You may be thinking, “I’ve heard a lot about TCs, but what is a transaction coordinator?” This article will talk about what a real estate transaction coordinator is, what they do, and whether it would be worth it for a real estate agent to invest in getting a transaction coordinator. We’ll cover what kinds of agents would benefit from a transaction coordinator, and how to create a great relationship with your transaction coordinator off the bat. Let’s dive in!
According to the Home Bay blog, “a Transaction Coordinator is a real estate professional who manages all the paperwork and deadlines involved in a real estate transaction. They are trained in every step of the selling process and are tasked with monitoring progress from the time the seller accepts an offer through the steps involved in (the) close of escrow.”
How do we define a transaction coordinator? A transaction coordinator, or TC, is dedicated to helping the real estate agent do their job efficiently by taking care of contract-to-close administrative duties that take time and effort. They are able to save the real estate agents time by allowing them to begin working on the next contract rather than working on the tedium of the current one. Read our article on transaction coordinators if you’d like to learn more.
What do Transaction Coordinators Handle?
TCs perform a number of functions, some of which depend on specific contract terms and some which are across the board.
According to Jeff Gomez on UpNest, “They work behind the scenes to deliver a quick and efficient real estate transaction process.
“Transaction coordinator services typically include some or all of the following:
- Organize and oversee documents
- Ensure documents are submitted accurately and on time
- Schedule inspections
- Coordinate with sellers for property access
- Deliver updates to buyers, sellers, agents, and other relevant parties
- Monitor contingency periods and timeframes
- Coordinate and assist in the closing process
- Maintain contact throughout the transaction with all parties
- And more!
“Transaction coordinators also provide administrative support as needed.”
Here’s a brief overview of our post about what Transaction Coordinators do:
- Scheduling inspections. Transaction coordinators schedule inspections and make sure they are done as scheduled. Agents are free to finish up other deals while their TCs handle the details.
- Reviewing documents. TCs ensure that the title and all of the other necessary documents are accurate. They help maintain compliance so agents can close the deal in a timely manner.
- Confirming financial and insurance details. Transaction coordinators confirm the transaction with the bank. They ensure that the financial interests of the buyer are protected throughout the transaction. They check that all the necessary insurance policies have been purchased according to requirements.
- Coordinating with all parties. TCs work to maintain smooth coordination between all parties involved. If documents are missing, the concerned party is promptly notified. They make sure the process is a win-win for everyone involved.
The Timeline for the Average Transaction
As a real estate agent, you know that there are so many more tasks involved in the transaction process than the average buyer or seller realizes. Buyers can get excited because they hear “closing” and might think it’s going to be instantaneous, but that’s not the case.
Victoria Araj from Rocket Mortgage says, “Typically, you can expect closing to take 30 to 45 days. The average time to close does vary among loan types, but the variation is relatively small. A 30-day closing process means that few complexities have arisen in evaluating the buyer’s financial readiness in appraising and inspecting the seller’s home. Standard mortgage loans take an average of 47 days, while FHA loans take 52 days, according to Ellie Mae.”
Real Estate Transaction Checklist
If this description is just not enough for you, and you want a nitty-gritty depiction of some of the tasks transaction coordinators do, just check out our Transaction Checklist post. There, we’ve featured some guidelines on how to make a transaction checklist, as well as some real-life examples for buyer and seller’s agents.
Here are some of the detailed tasks (from the above post) that go into securing an earnest money deposit from your buyer:
- Research the market to determine how much EMD is typically given
- Find a reputable, local title company to hold the EMD (or choose one that you already know
- Confirm the amount for the EMD and explain EM to the buyer before you proceed
- If buyer is working with a construction company/builder, advise them to consult with an attorney before providing earnest money
- Work on a contingency plan
- Be sure the buyer understands the terms of the contract
- Get signatures on the contract
- Have the buyer write the check for the EMD
- Write a purchase agreement stating which entity will hold the earnest money
Is a Transaction Coordinator Worth It?
At this point you might be asking yourself, “OK, so a transaction coordinator is helpful… but would it be worth it for me?” It would probably be nice if you could ask 200 real estate agents why they would be interested in getting a real estate agent. Don’t worry – we’ve got it taken care of.
