Being a real estate agent is a demanding job. You’re constantly rushing to meet deadlines, maintain compliance with policies, and close files.
Agents being busy is exactly why we, and other transaction coordinators, exist! We exist to save you time on all of the admin from contract to close
Having the right transaction coordinator can make all the difference for your business. You can work more efficiently. You can focus on growing your business rather than dealing with paperwork and inspections. It’s an appealing thought for sure, but how do you know where to find a great one? Keep reading to discover how to find the best transaction coordinators money can buy.
Let’s start with what every awesome transaction coordinator should have to offer. The qualities that are essential for a successful transaction coordinator are experience and attention to detail. It also helps if the transaction coordinator has access to slick software. Bottom line: a great TC can make your transaction process as stress-free as possible. It’s absolutely counterintuitive to hire a transaction coordinator that could end up stressing you out or, worse, result in deals that fall through.
While transaction coordinators don’t need a real estate license in order to be effective, they should understand the industry. Real estate experience is ideal since it will prevent them from making “rookie mistakes” that will result in headaches for you.
A good transaction coordinator should have significant experience within your market and existing relationships with different vendors in your market too.
A detail-oriented personality.
TCs should be organized and detail-oriented. A transaction coordinator is constantly juggling multiple deals, each with its own deadlines. There’s a lot of multitasking involved, so it’s imperative that transaction coordinators are organized. Brent Davies is a realtor who feels that TCs complement agents well. “Agents tend to be great salespeople but not always the most organized.” Transaction coordinators can “fill the gap,” so to speak.
Transaction coordinators use the best software.
Top-notch software can be a godsend and can help a top transaction coordinator be even better to ensure that no issues get involved in the transaction or that no mistakes are made. A good TC should be laser-focused on all contingency deadlines and make sure those deadlines aren’t missed.
The best TCs make transactions as stress-free as possible.
Fantastic transaction coordinators can take the edge off your transaction process. Transaction coordinators are helpful for top-performing agents who close more than two deals a month. That said, they can also help new real estate agents. According to the Katy News, “Real estate can be extremely stressful. If you don’t have the right professionals behind you, you can feel the pressure. A TC can help you relieve some of the stresses.”
Close Concierge: The Best Option
We believe our transaction coordinators are the best in the business. They are well-trained and knowledgeable. We pay our concierges twice as much as the market rate and make them full-time employees. Why? Because we know that treating our transaction coordinators better will result in better results for you.
We also charge our clients a flat fee, avoiding the pileup of charges that are possible through some of the other services. Close Concierge is a great option for agents who close more than 2 deals per month, but we’ll cover them all so you can make an educated decision and find the transaction coordinator that’s right for you.
Get a Costly In-House TC
If you’d like, you can hire an in-house transaction coordinator. This transaction coordinator would be 100% invested in you and your team. The advantages to this setup are that the TC is in the office with you and able to help out with other efforts, like marketing. The thing is, though, in-house transaction coordinators are extremely expensive.
Direct Costs of an In-House Transaction Coordinator
The average salary for a transaction coordinator on Glassdoor is now $44,130 a year. (At the time of our Transaction Coordinator Fee article, it was $43,342. If you include employment taxes and benefits at 1.3 times the annual salary, that gets you to $57,369. That’s the direct cost alone. If you take into account training, getting new office equipment, and lost productivity for the agents training the transaction coordinator, the costs are even higher.
Take Your Chances on a Career Website
Freelance transaction coordinators can be found on the following websites:
Direct Costs of a Freelance Transaction Coordinator
Most transaction coordinators charge between $350-$500 per transaction. For the sake of this section, we’ll look at TCs that charge $400 per transaction. If you aren’t completing many transactions, this may be a very appealing option to you. But if you’re a top-performing agent (and, if you’re looking for a TC, chances are that you are), the costs can climb significantly. If you close on 20 deals a year and 2 of those files are dual agents, the cost would be $8,800 for a year. Sounds good, right? Not so fast.
The Indirect Costs of a Freelance Transaction Coordinator
Unfortunately, many people have become transaction coordinators in an attempt to make some quick money, with little skill or experience in real estate. We’ve spoken with an agent who hired a freelancer who didn’t know what earnest money was. The TC had claimed to have five years of experience. The agent said, “There’s no way they had even five seconds of real estate experience if they didn’t know what earnest money was.”
Hiring someone who’s potentially being untruthful to you can have massive consequences when you’re in the business of building trust. You want to know, without a doubt, that the person you hire can handle your transactions. You certainly don’t want to tarnish your reputation or wind up completing transactions yourself because the person you hired wasn’t trustworthy.
