Selling a home can be stressful, but the end goal is always to receive the payment for the sale. Many homeowners may 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 their account?". We will explore these 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 essential 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 be required to sign several documents, including:
1. The Deed
The seller must sign the deed to officially transfer ownership of the property to the buyer.
2. Affidavit of Title
The affidavit of title is typically provided to the buyer before the closing to assure the buyer that the seller has the legal right to sell the property.
The seller of the property 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 sale of the property, 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 all items sold as part of the transaction, including appliances, furniture, and other items in the property sale. The seller must sign the bill of sale to confirm that 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 the mortgage will be paid off as part of the sale of the property.
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 will need to sign various tax forms related to the sale of the property, 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 the closing day:
1. A government-issued ID to confirm their identity.
2. Keys, remotes, garage openers, and access codes required for the house.
3. Any outstanding utility bills.
4. Receipt of repairs made.
5. Any other necessary paperwork related to the sale of the property.
How to Make Closing Day Come Even Faster.
Working with a knowledgeable and experienced real estate agent who can guide you through the process is essential. The agent will ensure that you get your money as fast as possible.
BidMyListing is an online platform that connects sellers with top-rated real estate agents in their area. Using BidyListing, 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 the home is being sold in. Real estate has two types of funding: wet and dry.
1. What is Wet Funding?
In a wet funding state, the funds are transferred 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 used in most states. In these states, the seller can receive funds on the same day as the closing as long as the transaction goes smoothly.
2. What is Dry Funding?
The funds in a dry funding state are not transferred on the closing day in dry funding states. Instead, the buyer's lender sends the funds to the seller's escrow account after the closing documents have been reviewed and approved. 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, it is common for delays to occur, especially if there are any issues with the closing documents or the transfer of funds.
Several dry-funding states exist, including Arizona, California, Idaho, Nevada, Hawaii, Alaska, New Mexico, Oregon, Texas, and Washington. If you are selling your home in one of these states, preparing for the potential delay in receiving your payment is essential.
How Can You Get Paid When You Sell Your Home?
For payment, your closing agent will give you two options:
• Wire transfer.
• Paper check.
1. Wire Transfer
This method involves the transfer of funds directly from the buyer's bank account 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 between24 to 48 hours to process. However, there may be fees associated with wire transfers, so it's important to check with your bank to understand any costs involved.
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. This method may also be more timely.
When selling your home, finding the right real estate agent is essential to 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 bid for the opportunity to represent their home sales. Each bid includes a cash offer, listing term, commission rate, and information about the agent. 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?