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 is a Transaction Coordinator?
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 steps involved in close of escrow.
What you may not know is that even agents hire Transaction Coordinators (TC for short) to help them manage the paperwork involved in the selling process. You also may not know that sellers themselves can hire a Transaction Coordinator for a low one-time fee without going through an agent. Using a Transaction Coordinator provides sellers with an opportunity to get all the help they need to confidently sell their home, at a fraction of the cost of a listing agent.
Unless you've sold several homes yourself, chances are you aren't intimately familiar with the various requirements needed to complete a real estate transaction. If you miss something or fail to complete the paperwork properly, your deal could fall apart, resulting in penalties that could even lead to lawsuits. A Transaction Coordinator will dramatically reduce the stress associated with selling a property by:
- Helping you move quickly and seamlessly through the escrow and closing process.
- Managing issues that arise with buyers, paperwork or outside parties.
- Acting as a point of contact to address any questions you have throughout the sale.
What does a Transaction Coordinator do?
- 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.
- 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.
- 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 complete.
- Create a complete file for the client, typically in electronic format, which will help with IRS filings the following April.
Benefits of Hiring a Transaction Coordinator
When you hire a real estate transaction coordinator, you instantly gain a trusted ally on your side. Most often, a transaction coordination fee is only paid once, which means your TC doesn't work on commission. Because they have no bias and work directly for you, Transaction Coordinators are happy to answer questions, double-check your contract for any inconsistencies and verify that the details of the sale are in your best interest.
Transaction Coordinators also make sure that a sale is completed as quickly as possible. Delays in real estate can result in unexpected fees, from extending a buyer's escrow, to paying an extra day for the agent's time. Your TC manages the documents and watches deadlines closely; they can rush a check to the escrow agency, send reminders to buyers and their agents, even attend the closing process to make sure everything proceeds as planned.
Your real estate Transaction Coordinator has the one thing you need to complete the sale: industry experience. With years of real estate know-how, your TC can:
- Coordinate showings and open houses.
- Prepare listing materials, including seller's disclosures.
- Collect signatures from all involved parties.
- Send deadline reminders to both you and the buyer.
- File appropriate paperwork, and let you know if you're missing something.
- Scan your contract for any inconsistencies.
- Speak to buyers, agents and other industry professionals on your behalf.
- Create a transaction management file with all the details in one place.
- Send out copies of the contract to all necessary parties.
- Follow up with agents through every step of the closing process.
- Coordinate your move-out schedule.
- Wrap up any needed details after the sale has closed.
If there were things in the list above that seem overwhelming, you're not alone. Buying and selling property can be stressful – there is a lot to know and do. But you don't have to go at it alone. With Home Bay, you have full seller support every step of the way…from the time you list your home, to the time you sign that last signature and hand over the keys. 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 services for significantly less than what it would cost you to sell your home the traditional way.
Choose Home Bay and get all the help you need selling your home. Our experienced team handles all the paperwork for you, saving you both time and money. Learn more about our services, and relax, knowing your sale is in a trusted pair of hands.
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