What Does a Real Estate Transaction Coordinator Do?
What do a real estate agent and a homeowner selling an FSBO have in common?
They’re both drowning in a sea of paperwork, smothered with strict compliance requirements and deadlines. It’s estimated that real estate agents spend at least 10 hours managing administrative tasks of each transaction to close a deal and stay compliant.
From opening escrows to acting as the main point of contact to coordinating inspections and appointments…a real estate agent has to work as the ultimate project manager. On top of that, they have deadlines to beat.
So, how do you make your life as a realtor easier?
Hire a transaction coordinator (TC).
Transaction coordinators assist real estate brokers and agents by performing the administrative duties required at each stage of the transaction process from contract to closure. In this post, we’ll discuss the core duties of a transaction coordinator.
1. Opening Escrow
Opening escrow is usually the official start of the transaction coordination service.
First, your TC will collect the earnest money. They will then deliver the money to the title company, obtain the escrow number, and make sure it’s given to only the parties who need it.
While the money is in escrow, the transaction coordinator will monitor it closely to ensure it’s not touched and that it’s released on schedule. They will also facilitate the closure of the escrow account and file the relevant paperwork.
2. Managing Deadlines
Deadlines can make or break real estate deals.
A transaction coordinator must ensure that all tasks are completed on time and that every party to a real estate transaction is aware of their tasks and upcoming deadlines.
That said, your TC will send out reminders to the relevant parties from time to time. He or she will ping the relevant parties to remind them of upcoming tasks such as earnest removal, inspections, contingency period, etc.
Transaction coordinators are able to manage these deadlines by the use of specialized real estate transaction management software. Such software programs allow them to automate tasks and reminders and set up automatic due dates based on critical milestones.
3. Coordinating Services
Coordination is very important in a real estate transaction because there are many parties involved. On a typical day, a realtor may have to schedule open houses, meet with clients, coordinate inspections, request for repairs after the inspection, order home warranties, etc.
Your TC acts as the point of contact with all the parties—appraisers, lawyers, banks, title companies, etc. He/she ensures the right people get to the right place at the right time.
4. Handling Paperwork
The paperwork involved in a single real estate transaction is enough to make even an experienced agent’s head spin.
From the purchase agreement and escrow instructions to seller’s disclosures, notices to perform waiver, addenda, home appraisal, and inspection reports—the amount of paperwork it takes to complete a sale is staggering.
The good news: A transaction coordinator can lift that burden off your shoulders.
Your TC will ensure no tasks that involve paperwork slip through the cracks. He/she will send the documents for signing, review them for completion, organize them into file, and even double-check each document for errors.
5. Coordinate the Final Walkthrough
As mentioned earlier, transaction coordinators are charged with the overall duty of overseeing the transaction process from contract to closure.
As far as the closure is concerned, your TC will check and double-check every item for completion and compliance. He or she will also ensure all pending contingencies are removed and that the seller’s belongings are removed from the house.
Hiring a transaction coordinator will no doubt add to your business expenses. However, the benefits of hiring a TC by far outweigh the costs.
For instance, a TC will free your time so you can focus more on strategic tasks such as prospecting and devising business growth strategies. The addition of a TC could also improve your productivity and most likely your client satisfaction rating.