Selling a house is not an easy task. There are marketing and a lot of negotiations to do there is no quick house sale in the market. Once a home is being sold, other negotiations and processes will undergo. In this long process, the last method is what we call “closing.”
Closing a property is the transfer of payments and documents from the buyer to the seller. The seller can transfer the ownership of the property to the buyer. However, there are still payments to be paid off. This includes loans and 3rd parties who facilitated the processing of documents or services for the closing of the sale.
Get Through Closing First
Before receiving the pay you are expecting from selling a house, you must get through closing first. Closing is a very long due process, but every buyer should get through it for fairness.
Here are what you need to accomplish to get paid.
- Review and clear the title
- Inspect the property
- Negotiate for any repairs and credits
- Appraise the property
- Offer renegotiation if there is any
- Pay off the remaining debt of the property
- Walkthrough the property for the final time
- Sign the closing documents and close the deal
There are surely a lot of paper works to be done for the transaction to come to a closing.
Deductions from the profit
The amount of the sold property (i.e., the house) will not be the same amount that you will be receiving as your final “paycheck.” Your profit will depend on how much fees will be deducted from the house sale price.
- Here’s a sample breakdown:
- Outstanding mortgage balance
- Commissions of agents usually 6% of the sale price
- Property taxes and other unpaid bills
- Title fees
- Escrow/attorney fees
- Local fees
Summing up all of these fees and subtract it from the total sale process will be your net profit.
Modes of Delivering Sale Proceeds
Before closing a property, negotiations regarding the transfer of proceeds may also be part of the delay of receiving your hard-earned profit. You have two options, either through transferring funds wired to your bank account, given that you already have provided written wire instructions. And the other option is through check payments.
If you prefer wiring your profit through bank accounts, you should do it between Mondays through Thursdays during local banking hours. Make sure to know holidays that may affect the number of days you will receive your money. Closing a property on a Friday means you have to wait for Monday to get your payment.
Receiving your money through check is the fastest and simplest way compared to a wire transfer that will require an extra 24 hours to process. The check should reflect the net proceeds or the total amount of the property selling price minus the mortgage payoff, fees, and taxes, as indicated in the closing disclosure form.
Sale Proceeds Delays
One of the possible delays in receiving your profit is if certain conditions are not yet met after closing. There are transactions such as home repairs that need to be settled. The cost of the repairs shall be deducted from the sale proceeds. After disbursing funds to the parties after the repairs are completed, you can have the most awaited profit of your closed deal.