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 with 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: time savings that savvy real estate agents want to use elsewhere.
What Kinds of Tasks Do Transaction Coordinators Complete?
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:
- Ensuring all purchase agreement documents are completed, signed, and initialed in all required areas
- Circulating documents for completion if needed
- Drafting & circulating amendments as needed
- Ensuring 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
- Ensuring 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 that 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.
The great Close Concierge survey
To answer that question, we surveyed 200 high performing agents to understand more. The data below is from those agents. All of these agents successfully completed screening 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.
Why do some agents want to forgo paperwork?
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 enjoy working and interacting with others.
By hiring real estate transaction coordinators, these agents can save themselves from working in this paperwork and focus on what they do best instead.
Why do some agents want more time with their clients?
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 their 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!
What matters most to agents when hiring a transaction coordinator?
Regardless of the various “whys” above, many agents simply want a diligent TC who can ensure compliance across the board while providing time savings.
Many agents simply want a diligent TC who can ensure compliance across the board while providing time savings.
Keep reading for some of the qualities that real estate agents look for the most when selecting a transaction coordinator.
Attention to detail
Attention to detail is extremely important for transaction coordinators. A TC must be able to stay on top of multiple deadlines and compliance requirements in order to do their job well. Otherwise, you may have to take extra time to fix their work – and if that happens, what’s the point of having a TC in the first place?
Great transaction coordinators are extremely detailed and are exemplary in double-checking their work. Here at Close Concierge, we often hire former paralegals because they’ve learned the ins and outs of paying close attention to the details.
Not Just Another Administrator
Don’t get us wrong – it’s great to have a transaction coordinator who can handle administrative tasks – but a great TC is much more than that. They don’t just send calendar invites – they think ahead to spot potential roadblocks and take care of them early so your transaction won’t be delayed.
The best transaction coordinators are extremely intelligent and proactive. They make sure your deal closes as planned, every time. Here at Close Concierge, we go out of our way to hire only the best – and then keep them by employing them full-time, offering top-notch benefits and sharing profits with them so they can have a sense of pride in their work.
The Best Customer Service Possible
A huge part of real estate is being able to provide a great customer experience, so it’s crucial that your transaction coordinator can be an extension of your already-outstanding customer service. They are the primary point of contact for your clients, so their ability to communicate (or the lack thereof) will reflect on you.
Here at Close Concierge, our goal is to be the number one customer service company in the world, regardless of industry. It’s not simply glib lip-service: we do our homework. We’ve studied companies like the Ritz Carlton and Chanel to see what makes them some of the best, and we model our customer service after theirs.
Real Estate Experience
Real estate transactions involve a great deal of industry knowledge, including an understanding of state, broker, and national compliance policies. The best transaction coordinators will have experience in real estate. Transaction coordinators who have spent years in the industry fit the bill quite well.
At Close Concierge, we look for employees who are well-acquainted with the real estate industry. We have found employees who’ve worked in every conceivable sector of the real estate industry.
Your Very Own Transaction Coordinator
Rather than being batted back and forth between transaction coordinators, it’s a lot easier to have a dedicated transaction coordinator. You won’t have to explain your unique business and market every transaction, and thereby avoid unnecessary complications that can slow down the process.
Working with a company that’s dedicated to you and keeps their employees for several years is a good way to minimize the number of times you’ll need to explain yourself again. At Close Concierge, our transaction coordinators love to stay with us for years because we ensure that they have every reason to.
Willing to Work Nights and Weekends
Transaction coordinators usually only work 9-4 or 9-5 on workdays. During the weekend and at night, they won’t return calls or emails. For the average real estate agent, this is probably fine… but top real estate agents need more. Nights and weekends are an extremely important time to work in real estate.
Work with a real estate TC who can get back to you on nights and weekends. Close Concierge is the only company that advertises that we work at night and on the weekend. Your Closer Concierge TC will be here for you anytime you need them.
A Transaction Coordinator Who’s Well-Rewarded
Many transaction coordinator companies just hire their TCs as 1099 employees. This means that they’re (usually) underpaid and don’t get any of the fantastic benefits that they and their families might need. The result is that they don’t want to stay for long, and will likely look elsewhere for better (more secure) work. TC companies unsurprisingly struggle to retain their top talent who see no reason not to look elsewhere.
Close Concierge pays significantly more than the market salary for transaction coordinators because we believe that retaining the best talent in the industry is important. We offer phenomenal health benefits in addition to profit-sharing ability. We do all of this to attract and retain superior employees that can work wonders for your transactions.
Does a Transaction Coordinator Need a License?
The answer may surprise you: no, you don’t. Not in most states, anyway. (California is an exception, and requires transaction coordinators to hold a real estate license). So if your TC doesn’t need a license, does that mean they can’t help you? Far from it!
A transaction coordinator can do everything within the transaction process that you could, except provide legal advice. In a case where you’re acting as the buyers agent and get an inspection report back with significant issues, your TC can’t advise them to ask for a big credit, walk away from the transaction, or request immediate repairs. (Honestly, though – would you want them to?)
Instead, you would be the one contacting the buyers and providing them with your advice on how to proceed. You can explain the pros and cons of each option and come to an agreement with the buyers.
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. We wanted to discover what aspects of transaction coordinators are most appealing to agents, and then split the data to see if there were any changes. We were greatly encouraged by what we found.
Agents who close 2 transactions per month on average (or top-performing agents) want to hire transaction coordinators because they’d like extra time to close more deals.
Extremely high-performing agents (who close 3 transactions per month on average) look to hire transaction coordinators because they want more time with their families.
Across the board, though, real estate agents hire transaction coordinators because they want more time.
Transaction Coordinators who are treated well…
This survey 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 and are given exceptional benefits. We also offer profit-sharing abilities to our TCs that would be unheard-of coming from any other transaction coordinator service.
So they, in turn, will treat you well.
We hire the best TCs so we can provide the best service to our agents. It’s also why our flat rate pricing of $1,000 per month is designed to make our service more straightforward for agents. All you do is pay one simple monthly flat fee. There are no hidden costs, and you’re never left wondering what amount our invoice will be charging you each month.
If you’re interested in learning more about Close Concierge’s gold-standard TC service, feel free to sign up for a demo with our team.