Are you tired of the continuous disturbance of payment? Do you know how to pay? Well, not every buyer chooses the same method to pay the price. If you are not aware of payment methods, then how can you understand them? Don’t worry, in this article. You will learn what the most used methods for payment are.
As you know, there are many difficulties in selling. But you can overcome them easily. In the US state, most of those listed through Houzeo.com have a wet payment method. Are you surprised to know what damp payment is? Not a big deal. You have to understand them and let your selling process and cost go smoothly. Let your mindset be ready to learn.
Source: JVM Lending
Contents
How wet funding works?
It depends on how you are selling. States like the USA prefer selling through the wet method. You must be thinking about why this method is called the wet method because when you sign the agreement with the buyer, the ink is still wet, but the seller gets paid immediately.
Some sellers prefer this method because they sometimes need money urgently, so they sell their property to ease their difficulty, so you don’t have to wait to get your cash. The payment is quick. The closing agreement is also not prolonged in this case.
The wet payment method works for the seller, and sometimes it is disliked by the buyer because they have to arrange a vast sum of money at one time.
Most of the sellers want to get money instantly. In this situation, wet methods tend to be the best option. It is a way to get money immediately right after closing the deal.
Sometimes, it seems troublesome for the buyer to arrange a vast amount urgently. But on the other side, the seller needs to get the money urgently. In some situations, when you use the wet funding method, you may get a chance for some discount. That means by paying the whole amount to the seller, you can get the privilege of money off on the total amount.
Source: JVM Lending
How does the dry funding work?
Dry funding works in a few states like Alaska, Arizona, California, Hawaii, New Mexico. In dry funding, it is a bit of a delayed process for paying the price of the house. The dry budget works more for the buyers because that as a buyer, you can get some time to pay. In some cases, it is harder to pay a vast amount to the seller. So the buyers get some time to pay the full amount. Being a seller, you get the amount in two or three installments. But you’ll not get the ownership of the property until you pay the full amount.
There is a delay in paying after the closing of the deal in dry funding because the lender has to give money to the buyer to pay. If you are selling your home, the wet method is preferable, but the dry process is preferable for you if you are buying a home.
Source: shermanbridge.com
How long do you have to wait?
As a seller, you have to wait for four days until you get paid. It might cause a problem for those who have to invest the money or need to buy a house after selling the home, so the bar is prepared if the payment method is dry.
Wire transfer vs. check
Now it comes to the point to choose how you pay. You can choose either one of the above, but the wireless is preferable because you get the fund within 24-48 hours. You can easily carry your check on the closing day in another method, but the bank will hold it for several days because of payment.
Source: freedommentor.com
Advantages and disadvantages of wet funding and dry funding
Every method has its pros and cons. You have two options to avail, one is wet funding, and the other is dry funding. Most people choose the dry method because it gives the opportunity it gives more flexibility with signing and funding dates. However, in comparison, it is the requirements of wet funding that sometimes delay loan documents. Yet, you can go for wet funding because it has overcome the delay issues and also it offers many other several major advantages.
Therefore the biggest advantage is that there are chances that the transactions will close once loan documents are signed.
Many people are not ready till the last minute when they take charge because of the funding conditions. However, when people do dry funding, the buyers have enough time. So that they have peace of mind and can think about it thoroughly. It all comes when we sign in a wet funding environment.
If we talk about dry funding, it is preferable for the buyers. Sometimes the buyers have few issues that require time to complete. So the greatest benefits of dry funding are the time you can get in paying the amount of property. In contrast, this method is time-consuming for buyers.
Some buyers do not have enough time, and they don’t prefer this method. Until you don’t give them money, the sale will not be closed. The sale will be finished after paying the amount of the property.
So if you’ve enough money, then I’ll say to go for the dry method. In this way, you have to pay the full amount instantly, but you have become the owner so far. But, if you’ve any serious problem and you’re unable to pay the money immediately, then go for dry funding.
Source: sevencentury
Closing lines
If we talk about the payment method in real estate, two methods are well-known: wet funding and dry funding. The choice depends on you as a seller how you want to get paid early or later, so choose wisely. By choosing wet funding, you can close the sale instantly. In dry funding, you need to wait for months to receive the full amount and end the deal.
