Real Estate Agent and Trainer, Robert Rico, explains what the benefits are to hiring a Transaction Coordinator when you’re a Real Estate Agent. Do you want to see more video blogs? Subscribe here!
Let’s face it, real estate transactions can be extremely complicated and take up a lot of any agent’s time. However, the best agents are always out there building their book of business and acquiring new leads — so how do you reconcile these two priorities?
Well, one way that we recommend, is by hiring a TC – a Transaction Coordinator. Now, what is a TC and what does a TC do?
First, let’s back up a couple steps — back to the basics. When you’re an agent, you represent your clients – they are the principals in your real estate deal. You definitely want all your deals to close – but that takes time away from gathering new listings and securing future income.
When you open an escrow, that’s just the beginning of the process. Sure, the offer has been accepted, but there’s still tons of back-and-forth that has to happen before the deal can close and before you can get your sweet, sweet paycheck!
When your escrow is open, that means the buyers have signed a ‘legal and binding contract’, and they are intending to move forward with the deal. It’s like caring for a baby – it’s your precious deal that, if it goes through, should net you a fairly large paycheck!
When the deal is in escrow, the escrow company has the responsibility to “babysit” the transaction, and the responsibility to make sure every stipulation of the contract is met. However, they don’t work “for you” exactly – they are getting their fees from the seller. A TC will work for just you, on every deal, to make sure everything is completed on time and correctly.
The TC working for you, who is licensed of course, means that this person is on your team and should be authorized to speak to your clients on your behalf. This will save you TONS of time when you’re out in the field — your TC can be at the office, in front of the computer, talking hard numbers with your clients. And this is all without your time being taken up!
As we know in real estate, time is of the essence!! Every day is important in an escrow, and by Day 17, all contingencies have to be released. If Day 17 falls on another important day in your career (let’s say an important listing presentation), you will be totally distracted by the signatures needed. This could negatively impact your new business — always something you need to watch for!
When you’re hiring someone to look after your transactions, do yourself a favor — don’t hire a teenager or someone brand-new to the game. Hire an experienced TC with many transactions under their belt. It’s going to cost you more, but in the long run, it will definitely be worth it with all the time and headaches you’ll save! Thus, this investment could actually leave you richer!
The TC will also protect you against any unforeseen circumstances that you may have overlooked in your eagerness to get the deal pushed through. For example, if you missed an irregular stipulation in the contract, the TC will be going through everything with a fine-toothed comb to make sure you are covered on all bases.
In addition, the TC will do the hard/tedious work of gathering signatures and keeping everyone updated on a daily basis for each escrow that you have open. There are, like we said, lots of signatures to collect… you don’t want a deal delayed because you forgot to follow up on a client signature. Sometimes, if the real estate agent is the one at fault, they even pay out of pocket to extend the buyer’s loan lock. This is an out of pocket cost for each day the escrow is delayed — try to avoid that!
The TC usually has his or her real estate license, but does not want the risk or doesn’t have the right personality to be a successful agent on his or her own. This means that they know all the jargon and contracts, like the RPA – residential purchase agreement. This is incredibly helpful when they are covering your bases and checking over your contracts. That means they’ll know about the lock extensions and how to avoid those costs, they’ll know when a client is getting good financing, and they will know the status of each deal they have going for you.
So, how do you make your Real Estate Agent life easier? Hire a (good) Transaction Coordinator to review your RPAs and babysit your transactions. Spend your time and effort, as an agent, getting new clients and signing new listing agreements — don’t waste your time chasing signatures! It’s worth the cost, and helps protect everyone who’s working for/with you on your deals.