  • Membership Dues and Listing Service Fees: Many agents join local and national real estate organizations, which charge membership dues. Many also pay for access to a multiple listing service (MLS), which lists properties for sale, on a monthly or annual basis. These access fees can vary, depending on the specific MLS

Note: All of these expenses may be tax deductible for the agent. Make sure you correctly track and report these costs to your brokerage firm in case you need reimbursement.

How to Become a Real Estate Agent in Indiana

Indiana requires applicants to directly apply for a broker’s license. Here are the general steps you must take to get your real estate license:

  1. Complete pre-licensing education. You must complete 90 hours of pre-licensing education from an approved provider. The coursework covers topics like Indiana real estate law, contracts, financing, and more.
  2. Pass the state licensing exam. After you complete your pre-licensing education, you need to pass the Indiana real estate exam. The exam has two sections: one covering national real estate practices and principles and one on Indiana-specific laws and regulations.
  3. Find a sponsoring broker. Before you can practice as a real estate agent, you must find a broker willing to sponsor you. You’ll work under their supervision as you start your career.
  4. Apply for your license. After you pass the exam and secure a sponsoring broker, you can apply for your Indiana real estate license through the Indiana Professional Licensing Agency (IPLA).
  5. Complete post-license education. Once you obtain your license, you must complete a post-licensing course within two years. This course covers practical topics to help you succeed as a new agent.

Note: Having a real estate license in Indiana provides proof that you can legally represent buyers and sellers in property transactions within the state.

Recommended Course

For Indiana real estate pre-licensing education classes, StateRequirement recommends:

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Real Estate Agent Salary Indiana FAQ

How much do real estate agents make in Indiana per sale?

The amount a real estate agent earns per sale in Indiana depends on the property’s final sale price and the agreed-upon commission rate. The average salary of a real estate agent in Indiana is around $77,845. For an overview of real estate agent salaries, check out our How Much Does a Real Estate Agent Make article.

How long does it take to become a real estate agent in Indiana?

The time needed to become a real estate agent in Indiana will depend on how long it takes you to complete the 90-hour, pre-licensing education course, study for and pass the state licensing exam, and find a sponsoring broker. This process typically takes anywhere from a few months to more than a year. Learn more about the licensing process with our real estate licensing guide.

How much can you make as a real estate agent in Indiana?

The income of real estate agents in Indiana can vary, depending on factors like market conditions, the number of transactions they complete, and the price of the properties they sell. However, the average annual salary for real estate agents in Indiana is around $95,833.

Is Indiana good for real estate?

Indiana can be an attractive state for real estate due to its affordable property prices, stable economy, and steady population growth. Cities like Indianapolis, Fort Wayne, and Evansville have shown robust rental markets, making them very appealing to real estate professionals. For more information, check out our How to Get Your Indiana Real Estate License article.

How much does a first-year real estate agent make in Indiana?

In Indiana, a first-year real estate agent’s salary can vary widely. Their annual earnings can go as much as $74,374. Their income may be lower than the average because they still need to build a client base. An agent’s earnings also typically depend on the number of transactions they close and the value of those properties.

Is it hard to become a real estate agent in Indiana?

The ease with which you become a real estate agent in Indiana will depend on your personal abilities, learning habits, and dedication. It involves completing a 90-hour pre-licensing course and passing a state licensing exam. Note that Indiana lets applicants apply for a broker license directly instead of a salesperson/agent license.

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