In one of the fastest-growing trends in residential real estate, more and more agents are looking to hire a transaction coordinator to help them grow their business
The reasoning is quite simple: a good transaction coordinator can save a real estate agent anywhere from 15-20 hours of administrative work per transaction.
While the list of tasks a transaction coordinator completes depends on the specifics of each individual transaction, most TC’s will handle the administrative tasks that can take a significant amount of time.
These tasks include:
- Ensure all purchase agreement documents are completed, signed, and initialed in all required areas
- Circulate documents for completion if needed
- Draft & circulate amendments as needed
- Ensure all parties to the transaction process (clients, other agent, title, lender, inspector, attorney, 1031 exchange facilitator, etc.) are aware of and meet key real estate deal milestones
- Ensure all transaction process milestones (from earnest money to appraisal to financing contingency to clear to close) are met
At a minimum, most real estate agents get quite excited when they see a real estate transaction coordinator can help them avoid a significant amount of administrative work during each transaction.
At Close Concierge, we see agents sign up every day to save time with a TC. However, it got us wondering exactly why agents hire TC’s.
To answer it, we surveyed 200 high-performing agents to understand more. The data below is from those agents. All of these agents successfully completed screener questions to confirm their knowledge of the transaction coordinator space.
How do real estate agents use the time savings from a transaction coordinator?
Going into this survey, we expected to see most real estate agents respond by saying they hired a transaction coordinator in order to save time. However, the reason why agents wanted to save that time ended up differing dramatically.
For example, look at this chart here. This is how agents answered the question “Why would you hire a transaction coordinator?”
The majority of real estate agents want to get more contracts executed
As you can see, 34% of agents hire a transaction coordinator in order to help them get more contracts signed. This makes sense to us at Close Concierge: many of our clients use the time savings to go on listing appointments and show their buyers more homes.
In fact, it’s why we have a transaction coordinator ROI calculator on our pricing page to show the return on the agent’s time saved.
However, agents also want use TC’s in order to “save themselves” from paperwork and to ensure they could deliver fantastic service to clients
The next two most common responses were “To save time from contract to close” and “to enable me to spend more time with clients.”
The reasoning here was different though.
The 29.3% of agents who responded “to save time from contract to close” picked this option because they strongly dislike the paperwork and attention to detail necessary for the closing process. These agents tend to be “people people”, who got into real estate because they working and interacting with people.
By hiring a real estate transaction coordinators, these agents can save themselves from working in this paperwork and instead focus on what they do best instead.
The 27.1% of agents who wanted more time with their clients hired a transaction coordinator to improve their own customer service. These agents want a TC handling work in the background, such as helping to schedule an appraisal, so the agent could instead be more available to the client for advice, such as how to handle an inspection report that uncovered significant issues
Agents view a transaction coordinator as an investment to grow their business
Interestingly, less than 10% of agents view hiring a transaction coordinator as a way to spend more time with their family.
However, it’s very well established that a real estate transaction coordinator can save an agent significant time per transaction. If an agent wanted to use a TC to enable more time with family, it certainly would be possible.
The key word in the above sentence is “wanted.”
In fact, it’s clear that a TC is an investment that agents make in order to grow their own business. Agents are looking at the time savings from a TC as a lever to grow their business, NOT to make being a real estate agent a more sustainable job.
What type of real estate agents hire a TC?
We asked a significant number of questions in our poll to agents. There were numerous interesting insights, but one that also rang quite clearly is the volume of transactions necessary to hire a transaction coordinator.
There were 151 agents in our sample who currently work with a TC (117 total) or have worked with a TC but do not anymore (34 total).
Of that group 99% of them consistently close 24 or more transactions per year. That shakes out to roughly 2 per month
The median real estate agent closes 12 transactions per year, or exactly 1 per month. This means that agents who look to hire a transaction outperform the average agent by a nearly 2:1 margin.
This again makes sense. Remember, agents who hire transaction coordinators do so in order to invest in growing their business. It stands to reason that agents who invest in growing thier business are also the agents who most successfully grow their business.
Do top producers have different reasons to hire a TC?
We re-ran the data, except this time we only looked at agents who were closing at least 24 transactions per month. We wanted to see if these agents had different reasons for hiring a TC.
In short, not really.
We saw this group had largely the same reasons for why they hired a TC as compared to the entire sample set from earlier. The largest difference is that this group was slightly less interested in using the time savings from a TC to close more transactions.
Our best guess is that it’s because these agents have a significant lead gen system built out and consistently have leads coming in. They need less time for prospecting.
We cut the data one more time, this time for agents who close more than three real estate transactions per month. These are absolutely “top producers.”
At this point, we did notice a significant change. These agents are substantially more likely to hire a TC in order to allow them to spend time with their family.
In fact, these agents were nearly 2X as likely to hire a TC in order to get time savings for their family!ç
Close Concierge provides the best transaction coordinators in the industry
At Close Concierge, we ran this survey to help learn more about why agents hire transaction coordinators and their motivation for doing so.
This is only part of our effort to ensure that Close Concierge provides the absolute best service in the industry. It’s why our transaction coordinators are paid double the market rate: we hire the best so we can provide the best service to our agents.
It’s also why our flat rate pricing is designed to make our service more straightforward for agents: one simple monthly flat fee.
If you’re interested in learning more, feel free to sign up for a demo with our team.