Real estate transactions are arguably the most significant transactions you will be involved in.
According to an article published on CNBC, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances is upwards of $647,200.
With amounts this large, it’s for this reason that you will need an entire team of experts, including a transaction coordinator.
But what does a real estate transaction coordinator (TC) do?
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What does a Transaction Coordinator in Real Estate Do?
A TC works closely with real estate agents and brokerages. No two real estate transactions are the same, and because of this, you need an assistant who is well versed in the contractual requirements.
This is not the same as an administrative assistant, as their roles will be streamlining office day-to-day tasks and include other tasks such as:
- Scheduling meetings
- Social Media Management
- Running errands
- Answer emails and calls
All of these tasks are important, but the role of a TC is to focus on ensuring all the paperwork for the real estate transaction is completed correctly.
What Task Are Transaction Coordinators Helping With?
A TC usually manages one of the following tasks, which include:
- Filing and reviewing all documentation
- Monitoring submission timings
- Organizing inspections of the home
- Communicate with the sellers that the property can be viewed
- Watch the contingency periods
- Assisting with the closing of the deal
- And much more
The TC can also help with administrative support. Most TCs will work in-house, but some work on a freelance basis.
While most sellers and buyers will have little to no contact with a transaction coordinator, it’s a question you should ask when interviewing realtors. Whether or not they have TCs assisting behind the scenes.
Someone working with an efficient TC will lessen the likeliness of finding a problem.
So what are the other benefits of working with a TC?
Benefits of Working With a Transaction Coordinator
Most larger brokerages will hire a few TCs to allow realtors more time on the road and on-site. According to the National Association of Realtors Members Profile Highlight Report, 57% of those surveyed said that lack of inventory remains the biggest hurdle.
In the current real estate market, realtors need to be searching for new stock to sell. This means being able to conduct as many meetings as possible.
Getting assistance from a TC will automatically open new doors for real estate agents struggling to keep up with the pace of finding stock and spending more time on other essential areas.
A TC will help your agent achieve their best potential.
Assisting With Communication and Timings
One of the most time-intensive roles in any sector is maintaining constant communication. And when you’re dealing with multiple parties, it becomes harder to streamline processes, like meetings.
A TC can become the primary contact individual for all parties involved. There are a lot of individuals involved in buying and selling a home who include:
- Buyers
- Sellers
- Agents
- Escrow companies
- Title Companies
- Lenders
- Attorneys
- Appraisers
- Home Inspectors
- And more
The real estate sector relies heavily on communication being done quickly and efficiently.
A TC becomes a massive asset to realtors because they are usually based in their office. This, in turn, means you can avoid all those unnecessary delays of trying to find clarity for meetings.
Another bonus of having a TC on your side is they can locate missing documentation. Or inform you how much it will be to complete a title search.
And if there are any documents missing, they will be able to apply for necessary documentation such as disclosures and addenda.
Also, a TC can be asked to track deadlines, send reminders, and schedule final walkthroughs and closings.
But arguably, a TC’s most crucial role is to review contracts.
Reviewing Contracts
Any real estate transaction will require a lot of paperwork to read through. Ensuring that the client complies with the agreements is at the core of their role.
TCs won’t compile any contractual matters but will review:
- Contracts
- Disclosures
- Agreements
- And receipts
A few elements a TC could highlight in these documents include missing signatures, identifying conflicts of interest, any legal confusion, and, lastly, that everything is compliant with the law.
Being compliant with local laws is essential. Clients may be liable, along with real estate agents and brokerages, if anything falls through the cracks.
As an example, in the state of Washington, all correspondence involving the real estate transaction must be saved, whether it is sent via text message, email, or any form of communication.
If this isn’t recorded, the brokers can face a hefty penalty.
This leads us to TCs monitoring deadlines and contingencies that are met.
Contingencies and Deadlines
Timing is everything in real estate. This is especially true when ensuring that parties don’t move in too early or leave later than stipulated in the contractual agreements.
Also, to ensure that potential buyers don’t jump the gun before the transfer occurs.
Another factor is to ensure that contingencies are dealt with on time. If these include additional work being done for the new owners, the TC must chase after contractors to complete the job.
Or to inform the entire real estate team that an issue with timings has occurred.
Paperwork Is in Order
In the modern world of emails and digital communication, real estate is one that still depends on paperwork. No appraiser or real estate lawyer can work remotely, as they need to inspect your property.
While the industry has come along leaps and bounds, there is a real need to ensure that all physical paperwork is securely filed away.
This filing is the sole responsibility of the TC.
It must be said that it is not a real estate requirement to have a TC on staff. Most small boutique agencies will leave these tasks to their agents.
And as we mentioned, TCs can operate on a freelance basis, which might be the assistance you’re looking for if you are going into a for-sale by owner (FSBO) situation.
A TC won’t require a commission but usually works from a flat fee. This fee is around $350 to $600 per transaction. It will be worth it if you sell your property as an FSBO.
But what should you look for in a TC if you are working as an FSBO selling your home?
What Makes a Good Transaction Coordinator?
As you would have come to realize now, real estate transactions are complicated. It’s a juggling act with hundreds of thousands of dollars.
If you are looking for a TC to join the realtors you’ve hired or in your own FSBO capacity, what are you looking for in this individual?
Attention to Details
You need your TC to be able to pick out any issues within the numerous documents crossing their desk. This means reading through the fine print, examining all the aspects of the contingencies in the agreements, and any key details that contradict each other.
Well Organized
A good TC is organized and can multitask. They need to be able to keep up with the pace of the sale.
As well as ensuring that they meet deadlines and everyone else. Being a problem solver is also a massive benefit.
Identifying and moving forward.
Great Communication Skills
Your TC needs to be a great communicator with so many parties involved. As with all industries, poor communications can lead to poor service deliveries.
And because they will be dealing with multiple professionals, they need to be relatable.
Experience in Real Estate
Nothing can replace experience. While you should always allow individuals to upskill themselves, some situations will require experience.
We’d recommend a more experienced TC if you’re recruiting them as freelancers, as they won’t have access to veterans in the sector to guide them through certain situations.
Laser Focussed
You need a TC who can focus on the task at hand and complete it efficiently and well.
TCs who are distracted will not pick up on the details and pivot to adapt to new situations. It also should be mentioned that they need to be able to learn quickly.
As we mentioned, no two real estate transactions are the same. Unless it is a simple cash deal, but then again, you’ll want someone to be able to file the correct paperwork.
Picking a TC to assist you can be tricky, and while they will streamline processes behind the scenes for realtors, you can not beat how quickly a cash sale occurs.
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