What Is the Difference Between a Transaction Coordinator and a Real Estate Agent?

Quora, a popular question and answer platform, tackled an important real estate topic: “How many hours on average do realtors spend per client?” Many provided a similar answer – they spend an average of 40 hours per transaction.

At first glance, 40 hours seems reasonable. However, imagine you have 25 clients annually. When you multiply 40 hours per client by 25, you get 1,000 hours spent annually on real estate client transactions alone!

The good news is there is a smart way to minimize the hours spent on real estate transactions – by hiring a Virtual Real Estate Transaction Coordinator. 

Transaction Coordinators (TCs) are indispensable in the real estate space. This is something many agents can attest to. After all, they perform a myriad of non-core functions and help guarantee real estate transactions are carried out without a hitch. 

If you are considering this savvy outsourcing solution, you have come to the right place. Here, you will learn more about transaction coordinators, the tasks they handle, and how they differ from real estate agents.

What Is a Transaction Coordinator?

Transaction coordinators manage the logistical and administrative aspects of real estate transactions. They help complete all procedures and necessary documentation with accuracy and promptness. Below are some of the common functions handled by a real estate transaction coordinator:

Contract-to-Close Administration

Administration tasks handled by transaction coordinators cover the signing of the agreement down to the transaction closing.

Transaction coordinators (TCs) act as the main point of contact. They coordinate between sellers, lenders, title companies, and buyers. Other than that, they also prevent delays by ensuring there is clear and timely communication at all times.

TCs also prepare, organize, and review all the required documents like addendums, disclosures, and agreements. They ensure the accuracy of the documents and check if the required initials and signatures are present.

Moreover, a transaction coordinator monitors different deadlines and key dates like appraisals and inspection periods. They also make sure all the concerned parties adhere to the agreed timelines.

Quality Control

Transaction coordinators are responsible for ensuring all processes and documents meet various standards.

Transaction coordinators make sure information found across all documents is accurate. They resolve any discrepancies immediately to maintain the integrity of the transaction and they review all documents for completeness and accuracy. Accuracy is important in real estate transactions as any errors can delay the processing. TCs also make sure all transactions follow state, federal, and local regulations.

Post-Close Follow-Ups

Post-close follow-ups involve managing activities that occur after the transaction closes, and addressing any last-minute issues that come up.

To complete a transaction, real estate transaction coordinators submit the final documents while coordinating with concerned parties like lenders and title companies. They also check in with clients to warrant a smooth transaction. 

This is important so any post-closing questions or concerns clients may have are addressed accordingly. Gathering feedback enhances the quality of service provided and also helps improve the transaction process. 

Additionally, transaction coordinators must observe proper storage of documents and records. This is crucial to ensure the documentation process is compliant with regulatory and legal requirements.

Data Management

Data management refers to the storage, organization, and handling of all transaction-related documents and data.

Real estate transaction coordinators are responsible for entering accurate transaction data into relevant systems. Transaction records should be complete and up-to-date. TCs also update CRM systems and other databases with accurate client information, transaction details, and relevant notes to keep records current. Lastly, transaction coordinators also ensure all documents are secure and organized. 

Schedule Management

Transaction Coordinators manage schedules for all involved parties with attention on task completion and adherence to deadlines.

TCs take care of scheduling and confirming appointments for relevant activities. They take charge of signings, appraisals, and property inspections. They also send reminders to agents, clients, and other concerned parties. These duties guarantee no important deadlines are missed. 

Transaction coordinators also take care of timeline management, creating a detailed timeline of all transaction milestones. This roadmap ensures awareness of the transaction deadlines and milestones for all involved parties, and greater adherence to them toward transaction completion.

From Pre-Listing to Post-Closing: A Transaction Coordinator’s Checklist

Below is a checklist of the basic steps a transaction coordinator follows:

Pre-Listing

1. Verifies signing of the listing agreement.
2. Ensures completion of required disclosures.
3. Schedules staging or photography (if needed).
4. Inputs details of the property into the MLS system.
5. Coordinates with the seller for an open house schedule (when needed).

During Listing

1. Monitors listing for any inquiries.
2. Schedules showings.
3. Relays showing feedback to the seller.
4. Coordinates necessary inspections or repairs.
5. Keeps track of contract deadlines.

Under Contract

1. Ensures signing and timely submission of all relevant documents.
2. Facilitates communication between the concerned parties like the agents, buyers, lenders, and sellers.
3. Monitors deadlines and contingency periods.
4. Coordinates with the title company for the closing arrangements.

Post-Closing

1. Ensures correct disbursement of funds.
2. Processes relevant and important documents.
3. Coordinates final repairs or inspections.
4. Closes out transaction files.

