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Why Hire a Closing Coordinator?

Why Hire A Closing Coordinator?

Are you having trouble performing the administrative tasks required of you as a real estate agent? With the expectation to achieve compliance on multiple levels, real estate is a complex line of work. That’s why many agents hire a closing coordinator (or CC).

In this article, we’ll go over why to hire a closing coordinator, what to think about before you do, and then dive into some of the benefits of using one. We’ll talk about how to write a job description for a CC, and we’ll take a look at Close Concierge’s competition. Finally, we’ll discuss why Close Concierge has the best closing coordinators. 

Read on for more info!

 

Why Would You Hire a Closing Coordinator?

Closing coordinators are a huge help to real estate agents. A closing coordinator can save agents a lot of stress during the transaction process by taking care of some of the less exciting tasks in real estate. From the time the contract is signed to the time the buyer takes ownership of the home, a closing coordinator works hard to communicate with all parties involved. They maintain compliance on local, state, and federal levels while making you look like a rock star.

 

You may still be wondering, “Why hire a closing coordinator?” You should hire a closing coordinator if you feel overwhelmed with the transaction process or miss important steps along the way. You should definitely consider it if you feel like you’re spread too thin. If you’re spending more time with the transaction process than you are taking to build relationships with clients and close more deals, a closing coordinator can free up your lost time. 

 

In the next section, we’ll cover some things you should consider before you hire a closing coordinator. 

 

Hiring a Closing Coordinator? Think About This

To give you a better idea of whether it’s time to hire a closing coordinator, we’ve prepared a few questions you can ask yourself:

  • Have I overlooked key details in the last few transactions? Whether you missed them altogether or caught them late, this may be a sign you need a CC. 
  • What percentage of time do I spend on admin when I could be with clients? As a real estate professional, it’s important that you spend most of your time with client-facing work. If that’s not the case for you, a CC can help lighten the load. 
  • Do I feel like I’m taking more time on admin than I should be? Even if you spend most of your time on client-facing work, you may feel bogged down by the administrative tasks required of you. If you’re more of a people person than a detail-oriented person, your closing coordinator can fill in. 
  • Would I rather be spending my time elsewhere? Whether you want to seek more leads or enjoy special moments with your friends and family, a closing coordinator will carve a huge chunk of time away so you can focus on other things. 
  • Have I missed a contract deadline? Missing deadlines or allowing inspection periods to lapse can have serious repercussions for your real estate business. Instead of stressing about it, you can contact a closing coordinator to handle transactions. 
  • Have I been late to submit an offer for a buyer? If this happens, your buyer could lose to another bidder. This can result in lower rates of satisfaction among your customers. Instead of allowing your reputation to take a hit, give it a boost by hiring a coordinator. 
  • Has a document been missing or only partially signed? If you’ve had to find a document post-closing to stay in compliance and close the file, a CC can help you stay organized and ensure all necessary documents are ready before closing. 
  • If I had more time, could I provide my clients better customer service? As we said, a closing coordinator can help you regain that stolen time and make sure everything in the process is going smoothly. You can finally feel like there’s enough time in a day. 
  • How often am I building relationships with clients? You should constantly work on building relationships with clients. If you can’t do that because you’re too busy on admin, a closing coordinator can clear the path for you. 
  • Do I have time to learn new Transaction Management Software (TMS)? If you’ve been in the real estate industry for some time, the idea of TMS may still be foreign to you. There’s a huge learning curve with most TMS, so you might prefer to outsource it to a closing coordinator who’ll be well-acquainted with the software. 

Benefits of Finding a Closing Coordinator

Finding a closing coordinator can be a key part of growing your real estate business. In this section, we’ll talk about each of the benefits you can expect from your closing coordinator (also sometimes referred to as a transaction coordinator, or TC). 

 

Closing Coordinators Keep Things Organized

As soon as the contract is signed, the closing coordinator will be there for you. They’ll make sure every deadline is met and keep to the expected timeline for the transaction. Your closing coordinator will stay on top of clauses and take care of the file so you can focus on other parts of the job. You won’t miss anything and your documents will be 100% compliant – that’ll give you (and your brokerage) something to smile about. 

 

Closing Coordinators Pay Attention to the Details

They’ll pay attention to all of the sensitive information all parties share in the context of the contract. They’ll manage this confidential information and make sure that they’re keeping accurate records in case someone tries to bring a dispute or lawsuit against you. 

 

As a result, your files will be fully compliant. “This is crucial,” Karen Friedman of CA Realty Training says. “This will limit your liability if you are sued or a complaint is filed against you. Your files may also be subject to a random DRE audit. Having clean files will lessen the chance that you have to use your Errors and Omissions Insurance. (E&O Insurance) helps protect you from lawsuits. This is a safeguard against people who claim you made a mistake or were negligent.” 

 

Closing coordinators have their own E&O Insurance, which adds another layer of protection for you as the agent. Because CCs are so keenly aware of all the details in the document, your liability is greatly reduced when you have one in your corner. 

 

Closing Coordinators Can Save You Time

Managing real estate contracts can be daunting work. It takes a lot of time to go over all the details involved in a transaction and keep track of the deadlines. By letting a closing coordinator handle it for you, you can reap the rewards of perfect paperwork without dealing with the minutiae of it all. 

 

Karen Friedman states, “…Gathering all the required documents and disclosures is tedious and time-consuming. (A closing coordinator) will save you time by updating all parties on the status of the file. Using a coordinator can help you leverage your time and use it on more productive tasks.”

She goes on to say, “You’ll have more time to get leads, meet with clients, and network. You’ll be able to get new listings and secure future income.” What does this mean for you as the agent? “More open deals and more commission checks.”

