A real estate transaction is full of complex paperwork 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 manage their sale – but doing so is outrageously expensive. In fact, the average listing agent commission is 3% of the total sale price of your home! That can mean thousands of dollars in fees for the average home seller.
What you may not know is that even 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 low one-time 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 Hiring 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, resulting in penalties that could lead to lawsuits.
A Transaction Coordinator will dramatically 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
19 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.
- Make sure the buyer’s earnest money deposit is subject to forfeiture if the buyer fails to perform.
- Review the escrow instructions for errors.
- Draft the Seller’s Disclosure Packet (typically a half inch thick due to various state, local and federal laws).
- Draft 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.
- Ensure tax withholding exemptions, such as Foreign Investment in Real Property Tax Act (FIRPTA), are completed.
- 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!
If there were things in the list above that were foreign to you, consider hiring Home Bay to get full seller support when you list your home. It’s like hiring an agent, but better! Pay one low fee, reduce your stress and save tons of cash! You can take advantage of our comprehensive service for as little as $2,000.