Answering 'when do I receive funds from a house sale' and what to do if you need your funds faster...
When it comes to selling a house, getting the funds from the house sale is arguably one of the most important things – after all, you don’t sell a house for nothing.
Once you have your agreed price and are working towards exchange, you will start to think to yourself ‘so, when do I receive funds from a house sale?’ A very good question, one which we’re going to answer for you!
As well as answering ‘when do I receive funds from a house sale’, we’re also going to tell you about the completion day itself and what to do if you need to get access to the funds faster…
If you’re looking for an answer to something specific, this menu will help you find it. More time on your hands? Get scrolling!
- When selling a house when do you get the deposit?
- When do I receive funds from house sale?
- How long does it take for solicitors to release funds?
- What do I do if I need funds faster?
Need funds for your house FAST?
The deposit which is put down by the buyer at exchange won’t be received by the seller until completion. Completion is the last part of the ‘moving house process’, where the full funds are sent over, the seller moves out and the buyer gets the keys and moves in.
If the buyer fails to complete, then the seller will still get the deposit. If there’s a long period of time between exchange and completion, or exchange and the failure to complete then interest will add up on the deposit. The seller will be entitled to the interest on the deposit.
When you have agreed on a price with a buyer and working towards exchange, you will start to think about getting the funds from the sale into your bank. Well sadly, you won’t receive any funds from the house sale until completion has gone through.
Completion funds will be sent to the seller’s solicitor by the buyer’s solicitor by a set time on the completion date. Once the seller’s solicitor has received the full amount, they can confirm completion with the seller and ask for their authorisation to release the keys to the buyer. The seller’s solicitor will also then send the signed paperwork to the buyer’s solicitor.
There will be a pre-agreed ‘completion statement’ between seller and seller’s solicitor about what will happen with the funds. For example, if the funds are being split between more than one party then the solicitor will need the bank details of all parties and how the money is being split.
The solicitor will also take out payments which you owe, including mortgage payments and taking off what they charge for their legal fees.
Once the solicitor has sorted out all payments owed and know the bank details of the owners, then they can release the funds from the house sale.
The answer to this will be different for each individual situation and their solicitors. The best way to get an idea of how long it will take for the solicitor to release funds on completion day is to look at the pre-agreed ‘completion statement’.
If in the completion statement, you have stated you have a lot of outgoings after the sale of your property, then it will take a little longer for you to receive funds. For example, if you have to pay off a mortgage, legal fees, cost of your next house, then it will take the solicitor slightly longer to release the funds to you.
In most cases, funds are transferred using electronically using CHAPS banking system, which will mean the money is transferred almost instantly and so will be able to be released much faster. If, on the rare occasion, your buyer is paying by cheque, it can take a few days for the full funds to be with your solicitor and so naturally will take longer.
Solicitor taking too long to release funds?
What happens on completion day?
- Completion is the final stage of the purchase transaction and is the part of the process where you actually gain ownership of your new house
- When the buyer’s solicitor has the funds, they will transfer this to the seller’s solicitor, whilst also completing a transfer to the Land Registry which will change the ownership information
- As we mentioned earlier, there will already be a pre agreed ‘completion statement’ and so the solicitors will know what outstanding payments they must use the money on before they transfer the funds to the seller
- The amount you sell your house for will not be the amount that you receive. The solicitor will take out their legal fees, pay your mortgage off, and pay off any other fees before they transfer the money. The solicitor will either transfer you the money or, if you’re selling on, send the funds onto the correct solicitor. If you want to know more about what fees you pay when selling a house, then you’re in luck! Coming up next…
What fees do I pay when I sell my house?
Sadly, most things in life aren’t free and selling your house on the open market is no different.
When your solicitor receives the selling funds, they will need to cover your ‘debts’ before they’re able to transfer you the funds. The fees you will have to pay are legal fees, estate agent fees and paying off your mortgage.
You will also have other costs to pay, such as removal costs, stamp duty and survey fees (if you’re buying on).
If you want to find out more about exactly how much these fees will be, have a read of this.
According to research by ‘GetAgent’, it currently takes 295 days to sell a property on the open market. Although you will get funds immediately on completion day, waiting almost a year for these funds is a very long wait, one which most will understandably not want.
However, you do have other options when it comes to selling your house, methods which can be much quicker. These options are through auction or through a ‘sell house fast’ company.
If you’re buying on, there’s also the option of part exchange, but with this method you won’t physically receive the funds yourself. But just in case you’re curious, we’ll give you the run down on part exchange too…
Part Exchange – A part exchange scheme is where you trade the value of your current house against a new build property, with your property acting as a ‘part payment’ for a new build. A part exchange scheme can be generally good for a quick house sale, as it means a guaranteed sale of your property and no chain.
However, it is a sale method which won’t be helpful if you’re just wanting to receive funds from your house sale, or you’re not buying a new build, as you will not physically receive the funds from selling your house.
If you want to find out more about Part Exchange, then read this.
Looking to get rid of your house and get funds ASAP?
Auction – If you’re wanting to get the funds from your house sale ASAP, a fast house sale through auction could be another option.
At auction you will get serious buyers who will likely have their finances in place, as when the hammer goes down on a deal, contracts are exchanged, and a 10% deposit is put down. The buyer then has 20 to 28 days to complete, helping you sell your house quickly.
At auction, you’re also less likely to get time wasters, with everyone there serious about buying. You’re also unlikely to get ‘gazundered’, which is where a buyer suddenly drops their price after it has been agreed. There’s also demand from multiple buyers at auction, which may help drive up the price.
However, even at auction, buyers can and do pull out of the sale, forfeiting their deposit. Also, at auction, you will have to have several open days to allow potential buyers the opportunity to properly look at the property. This will further delay the process, making it longer before you get the funds.
Also, at auction, you have to cover your own legal fees and you have to pay a commission of the sold price to the auctioneer and pay for advertising and marketing costs, as well as room hire. The price your house sells at, at auction, can also be significantly below the ‘market price’. The buying of your property will also be subject to a survey.
There are no guarantees at auction that your property will sell and can take 6-10 weeks, which although is quicker than the current average on the open market, still leaves you waiting a few months before you can get the funds from your house sale.
If you're wanting to know more about selling a house at auction, then click here.
‘Sell House Fast’ Company – Another option to help you get the funds from your house sale fast could be to use a ‘quick house sale company’. As the name suggests, they specialise in helping you sell your house quickly, meaning you will get your funds FAST.
Quick House Sale companies will give you a cash offer for your property, which is a guaranteed price and therefore means you have a guaranteed buyer. Your legal fees will be covered by the company and you don’t have to pay any commissions or fees. You also won’t get ‘gazundered’, as the price you’re offered by the company is a guaranteed price.
Not only do you get cash in your bank, but you get it in your bank quickly! Some quick house sale companies can have the property sold and cash in your bank in as little as 7 days. Yes, that’s right – only 7 days for you to receive funds from your house sale.
Unlike on the open market and at auction, selling with a quick house sale company only involves one quick house viewing, to help ensure that the valuation and offer for your property is as accurate as possible, so there will be no dragging before you get your funds from the house sale.
Although the offer you’re given will be slightly below market value, as we said earlier you won’t have to pay any legal fees or estate agent costs, so the price you’re offered is the price you’ll get!
If this option sounds like something you need, helping you get your house funds QUICK, then look no further! We will buy your house for CASH and have it in your bank ASAP!
Here at The Property Buying Company, we’re a cash buyer of houses, buying any property in any condition, in as little as 7 days, all whilst covering your legal fees!
Our offer may be slightly below market value, but our average completion time is 2-3 weeks, meaning you can get the funds from your house sale faster than you would on the open market or through auction! Our offer is a cash offer, meaning the price we quote is the price you’ll be paid!
We have over 50 years’ combined experience in the industry and countless good reviews on trust pilot (feel free to check them out), meaning we really are a quick house sale company you can trust.
Why not get on your way to getting funds from your house FAST by giving us a call or completing our online form to get a no-obligation cash offer, which we could have in your bank in as little as 7 days!
Want the money in your bank in 7 days?