Real estate agents who feel crushed by administrative demands associated with real estate deals might benefit from utilizing the capabilities of a real estate transaction coordinator (TC).
These specialized professionals can improve your business, save time, and increase client satisfaction. As a part-time real estate agent, my time is very limited as I am not part of a real estate team. I have a TC on most deals. She is AMAZING, and I would be drowning if it were not for her.
A real estate transaction coordinator brings additional industry professionals to the real estate deal to ensure a smooth transaction.
Read on to learn more about these transaction coordinators’ roles, benefits to your property organization, and how to select the correct one so you can scale your business!
Article at a Glance
Real estate transaction coordinators streamline the closing process, save time and resources, and improve customer satisfaction.
Assess experience & expertise when hiring a TC to ensure success.
Understand legal guidelines for compliance & protecting clients’ interests when working with a transaction coordinator.
Table of Contents
Disclosure: This post may contain affiliate links, meaning I can earn commissions. If you decide to purchase through my links, it is at no cost to you.
What is a Real Estate Transaction Coordinator
With their knowledge of the industry, excellent organizational skills, and commitment to accurate paperwork, they can effectively manage all aspects of the transaction and during the closing process.
They serve as an important bridge between buyer/seller alongside escrow companies or other associated third parties.
Keeping tasks up-to-date, tracking deadlines diligently, and ensuring proper documentation through each stage can help prevent errors while transferring ownership seamlessly are what the best transaction coordinators do!
Responsibilities of a Transaction Coordinator
A transaction coordinator’s main job is to ensure that real estate transactions go smoothly without delays. A great transaction coordinator will support an agent during the transaction process so an agent can be out there closing deals!
Due dates must be noticed, as failure to meet them could damage the reputation of professionalism or cause listings to expire. No party involved wants that!
As each agent handles their individual business differently, a transaction coordinator’s responsibilities can vastly differ from one agent to another.
Here are some common transaction management tasks they may handle:
Manage due diligence paperwork and monitor those deadlines
Schedule inspections and appraisals in a timely manner
Handle the administrative duties for the files during the transaction
Communicate with home sellers (if on the listing side) and assist in obtaining seller’s disclosures
Ensures the third parties meet deadlines and relevant information is circulated between parties
Monitors contingency periods
Monitors property access
Submit client information to the title companies
Schedule final walkthrough
Verifies earnest money is delivered
Verifies escrow account
Maintains communication with the loan underwriter or mortgage brokerage firm
Who is hiring transaction coordinators?
Some brokerages opt to hire in-house transaction coordinators, while others choose to outsource the service. When starting out, most new real estate agents handle transaction coordination themselves. This is typically because they have fewer deals to process, allowing them more time to tackle administrative tasks. Additionally, they may have limited funds to hire a transaction coordinator.
However, as their business grows, agents devote more time to sales. This results in increased revenue but less time available, making hiring a transaction coordinator more appealing—especially if they start making mistakes with their administrative duties.
It’s important to note that hiring an in-house transaction coordinator can be expensive, even part-time. This is why small, expanding real estate businesses often opt for virtual or external transaction coordinators. This allows them to only pay for their needed services, preventing financial loss when no deals are closed.
As brokerages grow and their minimum revenue requirements increase, they may consider hiring an in-house transaction coordinator. However, some still prefer to outsource the service to maintain a focus solely on sales. After all, the ultimate goal is to build strong client relationships and succeed in the real estate industry!
Benefits of Hiring a Transaction Coordinator (TC)
Employing a transaction coordinator offers an array of advantages for real estate professionals:
Competent time and resource administration
Streamlined closing procedures
Increased customer satisfaction
Monitor Deadlines to ensure a smooth transaction process
Transaction coordinators ensure that all crucial transaction details are fulfilled not to violate this act or any other related regulations. With their help, you’ll end each purchase agreement quickly while keeping customers satisfied.
Time and Resource Management
Investing in a virtual transaction coordinator and paying for each deal closed can be beneficial if you close six or more deals annually. This cost-effective move could save money on the total amount spent compared to hiring someone full-time who would assist with transactions.
By bringing in an experienced transaction coordinator, your real estate business will gain 5 to 10 hours of extra free time per sale devoted to prospecting new customers, showings, and any other duties required within the company.
Usually, this service costs between $350 – $600 depending on how many properties have been sold, making it very affordable when looking into long-term solutions. My transaction coordinator gets paid at the closing.
Streamlined Closing Process
A successful transaction coordinator is a key part of the closing process by aiding all parties involved with the real estate transaction. They take on various administrative support roles and work with multiple agents to ensure everything runs smoothly, from ensuring documents are prepared properly for signing.
Through their understanding of contract law and thorough organization, they ensure that no regulations are breached during any stage of buying or selling a house, ultimately resulting in improved client satisfaction due to its smoothness.
Enhanced Customer Satisfaction
The best transaction coordinators are experienced in providing a smooth, efficient, and well-structured process. They exhibit exceptional attention to detail and superb organizational ability, which satisfies the customer while undergoing transactions.
Being good at taking care of small things, understanding the fine print, and helping people when they have questions or problems makes customers feel like they can trust you. When customers trust you, they will keep coming back to you and telling others how great you are.
