Real estate transactions involve a lot of moving parts and can get quite complicated at times. Between the wide range of administrative duties that should be performed and deadlines that have to be met, even experienced agents might miss important details, and something is bound to fall through the cracks. Fortunately, there is a simple solution that can help agents streamline real estate transactions and avoid costly mistakes; hiring a real estate transaction coordinator.
In this article, we take an in-depth look at real estate transaction coordination and go over the main benefits of working with a TC.
What is a real estate transaction coordinator?
As the name implies, a transaction coordinator is a professional that handles all tasks from the point of contract through to closing. While these tasks were historically performed by agents and brokers, outsourcing them to specialists has become the norm in recent years. Depending on the size and volume of real estate deals, the tasks might be outsourced to an independent coordinator or a real estate transaction coordination company. Here is an overview of the general duties that transaction coordinators are expected to tackle.
- Opening escrow: This is done immediately after the agent concludes the purchase agreement. The TC delivers the buyer’s money to the title company and establishes initial contact with the escrow agent.
- Acting as a liaison between all parties: A real estate transaction requires contact between multiple parties. This includes lenders, title companies, contractors, attorneys, appraisers, etc… A TC schedules and coordinates appointments between these parties and ensures that each task is being handled by the most suitable person at the right time.
- Handling paperwork: The sheer amount of paperwork involved in a real estate deal is undoubtedly one of the most jarring aspects of the transaction. The coordinators’ role is crucial here since they handle everything from purchase agreements and sellers’ disclosures to waivers and loan underwriter certificates.
- Managing deadlines: Nothing hurts the credibility of a real estate agent more than a missed deadline. Even worse, a missed deadline might result in the agent losing out on the deal entirely. A transaction coordinator reduces this risk by closely monitoring contingency periods and ensuring that each task is performed within its time window.
Now that you are familiar with a transaction coordinator’s duties, let’s delve into the benefits of working with one.
The benefits of hiring a transaction coordinator
Outsourcing certain tedious tasks to a specialist is never a bad idea. As a matter of fact, it is the most effective way to save both time and effort, two crucial resources that are better off used in other core processes in your business. This is especially the case when it comes to real estate, as many aspects of the industry call for a lot of administrative duties and paperwork. In any event, here are some of the benefits that are associated with hiring a real estate transaction coordinator.
- You will have more time to focus on business-growing tasks
As you would expect, the time-consuming and dull nature of administrative tasks is not conducive to boosting revenue and generating new business. This is where the value of a real estate transaction coordinator is especially noticeable. Retaining the services of a TC will leave you with ample time to focus on the following:
- Prospect, nurture, and convert new leads.
- Attend events and network with other industry professionals
- Tackle multiple real estate transactions at the same time
- You will be able to maintain accurate record-keeping for each transaction
Adequate record-keeping seems to be a low priority for an alarming number of real estate agents. As poorly kept transaction files pile up over the years, things can get jumbled up fairly quickly, and retrieving important pieces might prove to be a challenge down the line. Moreover, poor record-keeping can result in a myriad of issues for agents and clients alike. Some of these issues include the overdrawing of escrow funds and the inability to resolve legal disputes in case of a conflict between different parties. If you happen to be one of the agents that dread the meticulous commitment to accurate and pristine record keeping, then working with a TC is the way to go. As per their duties, transaction coordinators maintain detailed transaction files through each step of the process and effectively manage all confidential information pertaining to each party.
- Your quality of life will improve significantly
Business considerations are not the only factor that you should take into account when mulling over whether or not you should hire a real estate transaction coordinator. An even more critical variable is the quality of your life. While a certain level of grunt work is inevitable when you are starting, insisting on handling every detail of the business is simply unsustainable in the long run. More worryingly, the effects of long work hours can be devastating to your health and personal life. A real estate transaction coordinator can reduce your workload by competently carrying out some of the most time-consuming tasks. This will enable you to pursue other interests outside of the business and spend more quality time with your friends and family.
Many real estate agents adhere to the misconception that delegating is analogous to losing control. This erroneous viewpoint has kept many competent professionals buried in a sea of paperwork and prevented them from taking their business beyond the development stage. The smart approach is to put the focus on improving efficiency and slowly moving towards building a scalable business. Needless to say, this starts with delegating transaction tasks to a trusted specialist.
Getting started with a real estate transaction coordinator is a straightforward process, and prices are generally accommodating, even if you are a solo agent. Head over to our pricing page to get full details on how our service works, or schedule a call to inquire about how we can improve your business.