Are you ready to take your real estate business to the next level? Are you overwhelmed with juggling multiple contracts and paperwork for all your transactions? If so, a real estate transaction coordinator can help you.
In this post, we’ll explore what a real estate transaction coordinator does, why you should hire one, and how to find the right one for your business.
What Does a Real Estate Transaction Coordinator Do?
A real estate transaction coordinator, or TC, is not the same thing as an administrative assistant. Instead, it is a specialized role where the coordinator usually already has experience and knowledge of the real estate industry.
As the name implies, a transaction coordinator usually oversees the entire buying or selling transaction process, from contract to closing.
Some tasks a real estate transaction coordinator can do are:
- Opening escrow accounts
- Tracking the progress of paperwork and documentation
- Submitting contracts and meeting deadlines
- Scheduling appraisals, inspections, and repairs
- Communicating with buyers, sellers, lenders, agents, and anyone involved in the transaction
- Giving closing instructions to the client
- Following up with the client to get referrals
- Overseeing the entire buyer or seller transaction
- Re-engage unresponsive clients about deadlines
- Remind slow-moving clients about paperwork
Why Should You Hire a Coordinator?
Do you find yourself getting bogged down with admin tasks and keeping track of deadlines? Are you worried about making mistakes or overlooking something important in your clients’ contracts?
Do you find that handling the paperwork takes time away from what you really love doing: prospecting for new leads and building relationships face to face with people in your community?
At some point, it will be impossible for you to take your business any farther without some help.
When you have to deal with all the paperwork throughout the months-long buying or selling process yourself, this can actually slow down your growth.
So if you’re ready to scale your business, you should consider hiring a TC. Working alongside a TC can help make your own workload more manageable while simultaneously putting more hours into your business.
For example, suppose you need to renegotiate part of a contract with your client. You can handle the negotiation aspect, and your real estate transaction coordinator can add the amendment to the contract and get it signed and filed.
But how do you know when you should hire a TC? On average, a good rule of thumb is that you should be closing around 50 transactions per year before hiring a coordinator.
Of course, you can hire one whenever you like. Ultimately, it will depend on your situation and where you are in your business.
How to Hire a Transaction Coordinator
There are two different routes you can go when hiring a transaction coordinator. You can either hire a general assistant who also works as a TC, or a dedicated TC who only handles those responsibilities.
At first, you’ll likely be hiring a general assistant. But at some point, the workload will become too much for that assistant, and you’ll need a separate real estate transaction coordinator.
When hiring a real estate transaction coordinator, you have two choices: you can either hire locally or outsource. Each option has its pros and cons.
Hiring locally is beneficial because you will be working with someone who knows the rules and regulations in the real estate industry in your state. In addition, they are also able to interact with your clients easier and can even meet with them face to face if necessary.
And you will be able to work with them in-person as well, which can make communication easier.
However, hiring locally is usually more expensive. The hiring process itself is expensive, and the average salary for a transaction coordinator is around $41,000 on average. Another downside is that a local TC might require more training because you may not find one in your area who has the desired level of experience you are looking for.
But you can cut back on training time by hiring someone with transferable skills from another type of admin role, such as a showing assistant or even a paralegal looking to switch their career.
You can also consider hiring a real estate agent who prefers the contract and admin side of the business.
When outsourcing a real estate transaction coordinator, you can either work with a freelancer or with a transaction coordinator service provider. These are professional companies with dedicated teams.
Whichever one you choose, outsourcing is cheaper overall compared to hiring locally. This is because you are paying on a per-transaction basis. Typically, a freelancer or coordinator company will charge anywhere from $300 to $500 per transaction.
When you outsource, you can also be more confident that you are working with an experienced specialist.
Outsourcing will also save you time and money in general because the process of hiring locally is usually more time-consuming and expensive. So if you’re a solo agent or a smaller team, then outsourcing might be better for you.
When you look for a TC this way, instead of going through a tedious hiring process and interviews to find the right person, you’ll search online for freelancers or companies within your budget.
To find a good TC, ask other agents in your area who they use, search on Google, read online reviews, and look on the National Association of Real Estate Support Professionals for a directory of transaction coordinator services.
Finding the right TC is important because if you hire the wrong fit and they make a mistake on a transaction, it will reflect on you and affect your ability to get referrals and good reviews from your clients.
What To Look For When Hiring a Transaction Coordinator
When hiring a transaction coordinator, you should almost think of them as a salesperson. Since they will be interacting with your clients often throughout the contract to close or listing to close process, you’ll want someone with the right personality and attitude for your brand.
If you have a team, it’s important to find someone who is a good fit for your team’s culture. Even if someone has a lot of experience, they might not be a good hire for your business if they don’t have the right personality.
Some important traits you should look for when hiring a TC are:
- Organizational skills
- Attention to detail
- Ability to manage multiple deadlines
- Writing and grammar skills
- Great people and social skills
- Communication skills
- Ability to handle stress.
Depending on what state you’re in, your real estate transaction coordinator might be required to have a real estate license or certification.
When looking for a freelancer or TC service provider, you should ask yourself these questions:
- Are you hiring a solo TC or a team?
- Are they a professional company with their own workflows?
- What’s their pricing model?
- What are their reviews like?
- What is their process for onboarding new clients?
Final Thoughts on Real Estate Transaction Coordinator
A real estate transaction coordinator is essential for every real estate agent looking to scale their business over time. Working with a TC will help you save time, money and take your business to the next level.
Do you work with a transaction coordinator already? Are you planning to hire one? Let me know in the comments below!
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