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As most agents know, real estate transaction coordinators have quickly become one of the most important members of their team. More and more agents, especially those closing more than the national average of 11 homes per year, are utilizing a u201cTC.u201d<br>
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As most agents know, real estate transaction coordinators have quickly become one of the most important members of their team. More and more agents, especially those closing more than the national average of 11 homes per year, are utilizing a “TC.” The value is quite clear: the transaction coordinator helps handle everything from contract-to-close in order to free up their agent’s time. In practice, this typically means an extra 15 hours saved per transaction that the agent can spend on listing appointments instead of rescheduling an inspection for the third time.
The obvious question is then: what is the fee agents need to pay for a TC? Said differently, what is the cost per hour of the added 15 hours the real estate agent saves per transaction? Let’s find out.
How Much Should You Pay A Transaction Coordinator? We have the data below to help answer this question. The short answer to how much you should pay is everyone’s favorite: “it depends.” However, the detail is important to understand because most agents overpay for their transaction coordinator without realizing it. Let’s examine the three different types of real estate transaction coordination models and the associated costs with them.
Full-time, in-house transaction coordinator A full-time, in-house transaction coordinator is exactly that: someone hired by a specific brokerage or team and entirely dedicated to that team. There are certainly some advantages to this model, such as being able to work out of the same office as your transaction coordinator or directing the TC to complete other tasks, like marketing. However, many agents find the cost is actually rather prohibitive when it comes to hiring an in-house TC.
Let’s look at the numbers: ● ● ● $56,344 in direct cost per year $1,911 in indirect cost per year $58,255 per year in total cost Keep in mind, that total cost doesn’t include expenses like a new computer or the lost time in productivity for your agents training the new TC.
Transaction Coordinator Service More and more real estate agents are looking for a happy middle ground between an expensive full-time hire and a freelancer with suspect quality. These agents are increasingly turning to transaction coordination services. A transaction coordinator fee is charged by some banks when they process a loan application. Let’s examine the cost structure below.
The Direct Cost Of A Transaction Coordinator Service At the time of this writing, all but one transaction coordinator service charges the exact same fee structure as a freelancer: a fixed, per-transaction fee. Most charge roughly $400 per transaction. As we’ve seen above, an agent who closes three files per month can expect to pay $14,400 on the year. This fee increases even more when agents close more transactions per month. However, most services charge additional fees on top of that. For example, one agent who works with Close Concierge and used to work with one of our competitors, reports that he had to pay a fee as well for deals that fell out of contract.
