A real estate transaction is a complex paperwork system that varies by city and is impacted by local, state and federal laws. That’s why home sellers often decide to use an agent to sell their. But doing so is outrageously expensive. In fact, the average listing agent commission alone is 3% of the total sale price of your home!
What you may not know is that many agents typically hire a professional known as a Transaction Coordinator (or TC for short) to help them manage all the paperwork involved in the selling process. You also may not know that sellers can hire a Transaction Coordinator for a flat fee without going through an agent. This option provides sellers with an opportunity to get all the help they need to confidently sell a home at a fraction of the cost of a listing agent.
So what exactly is a Transaction Coordinator, and what do they do?
A Transaction Coordinator is a real estate professional who manages all the paperwork and deadlines involved in a real estate transaction. They are trained in every step of the selling process and are tasked with monitoring progress from the time the seller accepts an offer through the close of escrow.
Benefits of Having a Transaction Coordinator:
Unless you’ve sold several homes yourself, chances are you aren’t intimately familiar with the various requirements needed to complete the real estate transaction. If you miss something or fail to complete the paperwork properly, your deal could fall apart, lost revenue or resulting in penalties that could lead to lawsuits.
A Transaction Coordinator will reduce the stress associated with selling a property by:
- Ensuring everything stays on track throughout the selling process
- Helping you move quickly and seamlessly through the escrow and closing process
- Quickly and efficiently managing any issues that arise with buyers, paperwork or outside parties
- Acting as a point of contact to address any questions you have throughout the sale
18 Things a Transaction Coordinator Manages That You Won’t Have To:
- Open escrow.
- Liaise between the seller, buyer, escrow, agents and various third parties.
- Review the purchase agreement for completeness.
- Ensure the buyer’s earnest money deposit is in escrow on time or provide the right paperwork to demand it.
- Review the escrow instructions for errors.
- Coordinate the Seller’s Disclosure
- Draft any needed addendums and other required paperwork.
- Monitor deadlines during the contingency period and provide a demand notice to the buyer if timing isn’t met.
- Ensure the loan contingency removal is tracking on time.
- Ensure the loan underwriter has the various certificates and clearances needed.
- Obtain the Contingency Removal form by the contingency removal date, or serve the buyer a Notice to Perform
- Deal with the Request for Repair process or waivers.
- Obtain other waivers where applicable.
- Coordinate the final walk-through.
- Document communications among the parties.
- Audit the file prior to close of escrow to ensure all paperwork is complete.
- Make aware of tax withholding exemptions, such as Foreign Investment in Real Property Tax Act (FIRPTA), or HARPTA are submitted.
- Create a complete file for the client, typically in electronic format, which will help with your IRS filings the following April.
And those are just the major responsibilities!
When you’re ready to list your home, consider hiring us and our Transaction Coordinator to reduce your stress and save tons of cash.
Were so good at it, we created TransactionAdmin.com