This means you will get more chances to do business with new people and get even more recommendations. And all of this happens because the best people who help with transactions do a really good job from the beginning of the process until the end.
Assessing the Need for a Transaction coordinator
Analyzing if a transaction coordinator is needed requires looking at a real estate agent’s sales volume and current productivity and discerning where they may benefit from employing one.
It can be helpful to consider what indicators demonstrate that having someone in this role will also optimize business performance for other real estate agents.
Here is just a short list (a very short list) of what an agent may be working on:
Taking clients on home tours
Having conversations with prospective sellers
Working with lenders on clients’ pre-approval
Price reduction conversations
Updating the client database system
Lead generating for potential buyers for listings
Drafting purchase agreements
Handling all the unexpected things that pop up during a transaction that you wish didn’t!
Nowhere in that long list is anything on all the paperwork, deadlines, and other activities a transaction coordinator could take off your plate.
I will say you may not have a financial need to hire a real estate transaction coordinator, but you have a time management need, for sure! Don’t believe me? Check out the 179 activities agents may have on their plate.
Signs that indicate the need for hiring a transaction coordinator
Indicators that you could benefit from a transaction coordinator:
Struggling with paperwork management
Missing deadlines and crucial details
Not enough time for administrative aspects
Being too busy to use modern technology
If your last holiday seems like years ago, it’s overdue, especially if running an effective real estate business is important. A good solution to your problem could be a TC.
Improving the efficiency of a real estate agent’s business
A good transaction coordinator can be a great asset to real estate agents, boosting their productivity and increasing success. Automating tasks, keeping deadlines in check, ensuring all paperwork is correct, and providing continual communication with everyone involved in the transaction process make life easier for any agent. Transaction coordinators keep things running smoothly so agents can focus on what matters most.
What does a Transaction Coordinator COST
When hiring a transaction coordinator, consider factors such as their hourly rate versus flat fees. By analyzing these variables, you can make an informed decision. Transaction coordinators can be compensated with a flat fee per transaction or an hourly rate, depending on the agent’s preferences and financial situation. Flat fees offer cost stability, while hourly rates allow flexibility in charging for work completed.
Choosing the Right Transaction Coordinator
To ensure you have the perfect transaction coordinator for your project, evaluating their skills and experience is essential. Assessing these factors helps guarantee a fruitful working relationship with them. Let’s review some of these attributes that should be considered when selecting the ideal professional for your needs:
Experience and Expertise
To ensure proper handling of property transactions, assess a transaction coordinator’s real estate expertise and background. Choose someone with relevant experience to save time and resources, as they are already familiar with front-office and back-end operations. Tech-savviness, including knowledge of emailing, online tools, texting apps, and e-signature systems, is also essential.
Communication and Interpersonal Skills
A successful real estate transaction requires an efficient transaction coordinator who can effectively communicate with all parties involved even if your transaction coordinator works remotely. This person must have excellent communication, organization, and time management skills to ensure smooth transactions.
Providing exceptional customer service is essential for client satisfaction if your clients will be communicating with the transaction coordinator directly. The best transaction coordinators should demonstrate interpersonal aptitude and exceptional customer support throughout the property transfer and closing process.
When working with a transaction coordinator, prioritize understanding regulations and compliance. Keep clients’ interests in mind for optimal results and accurate information it a vital role the transaction coordinator has. A transaction coordinator manages contracts and administrative aspects, providing peace of mind throughout the closing process for all parties involved.
Frequently Asked Questions
What is the role of a transaction coordinator in real estate?
A transaction coordinator in real estate manages the administrative side of property deals. They handle paperwork, meet deadlines, and coordinate with agents, buyers, sellers, and lenders. Their role streamlines the process, allowing agents to focus on client relationships and business growth.
What is transaction management in real estate?
Transaction management in real estate covers everything from offers to closing. It handles paperwork, deadlines, inspections, and legal rules to make buying or selling a home smoother.
What does it mean to be a transaction coordinator?
A transaction coordinator helps manage real estate deals. They work with agents, buyers, sellers, and lenders to handle paperwork, set up inspections, and meet legal rules for a smooth sale.
What is the highest-paid transaction coordinator?
Transaction Coordinators in the US have an average pay of $85,240 per year or approximately $7,141 a month. Those working as transaction coordinators can earn nearly 130K annually.
Can a licensed real estate agent be a transaction coordinator?
While it is a good idea, every state varies on the requirements for a real estate license. I opted to hire a licensed agent so I could have the protection of her license and a neutral third party to handle the transaction coordination.
How can a transaction coordinator help save time and resources for a real estate agent?
Transaction coordinators are key for real estate agents. They manage admin work, paperwork, and deadlines, letting agents focus on clients and business growth. Their skills in research and data entry streamline operations for better productivity.
When considering legal guidelines and costs, real estate businesses can maximize success in property transactions by hiring an experienced transaction coordinator directly. Assess their communication, interpersonal skills, and expertise to choose the right one for your needs.
This will help streamline processes, save time/resources, and enhance customer satisfaction. Choosing to hire a real estate transaction coordinator was one of the best things I did for my business. She has freed up so much time and taken a ton off my plate.
By unlocking the potential of a real estate transaction coordinator, you are sure to boost your business through successful outcomes every time! Give it a try and see how your real estate business changes by making your TC hire!