Selling your house can be stressful. The moment you accept an offer and see it move towards completion, you’ll have an immense sense of relief.
The only thing left to worry about is when the funds will reach you. Fear not – today, we will guide you through the process so you don’t get stuck with a laborious and difficult task.
With the various stages involved in a property sale, it can feel like everything takes much longer than it should. This is in part because of the legal work that must be carried out. However, there are quicker methods, and cash house buyers can make the process much faster. So, whether you are considering the traditional market to sell your house, or are contemplating the sell house fast model, read on to find out when that cash becomes available after you sell.
How do I get the money from a house sale?
If this is your first time being involved in a property sale, you may be surprised to know it isn’t quite as simple as a cheque arriving in the post, or a PayPal transaction being processed direct from the buyer. There are a few steps to complete first.
Once the offer is accepted, the house moves to the STC phase (subject to contract). This means nothing is yet guaranteed, but you are certainly one step closer. Once contracts are signed, the sale becomes legally binding and the deposit will be paid by the buying party. This normally equates to around 10% of the property’s value, but will vary.
However, the buyer can wait until survey results are returned and this could have a significant impact on the final value of the house.
If everything proceeds as planned and both parties are happy, the transaction moves on to completion where your conveyancer will receive the funds from the buyer’s solicitor and pay you via bank transfer. At the same time, you will receive a completion statement.
What is the completion statement?
This will be presented at the completion of the sale. It is essentially a summary of everything that needs to be paid out of the sale proceeds. This could include legal costs, estate agent fees, admin costs, or any other outgoings from your sale. This sometimes means that depending on who you use to help sell your house, that the bottom line could read much less than expected. This could be why many are turning to companies such as We Buy Any Home. The legal fees are covered by us, meaning you don’t lose out to estate agent fees, solicitor fees and more.
If you have sold your house via the traditional estate agent route, the length of time until you receive the funds may be longer than expected. This could be for a variety of reasons, such as the proportion of funds going towards the new purchase, the fees you are paying for and the overall complexity of the statement. The more information to be included on the statement, the longer it takes for you to receive the funds.
When do I get the deposit for selling my house?
Once contracts are exchanged, a deposit will be paid. As mentioned previously, this is normally around 10% of the property price. Sometimes, depending on the estate agent or solicitor used, the deposit may not actually be paid at this stage. However, once the contracts are signed, the transaction becomes legally binding. You won’t receive these funds yet, as they will be held until full completion of the house sale.
Sometimes the buyer is unable to complete the sale for a variety of reasons, and whilst this may stop you receiving the money you believed was heading your way, you will still be entitled to the deposit.
If the contract had an agreed completion date that now cannot be met, the seller may also receive interest on top of the deposit value.
How soon after completion will I receive the funds from my house sale?
Once all is signed and sealed, you have completed. This sees the funds released from the buyer’s conveyancer and passed onto your conveyancer. If there is a mortgage to pay, the solicitor working for you will request a redemption certificate which is adjusted to count from the day of completion in order to clear any outstanding mortgage on the property.
Once this has been finalised, your conveyancer will issue a receipt confirming that the funds have been received from the buyer’s side.
They will then run the numbers through the completion statement, with anything left over normally transferred to you on the same day as completion.
Can the funds from my house sale be paid to me any quicker?
Through the traditional means, no. The process can be quite complex and as a result can take time. There are alternative ways to sell your house that could see you receive funds faster and, in some cases, not have to worry about added fees.
Cash house buyers
As mentioned earlier, cash house buyers are rising in popularity, even more so now as people are considering downsizing to save money and beat the cost-of-living crisis as much as possible. Using their own funds, they can typically purchase within a matter of days. In our case, we plan to have your house bought in as few as seven days. Legal fees and conveyancing costs are all covered, and the drawn-out process, stress and unpredictability of the traditional market are removed. The only potential downside is that you would not receive a true value for your house. However, this is only true to a point – once you factor in all the costs associated with the traditional market, you could find yourself getting less money from an estate agent than you could from a cash buyer.
Part-exchange of a house is commonly used when trying to secure a new build property. This means using the value of your current home to put down as a payment towards the new property. With new builds tending to be more expensive, the funds will not actually be released to you as you are using them to secure your new home. This can be an easy way to secure a new home, but can be a little risky.
Property auctions are quite popular with those looking to generate a quick sale on their house. Once the hammer falls and a winning bid is locked in, the deposit is released immediately. From then, they buyer has around 28 days to complete the purchase. If within that time period the balance cannot be paid, the deposit is kept by the seller and the buyer may incur additional interest and fees on top.
Whilst this can facilitate a speedy sale and potentially provide quick access to funds, auctions are advised to be carefully thought out. There will be auction fees to pay, and you cannot guarantee the value you will get for your property. You could end up making more than expected, or you could return a deficit that would not have happened had you sold via other means.
If you are looking to sell, but are cautious of the long processes or the delays in receiving your cash, contact our team. We are specialists in securing you a quick sale and fast cash. We guarantee a sale for any property, and can give you a free valuation with our house value calculator. With all your fees covered and properties in any location wanted, allow us to get you moving – fast.