Transaction coordinators are a huge help to busy real estate agents. This article is written to give you the scoop on all things “transaction coordinator,” from what they are to what they do. We’ll cover some tasks they don’t do and talk about how much time you can save with the help of a TC. Finally, we’ll talk about how to find a great transaction coordinator and how to hire one to help you with your real estate needs. Without further ado, let’s get started!
What is a Transaction Coordinator?
A transaction coordinator handles the “contract to close” portion of the transaction and allows you to focus your time and efforts on closing more deals. Why is this helpful? According to Morgan Taylor on the RealtyNA blog, being social is the top personality trait of top agents. “At its core, real estate is a social business. Agents are constantly meeting with clients… the best agents enjoy this aspect of the job and prefer not to be stuck behind a computer all day.”
Well, there you have it. Since the transaction process involves more tasks like scheduling, following up, and maintaining compliance, it is seen by many real estate agents as a “boring but necessary” part of the job. Most agents are extroverted and would jump at the chance for more face time with their clients. With a transaction coordinator, they can do just that.
In case the brief transaction coordinator job description above didn’t quite give you an idea of what they do, here’s a bit more information. Transaction coordinators:
- Oversee and assist with buyer and seller transactions from contract to close
- Coordinate the mortgage loan and appraisal process, along with managing the title/escrow
- Schedule inspections, assist with repair negotiation and ensure that repairs are completed as requested
- Update clients and stay in constant communication with them, as well as the agents, title officer, and lender
- Submit documentation to the office broker to ensure the file is compliant
- Coordinate with the buyer/seller to ensure that moving and possession schedules are going as planned
- Schedule, attend, and coordinate the closing
- Put client info into the database system
- Schedule follow-ups at regular intervals (30-day, 90-day, and 120-day) and help the buyer with any questions they may have.
Hopefully, our real estate transaction coordinator job description helps, but just in case it doesn’t, we’ll break it down into more specific tasks below.
What Can A Transaction Coordinator Do?
If we were to write a long list of transaction coordinator tasks, it’d likely be over 2,000 words all on its own. As an agent, you realize that every transaction is different. Each buyer and seller comes into the deal with their own idea of how it should go, and their own preferences and contingencies. How the deal proceeds from there depends on the way the contract was written.
That said, here’s a brief snippet of some of the specific tasks a transaction coordinator can do for you during the home inspection process:
- Give the buyer several home inspection company options
- Coordinate the home and termite inspection with the seller and let the buyer know when they’re available
- Send a vacancy checklist to the seller if the property is not in use
- Arrange for power and water to be turned on if the property is vacant
- Review the home inspection report and discuss any issues with the buyer
- Enter the home inspection report data into the listing file
- Order septic system, mold, or well inspections
- Review the reports for the septic system, mold, or well inspections, and note any impact the information could have on the sale
- Give a copy of the reports to the seller and the lender
- Confirm whether the seller is compliant with the home inspection report and required repairs
- Get copies of the repair bills/receipts to show that the seller made the required repairs
- Coordinate with the seller to allow entry to the property so that the buyer can review the completed repairs.
This is a breakdown of a fraction of what transaction coordinators do, but it helps show you why a good transaction coordinator is a valuable resource for real estate agents who really hustle. You don’t need to be bogged down by these tasks when you can just as easily defer to someone else to help you get them done while you close more deals.
What Doesn’t A Transaction Coordinator Do?
Now let’s talk about what a transaction coordinator doesn’t do. Surely there’s got to be something, right? That’s correct. Due to the fact that many transaction coordinators don’t hold a real estate license, they aren’t able to write up a contract between clients or cover a few other tasks that real estate agents commonly do.
Karen Friedman on the CA Realty Training blog states, “They won’t write contracts. A transaction coordinator will prepare certain disclosures, but they won’t write them. They can explain everything you need to know about disclosures. A transaction coordinator doesn’t negotiate. A transaction coordinator will talk with all parties to gather signatures or to deliver documents, but don’t expect them to negotiate terms with the other agent or their client on your behalf.”
As you can see, there are very few things a transaction coordinator doesn’t do. A great transaction coordinator is well worth the investment, even if they can’t do everything you would.
Will a TC Save Me Time?
A highly skilled transaction coordinator can save you 12 hours per transaction so you can keep closing new contracts instead of dealing with less-favorable real estate tasks. Doing those administrative tasks can make you feel like you’re chained to your desk. A TC will free you from that monotonous desk work so that you can move on to more enjoyable aspects of real estate.
Transaction coordinators don’t just save you time, though. They also keep things on the up and up and reduce your liability. Having flawless paperwork is a massive benefit to agents, especially those that excel at the relational aspects of the job and struggle in the area of paperwork. Let’s be honest: paperwork is a necessary part of the job, but it’s definitely not most agents’ favorite part of the job.
