Real estate agents have an important job –– they step in to help homebuyers and businesses make some of the biggest decisions of their lives and careers. Whether a family is purchasing their first home, or a business is purchasing new property for growth, they turn to experienced real estate agents to make things run smoothly.
The thing is, busy real estate agents often don’t have time to oversee complicated administration and run the rest of their business at the same time. That’s why the most successful agents build teams to support them. One of the best ways to start building a real estate team is by hiring a transaction coordinator to oversee the tedious task of transaction administration.
In this post, we’ll break down the benefits of real estate transaction coordination services, how they work, and how to find the best transaction coordinator to expand your real estate team and scale your business.
Why Do You Need a Transaction Coordinator?
Real estate transactions are extremely complicated, which makes it easy for even the most experienced real estate agents to get confused or make costly mistakes during the process of buying or selling a home. That’s where a Transaction Coordinator comes in.
Real estate transaction coordinator services help agents save time and money when executing real estate transactions by managing the transaction step-by-step and making sure everything happens on time with the proper documentation.
Transaction Coordinators make a great addition to your real estate team, because they prevent mistakes before they happen, which allows you to focus on running your business and living your life without worrying about escrow headaches and following up with buyers, sellers, and communicating with third parties.
Here are a few things that a great Transaction Coordinator can help you do:
- Prevent mistakes: When you handle everything yourself, it’s easy to miss a deadline or leave documents incomplete. A transaction coordinator has the skills and expertise to prevent mistakes and ensure a flawless transaction.
- Build your business: There’s no need to spend all your time handling paperwork, sending emails, making phone calls, and getting bogged down by administration. Instead, get out there and keep building your business, while your transaction coordinator handles the busy work!
- Free up your personal time: When you’re not busy running your real estate business, you need time to enjoy your hobbies and be with your family. A transaction coordinator gives you back your precious time so you don’t miss out on your life.
What Does a Transaction Coordinator Do?
The Transaction Coordinator is an expert on real estate transactions who makes sure that buyers and sellers have the smoothest experience possible for the biggest purchase of their lives. A transaction coordinator provides guidance and holds all parties accountable to their ends of the bargain, protecting both buyers and sellers, and ensuring a smooth sale.
The best real estate transaction coordinator services simplify the complicated process of selling (or buying) a home by reviewing contracts, managing escrow, documenting communication between parties, and preparing a transaction file for the client at the end of a successful sale.
So, what can a transaction coordinator do for your real estate business?
Manage Escrow and Taxes
One of the most important jobs of a transaction coordinator is to open escrow and oversee the entire process to prevent errors and ensure buyer performance. To that end, a transaction coordinator tackles the following tasks:
- Creates checklists and develops a schedule to keep the process organized between all parties
- Ensures the buyer’s earnest money is placed in escrow on time and subject to forfeiture if the buyer fails to perform
- Ensures that all critical tax withholding documents are complete and audits transaction file before closing to make sure all paperwork is accurate and complete for filing taxes the following year
Foster Communication and Manage Deadlines
Communication is the key to successful real estate transactions. A transaction coordinator synchronizes all parties so that everyone is on the same page throughout the entire process. This ensures that all expectations and deadlines are met and that all parties walk away fully satisfied with their experience. To accomplish this, a transaction coordinator handles the following duties:
- Communicates important information, updates, and deadlines between the buyer, seller, bank, agents, and other third parties.
- Monitors deadlines to ensure all parties complete their pieces of the deal on time
- Handles documentation for repair requests
- Coordinates all property showings, open houses, and final walk-through
- Documents all communication between parties and compiles a master file, typically in digital form, for future review
Draft and Review Critical Documents
Every real estate agent is familiar with the drudgery of transaction paperwork. Organizing and completing all necessary documentation requires deep expertise, sharp attention to detail, and thorough communication between all parties. To streamline the paperwork process, a transaction coordinator handles the following jobs:
- Ensures purchase agreement is complete and error-free
- Drafts the Seller’s Disclosure Packet
- Drafts contract addendums
- Vets loan underwriter and other third parties for proper certifications
- Handles documentation for repair requests
- Obtains all necessary waivers
- Prepares complete file for the hiring client for taxes the following year
Qualities of a Good Transaction Coordinator
A top-tier transaction coordinator will have the skills, certifications, and drive to deliver great results every time. A poor transaction coordinator will just cause administrative headaches and create more work for you down the road. So what makes a good transaction coordinator?
- Deep knowledge of real estate law
- Lots of experience executing real estate transactions for previous clients
- Demonstrable proficiency in the transaction process –– they should know what can go wrong and how to prevent it!
- Strong communication, organization, and customer service skills
- Professional, approachable personality and tolerance of feedback
- Patience –– sometimes customers can get agitated, but your transaction coordinator should remain calm even during stressful situations
- Affordable pricing –– don’t hire too cheaply, but don’t break the bank
- Availability that matches your needs –– if you need full-time availability, it’s best not to hire a transaction coordinator that is balancing too many clients
Does a Real Estate Transaction Coordinator Need a License?
