Table of Contents
- What Is a Real Estate Agent?
- The Role of Real Estate Transaction Coordinators
- Comparing Transaction Coordinators & Agents
- Can Real Estate Agents be Transaction Coordinators?
- Trust AgentUp for Outstanding Transaction Coordinators
Transaction coordinator roles are often confused with real estate sales agents, as their roles overlap.
Transaction coordinators and agents work together to close contracted real estate sales, but their roles differ significantly.
Given the confusion, people often ask if a real estate agent can be a transaction coordinator.
This article will clarify the difference between a real estate agent and a transaction coordinator and answer that question.
Let’s get started, shall we?
What Is a Real Estate Agent?
Real estate agents are licensed professionals who navigate the complexities of the property market, assisting clients with buying, selling, renting, and managing real estate, including homes, apartments, and commercial spaces.
To become a licensed agent, individuals must undergo rigorous training, including:
- Comprehensive Coursework: Completing state-approved real estate laws, practices, and ethics courses
- Licensing Exam: Successfully passing a state-administered exam to demonstrate knowledge and competency
- Continuing Education: Participating in ongoing professional development to maintain their license and stay abreast of industry changes
Establishing an agency agreement is a crucial aspect of the agent-client relationship. This legal contract empowers the agent to act on behalf of their client (buyer or seller) and prioritize their interests throughout the transaction.
Agents are bound by a set of fiduciary duties, ensuring that they act with integrity and professionalism:
- Loyalty: To prioritize the client’s best interests above all else
- Confidentiality: The need to safeguard all sensitive client information
- Obedience: To always diligently follow the client’s lawful and ethical instructions
- Accountability: There is a need to maintain transparent financial records throughout the transaction
- Care & Skill: To leverage expertise to provide the highest level of service
- Disclosure: The requirement to fully inform clients of all relevant information pertinent to the transaction
Real estate agents are well-trained professionals who guide clients through successful property transactions. They are trustworthy, knowledgeable, and unwaveringly committed to their clients’ best interests.
The Role of Real Estate Transaction Coordinators
A transaction coordinator is a skilled professional vital to ensuring smooth and efficient real estate closings.
While not all states require specific licensing, many undergo professional training to master the intricacies of the closing process.
The transaction coordinator is engaged once a real estate sale is contractually agreed upon. They take over the closing process and perform various administrative tasks to finalize the sale and transfer the property.
For example, a transaction coordinator’s responsibilities include:
- Communicate with all parties of the sale, including clients, vendors, and agents
- Manage and review contracts, obtaining the necessary signatures
- Coordinate the home inspections and distribute inspection reports
- Request title work and update the title company on any changes
- Keep agents informed about transaction progress
- Update and answer client questions and provide regular updates
Overall, transaction coordinators provide invaluable support, allowing real estate agents to focus on client relationships and strategic deal-making.
The statistics demonstrate the value transaction coordinators bring to any sale:
- Close More Deals: 98% of agents partnering with a Transaction Coordinator (TC) close more transactions per month
- Industry Leader: 50% of top real estate brokerages leverage the expertise of in-house TCs
- Time Savings: Reclaim 10 to 20 hours per transaction – that’s significant time back in your day
- Productivity Surge: Experience a 25% increase in overall productivity
- Client Satisfaction: 95% of clients report a positive experience when a TC is involved
- Error Reduction: Minimize errors by a remarkable 80%
- Sales Growth: 70% of agents see a significant increase in sales within their first year of working with a TC
To go deeper concerning the role of a transaction coordinator, please read what does a transaction coordinator do?
Next, let’s compare and contrast the differences between a transaction coordinator and a real estate sales agent.
Market Leading
Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
Comparing Transaction Coordinators & Agents
One of the most fundamental differences between a real estate agent and a transaction coordinator is their role in the transaction.
Transaction coordinators maintain strict neutrality. They act as impartial facilitators, assisting both the buyer and seller in navigating the closing process.
