Guest Post: Erin Hybart, ReErin.com

Real estate agents who feel crushed by the administrative demands of real estate deals might benefit from using a real estate transaction coordinator’s (TC) capabilities.

These specialized professionals can improve your business, save time, and increase client satisfaction.

This TC on my team has allowed me to expand into other ventures, like my Tiny House Blog.

She is AMAZING, and I would be drowning if it were not for her.

A real estate transaction coordinator brings additional industry professionals to the real estate deal to ensure a smooth transaction.

Read on to learn more about these transaction coordinators’ roles, benefits to your property organization, and how to select the correct one so you can scale your business!

What is a Real Estate Transaction Coordinator

Transaction Coordinators effectively manage all aspects of the transaction and during the closing process.

Keeping tasks up-to-date, tracking deadlines diligently, and ensuring proper documentation through each stage can help prevent errors while transferring ownership seamlessly.

They serve as an important bridge between buyer/seller alongside escrow companies or other associated third parties.

Responsibilities of a Transaction Coordinator

A transaction coordinator’s main job is to ensure that real estate transactions go smoothly without delays.

A great transaction coordinator will support an agent during the transaction process so an agent can be out there closing deals!

Due dates must be noticed, as failure to meet them could damage the reputation of professionalism or cause listings to expire. No party involved wants that!

As each agent handles their business differently, a transaction coordinator’s responsibilities can vastly differ from one agent to another.

Here are some common transaction management tasks they may handle:

• Manage due diligence paperwork and monitor those deadlines

• Schedule inspections and appraisals promptly

• Handle the administrative duties for the files during the transaction

• Communicate with home sellers (if on the listing side) and assist in obtaining seller’s disclosures

• Ensures the third parties meet deadlines and relevant information is circulated between parties

• Monitors contingency periods

• Monitors property access

• Submit client information to the title companies

• Schedule final walkthrough

• Verifies earnest money is delivered

• Verifies escrow account

• Maintains communication with the loan underwriter or mortgage brokerage firm

Who is hiring transaction coordinators?

Some brokerages opt to hire in-house transaction coordinators, while others choose to outsource the service.

When starting, most new real estate agents handle transaction coordination themselves.

This is typically because they have fewer deals to process, allowing them more time to tackle administrative tasks. Additionally, they may have limited funds to hire a transaction coordinator.

However, as their business grows, agents devote more time to sales.

This results in increased revenue but less time available, making hiring a transaction coordinator more appealing—especially if they start making mistakes with their administrative duties.

It’s important to note that hiring an in-house transaction coordinator, even part-time, can be expensive. This is why small, expanding real estate businesses often opt for virtual or external transaction coordinators.

This allows them to pay only for their needed services, preventing financial loss when no deals are closed.

As brokerages grow and their minimum revenue requirements increase, they may consider hiring an in-house transaction coordinator.

However, some still prefer to outsource the service to maintain a focus solely on sales. After all, the ultimate goal is to build strong client relationships and succeed in the real estate industry!

Benefits of Hiring a Transaction Coordinator (TC)

Employing a transaction coordinator offers an array of advantages for real estate professionals:

• Competent time and resource administration

• Streamlined closing procedures

• Increased customer satisfaction

• Monitor Deadlines to ensure a smooth transaction process

Transaction coordinators ensure that all crucial transaction details are fulfilled to avoid violating this act or other related regulations.

Time and Resource Management

If you close six or more deals annually, investing in a virtual transaction coordinator and paying for each closed deal can be beneficial. No one says your TC needs to be local.

This cost-effective move could save money on the total amount spent compared to hiring someone full-time who would assist with transactions.

This time can then be dedicated to prospecting new customers, conducting showings, and fulfilling other essential responsibilities within the company.

Hiring an experienced transaction coordinator for your real estate business can unlock an additional 5 to 10 hours of free time per sale.

Usually, this service costs between $350 – $600 depending on how many properties have been sold, making it very affordable when looking into long-term solutions. My transaction coordinator gets paid at the closing.

A Streamlined Closing Process

A successful transaction coordinator is a key part of the closing process by aiding all parties involved with the real estate transaction.

They take on various administrative support roles and work with multiple agents to ensure everything runs smoothly, from ensuring documents are prepared properly for signing.

By leveraging their expertise in contract law and meticulous organization, they guarantee compliance with regulations throughout every phase of property transactions. This meticulous approach leads to heightened client satisfaction as the process unfolds seamlessly.

Enhanced Customer Satisfaction

The best transaction coordinators are experienced in providing a smooth, efficient, and well-structured process. They exhibit exceptional attention to detail and superb organizational ability, which satisfies the customer while undergoing transactions.

Being good at taking care of small things, understanding the fine print, and helping people when they have questions or problems makes customers feel like they can trust you.

When customers trust you, they will keep coming back to you and telling others how great you are. This means you will get more chances to do business with new people and get even more recommendations.

All of this happens because the best people who help with transactions do a great job from the beginning to the end.

Assessing the Need for a Transaction Coordinator

Analyzing if a transaction coordinator is needed requires looking at a real estate agent’s sales volume and current productivity and discerning where they may benefit from employing one.

It can be helpful to consider what indicators demonstrate that having someone in this role will also optimize business performance for other real estate agents.

Here is just a short list (a very short list) of what an agent may be working on:

• Taking clients on home tours

• Having conversations with prospective sellers

• Negotiating concessions

• Working with lenders on clients’ pre-approval

• Price reduction conversations

• Updating the client database system

• Lead generating for potential buyers for listings

• Drafting purchase agreements

• Handling all the unexpected things that pop up during a transaction that you wish didn’t!

Nowhere in that long list is anything on all the paperwork, deadlines, and other activities a transaction coordinator could take off your plate.

You may not have the financial resources to hire a real estate transaction coordinator, but you need time management!

Don’t believe me? Check out the 179 activities agents may have on their plate.

Signs that indicate the need for hiring a transaction coordinator

Indicators that you could benefit from a transaction coordinator:

• Struggling with paperwork management

• Missing deadlines and crucial details

• Not enough time for administrative aspects

• Being too busy to use modern technology

If your last holiday seems like years ago, it’s overdue, especially if running an effective real estate business is important to you.

A TC could be a good solution to your problem.

Improving the efficiency of a real estate agent’s business

A good transaction coordinator can be a great asset to real estate agents, boosting their productivity and increasing success.

Transaction coordinators keep things running smoothly so agents can focus on what matters most.

What does a Transaction Coordinator Cost?

When hiring a transaction coordinator, consider their hourly rate versus flat fees. By analyzing these variables, you can make an informed decision.

Transaction coordinators can be compensated with a flat fee per transaction or an hourly rate, depending on the agent’s preferences and financial situation.

Flat fees offer cost stability, while hourly rates allow flexible charging for work completed.

Choosing the Right Transaction Coordinator

To ensure you have the perfect transaction coordinator for your project, evaluating their skills and experience is essential.

Let’s review some of these attributes that should be considered when selecting the ideal professional for your needs:

• Expertise

• Communication abilities

• Organizational skills

• Self-starter

Experience and Expertise

To ensure proper handling of property transactions, assess a transaction coordinator’s real estate expertise and background.

Choose someone with relevant experience to save time and resources. They are already familiar with front-office and back-end operations.

Tech-savviness, including knowledge of emailing, online tools, texting apps, and e-signature systems, is also essential.

Communication and Interpersonal Skills

A successful real estate transaction requires an efficient transaction coordinator who can effectively communicate with all parties involved, even if your transaction coordinator works remotely.

This person must have excellent communication, organization, and time management skills to ensure smooth transactions.

Providing exceptional customer service is essential for client satisfaction if your clients communicate directly with the transaction coordinator.

The best transaction coordinators should demonstrate interpersonal aptitude and exceptional customer support throughout the property transfer and closing process.

Legal Considerations

When working with a transaction coordinator, prioritize understanding regulations and compliance.

Keeping clients’ interests in mind for optimal results and accurate information is vital for the transaction coordinator.

A transaction coordinator manages contracts and administrative aspects, providing peace of mind for all parties involved throughout the closing process.

Final thoughts

When considering legal guidelines and costs, real estate businesses can maximize success in property transactions by hiring an experienced transaction coordinator directly.

Assess their communication, interpersonal skills, and expertise to choose the right one for your needs.

This will help streamline processes, save time and resources, and enhance customer satisfaction. Choosing to hire a real estate transaction coordinator was one of the best things I did for my business.

She has freed up so much time and taken a ton off my plate.

By unlocking the potential of a real estate transaction coordinator, you can boost your business through successful outcomes every time!

Give it a try and see how your real estate business changes by making your TC hire!

Frequently Asked Questions