When does a seller get money after closing?
A seller generally receives their money between one to four days after closing, but this ultimately depends on the escrow company, how the funds are being delivered, and the seller’s bank.
How fast a seller gets paid after closing also depends on whether the closing is in a "dry" closing state that requires a short waiting period between closing and loan approval.
When Do I Get My Money After Selling My House?
When you get your money after selling a house depends on location and the method of transfer, but funds are usually available within one to four days. You could receive it within 24 hours after closing.
If you are located in a dry closing state, funding from a mortgage lender will take longer than in wet closing states. Likewise, waiting to receive a paper check may take longer than a wire transfer. But if the buyer is paying for the property in cash, the seller receives their money immediately at closing.
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Disbursement of Funds at Closing
When you close on a house, the escrow company or title company releases the funds to the seller. This is known as funding. There are two common ways sellers get money after closing:
- Wire transfer: If you request that sale proceeds are wired to your bank account, funds are typically sent within two days of closing. But it may take your bank longer to post the funds in your account. Sellers who choose this funding option must provide written wire instructions to the escrow company in advance of closing.
- Check: You can also opt to receive sale proceeds by check. You should have the option to pick up the check in person or have it delivered via mail, courier, or even your real estate agent. Give the escrow company your forwarding address or make arrangements to pick it up on or after closing day. As with a wire transfer, it may take several days for your bank to process the check after you deposit it.
Wet Closing vs. Dry Closing
In a wet closing state, the escrow company releases the funds as soon as everything has been finalized. This is the case in 41 states and means that the seller can receive their money as soon as closing day or the next day.
In a dry closing — or dry funding — state, the escrow company holds onto the funds for a period of time, usually 24 to 48 hours. This is done to make sure that all of the paperwork has been completed and everything is in order. If you live on the west coast, you probably live in a dry funding state.
In dry funding states, the seller usually receives their money within three to four days after closing.
Dry Funding States
There are nine dry funding states:
- New Mexico
How Does Closing Work for Sellers?
Luckily, the closing process for sellers is relatively straightforward. In most cases, closings are handled by a professional real estate agent, who oversees the process and makes sure everything goes smoothly. If you're selling a house for sale by owner (FSBO), you'll want to hire a transaction coordinator for help.
Once the buyer agrees to purchase the property, a closing date is set and the escrow process begins. On the closing date, both the buyer and seller meet with a representative from the escrow company or title company to finalize the transaction.
Sellers should bring these items to the closing table:
- A valid, government-issued photo ID
- A cashier’s check for closing costs and seller’s credits not paid out of the proceeds (the closing agent will notify you if this is necessary)
- All access codes, keys, and garage door openers for the house
At closing, the attorney or title company representative reviews all of the necessary paperwork with the parties and ensures everything is in order. What sellers must sign at closing varies, but generally they must provide the buyer with a clear title to the property, and sign the deed over to the buyer.
These are the documents a seller should expect to sign on closing day:
- Seller’s closing disclosure: This is an itemized list that includes the home’s sale price, closing costs, final mortgage payment, and other relevant closing expenses. The disclosure also states how much money the seller will receive upon closing.
- Affidavit of title: An affidavit of title includes the status of pending legal issues related to the seller or the property, as well as a sworn statement that the seller holds the title to the property.
- Deed: A deed includes a legal description of the property and is used to transfer ownership.
- Bill of sale: A bill of sale includes the buyer’s and seller’s names and addresses, date of purchase, and other relevant details. It also includes a description of the property, including a list of any personal property (like furniture and appliances) that conveys with the home.
- Loan payoff: This document comes from the seller’s lender and states the amount of the final mortgage payment, including applicable prepayment penalties.
- Statement of closing costs: This document requires a seller to acknowledge they’re aware of the costs of selling a home.
In addition to meeting basic title requirements, there are a number of closing costs the seller must cover, and these can add up to 8-10% of the sale price, including commissions. Some of the most common expenses are detailed below.
Seller Costs at Closing
Seller Closing Cost
What It Covers
Real estate commissions
Commission payments to buyer’s and seller’s real estate agents
5-6% of sale price (split between the buyer's and seller's agents)
Cost of public records search to confirm seller’s legal title to the property
Policy that protects the buyer from title defects
Payment for closing agent who facilitates the sale (often split between buyer and seller)
0.5% of sale price
Tax charged by some states on the transfer of property
Varies by state
Prorated property taxes and other outstanding amounts
Once all of the necessary documents are signed, the representative releases the funds to the seller. If you're in a wet funding state, you'll get the money within 24 hours. If you're in a dry funding state, you will have to wait three or four days.
You can't really control how long it will take to get money after closing. But you can control how much you spend on closing costs, if you make the right moves.
For sellers, the biggest closing cost is realtor commission fees. If the buyer is using an agent (and they will), you'll have to pay the 2.5-3% buyer's agent commission, which is rarely negotiable. But you can negotiate the 2.5-3% seller's agent commission.
Our partners at Clever Real Estate can help. In fact, they've already pre-negotiated low listing fees with top local agents. With Clever, you can sell your house for 1% for home sales above $350,000 or $3,000 for home sales below that amount.
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FAQs About When A Seller Gets Money After Closing
When do I get my money after selling my house?
When you get your money after selling a house depends on the state where the house is located and the method of transfer, but funds are usually available within one to four days. Learn more about when a seller gets their money after closing.
How long does a wire transfer take after closing?
If you request that sale proceeds are wired to your bank account, funds are typically sent within two days of closing. But, it may take your bank longer to post the funds in your account. Learn more about how long a wire transfer takes after closing.
Do I get a check at closing?
You can opt to receive your sale proceeds via check at or after closing. You will likely have the option to pick up the check in person or have it delivered via mail, courier — or even your real estate agent. You can also receive payment through wire transfer. Learn more about whether you get a check at closing.
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