The short answer: most Southern Indiana sellers pay their mortgage payoff, agent fees, title and closing fees, their share of property taxes, and any repairs or credits they agree to. Indiana has no real estate transfer tax, which keeps selling here more affordable than in many states.
One of the first questions I hear at a kitchen table is, "So what am I actually going to walk away with?" It's a fair question. Your sale price is only part of the story. The other part is what comes out before the money lands in your account.
The good news? Selling a home in Southern Indiana costs less than in a lot of other places, and most of it is easy to plan for once you know what to look for. Here's the plain-English rundown I walk my sellers through in New Albany, Jeffersonville and all across Clark and Floyd counties.
1. Your mortgage payoff
This is usually the biggest number. Your lender gives the title company an exact payoff amount, including interest up to the day you close. If you have a home equity loan or line of credit, that gets paid off too. Any liens on the property have to be cleared before the sale can close.
2. Agent fees
Agent fees are not set by law, and they're always negotiable. When we sit down together, I'll walk you through exactly how I'm paid and what's included, and we'll put it in writing in your listing agreement. Since August 2024, offers of buyer agent compensation are no longer shown in the MLS, so we'll also talk about whether offering anything toward a buyer's agent makes sense for your home. That's always your choice.
3. Title and closing fees
The title company makes sure your home transfers cleanly. Sellers usually pay for things like the title search, their share of the closing (settlement) fee and preparing the deed. Here in Southern Indiana, the buyer's owner's title insurance policy is the buyer's cost, unless you agree to a seller concession. That's an allowance, a set dollar amount or a percentage of the price, that you negotiate in the purchase agreement and the buyer uses toward their closing costs. How it all splits is spelled out in your purchase agreement, so there are no surprises.
Here's a nice one: Indiana has no real estate transfer tax. In a lot of states, that alone can cost sellers thousands.
4. Property taxes (the one that surprises people)
Indiana pays property taxes in arrears, which means this year's bills cover last year. Most Southern Indiana purchase agreements handle it in two parts. First, any taxes from a past year that are still unpaid are paid by you at closing, either straight to the County Treasurer or as a credit to the buyer. Second, this year's taxes are prorated by the calendar, up to the day before closing. Since this year's bill won't arrive until next year, your share shows up as a credit to the buyer on the ALTA settlement statement, so the buyer can pay that bill when it comes due.
5. Repairs and buyer requests
After the home inspection, buyers may ask for repairs or a credit. You can agree, offer a credit instead or say no. Some buyers also ask for help with their closing costs. I'll help you weigh every request against what it actually costs you, so you can decide with clear numbers in front of you.
6. Getting ready to list
This part is up to you, and it doesn't have to be big. A deep clean, fresh paint where it's needed, fixing a dripping faucet and some mulch out front go a long way. When you're ready to list, I'll walk through your home with you and we'll make a simple plan together, so you're only spending money where it really counts.
7. The little things
Don't forget your final water, gas and electric bills, any HOA dues and fees, and moving costs. Keep paying your mortgage and homeowners insurance right up until closing day.
8. Capital gains tax (for most homeowners, it's $0)
If you're selling the home you live in, you probably won't owe capital gains tax. The IRS lets you leave out up to $250,000 of profit, or up to $500,000 if you're married and file jointly, as long as you've owned the home and lived in it for at least two of the last five years. Indiana follows the federal rule, so that same profit stays off your state and county income taxes too.
Your profit isn't just the sale price. It's figured from what you paid, plus improvements you made and some of your selling costs, so keep those receipts. Where taxes can come up: a rental or second home, a home you've lived in less than two years, an inherited home, or a profit bigger than the limit. In those cases, talk with your tax professional before you list. A little planning can make a big difference.
Quick answers to common questions
Does Indiana charge a transfer tax when I sell? No. Indiana has no real estate transfer tax.
Are agent fees set by law? No. They're always negotiable, and we put the details in writing before your home goes on the market.
Why do I owe property taxes if I'm moving out? Indiana pays property taxes a year behind, so the unbilled taxes for your time in the home are credited to the buyer at closing.
Will I pay capital gains tax when I sell my home in Indiana? Usually not on your main home. If you've owned and lived in it for two of the last five years, up to $250,000 of profit ($500,000 for married couples filing jointly) is tax free, for both federal and Indiana taxes.
Do I need an attorney to sell my home in Indiana? Not usually. The title company handles the closing, though you can always hire an attorney if you'd like one.
See your real bottom line before you list
You shouldn't have to guess. Before you ever put a sign in the yard, I'll put together a free net sheet for you. It shows your estimated costs and what you can expect to walk away with at a few different sale prices. It's one of my favorite things to do for sellers, because it takes so much stress out of the decision.
Thinking about selling this year or next? Call or text me at 502-938-4747, see what your home could be worth with my free home value tool, or grab my free Home Seller's Guide. It walks you through every step, from getting your home ready to handing over the keys. I'm always happy to help, with no pressure, ever.
Crystal Reardon Miller, REALTOR®, Epique Realty. Licensed in Indiana as Crystal Miller, #RB17000756. 217 W Spring Street, New Albany, IN 47150. 502-938-4747. homes@crystalreardonrealty.com. Equal Housing Opportunity. This post is general information, current as of October 2026, and is not legal, tax or financial advice. Tax rules can change and every situation is different, so please talk with a tax professional or attorney about yours. Your purchase agreement and closing documents control the details.