Transaction Coordinator Vs. Real Estate Agent

Real estate agents and transaction coordinators contribute to the completion of property transactions. However, both have distinct responsibilities and roles. Let’s take a closer look at the distinctions between the two.

Roles and Responsibilities

• Transaction Coordinators: They handle the administrative tasks behind the scenes. This includes tracking deadlines, handling paperwork, and ensuring smooth communication between parties. Essentially, they keep the process organized, compliant, and on schedule for closing.
• Real Estate Agents: They focus on the client-facing aspects of selling or buying properties. Their tasks include negotiating deals, marketing, and helping clients with property selection. They leverage their market knowledge to ensure clients make informed choices.

Licensing Requirements

• Transaction Coordinators: Typically, they don’t need a license since they focus primarily on administrative tasks like managing deadlines and documents. Unlike real estate agents, they don’t represent clients in property transactions or negotiations. 
• Real Estate Agents: Real estate agents are required to have a license since their work involves marketing listings, negotiating terms, and representing clients in selling or buying properties. These functions require legal authorization as they play a key role in handling contracts and ensuring compliance with real estate laws and regulations.

Client Representation

• Transaction Coordinators: Transaction coordinators don’t represent clients. They focus solely on the administrative side of real estate. They also ensure everything is on track by managing documents, communication, and deadlines accordingly. Additionally, TCs won’t offer advice or influence the terms of the deals.
• Real Estate Agents: Agents directly advocate for their clients’ best interests by providing guidance on property selection, pricing, and negotiations. They also actively represent clients throughout the buying or selling process. 

Compensation

• Transaction Coordinators: They are typically paid a flat fee per transaction, regardless of the sale price. The fee is paid by the brokerage or agent.
• Real Estate Agents: They are compensated through commissions, which are based on the percentage of the property’s sale price. The commission is paid at closing. 

Why Real Estate Professionals Use Transaction Coordinators

Real estate agents depend on transaction coordinators for the smooth execution of transactions. These skilled professionals manage the administrative aspects of real estate deals. They allow agents to focus on core tasks that bring in revenue.

TCs are well-versed in the legalities of real estate transactions and are well-informed about best practices that govern the buying and selling process. Their expertise ensures compliance with regulations, mitigating errors that can delay transactions.

Transaction coordinators play a key role in improving real estate operations. They help boost productivity, efficiency, and client satisfaction for real estate businesses. They give real estate agents the luxury to focus on what they do best: closing deals and serving their clients.

What Should You Look for in a Virtual Real Estate Transaction Coordinator? 

When choosing a virtual real estate transaction coordinator, these important factors should rank high on your list.

1. Experience

Opt for a transaction coordinator with a proven track record. They should be experts in handling real estate transactions remotely. Extensive experience in managing electronic paperwork and communications is invaluable.

2. Communication Skills 

In virtual settings, effective communication is critical. Ensure your chosen transaction coordinator is clear, responsive, and adept when communicating.

3. Organization

The ideal transaction coordinator possesses strong organizational skills. They are efficient in managing multiple deadlines and tasks. They also implement effective procedures to ensure nothing falls through the cracks.

4. Tech Savvy

A skilled transaction coordinator is proficient in using different digital platforms and tools. Some of the tools they should be well-versed in include virtual meeting tools, transaction management software, and e-signature platforms.

5. Flexibility

Transaction coordinators face unique challenges so it’s important to find professionals who are flexible and adaptable. They should be able to pivot effortlessly when needed.

6. Attention to Detail 

In real estate transactions, accuracy is a must. That said, look for someone who is meticulous in reviewing documents and details.

Get Expert Real Estate Transaction Coordination with STAFFVIRTUAL

Real estate agents and transaction coordinators play distinct, yet key roles in real estate transactions. Understanding the distinction between these two professionals can help optimize efficiency for real estate businesses and ensure seamless experiences for all parties involved.

If you want to streamline and simplify your real estate processes, we can help! At STAFFVIRTUAL, we have an experienced team of Virtual Real Estate Transaction Coordinators. These skilled experts are ready to assist you every step of the way.

Experience unrivaled organization, professionalism, and expertise with STAFFVIRTUAL. Never let administrative tasks bog you down again. Schedule a call with us today and discover how we can empower your real estate business!

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Sources:

How Many Hours on Average Do Realtors Spend Per Client? | Quora

Real Estate Agent: Definition, How Agents Work, and Compensation | Investopedia

What Is a Transaction Coordinator? | U.S. News

What is a Transaction Coordinator? | Real Estate US News

Transaction Coordinator Checklist | IcenHower

Transaction Coordinator vs. Real Estate Agent – What You Really Need | Real Estate Witch

What Does a Real Estate Agent Do? | Nerdwallet