Any experienced agent knows that real estate is a lot more complicated than the average client thinks. It’s no wonder that 49% of agents work more than 40 hours a week, while the average American only works 34.4 hours a week!
One of the best solutions for agents to dodge this time and effort-consuming bullet is hiring a transaction coordinator. As you can tell by the name, a “TC” can handle everything from contract-to-close in order to save agents ~15 hours of time per each transaction.
As this time savings typically allows agents to focus on prospecting new clients and getting more deals under contracts, many agents start to wonder if their transaction coordinator can also fill out a contract in order to save them even more time.
In today’s article, we’ll provide you with the answer to this question and walk you through all the duties of a certified transaction coordinator. So without further ado, let’s dive right in!
Do Transaction Coordinators Fill Out Contracts?
Transaction coordinators will do a lot of things throughout a real estate deal. However, filling out contracts isn’t one of them.
Typically, the buyer’s agent is the one that writes up the Purchase & Sale Agreement (PSA). But, to do this, they need to have a license to formally write up a contract & to be backed by a broker. Without this license and a broker where they can ‘hang’ their license, real estate agents won’t be able to create legal contracts on their own.
The reality is that almost all transaction coordinators do not have their real estate license. Although a certified transaction coordinator will go through training programs and might have enough experience regarding the job, they usually won’t have the legal licensing needed to be able to fill out contracts.
However, this doesn’t mean that a real estate transaction coordinator is not a vital part of the contract signing process.
In fact, their main job is all about handling all the administrative tasks and technicalities that take up a lot of your time after contract signing. It’s the transaction coordinator who will deal with any and all issues that pop up during contract-to-close, ensuring that the agent can focus on growing their business.
With that in mind, let’s briefly look into what a real estate transaction coordinator can do to help agents grow their own business.
What Can Transaction Coordinators Do?
Now that you know that a transaction coordinator can’t fill out a contract, you might be confused about what transaction coordinators can do.
In the following section, we’ll walk you through just five of the time-saving duties that transaction coordinators will handle throughout the sale process. Most transaction coordinators end up completing dozens of tasks, often 50+, throughout the course of a transaction.
Important to note is that no two transactions are the same. Multiple variables can influence what specific tasks a transaction coordinator needs to complete. For example, some variables include:
- If the property is a short sale or not
- If the property is new construction from a developer
- If the property is tenant occupied
Regardless, here are five examples of tasks that a real estate transaction coordinator will complete in most real estate transactions.
1. Perform a Full Review of the Buying Agreement
One of the core benefits of having a transaction coordinator is to make them review your agreements and make sure that no tiny details will fall through the cracks. For example, a missing signature on a signed contract can cause a significant issue if not identified until later on within a transaction. A real estate transaction coordinator will know to go through the contract with a fine-tooth comb to ensure that everything is signed, included, and in compliance.
At the end of the day, the paperwork and documentation must be flawless to avoid any conflicts or legal confusion. A good transaction coordinator, like our Close Concierge’s, will automatically complete this work for you.
2. Maintain compliance throughout the transaction
Compliance is an ever-changing, incredibly important aspect of every transaction. In most cases, brokers will have specific requirements of what they need to be tracked in order to ensure compliance.
A transaction coordinator, or transaction coordination company like Close Concierge, are trained to ensure everything is stored for compliance as soon as possible. The transaction coordinator will automatically submit to compliance after each item is finalized within a transaction, such as the signed PSA, earnest money deposit receipt inspection, and appraisal.
3. Coordinate Between All the Legal Parties Involved in the Contract
Since there are multiple sides involved in a legal agreement to buy real estate, it’s extremely critical that all of them are on the same page during the processing the of sale.
A transaction coordinator will be responsible for all the communication between sellers, buyers, real estate agents, escrow companies, attorneys, title companies, lenders, and banks, as well as all other third parties involved in unique transactions (e.g: a 1031 facilitator). A strong transaction coordinator will ensure that no mistakes are made and nothing falls through the cracks, leading to a problem that prevents closing.
Transaction coordinators won’t only handle all the documentation of these communications, but will also do this as fast as possible to speed things up, which is a win-win situation for everyone involved.
