How Long Does a Wire Transfer Take After Closing on a Home?

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Clever Real Estate

Updated 

June 19th, 2019

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Home sellers and buyers are often stunned when they learn that their funds are received or sent through a wire transfer. It’s important to learn how wires work to know what to expect when closing on your home. Read our guide to learn the time it takes for wire transfers to settle.

So you’ve bought or sold your home, now it’s closing time and you don’t know how you’ll make or receive your payment.

If you’re a home buyer, your title company or escrow officer will provide the account information where you’ll send your closing costs. While some escrow holders may offer home sellers a cashier’s check, nowadays it’s a common practice to wire sellers the proceeds from the sale.

You may think a wire transfers the money immediately. However, it may take a few hours or up to a day depending on when the wire is sent and processed.

As a seller, keep in mind that the escrow officer will wire you the proceeds of the sale within two days after closing your deal. Depending on your bank, it may take a full day for the funds to be available in your account.

Today, sending wire transfers is the most common way to pay for closing costs and receive home selling profits. But is it better than receiving a check?

Pros and Cons of Wire Transfers When Closing on a Home

While using wire transfers may sound complicated, it’s easier than you think. One of the top benefits of sending a wire instead of getting a cashier’s check is that you can request it by phone, in person, or even online depending on your bank.

If you had to pay your closing costs using a cashier’s check, you would have to visit your bank and request it from a bank teller. Wire transfers make it easy for sellers and buyers alike to send and receive funds when closing a deal.

A disadvantage of a wire transfer is that once you send it you can’t reverse the transaction. When you use a cashier’s check, you won’t lose the money unless you give the check to the payee.

If you’re a home buyer who sends the funds to the wrong account, you will lose your money. However, when you get a cashier’s check you may deposit it back into your account if you make a mistake or choose not to close on the property.

Don't agree to wire transfer just yet.

A Clever Partner Agent can negotiate savings to cover the costs.

Another benefit of paying using a wire is that it facilitates transferring the funds safely in virtual and overseas closings when buyers and sellers can’t meet face to face. Wires protect all parties involved in the transaction and relieve escrow holders from liability hence why title and escrow companies prefer this method.

You should be wary of housing scams where fraudsters impersonate escrow and title companies. It’s important for sellers to verify and confirm all the account information with the recipient of the funds before sending the wire.

Home buyers and sellers always look for ways to lower their costs at the time of closing a deal. Another disadvantage of wiring the funds is that it usually costs more than getting a cashier’s check.

Depending on your financial institution, you may not even have to pay any fees for requesting a check. However, banks typically charge fees for sending and receiving wire transfers.

While you may prefer escrow holders used cashier’s checks when closing on a home, wire transfers are the new normal. Sending or receiving a wire may increase buyer closing costs and put a dent in home seller profits.

An easy way to avoid getting the short end of the stick is negotiating a sale price that’s fair for buyers and sellers. A local realtor like one of our Clever Partner Agents can help you negotiate to offset the costs of receiving or sending wire transfer at the time of closing the deal.

Our real estate agents have agreed to pass savings onto home sellers and buyers alike by charging discounted commission rates and giving home buyer rebates. Partner Agents provide their full services at a fraction of standard realtor fees. When you work with a Partner Agent, you’ll get peace of mind about covering your wire fees since you’ll obtain the best deal as a home seller or when buying a home.

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