 

On the CA Realty Training YouTube page, Robert Rico reinforces this by saying, “You’re too busy as an agent. You should be out there getting more clients. The transaction coordinator makes the real estate agent’s life so much easier.” You won’t have to “go out and chase signatures.”

 

Closing Coordinators Improve the Client Experience

Robert Rico explains how crucial it is that a closing coordinator is “on your team: When you’re not available to speak to your client, or answer questions for your client, your transaction coordinator is there to speak for you on your behalf. If your client has any questions or is missing any documents, or if there’s a timeline that they have to meet, the transaction coordinator will make everybody alert.”

 

Closing Coordinators Can Work Virtually

Although there are closing coordinators who can work physically with you (at a brokerage or another office), it can be more beneficial to find one who can work virtually. Skilled coordinators from any location can manage your sale, as long as they’ve got a reliable internet connection and access to their computer and phone. Virtual coordinators are a huge asset to your team because you can widen the scope of your search beyond local parameters. 

 

Perhaps the applicants in your area have very little experience in real estate or don’t know enough about the software you use for transaction management. Widening the search area to any coordinator with real estate experience throughout the US will result in better-quality candidates. (Make sure you find someone who has experience in your state, however, since real estate laws vary so much from state to state.)

 

Closing Coordinators Are Affordable

Robert Rico says, “(Closing) coordinators typically charge anywhere from $300 to $500 per transaction – that’s it! Are you telling me that a… $500 charge isn’t worth it? Are you kidding me? Of course it is! When you’re ready to do your first transaction, as much as you want to learn the gig, do yourself a favor. Protect everybody in your corner by hiring a transaction coordinator.” 

 

If you’re a top-performing agent who closes more than two transactions a month, we can drive the cost down even more for you. At Close Concierge, we charge a flat fee of $1,000 a month. That number doesn’t change, whether you bring in 3 transactions a month or 5. It won’t vary from month to month (like other transaction coordinator services do) so you’ll always know what to pay. 

 

Writing a Job Description for a CC

If you’re planning to take on a full-time closing coordinator, you’ll need to start with a job description. Here are some pointers on how to write one: 

  • Check out other job descriptions. If you go on another website and type in the job you’re looking to fill, you can get a better idea of how to word your job description. You can search for “closing coordinator” or the more commonly-used “transaction coordinator.” 
  • Make it stand out. If there are specific things your real estate business does, you’ll want to include that as well. Talk about company culture, extra benefits… anything that would attract a potential employee to your business. 
  • Focus on your location. Since real estate laws differ across the country, you’ll want to make sure that you’re hiring someone with experience doing real estate in your area. Hire a coordinator who has real estate experience within your state. 
  • Use other websites for inspiration. Websites like Wizehire and Zippia have templates you can copy and paste into your preferred job search platform, making it easy for you to find candidates on Indeed, Glassdoor, or any other job search site.

 

If that sounds like a bit more time and effort than you want to put in, consider hiring your closing coordinator through a transaction coordinator service like ours. We do the work for you and assign you to a great coordinator, saving you thousands of dollars in the process. 

 

(We’re serious – the hiring process alone can cost upwards of $7,000, and that’s not even taking employee turnover into account!)

Not only can we save you money, but we can save you time. You won’t need to conduct research and check the backgrounds of every applicant, because all of our employees are thoroughly vetted to ensure they are experts. 

Close Concierge vs. the Other Guys

Need further proof that Close Concierge is the best? Here it is: 

 

Close Concierge In-House CC Other TC/CC Services Freelance CC
Cost per month $1,000 $3,611 (Rate determined by avg. pay of $43,342 and doesn’t include taxes/benefits). Varies –  Top-performing agents pay between $900-$1,500 for 3 transactions. Varies –  Top-performing agents pay between $900-$1,500 for 3 transactions.
Risk level Extremely low risk – coordinators are carefully vetted and we only choose the best of the best. Relatively low risk – it all depends on how well you’ve vetted the coordinator. Low risk – coordinators are hired as 1099 employees and may not put in as much effort. High risk – many “closing coordinators” on freelance sites lie about experience to make a quick buck.
Available on weekends and after hours? Yes – we know real estate work doesn’t end at 5 PM. If something comes up, we’ll be available. No No  It depends – you’d have to ask the freelancer.  
Virtual work? Yes – we equip our CCs for virtual work, and ensure they know the ropes of real estate in your area. No – this means that they can attend open houses, but it also means your hiring pool is smaller. Yes Yes
Full-time employee? Yes  Yes  No  No

 

Close Concierge Has the Best Closing Coordinators

As you can see from the chart above, freelancers and closing coordinators from other services are treated as 1099 employees. They don’t get to enjoy the benefits of a salary, and must go without health benefits and paid leave. These coordinators – some of their employers’ most valuable assets – are left without a means of security for their families.

Here at Close Concierge, we know the value of having closing coordinators who take pride in their work and have been doing it for years. We believe that full-time employees are happier employees, and that’s why every one of our coordinators is hired full-time. We don’t, however, believe that you should have to pay full time wages for your closing coordinator. Instead, you get high-quality work at a low rate of $1,000 a month. 

 

Our closing coordinators enjoy several benefits, which is why they don’t mind being on-call after hours or on weekends. They enjoy profit-sharing, a say in our hiring decisions, and a higher salary than most closing coordinators are offered. We do this to attract and retain the best talent available – so they’ll be there for you when you need them.

Do you want to work with the best closing coordinators in the real estate business? Contact us today for a demo!

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