4. Managing Contingencies, Key Dates, and Meeting Deadlines
If you’ve been in the real estate business for a while, you’ll know that time is one of the most critical aspects.
Missing deadlines is a huge problem, and contingencies are getting shorter and shorter due to the currently hot real estate market, so having a person who is mainly responsible for deadline/contingency compliance is extremely appreciated by everyone involved.
A transaction coordinator’s presence means that the realtor will have more free time during this process, which can then be invested in growing their book of business.
5. Coordinating All Inspections and Repair receipts
Although scheduling inspections and gathering any repair receipts are quite simple tasks, they can be a huge time suck with the amount of follow-up phone calls necessary to schedule and complete.
This time back can be extremely valuable for a real estate agent, as it can be enough time to meet an additional client. Even more so, these items are critical for inclusion within a compliance folder. A real estate transaction coordinator who is solely focused on ensuring your deal stays in compliance can ensure all of these documents reach compliance immediately upon completion.
How much should you pay a transaction coordinator?
There are two different models under which you can pay a transaction coordinator: per transaction, or monthly transaction coordinator fee.
Most transactions charge per transaction…
The standard transaction coordinator, and other transaction coordinator companies, charge on a per-transaction basis. This fee can vary based on the region but typically is somewhere in the range of $350-450 per transaction. If the TC is functioning in a dual-agency position, the fee is typically $700.
Typically, TC’s and companies then have additional fees on top of this. For example, one of our competitors charges a fee when transactions fall out of escrow. Other TC’s apply an hourly fee for the time they’ve spent on a transaction.
In practice, this means that it’s impossible to know exactly how much your transaction coordinator or TC company will bill you until you see the charge show up on your bank account. Most agents instead prefer predictability & knowing their fee ahead of time. For that reason, there’s a different model.
…but Close Concierge charges a monthly fee to improve the experience for agents
Contrary to typical, Close Concierge charges one monthly flat fee of $1,000 per agent. This allows agents to have complete predictability to know exactly how much their transaction coordinator will cost on a monthly basis.
Even better, this flat fee model rewards agents as they grow their business. Once an agent closes more than two transactions per month, the flat monthly fee of $1,000 is more affordable than a $400 per transaction fee. The savings continue to grow as you close more transactions per month.
Is it worth hiring a transaction coordinator?
Let’s say you close three transactions per month. At 15 hours of time spent per transaction, that’s 45 hours per month of sole transaction time.
By hiring a transaction coordinator, let’s say Close Concierge at $1,000 per month, that means the agent is paying $22.22 an hour ($1,000/45) to free up their time. Since most agents’ time is worth substantially more than $22 an hour, especially top-performing agents closing more than two transactions per month, hiring a TC makes sense for most agents.
This is just one hypothetical example, however. If you are curious on what your specific ROI would be from hiring a transaction coordinator, we have a calculator built that will allow you to see.
To wrap things up, a transaction coordinator might not be able to fill out a contract as they are not licensed. However, that does not end up being a huge factor as a TC performs 50+ tasks that end up saving a substantial amount of time for agents.
So while they won’t fill out a contract, they still offer tons of other perks and advantages that will help speed up the process and save as much time and effort for all other parts of the contract, such as escrow management, removal of contingency, inspections, and closing processes.
Close Concierge help agents grow their business by handling everything for them from contract-to-close so they can focus on getting more clients and more homes under contract.
The way we help agents grow their business is by pairing fantastic agents with our fantastic, internal, USA-based, full-time team of transaction coordinators. (The other guys don’t have full-time employees or US-based employees).
The value for agents is the time savings they get from working with us. We handle everything from coordinating earnest money, making sure all dates and contingencies are met, the inspection happens, and everything else in between.
We can deliver a fantastic experience for agents because we attract & retain the best transaction coordinators via the best working environment. Other transaction coordinator companies hire TC’s as freelancers & underpay, OR they hire international virtual assistants. We hire full-time employees at an above-market salary with fantastic benefits.
Our goal is simple: be the number one customer company in the world, regardless of industry. Anything else would be a failure. We exist to help agents grow their business, meaning nothing less than a 7 star experience would do
If you are interested in working with Close Concierge, feel free to reach out to our team HERE