Transaction coordinators perform many valuable tasks for real estate brokers and sales agents.
Much of what transaction coordinators do happens behind the scenes, so it’s not always clear what services they provide or their specific role in closing contracted real estate sales.
This post will examine more closely what a real estate transaction coordinator does and the value they provide to agents.
Let’s get started, shall we?
The Tasks Handled by a Transaction Coordinator
Real estate sales can involve layers of legal, regulatory, and procedural steps. From contract preparation and compliance to final closing, the process demands careful attention, expertise, and a deep understanding of local and state laws.
Many real estate professionals rely on the invaluable services of a transaction coordinator (TC) to streamline this complex process and ensure a smooth transaction.
Here’s an overview of the closing tasks handled by a typical transaction coordinator.
1. Document Preparation & Compliance
The first crucial step in closing a real estate transaction is assembling the necessary documentation. This paperwork must be meticulously compiled and verified for accuracy and adherence to all relevant laws and regulations.
While specific requirements may vary by jurisdiction, the following documents are generally essential in addition to the purchase agreement:
- Agency Disclosure Forms: These forms clarify the agency relationships and status of the real estate agents involved in the transaction
- Pre-Approval Letter: This document demonstrates the buyer’s financial ability to secure a mortgage, reassuring the seller
- Agency Contracts: These agreements outline the relationship between the agents and their clients (buyers or sellers), defining their obligations and expectations
- Seller Disclosure Form: This form requires sellers to disclose any known defects or issues with the property, ensuring transparency for potential buyers
- Lead-Based Paint Disclosure: This form informs buyers of the potential presence of lead-based paint and associated risks for properties built before 1978
- Purchase Agreement: This contract is used to make an offer on a property outlining the agreed-upon sale conditions
A real estate transaction coordinator ensures that all required paperwork is complete and accurate, contributing significantly to a smooth and efficient closing process.
2. Open Title Work
Beyond gathering the necessary documentation, a transaction coordinator will engage a title company, a standard practice in many states.
Title companies offer invaluable services that contribute significantly to a successful closing process. Among their central role are the two essential tasks:
- Conducting Title Searches: This involves examining public records to verify ownership history and identify potential issues, such as liens or claims against the property
- Providing Title Insurance: This protects buyers and lenders from financial loss arising from undiscovered title defects or ownership disputes
A real estate transaction coordinator initiates the engagement with the title company by providing them with a copy of the purchase agreement and maintaining open communication throughout the transaction.
3. Monitoring the Mortgage Process
Whether the real estate transaction coordinator represents the seller or the buyer, establishing a direct line of communication with the mortgage lender is a critical component of the closing process.
During the initial conversation with the lender, the transaction coordinator will do the following:
- Verify Pre-Approval Status: Confirm that the buyer has received a pre-approval letter indicating their eligibility for a loan
- Identify Potential Issues: Inquire about potential obstacles or challenges the lender anticipates in the loan approval process
- Discuss Closing Timeline: Coordinate the lender’s estimated closing date with the buyer and seller’s expectations
- Confirm Appraisal Scheduling: Verify that the lender has scheduled a property appraisal. This is crucial in determining the property’s value and ensuring it meets the lender’s requirements
Following this initial contact, the transaction coordinator should prioritize regular communication with the mortgage lender.
The transaction coordinator can conduct a weekly check-in, helping to keep everyone informed about the loan’s progress, address concerns, and assist in overcoming hurdles.
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Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
4. Coordinating the Home Inspection
If the purchase agreement includes a home inspection contingency, scheduling the inspection promptly is essential.
The transaction coordinator will work closely with the buyer to ensure their presence during the inspection, as their firsthand knowledge can be invaluable.
Home inspections typically have a limited timeframe as specified in the contract. An experienced transaction coordinator will ensure the inspection is scheduled quickly and within the deadline.
After the inspection, the transaction coordinator will share the detailed report with the buyer and agent.
Conversations or negotiations may be necessary to address any issues discovered during the inspection. While the transaction coordinator may not directly participate in these negotiations, they will manage the associated paperwork and communications.
Here’s more information on what are the benefits of hiring a transaction coordinator.
5. Tracking the Appraisal
An independent appraisal is a standard requirement for any real estate sale involving a mortgage.
The appraisal provides the lender with an unbiased assessment of the property’s value, ensuring it aligns with the requested loan amount.
In many regions, the appraisal is typically scheduled 10 to 14 days after the purchase agreement is signed.
While the lender is responsible for selecting and hiring the appraiser, the transaction coordinator plays a crucial role in tracking the appraisal’s progress.
