What does a real estate transaction coordinator do is a common question in the real estate industry.
Transaction coordinators close contracted real estate sales for brokers and agents. They handle all paperwork, inspections, scheduling, and communications.
In this post, we will look closer at what a real estate transaction coordinator does and the value they provide to agents.
Let’s start by reviewing all the steps of closing a real estate sale and how the transaction coordinator manages them.
What Does a Real Estate Transaction Coordinator Do?
Real estate sales are often complex, and closing contracted deals takes time, effort, and specific knowledge of many laws, rules, and requirements.
Here’s an overview of the steps involved in getting a deal to closing and how a transaction coordinator (TC) manages each one.
1. Gather Contracts & Disclosures
The first step toward closing is gathering the necessary paperwork. The paperwork must be compiled and checked for accuracy and compliance with all laws and regulations.
While the specific requirements may vary by location, here are some essential documents typically needed beyond the purchase agreement:
- Agency Disclosure Forms: These forms clarify the roles and responsibilities of the real estate agents involved in the transaction
- Pre-Approval Letter: This document demonstrates the buyer’s financial capability to obtain a mortgage, reassuring the seller of their seriousness
- Agency Contracts: These agreements define the relationship between the agents and their clients (buyers or sellers), outlining their obligations and expectations
- Seller Disclosure Form: This form requires sellers to disclose any known defects or issues with the property, providing transparency to 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
A real estate transaction coordinator ensures that all required paperwork is complete and accurate, which is essential for a smooth and efficient closing process.
2. Order the Title Work
In addition to gathering the necessary documents, engaging a title company is a common practice in many states. Title companies play a crucial role in overseeing the closing process, including:
- Conducting a Title Search: This involves examining public records to verify ownership history and identify potential issues, such as liens or claims against the property
- Providing Title Insurance protects buyers and lenders from financial loss due to undiscovered title defects or ownership disputes
A real estate transaction coordinator initiates this process by providing the title company with a copy of the purchase agreement and maintaining open communication with them throughout the transaction.
3. Tracking the Mortgage Process
Whether the real estate transaction coordinator is acting on behalf of the seller or the buyer, establishing a direct line of communication with the mortgage lender is a critical step in the closing process.
During the initial conversation with the lender, the real estate transaction coordinator covers a few key points:
- Verify Pre-Approval Status: Confirm that the buyer has received a pre-approval letter indicating they are qualified for a loan. This helps ensure a smoother closing process
- Identify Potential Issues: Inquire about any potential roadblocks or challenges the lender foresees with the loan approval. Addressing these early on can prevent delays later
- Discuss Closing Timeline: Discuss the lender’s estimated closing date and align it with the expectations of both the buyer and seller
- Confirm Appraisal Scheduling: Verify that the lender has scheduled the property appraisal. This is a crucial step in determining the property’s value and ensuring it meets the lender’s requirements
Beyond this initial contact, the transaction coordinator prioritizes maintaining regular communication with the mortgage lender.
A weekly check-in keeps everyone informed about the loan’s progress, addresses concerns, and offers assistance if needed.
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4. Managing the Home Inspection
If the purchase agreement includes a home inspection contingency, scheduling it promptly is crucial.
The transaction coordinator works with the buyer to ensure their presence during the inspection, as their firsthand knowledge can be invaluable.
Home inspections usually have a limited period as set in the contract. An experienced TC will ensure the inspection is scheduled quickly and complies with the deadline.
Following the inspection, the TC shares the detailed report with the buyer and their agent.
Often, negotiations are needed to address issues uncovered during the inspection. While the real estate transaction coordinator does not conduct these negotiations, they manage the related paperwork.
Take a closer look at what are the benefits of hiring a transaction coordinator.
5. Checking on the Appraisal
An independent appraisal is a standard requirement in any sale using a mortgage to pay for the property.
The appraisal provides the lender with an unbiased evaluation of the property’s value, ensuring it aligns with the requested loan amount.
In many areas, 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 is crucial in tracking the appraisal’s progress.
If the appraisal value matches or exceeds the agreed-upon sales price, the transaction can proceed smoothly toward closing. However, negotiations may be necessary to address the difference if the appraisal comes in lower than the sales price.
Again, the TC manages and shares all the required paperwork, including contract addendums and work estimates.
Learn how much does a transaction coordinator cost.
6. Maintaining Communication With All Parties
A transaction coordinator plays a vital role in ensuring smooth communication between all parties involved throughout a real estate transaction.
- Client Communication: Regular updates keep clients informed of progress, address concerns, and provide a sense of security. This includes sharing timelines, explaining documents, and clarifying the next steps
- Agent Collaboration: The coordinator fosters teamwork by sharing 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 any necessary negotiations based on the inspection report
- Lender Liaison: Regular communication with the lender ensures loan processing stays on track. The coordinator updates the lender on the transaction’s progress, gathers required documents, and addresses any inquiries promptly
- Title Company Collaboration: The coordinator works closely with the title company, providing necessary paperwork, coordinating closing logistics, and ensuring all title-related issues are resolved before closing
By maintaining open lines of communication and facilitating collaboration, the transaction coordinator streamlines the process, reduces stress for all parties, and contributes to a successful closing.
7. Scheduling the Closing
As the closing of the real estate transaction draws near, the long-awaited “clear to close” notification from the mortgage lender signals one of the happiest moments for all those involved in the transaction.
Upon receiving this green light, the transaction coordinator springs into action, promptly contacting the title company to secure a closing date and time. That date is then shared with all parties.
The transaction coordinator collaborates with attorneys (if applicable), clients, agents, and other relevant parties to ensure the closing process unfolds seamlessly.
This involves confirming attendance, addressing last-minute questions, and ensuring all necessary documents are in order.
The transaction coordinator’s attention to detail during this critical phase ensures that the closing becomes a celebratory milestone, marking the successful conclusion of the real estate journey.
Now that you understand what a real estate transaction coordinator does, you can see the benefits of working with one. Agents who use transaction coordinators save many hours of work, which can be better spent finding new clients.
So, you might wonder, how do you find a real estate transaction coordinator?
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Trust AgentUp for Expert Real Estate Transaction Coordinators
AgentUp’s global team of real estate transaction coordinators is composed of highly skilled professionals who undergo rigorous training.
Each TC completes comprehensive technical training followed by a 40-hour course specifically focused on the US real estate industry.
While you can conveniently order TC services directly from the AgentUp website, we encourage you to schedule a complimentary 15-minute consultation call.
During this brief conversation, we’ll take the time to understand your unique business needs, answer any questions you may have, and collaborate with you to identify the most suitable and cost-effective solutions for your specific requirements.
So, do yourself a favor. Take the first step toward smoother transactions by scheduling your free call today!
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Thanks for reading this post on what does a real estate transaction coordinator do? If you liked this post, please explore these other related articles:
- Most Affordable Transaction Coordinator Services (Top 7)
- Exploring Real Estate Transaction Coordination – An Interview With a Veteran TC
- 4 Benefits of Real Estate Transaction Coordinators for Agents
- 5 Ways a Transaction Coordinator Can Save You Time
- Real Estate Coordinator Checklist (Ultimate Guide)
