When homeowners close on the sale of their home, it probably seems like it's time to celebrate. Maybe you've been anticipating a big chunk of money so you can buy a new house from Tuscaloosa homes for sale, or you need the money for other reasons — buying a car, paying for college loans, or paying off some bills. But once you sell your home, don't get too eager to have that money in hand. There are a few things that need to happen before you find yourself suddenly well-to-do.

Some factors that influence how soon you get your money include whether the transaction is cash or mortgage-financed, where you live, and if you're working with a competent real estate agent.

Our real estate agents can give you an idea of when to expect to receive money for your home sale.

1. Earnest money: Your house just sold, but you don't get to spend the earnest money — yet.
   Earnest money is what a buyer pays to show commitment to the sale. The seller takes the property off the market and, ultimately, can count on receiving this earnest money — usually 1 to 5 percent of the purchase price. The money is usually held by a third party, such as an escrow company, a lawyer, or a real estate company, until the day the sale is closed. If something goes wrong with the sale, the escrow company can distribute the earnest money, in most cases, back to the buyers.
   
   
2. What's going on while you're waiting for your money?
   A lot is going on after the house is sold and while you're waiting for your money from the sale. You'll have a purchase and sale agreement where obligations of buyers and sellers are described. Some of those obligations could be inspections, disclosures, repairs, and contingencies. Timelines and deadlines will depend on the contract. Also, a title insurance company will look into whether the property meets the needs of the buyer and their lender.
   
   This process can take from 30 days to three months; however, the average time is 50 days.
   
   
3. What's involved with an inspection?
   One of the most important obligations between buyer and seller is an inspection of the home. It takes place after you've spiffed everything up so a potential buyer sees the property in its best light. The inspection, however, will reveal what shape the property is actually in and whether it needs significant repairs, say, to the roof, the foundation, plumbing and electrical systems, the HVAC, or any pest infestation. This can be a stressful process for sellers and buyers, as they negotiate repairs and other issues. Home inspectors focus on health, safety, and mechanical issues. The seller isn't obligated to fix anything, but a buyer can back out of the sale if dissatisfied with the inspection. The inspection usually takes a few hours; the report back to the buyer can take two or three days.
   
   
4. Hooray! It's closing day.
   This is the day you've been waiting for. The buyer and seller have gotten past the inspection and are in agreement on any repair issues. Buyers make the remaining down payment after subtracting earnest money. Closing costs are paid, and then the buyer receives the title. The seller receives the purchase price as either a wire transfer or cashier's check. Fees, taxes, and real estate commissions must be paid by the seller.

As you can see, the time it takes to get your money from sale of your home can depend on several factors. An experienced, knowledgeable real estate agent can help you through this process. Questions? Contact us today.