Transaction Coordinator vs. Real Estate Agent

Will hiring a transaction coordinator save you money? Here’s everything you need to know about a transaction coordinator vs. real estate agent.

Table of Contents:

Why Homeowners and Agents Work with Transaction Coordinators

Real Estate Agent vs. Transaction Coordinator

Frequently Asked Questions (FAQ)

What is a transaction coordinator in real estate?

What does a real estate transaction coordinator do?

How much should you pay a transaction coordinator?

Is a transaction coordinator worth it?

Why should I hire a transaction coordinator?

What is the role of a transaction coordinator in an escrow?

Does a real estate transaction coordinator need a license?

In the ordinary American’s life, a home sale is unquestionably the most complex financial transaction they will ever be involved in. Hundreds of thousands of dollars are exchanged, with real estate brokers, county authorities, and bank and mortgage workers participating in the deal-making process. Not to mention the fact that local, state, and federal laws must all be adhered to at all times.

The amount of work that has to be completed in a short period of time is enormous. While everyone is accountable for their own component of the process, there are times when you require someone to monitor everything.

The assistance of a transaction coordinator will be beneficial in this situation.

Why Homeowners and Agents Work with Transaction Coordinators

Transaction coordinators are those who are in charge of supervising the whole real estate transaction from start to finish. While each individual participating in the process – the listing agent, the mortgage underwriter, and so on – has their own set of responsibilities, they seldom become involved in other aspects of the transaction. When this happens, it can lead to transaction bottlenecks and delays, which can have major ramifications if the market changes or if one of the parties changes their mind.

So, who are the people that make use of transaction coordinators?

Due to the fact that they do not have an agent to help them through the complicated selling and closing process, “For Sale By Owner” (FSBO) property sellers choose transaction coordinators rather than agents.

Many agents, on the other hand, make use of transaction coordinators. Exceptional value for money is provided by a good coordinator, who can perform the responsibilities of an assistant, researcher, and manager all in one (typical pricing will be discussed later). A transaction coordinator frees up a significant amount of brain space that may be put to better use in other areas of one’s life.

Paperwork is a critical component of a real estate transaction, with hundreds of pages of paperwork covering everything from financing to disclosures to title insurance and more. In many cases, the transaction coordinator will maintain a centralized electronic document database that is accessible to all parties involved.

Deadlines are commonly associated with paperwork, but they may also apply to other activities such as reacting to offers and making provisions for unforeseen circumstances. Missing a deadline might result in the contract being terminated entirely, making this a critical issue to pay attention to.

Finally, coordination serves as a unifying force that holds everything together as a cohesive whole. It is common for hundreds of different types of documents to pass through hands during a transaction, and a transaction coordinator will ensure that everything gets to where it has to go in the shortest amount of time.

Real Estate Agent vs. Transaction Coordinator

Unlike what you may anticipate, though, a real estate agent and a transaction coordinator share a great deal in their roles. Real estate agents would like to think that they could do all of the activities associated with transaction coordination in an ideal world, but this is just not the case. Many of the clients that real estate brokers are responsible for are at different phases of the purchase process, and they are unable to manage all of the administrative chores.

Working with a transaction coordinator through your brokerage firm is something that is rather usual these days. All administrative tasks are handled by a coordinator, allowing agents to concentrate on what they do best: selling homes.

So, what is it that a transaction coordinator performs that an agent is unable to accomplish?

It is the primary role of a transaction coordinator to ensure that the transaction goes through without a hitch; they do not actively participate in areas such as marketing and price negotiation, which are two of the most essential stages of the selling process.

On the other hand, marketing and negotiating are two areas in which an agent excels. In order to find potential buyers, a skilled agent must understand how to display your house in the best possible light to them and how to utilize an extensive professional network to spread the word about your property.

The price of your home will also be able to be negotiated up to the highest amount that the market will allow; a transaction coordinator will not be able to accomplish this for you.

When compared to a transaction coordinator, an agent delivers a full-service selling experience that includes all of the responsibilities formerly handled by the transaction coordinator, in addition to marketing and negotiating. If you work with a transaction coordinator, you will be responsible for managing the marketing and pricing discussions on your own; they will just assist with administrative responsibilities.

When compared to an agent, the cost of a transaction coordinator is much lower. A typical real estate commission for a $350,000 house in the United States is 6 percent, or $21,000. On the other hand, a transaction coordinator will set you back around $500 for each transaction.

However, keep in mind that any savings must be seen from the standpoint of the final selling price. If you want to avoid paying a $15,000 commission by dealing with a transaction coordinator rather than an agent, consider the following scenario: Despite the fact that you saved $14,500 on the surface of things, if your poor bargaining abilities resulted in a lower final sale price, you may have only broken even, if not lost money.