We figured that the indirect cost of agents is up to $6,200 a year for 20 transactions if you spend 100 hours a year double-checking their work. This means the total cost of a freelance virtual TC is 15,000 a year. That number is based just on double-checking… not on whether they make a serious error that results in you losing your commission.
However, we didn’t include in that number the time cost of seeking out a TC and the potential failure rates from hiring a TC that doesn’t have the knowledge and skills you need. A Leadership IQ study showed that nearly half of hires are considered failures after the first 18 months on the job. If this statistic makes its way into your hunt for a TC, that could mean that you wind up looking for another TC after a year and a half. In that case, time and productivity would take another hit as you search for a replacement.
Tips for Writing Job Listings That Get Attention
If you’re dead-set on finding a freelancer, let us offer some pointers:
- Post the job offer to a board so you won’t have to sift through potential TCs on your own time to find a good fit
- Make the listing as concise as possible
- Showcase the benefits you can offer by listing the following:
- Time off/PTO
- Work from home policy
- Overview of the company culture
- Clearly state the expectations of the job and how to be successful as a TC
- Post your job offer early in the week
- Ask for references/testimonials from clients they have worked with
- Require a level of experience in the real estate industry
- Require that the person applying for the job complete an assessment like the ones found on Indeed and LinkedIn
These techniques should give you the best chance of finding a transaction coordinator who is experienced, knowledgeable, and genuinely able to perform the tasks entrusted to them. Keep in mind that all of this preparation will take time, though. Time and energy that could be better used by you to find new leads and get contracts signed.
Try a Virtual Assistant Contracting Site
You could try a virtual assistant contracting site like MyOutDesk, which offers the services of many industry-specialized assistants, including transaction coordinators. They vet and qualify all their transaction coordinators before they assign them to clients, so you don’t have to worry about that process. These companies usually charge by the hour, so the companies charge you for their work weekly or monthly for their work.
In the case of MyOutDesk, they offer pricing plans based on how long you intend to use their service. Their three-month plan is nearly $2,000 a month, but if you’d like to use them for a year, you can get the amount down to $1,788 a month. If you’re not closing multiple deals in a month, they may not be worth it… and you could be getting quality service from us for cheaper. (Just sayin’.)
Rack Up Fees with Other TC Services
Most transaction coordinator service fees are similar to those of transaction coordinators: $400 per transaction. If an agent closes three files a month, it’d cost $14,400 a year!. If the agent closes more than that, though, the fees go up.
Many services charge even more fees on top of that, though. One agent of ours who used to work with a competitor had to pay a fee for deals that fell out of contract. What does this mean for you? It means you’ll never know exactly what you’ll be charged at the end of the month. We can’t even properly calculate the yearly cost of a transaction coordinator, since we have no idea what the indirect costs/fees would be.
The More Deals You Close, the More You Pay
Every fee structure we mentioned above (but one) works like this: the more deals you close, the more you pay. That’s fine if you’re not closing many deals, but as we mentioned earlier, most agents who hire a TC do so because they close multiple deals in one month. Charges can add up over time. Depending on the method you choose, having a TC can suddenly become very costly. And if you go with most transaction coordinator services, there’s no way to know for sure that they won’t stick you with fees and charges. Thankfully, we are the solution to all of these problems.
Close Concierge: White Glove Service for Your Transactions
We hope we’ve helped you learn more about how to hire a transaction coordinator. We’ve covered the direct and indirect costs associated with transaction coordinators. We’ve also talked about the benefits and disadvantages of each method of finding a TC. Finding a top-notch transaction coordinator takes time, but it doesn’t have to. If reading this article was enough to convince you that you need a transaction coordinator and you don’t want to waste any more time, contact us for a demo today!
If you aren’t convinced yet, that’s OK. Feel free to keep reading our blog. We do our best to add value to busy real estate agents like yourself by providing industry tips. We believe in treating people right, which is why we compensate our employees and clients so well. If you’d like a tool to help you decide if Close Concierge is right for you, try our ROI calculator. It allows you to get a clearer picture of how much value Close Concierge can add to you or your team.
Just enter the following information:
- Hours you spend from contract to close
- Number of transactions you close per month
- How many hours you spend with clients to get a signed contract
- Average commission per transaction
From there, just hit submit to see how much you can save. If you like what you see, request a demo. It’s that easy!
Hi, I’m Sean and welcome to Close Concierge. I’m a licensed real estate agent in the state of IL (license #475202452). I’m also an active real estate investor and previously was CEO of a transaction coordination company, as well as a property manager. In total, I’ve been a party to more than 600 real estate transactions! I write on this website about once every week to answer some of the most common questions I come across on a day to day basis within real estate.