No, a transaction coordinator doesn’t require a real estate license to join your real estate team, but a transaction coordinator who possesses a license will be able to accomplish more than one who has no active certifications.
To become a Certified Transaction Coordinator, a person must attend courses and pass a written exam that integrates real estate law, escrow, contracts, and closing procedures.
Here are a few tasks that an unlicensed transaction coordinator may not be able to handle, depending on the state or city you operate your real estate business in:
- Discuss offers or negotiate terms with buyers or sellers
- Show properties and conduct final walk-throughs
- Collect fees or signatures from clients
- Discuss or explain contracts or service agreements with clients
Hiring a licensed local transaction coordinator can help you reduce your workload, but will cost more than a remote transaction coordinator who carries no license. If you prefer to interface with clients directly while your transaction coordinator handles administrative tasks, then you can save a lot of money by hiring remote!
How Much Do Transaction Coordinators Cost?
Real estate transaction coordination services come at a wide variety of prices according to the skill, experience, network, and history of the transaction coordinator. A solo agent may prefer a transaction coordinator with a flexible schedule who balances several clients, while an established and growing agency may require one or more full-time transaction coordinators.
A part-time transaction coordinator is appropriate for many solo agents and small real estate teams who handle less than one transaction per week (or less than 50 per year). Part-time transaction coordination services typically require payment in the form of either a monthly retainer or a set fee per transaction.
The benefits of hiring a part-time freelance transaction coordinator are that you get the ultimate in convenience and flexibility. The downside is that you often face additional fees for particularly busy months or canceled transactions.
Full-Time Transaction Coordinator
A full-time transaction coordinator is appropriate for any real estate firm seeking fast growth, or any agency processing more than 50 transactions per year. A full-time transaction coordinator might be paid a monthly retainer, or might collect a salary and benefits as an employee of your business.
The benefits of having a full-time transaction coordinator are that they will always be available when you need them, and they can often be more cost-effective than retaining several part-time contractors. The drawback is that you may need to register this person as an employee of your business, which could mean more administrative work to manage your employees.
In-Person vs. Remote
If you operate a real estate firm and have sufficient office space, it’s possible to hire an in-house, in-person transaction coordinator to join your team full-time. This affords the convenience of face-to-face meetings, team building, and mentorship. However, hiring a local transaction coordinator is costly, especially if you must maintain office space for them.
Thanks to modern technology, it’s possible to hire highly skilled transaction coordinators in a part-time or full-time capacity who will work 100% remotely. Virtual transaction coordinators are more affordable than hiring someone to work in person, and often, they will be productive, since they won’t have the distractions of your busy office.
How to Find a Good Transaction Coordinator
Finding the right real estate transaction coordinator service is similar to hiring any other professional –– you want to vet them for personality, experience, communication, punctuality, and honesty. The best coordinators will carry licenses and certifications, possess a wealth of experience, and have several outstanding references. So how can you find them?
Ask for Recommendations and Search Online
- Many well-connected real estate agents will know several transaction coordinators whom they can recommend
- Friends and family members with lots of real estate experience will likely have worked with a transaction coordinator at least once and could offer contact information
- A few Google searches for transaction coordinators in your area will turn up some local options
- You might be able to find skilled transaction coordinators on some freelance marketplaces –– proceed with caution, though!
Interview the Candidate Thoroughly
- Explore their experience. How many clients have they served? What are some of their greatest success stories? Have they had any poor experiences that they’ve learned from?
- Ask for references. Contact the transaction coordinator’s previous clients and read reviews (if available).
- Have a conversation about compensation. How will you pay your transaction coordinator? Will they charge a retainer fee, or will they bill hourly? What happens when a transaction doesn’t finish?
- Discuss additional fees. Will there be any additional fees for holidays or weekends? Will your transaction coordinator bill you for mileage or postage?
- Test for fit. Observe their communication skills by assigning a few simple tasks and seeing if they make mistakes, if they request more information if they can handle feedback, and if they are available when you need them.
When Should I Hire a Transaction Coordinator?
When’s the best time to hire a transaction coordinator? As soon as possible. Seasoned Transaction Coordinators possess the administrative skills, professional connections, and real estate experience to process real estate transactions quickly and smoothly the first time.
By bringing a transaction coordinator onto your real estate team early, you can focus on building your business and living your life while an expert handles the slow, tedious administrative duties.
Close Concierge works as an extension of your real estate team, with a simple compensation structure, a dedicated transaction coordinator, synchronized scheduling, cutting-edge technology, and zero hidden fees.
Benefits of Close Concierge
Close Concierge offers top talent, flexible payment plans, and three tiers of premium real estate transaction coordination services. Get a transaction coordinator that fits perfectly into your team, whether you require part-time or full-time assistance.
Transaction Coordinators from Close Concierge have deep knowledge and experience, and they can handle all transaction administration, including following up with clients and third parties, drafting documents and amendments, writing offers, creating listings, and ensuring compliance with all real estate law.
Close Concierge works day and night and handles all transaction administration so that you can focus on winning new clients and building your business. Expand your team today with a dedicated transaction coordinator from the Close Concierge!
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.