Understanding When Home Sellers Get Paid in a Real Estate Transaction

May 5, 2025 - 11:02

When home sellers receive their proceeds can depend on various factors, including the state regulations, the lender's policies, and the specific day the transaction takes place. The process of selling a home involves several key steps that culminate in the seller receiving their payment.

Typically, the journey begins once a purchase agreement is signed, which outlines the sale terms. After this, the buyer's lender will initiate the closing process, which includes inspections, appraisals, and finalizing financing. Sellers often have to wait until all contingencies are satisfied before the closing date is set.

On the day of closing, the seller will sign the necessary documents, transferring ownership to the buyer. Payment usually occurs shortly thereafter, often through a wire transfer or a check. However, the timing can vary based on the lender’s processing times and local regulations. Sellers should be prepared for potential delays, ensuring they understand the timeline and requirements specific to their transaction.