Once a home sale is imminent, I’m always asked — “How soon will the money be in my bank account?” It sounds like an easy enough question, but there’s not always an easy answer.
The answer depends on several factors — not too surprising as a real estate transaction can be a complex process. A recent article on Realtor.com looked at the money from offer to closing and when a home seller can expect those transfers into their bank account.
- Earnest Money – Generally between 1-5% of the purchase price paid within 3 days of signing the purchase contract to demonstrate that the buyer is serious about the property. Some refer to it as a “good faith deposit.” If the buyer backs out and breaks the contract (and the seller is not at fault) the seller gets to keep the earnest money.
- Down Payment – A down payment shows the bank or lender that the buyer has the money to pay back the loan they’re getting and is made after the deal is approved by the bank.
- Wait – The lender will likely have a list of obligations to be met at this point — things like an appraisal, inspection, repairs, disclosures, contingencies and more. The contract will outline when these will take place. On average, the closing process takes 50 days.
- Closing Day – This is when the buyer gets the money. After the real estate transaction is closed and all fees/commissions are paid, escrow pays the seller. These days, that’s a wire transfer and happens quickly.
My best advice is to be patient and take it step by step. If you have any questions, reach out to Atlanta Seniors Real Estate. We’re happy to help.
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