Of the 200 real estate agents we asked, 34% said they’d want one to help them execute more contracts. Close to that number (29.3%) said they’d like one to save time from contract to close. It appears that over a quarter of real estate agents are “people-people,” with 27.1% saying they would like to spend more time with their clients. Nearly 10% of respondents said that they’d use the time to spend more time with their families. Want to know more about this information? Read the full blog post.
According to Misty Weaver, an agent on the Keller Williams blog, “Here are five reasons you might need a TC right now. You want to take your business to the next level. You don’t want to miss details. You don’t want to hire and train an admin. You’re not financially ready (to hire) full-time help. You want to control expenses while increasing income.”
So now you know that transaction coordinators can help you close more deals and spend more time doing what you enjoy. But should you choose the method by which you find a transaction coordinator? Are some transaction coordinators better equipped than others? Which structure will provide you the most value? We’re glad you asked.
In-house transaction coordinators can be highly knowledgeable, but also very expensive. If you factor the direct and indirect costs in, an in-house TC can cost upwards of $58,000 a year. On the flip side, you have freelance TCs. These ones are far less expensive, and also typically far less knowledgeable.
One of the agents who called Close Concierge said they came to us because they’d been disenchanted by freelance TCs. The freelancer had claimed to have 5 years of experience as a transaction coordinator but didn’t know what earnest money was. The agent said, “There is no way they had even five seconds of real estate experience.” The worst part was that TC had asked the agent’s clients what it was.
Though freelance agents cost closer to $15,000 a year, you need to consider that the person you hire might not have a full grasp of what goes into the contract-to-close process. This means extra time for you, working to do damage control.
Transaction coordinator services bridge the gap between full-time hires and freelance TCs. An agent who closes 3 files per month for most transaction coordinator services can expect to pay $14,400 a year. Many services charge additional fees on top of that cost for deals that fall out of contract. The problem with this structure is that agents will never know the exact amount of money that they’ll be invoiced for at the end of the month. If you have 36 transactions in a year, you could end up paying over $20,000 for other transaction coordinator services.
Close Concierge solves those issues. It’s the sweet spot between careful diligence and low cost – and you’ll always know what to expect in terms of charges. Our agents are knowledgeable and they take the utmost care with your transactions. How much is it to use Close Concierge? $1,000 a month. This flat fee is preferred by agents because it rewards agents who sell more and they know exactly what the price is.
Our TCs love Close Concierge because we treat them fairly. We hire all of our coordinators as full-time employees. We provide them with fantastic health care benefits, including one year of fully paid parental leave. We include profit-sharing for all employees, and our employees all have a vote in our hiring decisions. Want more information on how to understand our transaction coordinator fee? Click here.
Does Every Agent Need a TC?
That depends. If you close one transaction or less per month, a transaction coordinator may not be a worthwhile investment for you. However, if you close more than two transactions a month (especially if it’s more than two), a transaction coordinator could be a huge help to you. In fact, as we mentioned above, the system rewards you for closing more transactions! (Still not sure? Get a demo to find out how much ROI we can provide you.)
Create a Good Relationship with Your TC
We’ve already got an entire article devoted to how to create a good relationship with your transaction coordinator, but we thought it could be worthwhile to include some of the advice here.
- Use those A-rated people skills to interact with your TC, too. Every real estate agent is capable of having fantastic people skills. In fact, the very nature of the job demands it. Don’t forget to keep those winning skills in your interactions with your TC. Everyone can benefit from being treated with respect.
- Communicate clearly and frequently with your TC. Let your TC know when the deadlines are, and follow up when appropriate. If you communicate with them regularly they’ll be sure to prioritize the tasks you need them to complete.
- Show appreciation for your TCs efforts. If your TC rocks and consistently helps you close deals, you should tell them about it. Consider writing a kind card or offering a gift.
- Talk about other things than real estate (when there’s not an ongoing job). Getting to know your TC a little better is another way you can help ensure that you have a fantastic relationship with them.
Trust Close Concierge for Your Closing Process
Here at Close Concierge, we care about your transactions. We take care of our transaction coordinators so they’ll be better motivated to take care of you. Our transaction coordinators work nights and weekends to make sure they’re always there for you when you need them. Want to know more about Close Concierge? Schedule a demo today – we’d love to talk with you!