As we touched on above, good transaction coordinators are also adept at managing deadlines. Like an octopus, a good TC has “many arms” to keep multiple deadlines and details afloat. They sift through all of the details and clauses in the contract to ensure that everything runs smoothly and nothing is missed.
A skilled transaction coordinator acts as a liaison between the multiple parties involved in a contract. It can be exhausting and overwhelming to update every party in the transaction. After all, that’s not the only transaction you’re working on. Instead of going through the stress of interacting with each individual party, your transaction coordinator handles it and you get regular updates on how the transaction process is going. What could be simpler?
To put it succinctly, a great TC helps make you look good. For an industry that relies on customer satisfaction, that’s an incredible asset! They can respond quickly to customer inquiries and explain the answers in a way they’ll understand. For you, that means repeat sales, loyalty, referrals, and an overall boost in customer satisfaction.
Why Do Most Agents Use a TC?
We already touched on a few reasons why a transaction coordinator would use a TC. They save time, help you look good and reduce liability as they take care of paperwork you’d rather not do. That’s great – but what is the reason that most agents use a TC? The main reason that real estate agents use a TC is to save time.
Now we come to the question of what the agents do with the extra time once they have it. We asked 200 agents what they want to do with their time once they have a transaction coordinator, and these are the results we found:
- 34% of agents wanted to use the saved time to get more contracts executed
- 29.3% of agents wanted to save time from contract to close
- 27.1% wanted to spend more time with their clients
- 9.6% wanted to spend more time with their families
Where do you line up on this list? Are you keen on the idea of executing more contracts, as the majority of real estate agents are? Are you simply looking to save time, or would you like to spend more time with clients? Are you excited about having a bit more time with your family? Wherever you line up on this survey, a great transaction coordinator can help you with these goals!
How to Find A Great Transaction Coordinator
If you’d like to know how to find a good transaction coordinator, it’s actually not that difficult once you know what qualities to look for. Read on to find out what to look for in a transaction coordinator!
It’s important that a real estate transaction coordinator has experience. Although most TCs may not have a real estate license, they should have knowledge of the industry and experience in the field. Without that crucial knowledge, you may find yourself double-checking each transaction to ensure they were done properly, and where’s the time savings in that?
You’ll want to hire a detail-oriented person as well. Someone with good decision-making skills, who can figure things out when you’re too busy to follow up and get back to them. They should be great collaborators and problem solvers as well. They’ll need to be emotionally intelligent and logical.
If you can find someone who has all of the above qualities and uses great transaction management software, they’ll be able to relieve some of the pressure that you deal with in your day-to-day and make the process far smoother for you. Need an idea of what some of the best real estate transaction management software is? Qualia, Brokermint, Endpoint, and a few others are some of our most highly-recommended transaction management software brands.
How Do I Hire A Transaction Coordinator?
You’ve got a few options when it comes to hiring a transaction coordinator. In this section, we’ll discuss your options as well as the pros and cons of each:
- Get a costly in-house TC. If you get an in-house transaction coordinator, you’ll probably end up spending $57,369 just for their salary, employment taxes and benefits. That makes for quite a costly transaction coordinator, even if it does mean you’ll never have to worry about your transactions again.
- Hire a freelancer from a career website. Freelancers are easy to find and are usually relatively cheap to hire, but buyer beware: sometimes they tout years of experience that they don’t have. This can be messy for you in a number of ways, including having to review every transaction, losing a deal, or simply making you look bad in front of your clients.
- Use a virtual assistant contracting site. This is another option that’s pretty pricey, though, with even the low-cost plans at $1,788 a month. (We know how to save you money – stick around!)
- Use other TC services. Most transaction coordinator services charge about $400 per transaction, but what they don’t tell you is that they charge other fees. Some services charge for dual agency transactions, and others charge for deals that go through.
If you’re a top-performing agent, there’s an option that will allow you to close more deals while maintaining the top-notch service that you deserve.
Use Close Concierge and get the best of both worlds!
For Trustworthy TCs, Choose Close Concierge
Close Concierge has an entirely different fee structure. Our flat fee of $1,000 a month never goes up, which means that top-performing agents and brokers can close more deals without fees! Freedom from additional fees means that you always know what to pay and can go out and kick butt in the real estate world.
We’ve also got the best transaction coordinators available, and we compensate them very well for the work they do. This means that they’re willing to go out of their way to help you get that transaction done and maintain compliance so you look your best in the eyes of your clients. They take care of the transaction process so that you don’t have to. Have any questions about Close Concierge? Contact us today for more information!