Just closed the sale? Here’s when you can expect to receive your proceeds.
Selling your home is a big milestone, and after all the negotiations, open houses, and paperwork, you’re probably wondering when you’ll finally get your sale proceeds. In this article, we’ll break down the process and timeline for receiving your proceeds after selling your home in Burbank, California.
1. Understanding the Closing Process
Once you’ve accepted an offer on your Burbank property, the clock starts ticking on the closing process. The buyer’s lender will begin processing the loan, inspections and appraisals will be completed, and any repairs or contingencies you’ve agreed to will be addressed.
The closing process generally takes about 30 to 45 days, but it can vary depending on a few factors, such as the complexity of the transaction, whether it’s a cash deal, or if any unexpected delays arise.
2. What Happens on Closing Day?
Closing day is the moment the home officially changes ownership. Here’s what typically happens on that day:
- Sign Documents: As the seller, you’ll need to sign the final paperwork, including the deed of transfer, settlement statement, and any other required documents. Your real estate agent or closing attorney will guide you through this.
- Buyer Funds the Purchase: The buyer’s lender (or the buyer in a cash deal) will wire the funds to the escrow account, and the funds will be held until all the conditions of the sale are met.
- Title Transfer: Once the documents are signed, and funds have been received, the title will officially transfer from you, the seller, to the buyer. This is when the sale is considered final.
3. When Will You Receive the Sale Proceeds?
After the closing documents are signed and the title transfer is complete, the sale proceeds will be disbursed to you. However, there are a few things that need to happen first:
- Pay Off Your Mortgage: If you still have a mortgage on the home, the escrow company will use the proceeds to pay off the remaining balance. Any other liens or debts on the property will also be settled at this time.
- Closing Costs and Fees: You’ll also be responsible for paying closing costs, including agent commissions, title fees, transfer taxes, and any other agreed-upon expenses. These will be deducted from your sale proceeds.
- Escrow Account: Once the escrow company has disbursed the necessary funds to cover the mortgage payoff and closing costs, the remaining balance will be sent to you.
4. Timing of Your Sale Proceeds
Typically, you’ll receive your sale proceeds within a few hours to a day after the closing is finalized. If the transaction is straightforward, the escrow company can transfer your funds on the same day. In some cases, however, the process may take a little longer.
In California, proceeds are often wired directly into your bank account. This process can be fast and convenient, but it can depend on the specific escrow company and the buyer’s lender.
5. Factors That Can Delay the Receipt of Your Proceeds
While most sellers will receive their funds within a day or two after closing, there are a few factors that can potentially delay the process, including:
- Loan Payoff Delays: If the mortgage lender takes longer than expected to process the mortgage payoff, it could delay the disbursement of funds.
- Title Issues: If there are any discrepancies with the property’s title, such as unresolved liens, it may take longer to resolve and release the proceeds.
- Escrow Issues: If the escrow company encounters any last-minute issues, such as missing paperwork or unclear instructions, it could delay the final payout.
6. Tax Considerations and Proceeds
It's important to note that the proceeds from the sale of your home may be subject to taxes, particularly if you have made a profit on the sale. While there are exemptions available for primary residences (up to $250,000 for single taxpayers or $500,000 for married couples), it’s always a good idea to consult with a tax professional to understand how your sale proceeds will be taxed.
Final Thoughts
Understanding when you’ll receive your sale proceeds is an important part of the home-selling process. Once your home is officially sold and all the necessary steps are completed, you can expect to receive your funds in a timely manner. However, it’s essential to be aware of the potential factors that can delay the process.
By working with an experienced Burbank real estate agent like myself, Christian Perez, and a reliable escrow company, you can ensure a smooth closing process and stay informed about when to expect your proceeds. If you’re thinking about selling your home in Burbank, reach out to me today to get started and make the process as seamless as possible.