You sold your Jersey Shore home. Congratulations! Now, it is time to get paid. Before you count all of that cash coming to you, you might be wondering when you, the home seller, actually get paid. There are a few steps involved in every real estate transaction before actual money exchanges hands.
When and How Does a Home Seller Get Paid?
Earnest Money Deposit
When you accepted the buyer’s offer, they should have submitted an earnest money deposit. Typically, this is approximately 1% to 5% of the agreed sale price. This money is held in an escrow account by a third party throughout the entire escrow process. It shows good faith that the buyer plans on following through with the sale. If they do not, that earnest money goes to the seller. But, if the sale goes to completion, that earnest money usually gets rolled into the buyer’s down payment. So, if you end up signing your final paperwork on closing day, you will not see that earnest money deposit.
Pay Day for the Seller
The seller does not receive any money until after all paperwork gets signed on closing day. That is when the buyer pays their lender all of their downpayment (minus earnest money), closing costs, and fees required to complete their part of the sale. Once the transaction is complete, the title transfers from the seller to the buyer. At that time, the buyer’s lender releases the funds to the seller. If the seller still owes money on their mortgage(s), the lender(s) receive their payment first. The seller receives the rest (minus fees, commissions, taxes, etc.) via either a cashier’s check or a wire transfer. The seller decides which way they wish to receive their money. For wire transfers, sellers usually see the money in their account within one business day of closing, with funds available for use the same day that they are deposited.
Congratulations on your home sale! If you need someone to help you find a new home at the Jersey Shore or need help selling another property, contact me.
Sherri Lilienfeld, Apex Prime Realty, Your Source for Jersey Shore Real Estate