How and When a Homeowner Gets Paid After Selling Their Philadelphia Home

There are naturally a lot of questions and a lot to learn when it comes to selling a home in Philadelphia. One question you may have as a Philadephia homeowner considering selling your home is, “How and when will I receive the cash from the home sale?”

To fully understand the process of receiving the money after you sell your home, let’s take a look at the process from the time of receiving an offer from a homebuyer.

Receiving an Offer on Your Home

The first step in receiving cash for your Philadelphia home is to accept an offer to purchase your home from a buyer. This will come in the form of a purchase agreement. The purchase agreement is offer paperwork that has been negotiated through real estate representatives and agreed to by both parties as well as signed by both parties.

Earnest Money

A few days after the purchase agreement has been signed the buyer is required to submit their earnest money deposit to be placed in an escrow account. This is a good faith deposit showing the buyer is placing an agreed-upon amount of their own cash to be held in an account until the sale is finalized. If they walk away from the sale for any reason other than agreed in the purchase offer they lose this money. If the sale goes through this money becomes a portion of the offered money to purchase the home.

Due Diligence

Once the potential buyer has placed a deposit on the home with their earnest money it is time to finalize their mortgage proceedings to secure funds to purchase the home. If a buyer is using cash they will need to go through the proper channels of transferring the cash under bank regulations.

During this time it is not uncommon for the buyer to conduct a home inspection and and appraisal. Often the appraisal is something ordered and mandated by a mortgage lender but it can also be ordered on behalf of a cash buyer. If a buyer is mortgaging the home the bank wants to ensure that the purchase the buyer is making with money borrowed from the bank is sound.

This due diligence portion of the closing process can take anywhere from 7 to 60 days depending upon the financing and the contingencies included in the purchase agreement.


Once the mortgage loan has been approved, the due diligence of inspection and appraisal has been completed, and any additional negotiations have been made it is time for the final close of the sale. A goal date is often set in the purchase contract but can sometimes be delayed due to complications with appointments or financing.

Once everything looks good and is in order both parties will have a separate closing appointment to sign papers. Most often the buyer will go first and funds from the buyer including earnest money, down payment, and loan money will be transferred to the home seller. Most often this comes in the form of a cashier’s check or a wire transfer. The seller is paid the agreed amount minus any fees such as real estate commission, taxes, title transfer, notary fee, etc.

It is good to note that upon depositing your cashier check or receiving a wire not all of the funds may be ready right after deposit to your account. Since it is such a large sum of money it could take a few more days to safely deposit the funds in the seller’s account.

For more information about purchasing or selling a home in Philadelphia contact me any time. I am here to help walk you through the real estate process and answer any questions you may have about your real estate goals and process. I am here to help you with all of your Philadelphia real estate needs.