How Do I Receive Payment When I Sell My Home?
The day you receive payment from the sale of your home is like getting a Christmas bonus, but bigger. You are excited to cash out on the big investment and move on to bigger dreams.
So when will the day come that you receive the payment for your home, how will you get paid, and who will release the money to you?
Here is what a homeowner should know about getting paid from the sale of their home:
- The final closing date is the day that you will be paid. In most sale transactions a homeowner can collect the profits from the sale as soon as the “ink dries” on the final contract.
- For the speediest payment on your home sale, choose a closing date on a Monday through a Thursday during banking hours. Closing on a Friday could mean waiting until the following Monday when the bank opens to receive payment.
- The fastest and simplest way to receive payment is with a paper check, you can also opt for a wire transfer within 24 hours of closing
- The amount of the check will reflect the net proceeds from the sale, this is the total amount left after your mortgage is paid and fees and taxes are taken care of.
- The money will be paid to you by the escrow or title company involved in the closing process
The home buyer will need to be present at closing to sign the final financing paperwork in the presence of a notary or other closing officer. It is not always required for the seller to show up to the closing process. Most often your listing agent will help you to sign the deed of transfer and the other closing documents ahead of the final closing date.
Of course, all of this happens after the closing process, which is the process of steps required to take place after accepting the buyer’s offer but before the bank finalizes the loan and the buyer signs the final financial papers.
What Costs Get Deducted From the Profit?
When you agree upon a purchase price, that is not the price you will be receiving in your pay out check. There will be fees known as closing costs and of course the pay out of your mortgage to deduct from that price.
These are the costs that most often get deducted from the sale price
- Your outstanding mortgage balance
- Agent commissions- both listing and buying agent, this is usually about 6% of the sale price split between agents.
- Property taxes and any other unpaid bills that are tied to the home
- Title fees
- Escrow agent/attorney fees
- Any local fees such as HOA fees
Your agent can help you to break down all of the closing cost fees or give you an estimate of what to expect to pay in closing cost fees.
For more information on selling a home in St. George please contact us any time.
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