One of the most complex financial aspects is real estate transactions. This type of transaction involves a lot of form filling and exhausting paperwork. Another stressful aspect is the length of time it takes to complete the process, which can bring anyone to the brink of despair.
Financing and buying a property is one of the most important decisions in anyone’s life. Therefore, it is extremely necessary to surround yourself with the most efficient professionals. A small spelling mistake or confusion in the dates could affect the sale and put at stake the buyer’s confidence towards the seller.
Transaction coordination is definitely not the same as transaction management. Transaction coordination is about creating a positive customer experience, while transaction management focuses on managing the day-to-day details of a real estate purchase. That is, the administrative and bureaucratic part of the transaction.
Confusing these two terms could cost you revenue and in this article, we will explain why.
Transaction Coordination VS. Transaction Management
In short and simple words transaction coordination is what happens on the front-end to engage, help and satisfy the customer. Whereas transaction management is about what happens on the back-end.
We’ll delve into the function of each to make it easier to tell the difference.
Transaction management is the control system that makes sure that all the factors involved in a real estate transaction happen as and when they are supposed to happen.
However, this system is not always linked to customer or buyer satisfaction. The successful transaction management process depends on 4 factors:
- A contract and addenda are preferably signed electronically.
- Deadlines are met and documents are stored correctly.
- Accurate accounting and payment of commissions.
- And a successfully closed deal.
This could happen without any problem, however, in most cases, this is not the case. In every real estate transaction, there are problems and disagreements that cause customer dissatisfaction. In order to close the deal successfully, effective coordination of the transaction is essential.
In today’s real estate arena, it is important to stand out from the competition. It is essential that real estate agents offer a comprehensive service that is able to provide the client with a pleasant buying experience and gain their trust and confidence so that they can recommend the service to others.
A successful transaction coordination process is when the client can describe their experience as “amazing”. Achieving this ensures a healthy pipeline through referrals from satisfied customers. As well as a team of agents who are coordinated and can focus specifically on what they do best.
To achieve optimal transaction coordination, the following factors are needed:
- Optimal communication. All sources of communication such as e-mail, chats, shared calendars can ensure that information is synchronized to all team members.
- Process documentation. This allows you to prevent mistakes and correct errors from past experience.
- Give visibility to customers. An empowered customer is a satisfied customer.
- Simplify work processes. This will allow the optimal organization of important information such as dates, reminders, and tasks pertaining to each process.
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.