If the appraised value matches or exceeds the agreed-upon sales price, the transaction can proceed smoothly toward closing. However, negotiations may be necessary to address the discrepancy if the appraisal is lower than the sales price.
The transaction coordinator manages and shares all the required paperwork, including contract addendums and pricing adjustments.
Read more to learn about how much does a transaction coordinator cost.
6. Communicating With All Parties
Perhaps the transaction coordinator’s most pivotal role is ensuring effective communication and collaboration among all parties involved in a real estate transaction.
- Client Communication: Regular updates to the clients on the transaction’s progress. This includes communicating timelines, sharing documents, and outlining the next steps
- Agent Collaboration: The transaction coordinator shares relevant information with all agents, ensuring everyone is on the same page and minimizing misunderstandings
- Inspector Coordination: The coordinator schedules inspections, communicates findings to relevant parties, and facilitates necessary negotiations based on the inspection report
- Lender Liaison: Regular communication with the lender ensures the loan processing remains on track. The coordinator updates the lender on the transaction’s progress, gathers required documents, and promptly addresses any inquiries
- Title Company Collaboration: The coordinator makes sure that the title company has all the necessary paperwork, coordinating closing logistics, and seeing to all title-related issues are resolved before closing
By maintaining regular communication with all the closing players, the transaction coordinator streamlines the process, reduces stress for all parties, and contributes to a successful closing.
7. Scheduling the Closing Date
The long-awaited “clear to close” notification from the mortgage lender is a joyous milestone for all parties involved in a real estate transaction.
Upon receiving this go ahead, the transaction coordinator contacts the title company to schedule a closing date and time. Once scheduled, the TC shares this information with all relevant parties.
The transaction coordinator collaborates closely with attorneys (if applicable), clients, agents, and other stakeholders to ensure a seamless closing process. This involves confirming attendance, addressing last-minute questions, and verifying that all necessary documents are in order.
The transaction coordinator’s careful attention to detail during this critical phase ensures that the closing becomes a celebratory event, marking the successful conclusion of the real estate journey.
As you can see, using a transaction coordinator can save agents countless hours of work, allowing them to focus on finding new clients and expanding their business.
Now that you understand what a real estate transaction coordinator does, you can see the many benefits they provide, many happening behind the scenes.
So, now you might wonder, how do you find a real estate transaction coordinator for your real estate business? Let us show you where to start.
Market Leading
Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
AgentUp, Your Source for Transaction Coordinators
AgentUp is a leading provider of real estate transaction coordination services.
Their highly trained transaction coordinators offer exceptional solutions targeted to your specific needs, ensuring your sales close smoothly and efficiently.
Here are some key reasons to choose AgentUp for your transaction coordination needs:
- Affordable Pricing: Enjoy top-tier transaction coordination services at competitive rates
- Tailored Solutions: AgentUp listens carefully to understand your unique requirements and matches you with the most suitable services and solutions
- World-Class Customer Support: Their experienced US-based support team is dedicated to providing exceptional service throughout the transaction process
- Industry Leadership: AgentUp’s trusted services have been featured on major news outlets, including ABC, Fox News, and USA Today, and industry publications and podcasts, solidifying their reputation as an innovative leader in the field
There’s one more significant reason to partner with AgentUp for transaction coordinators: AgentUp TCs are also experienced marketing partners. Let us explain.
AgentUp Transaction Coordinators Are Also Skilled Marketers
AgentUp transaction coordinators are not only open to close, full-service professionals, but they are also real estate marketing experts.
When not working on your transactions, they will oversee the marketing for your listings and professional services, including social media coordination.
They also have at their fingertips the latest digital marketing technology, which they’ll leverage to help grow your business:
- Virtual tours
- Property websites
- Home flyers
- House portraits
- Real estate photo editing
- And virtual staging
With an AgentUp TC, you get more – an expert at closing your sales and a marketing assistant to help secure more deals.
So, take the first step toward smoother closings and enhanced marketing.
Schedule a call today to learn more about AgentUp and its offerings.
Thank you for reading this article on the tasks a transaction coordinator does. If you enjoyed this article, please take a moment and explore these related resources:
- Who Pays the Transaction Coordinator Fee – Agent or Seller?
- Best Transaction Coordination Services in 2024
- Can a Transaction Coordinator Post a Real Estate Listing?
- 4 Benefits of Real Estate Transaction Coordinators for Agents
- What’s the Difference Between a Dedicated Transaction Coordinator and a Regular TC?
