When Do You Get Paid After Selling a House? Understanding Dry vs. Wet Closings

Selling your home is a significant milestone, and a common question among sellers is: “When do I actually get my money after closing?” The answer depends largely on whether your sale involves a dry closing or a wet closing. Understanding these two terms can help set the right expectations and ensure a smooth transition as you move on from your property.

What Is a Real Estate Closing?

First, it’s important to know that the closing (also called settlement) is the final step in a real estate transaction, where ownership officially transfers from seller to buyer. It’s when all the final documents are signed, funds are exchanged, and (usually) the keys are handed over.

Wet Closing vs. Dry Closing: The Key Differences

• Wet Closing: In this scenario, all documents are signed, funds are fully transferred, and the transaction is completed at the closing table — all on the same day. The term “wet” comes from the idea that the ink on the paperwork is still wet as the sale is finalized.
• Dry Closing: Here, all necessary documents are signed at the closing, but funds have not yet been fully transferred. The transaction is only finalized once all paperwork is reviewed and all outstanding funds from the buyer (often the lender) are received. Once that happens — sometimes a day or more later — the seller receives their proceeds.

When Will I Get My Money?

In a Wet Closing:

• You usually receive your proceeds immediately or within a few hours after closing.
• The funds are typically wired directly to your bank account or you may receive a cashier’s check from the closing agent or title company.
• This is the most common method in many states. If you want immediate access to your funds on closing day, ask your real estate agent if a wet closing is standard practice in your area.

In a Dry Closing:

• Your proceeds are delayed until after the closing documents are fully reviewed and all funds from the buyer’s side (lender or otherwise) have cleared.
• This waiting period can range from one to several business days, depending on the transaction’s complexity and the lender’s funding speed.
• Once all requirements are met, the title or escrow company releases your money, typically via wire transfer or check.

Why Do Dry Closings Happen?

Dry closings are more common in certain states due to local laws or common lending practices. Reasons for a dry closing may include:

• Waiting for lender funds to be wired (for example, if the loan can’t fund until the next business day).
• Needing to resolve last-minute documentation or title issues.
• State or local regulations requiring a cooling-off period or document review before disbursing funds.

How Can I Prepare?

• Ask your real estate agent or closing attorney early in the process whether your transaction will be a wet or dry closing.
• Plan any immediate purchases or moving arrangements around your expected funding date — particularly if you’re dependent on those proceeds for your next home.
• Have wiring instructions or preferred payment details ready for the title or escrow company to minimize delays.

Final Thoughts

Whether your sale uses a wet or dry closing, knowing what to expect helps ensure a smooth handoff and lets you plan financially for your next steps. Always confirm the closing process in your area with your real estate professional so there are no surprises when it’s time to collect your hard-earned proceeds from selling your home.

When working with Garden State Cash Homes LLC, you will always get your funds on the day or closing. If you are thinking about selling your house fast in New Jersey, call us today! We buy houses in all counties in New Jersey.