This neutral stance prohibits them from:
- Negotiating: Making offers, counteroffers, or engaging in any negotiation on behalf of either party
- Providing Advice: Offering legal, contractual, pricing, or inspection advice
- Advocating for Interests: Strategizing with or advocating for the interests of either the buyer or seller
- Offering Opinions: Providing pricing opinions or reports that could favor one party over the other
Real estate agents advocate for their clients (buyers or sellers). They build a legal relationship with their clients and must prioritize their best interests throughout the transaction, including negotiation, guidance, and advocacy for their position.
An Overview of the Differences
There are a few other differences between the two roles, including the following:
Scope of Expertise:
- Agents: Possess a comprehensive understanding of the entire real estate sales process, from initial listing to closing
- Coordinators: Primarily specialize in the administrative tasks associated with closing a transaction
Client Focus:
- Agents: Represent and advocate for either the buyer or the seller throughout the entire process
- Coordinators: Maintain neutrality and cannot act on behalf of either client
Conflict Resolution:
- Agents: Can intervene and negotiate solutions to client conflicts arising during the transaction
- Coordinators: Have limited scope for resolving client disputes
The following points summarize the overall differences:
Real Estate Agents:
- Prioritize client relationships
- Actively participate in property searches, showings, and negotiations
- Provide pricing opinions and strategic guidance
- Guide clients through the entire buying/selling journey
Transaction Coordinators:
- Manage the administrative aspects of the closing process
- Typically hired by real estate agents
- Maintain neutrality and cannot advocate for either client
- Limited in providing advice or opinions
Now that we understand the differences and similarities between real estate agents and transaction coordinators let’s return to our initial question: Can real estate agents be transaction coordinators?
Let’s explore the answer.
Can Real Estate Agents be Transaction Coordinators?
The quick answer to the question is yes. But we need to consider several factors.
First, real estate agents possess the foundational knowledge and skills to excel as transaction coordinators.
Their in-depth understanding of real estate law, contracts, and the overall transaction process provides a strong base for effectively managing the administrative aspects of closing a deal.
Second, some states require TCs to be licensed in the same way as agents. In these cases, a person obtains the license but knows their intended career path ahead of time.
Third, some real estate agents decide to work as transaction coordinators later in their careers, realizing they prefer more administrative work.
Fourth, a real estate agent occasionally acts as a TC for a close friend or family member, charging less and simply facilitating the paperwork.
However, while agents have the potential to become highly successful transaction coordinators, most choose to focus on client representation and sales.
This is primarily due to the higher earning potential of direct client interaction, property sales, and commission-based income.
While agents possess the necessary qualifications, the financial incentives and career trajectory within traditional real estate often outweigh the appeal of specializing in transaction coordination.
Now that we have answered that question, a second related question arises: Where can you find top-notch transaction coordinators?
Market Leading
Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
Trust AgentUp for Outstanding Transaction Coordinators
AgentUp is your go-to source for outstanding, affordable real estate transaction coordinator services.
The company’s transaction coordinators are recognized as among the best across the industry. Each TC is highly trained to ensure your transactions reach a timely, problem-free closing.
There are many reasons to choose to partner with AgentUp, including the following:
- Customized Services: They match you with the right services and solutions for your business needs
- US-based Customer Support: Their US-based customer support team is dedicated to offering exceptional service every step of the way
- Competitive Prices: Enjoy affordable transaction coordination services at competitive prices
- Trusted Industry Innovator: Their award-winning services have been featured on ABC, CBS, Fox News, USA Today, and industry podcasts and blogs
Here’s one more reason to partner with Agentup: Each dedicated TC is also a trained marketing expert who will work on your marketing when not tending to your transactions.
To promote your listings and services, they will rely on the latest, highly-effective marketing solutions, including:
- Virtual tours
- Property websites
- Home flyers
- House portraits
- AI real estate photo editing
- And virtual staging
So, do yourself a favor right now.
Sign up for a free AgentUp account and explore what we offer to help you improve your bottom line.
We hope you enjoyed this article on whether real estate agents can be transaction coordinators. Before you go, you may also want to explore these additional related resources:
