Selling a home can be stressful, but the end goal is always to receive the payment for the sale. Many homeowners ask, "How long does it take to get money after closing?" and "What factors determine how long it will take for the funds to arrive in my account?" This blog will explore those questions and help you understand what to expect on closing day.
When Does Seller Get Money After Closing on a Home Sale?
In many states, you will get paid after completing the closing process. However, the time it takes to get those funds into your account will depend on several factors. These can include your property's location, type of funding, and whether you're working with a top real estate agent.
What to Know About the Closing Day
On closing day, the property sale is completed, the funds get transferred from the buyer to the seller, and the new owners take possession of the property.
As a seller, it's important to understand what documents you'll be signing and what you'll need to bring.
What Does the Seller Sign On Closing Day?
On closing day, the seller will sign several documents, including:
1. The Deed
The seller must sign the deed to officially transfer property ownership to the buyer.
2. Affidavit of Title
The affidavit of title is typically provided to the buyer before closing to verify that the seller has the legal right to sell the property.
The seller signs this legal document to certify that they are the rightful owner of the property and that there are no liens, judgments, or other claims against the property that could affect the buyer's title.
3. The Settlement Statement
The settlement statement, also known as the closing statement, outlines all the costs associated with the property sale, including real estate agent commissions, title fees, and other expenses. The seller must sign the settlement statement to confirm that they agree to the terms outlined in the document.
4. The Bill of Sale
The bill of sale outlines everything sold as part of the transaction, including appliances, furniture, and other items included in the property sale. The seller must sign the bill of sale to verify they are selling these items as part of the transaction.
5. The Mortgage Payoff Statement
This document confirms the amount of money the seller owes on their mortgage and outlines how they will pay off the mortgage as part of the property sale.
6. The Disclosure Forms
The seller must sign various disclosure forms related to the property's condition. These can include disclosures about lead paint, asbestos, and other potential hazards or issues with the property.
7. The Tax Forms
Finally, the seller must sign various tax forms related to the property sale, including forms related to capital gains taxes.
What Should the Seller Bring On Closing Day?
The seller will need to bring the following things on closing day:
A government-issued ID to verify their identity
Keys, remotes, garage openers, and access codes for the home
Any outstanding utility bills
Receipt of repairs made
Any other necessary paperwork related to the property sale
How to Make Closing Day Come Even Faster
Working with a knowledgeable and experienced real estate agent who can guide you through the homeselling process is essential for a quick closing. A top agent will ensure you get your money as fast as possible.
BidMyListing is an online platform that connects sellers with highly motivated local real estate agents. With BidMyListing, sellers can find an agent with the knowledge and expertise to ensure a smooth home sale.
How Long After Closing Date Will Seller Receive Money?
The answer to this question depends on the state in which the home is sold. Real estate has two types of funding: wet and dry.
1. What Is Wet Funding?
In a wet funding state, funds transfer from the buyer's lender to the seller's escrow account on the closing day. The escrow company then distributes the funds to the seller and any other parties involved in the transaction, such as the real estate agents, mortgage company, and title company.
Wet funding is the most common type of funding and is used in most states. In these states, the seller can receive funds on closing day if the transaction goes smoothly.
2. What Is Dry Funding?
The funds in a dry funding state do not transfer on the closing day. Instead, the buyer's lender sends the funds to the seller's escrow account after reviewing and approving the closing documents. The time it takes to receive payment in dry funding states depends on the efficiency of the escrow company, the buyer's lender, and any other parties involved in the transaction.
Generally, it can take two to seven days for the seller to receive payment in dry funding states. However, delays commonly occur, especially if the closing documents or funds transfer have any issues.
Several dry-funding states exist, including Arizona, California, Idaho, Nevada, Hawaii, Alaska, New Mexico, Oregon, Texas, and Washington. If you're selling your home in one of these states, prepare for a potential delay in receiving your payment.
How Can You Get Paid When You Sell Your Home?
Your closing agent will give you two options for payment: wire transfer or paper check.
1. Wire Transfer
This method transfers funds directly from the buyer's lender to the seller's account. It is typically fast, secure, and convenient, as there's no need to wait for a check to clear or worry about lost or stolen checks. Wire transfers typically take between 24 to 48 hours to process. However, wire transfers may incur fees, so check with your bank first to understand any costs.
2. Paper Check
The buyer writes a check for the agreed-upon purchase price, and the seller deposits it into their bank account. While this method is generally reliable and straightforward, there is a risk of bounced checks or other issues that can delay payment. However, paper checks may be more timely than wire transfers.
When selling your home, the right real estate agent can ensure the transaction gets completed smoothly and efficiently.
At BidMyListing, our first-of-its-kind marketplace connects home sellers with top real estate agents who submit proposals to represent their home sales. Each proposal includes a listing term, commission rate, information about the agent, and cash bonus. By putting all the negotiating cards on the table – and having the agent invest in the home sale upfront – we empower home sellers to make more informed decisions. What are you waiting for? Get started today!
To learn more about selling your home, visit our Home Seller Resources >