It’s a challenging situation, and the best response for you will be decided by your specific set of circumstances and requirements. The fact is that an agent is more than a transaction organizer, and getting a skilled agent at a discount is almost always a better option.

Sell Your Home Smarter for 1% and save $10,000.

Get My Free Home Valuation

Frequently Asked Questions (FAQ)

What is a transaction coordinator in real estate?

A real estate transaction coordinator is an unbiased third party who provides assistance to the seller during the real estate transaction process. They are responsible for ensuring that everything runs well, including customer service, administrative requirements, and knowledge support.

Real estate transaction coordinators often handle all of the paperwork and deadlines associated with the sale of a house since they are experts in transaction management. They are well-versed in the correct processing of paperwork and financial transactions, as well. Consequently, they closely monitor the whole transaction coordination for potential problems from the minute the seller accepts an offer until both parties have signed the closing papers and the buyer walks away with his or her new home’s keys.

You will almost certainly work with one of these professional assistants throughout the process, even if you do not engage a transaction coordinator yourself. This will ensure that all of your documentation is correctly completed and that your transaction runs smoothly.

Instead of working with a realtor, consider working with a real estate transaction coordinator, especially if you already have a buyer in mind for your house. A transaction coordinator can give you a plethora of situational information while also saving you money on a high realtor’s commission.

What does a real estate transaction coordinator do?

In order to assist sellers during the whole real estate transaction coordination procedure, a licensed transaction coordinator is on hand. There is a solid recommendation for proceeding while making sure the escrow, contingency removal, and closing processes go well. Whether it’s problems with the buyer, faulty documentation, or worried third parties, your transaction manager real estate is there to support you through the process.

If you have any questions concerning the purchase, they will serve as your primary point of contact as well. Some of the transaction coordinator duties could include:

• Escrow management.
• The main point of contact for any communication about the sale.
• Review your purchase or sale agreement with the real estate listing manager.
• Help the sellers write a disclosure package as the listing manager real estate coordinator.
• Monitor deadlines and reminding you of important dates is a helpful service from contract to close coordinators, so you don’t miss any crucial paperwork or financing deadlines.
• Coordinate any walkthroughs.

How much should you pay a transaction coordinator?

It is possible that an average transaction coordinator real estate will cost between $250 and $450. On the other hand, these fees often just suggest that the transactional agent will look through all of the transaction’s details and give his or her approval for them.

If you want more comprehensive support, you may expect to pay anywhere from $50 to $75 per hour for your time and effort. Do you want to go with the second option? Maintain strict control over the amount of money you intend to spend.

Suppose you wish to use a transaction coordinator to avoid paying a realtor’s commission but require several hours of help. In that case, you might be able to save money by hiring one of the flat fee real estate transaction coordinator companies instead of a transaction coordinator. A great alternative is a virtual real estate transaction coordinator, like Richr. You can still lean on their expertise with built-in concierge support while benefiting from their low-cost option that includes title settlement services. It makes coordinating documentation with your title company easier while giving buyers and sellers more control over their sales.

Is a transaction coordinator worth it?

If you choose to hire a real estate agent, the transaction coordinator fee is typically included in their commission price if they already have one on staff. Otherwise, the agent will be performing the real estate transaction manager duties. If you’re trying a for sale by owner route, you may benefit from a real estate coordinator if you don’t know about the legal, marketing, and paperwork aspect of the real estate deal.

Why should I hire a transaction coordinator?

You should hire a real estate closing coordinator if you need guidance throughout the real estate process. While hiring one isn’t necessary, it can take the burden off remembering important dates and collaborating with a mortgage transaction coordinator to keep you on task.

What is the role of a transaction coordinator in an escrow?

The role of a real estate transaction coordinator in escrow is to help you set up escrow accounts to keep the money received from your buyer safe until the closing procedure is complete. Opening escrow accounts may be complicated, and you want to make sure you do it correctly, so it’s best to get professional guidance from a listing coordinator at this point.

The real estate listing coordinator should maintain a close eye on the money while it is in escrow to ensure that it is not handled until it is scheduled to be handled and then released on time. When it comes time to close the escrow account, your realtor transaction coordinator will check through everything in the file to ensure that everything is in order and that the money is where it should be.

Does a real estate transaction coordinator need a license?

A listing coordinator real estate is not required to have a license, but there are certain certifications they are able to obtain to give them more of an advantage. In some states, such as California, you must obtain a transaction coordinator certification.

Richr is the best option for an all-in-one real estate transaction coordinator that offers financial benefits, customer service, and a streamlined process. Find out how you can simplify your real estate process and keep more of your wealth in the process with Richr.