If you've recently sold your home, you're probably looking forward to a big payday. So, it's surprising if that doesn't come as soon as you expect. In some cases, it may not arrive at all. It can all depend on the home buyer, your mortgage payments, and your real estate agent. Issues like foreclosure and loans can also change the amount and time frame. Apart from when you receive payment, you're likely also wondering how you get the money and other ways to earn money. In some cases, it may not arrive at all. It can all depend on the home buyer, your mortgage payments, and your real estate agent.
A simple answer is you can get a check, wire transfer, or money from a cash buyout. However, it's more complicated than that. Sometimes, you can pick the option that is most comfortable for you. At other times, it depends on the method, buyer, and any third parties involved. So, how and when are you paid for the house you sold? Take a look at a quick guide to some of the things that can affect the method and timeline.
Who was the home buyer?
Who did you sell your house to, and how did you sell it? When and how you receive payment for your home depends on the method of sale. For instance, if you sold it to a real estate investment company, you earn money quicker. It's also easier to sell homes in foreclosure and commercial properties. If you have a vacant house that is hard to sell the traditional way, this is probably the option you chose, advises Nelson Management.
Real estate investment companies are one of the best real estate solutions. These companies will give property owners a fair price. And, since they offer a cash buyout, it eases the hassle of things like commissions and paperwork. Of course, it's essential to do your research to ensure you get a fair cash offer on your home. Look for companies within your zip code that will offer to buy your house. For example, homeowners in North Carolina should look for companies in the state. It's also a good idea to be more specific in your search. Search for companies that say "we buy houses Greensboro NC" instead of "we buy houses in North Carolina."
If you sold your property directly to a home buyer, payments would depend on their situation. They may choose to go through a bank, a lender, or another financial institution. The time frame for this payout can be longer.
How much do you owe?
Are you still paying off your mortgage loan? Do you owe interest on your home loan? The amount you get for selling your house will depend on the amount you owe. It can be a hassle to figure this out on your own. Financial advice from an analyst or investment firm will help you out here.
An understanding of home equity will also help you learn when and how you will get your payment. Home equity (the amount of mortgage paid) plays a significant role in the money you receive. If you have paid your mortgage, you are likely to earn more. However, this is not always the case. It also depends on how much your house is worth now compared to when you first bought it.
Did you have help?
If a realtor helped you sell your house, it might take more time to get your money. The real estate agent receives a sale commission—this amount depends on the agent you hire. If you hired a flat-rate fee agent, look to the lender.
It's a good idea to get a free consultation with a real estate firm to track the payment process before hiring them. How do they handle closing payments? How much commission do they charge, and how soon will you receive any money after you sell your home? Since your time frame depends on several different factors, it's crucial to find out in advance. It will save you the hassle of requiring a new loan for your next property.