Whether you're a real estate agent, FSBO seller, or investor, handling mountains of paperwork, third-party communications, and tight paperwork deadlines can feel overwhelming. If that's the case, it may be time to consider hiring a transaction coordinator.
Transaction coordinators manage the paperwork, administrative details, and communication between parties in a real estate deal. They typically step in once a home goes under contract and stay involved through closing.
Not everyone needs a transaction coordinator, but for many, their support can be invaluable. This guide will help you decide if hiring a transaction coordinator is right for you, how to find a great one, and how to get the most value from their services.
What does a transaction coordinator actually do?
A transaction coordinator helps real estate agents, investors, and FSBO sellers manage the complex administrative tasks involved in selling a home, from the time a contract is signed through closing. Their main goal is to keep the transaction running smoothly and efficiently.
Some of their core duties are to:
- Prepare seller disclosures about potential property hazards or drawbacks
- Review purchase agreements to ensure all details are correct and obtain missing signatures
- Help to open and monitor escrow accounts and audit related paperwork
- Track underwriting to ensure lenders have all required certificates and clearances
- Serve as the main point of contact between third parties and thoroughly document all communications
Coordinating everyone involved in a real estate transaction is a job in itself. A single deal can involve 14 or more parties, including:
- Seller
- Buyer
- Listing agent
- Buyer's agent
- Home inspector
- Appraiser
- Loan officer
- Mortgage broker or lender
- Escrow company
- Title company
- Real estate attorneys
- Property surveyor
- Notary signing agent
- Home insurance agent
- Homeowners association (HOA)
Having a single point of contact to facilitate and document communication can save agents and sellers significant time, keep the process moving, and prevent misunderstandings.
What don’t transaction coordinators do?
A transaction coordinator’s role is primarily administrative. They work alongside real estate agents and attorneys but don't replace them or offer strategic guidance.
Some transaction coordinators don’t communicate directly with clients. They can't provide legal or financial advice, interpret documents, negotiate contracts, show properties, meet clients in person, handle disputes, or perform many other specialized tasks involved in real estate deals.
And while they may prepare and manage documents such as seller disclosures, they can't complete sections requiring firsthand knowledge of the property’s condition.
In many states, real estate attorneys are required or recommended to prepare and review most legal documents. This means the transaction coordinator focuses more on coordination. Check your state’s requirements to determine whether it’s an attorney-closing state or a title state (also called an escrow state).
Should you hire a transaction coordinator?
Not every real estate agent, investor, or FSBO seller needs a transaction coordinator. However, hiring one can save time and ensure paperwork is completed accurately and submitted on schedule.
For real estate agents
Many real estate agents can comfortably handle 2–3 transactions per month on their own, though some manage up to four without issue.
If you start feeling bogged down by paperwork and find it’s costing you sales, it may be time to hire a transaction coordinator. Their support frees you to focus on high-value activities like networking, meeting prospects, and serving your clients.
“I would say 75% of real estate agents are really good at socializing and selling. They're salespeople, and … some of them are not necessarily administrative or detail-oriented,” says Taylor Pedro, CEO and founder of Taylor Made Transactions, a real estate transaction coordination company. Real estate agent Ewelina Rafael reflects this, saying, “I’m great at sales, [the transaction coordinator] is great at operations. It’s a dream.”
Juan Munoz, a real estate investor and owner of Sell Florida House Now, recalls realizing it was time to hire a transaction coordinator. "I felt overwhelmed with all the paperwork, and [it] was taking time away from me working on higher dollar activities that lead to more profit for the company."
For FSBO sellers
If you’re selling your home yourself in a simple cash deal with no contingencies and a standard contract, you may not feel the need to hire a transaction coordinator. It depends on your personal comfort level with filling out the paperwork and your experience selling.
But complex transactions with negotiations, contingencies, extra disclosures, or buyer financing can quickly become overwhelming, especially if you’re selling your first home. A transaction coordinator can help keep the communication on track and meet deadlines.
However, if you need advice on filling out forms, suggested wording, or help with negotiations, you’re entering real estate agent territory. While licensed transaction coordinators hold a real estate license, Pedro warns that blurring the lines could jeopardize their licenses.
If a transaction coordinator is licensed in your state, you can hire them as an agent instead of a coordinator. In other states, they may only offer unlicensed coordinator services.
For real estate investors
Real estate investors handling just one or two traditional transactions per month (with 30–60 day timelines) may not need a transaction coordinator.
However, Pedro has worked with investors on creative financing deals that compress a 30-day transaction into just 10 or even 7 days, making the paperwork nearly a full-time job. “It was like a full-time job just doing those because they would go so quickly,” she says.
Pedro also notes that for investors moving quickly, having a second set of eyes can help avoid costly mistakes and even prevent legal issues down the line.
What does a transaction coordinator cost, and is it worth it?
“I typically see a range from $300 to $600 [per transaction],” says Pedro when discussing independent transaction coordinators. “If you’re licensed, it’s a bit more.” Those working in-house for a brokerage or agent may be paid hourly or salaried, with average hourly wages around $22.50.[1]
The party that hires the transaction coordinator typically pays their fee. If an agent hires one, the cost is usually not passed on to the buyer or seller.
Some factors that can affect rates include the home’s location and price point. For example, Pedro charges less in North Carolina than in higher-end markets like Florida and Texas. Sales involving $1 million or $2 million homes are also typically more complex than those at lower price points.
So, is hiring a transaction coordinator worth it? For many people, the answer is yes.
Munoz says hiring a transaction coordinator paid for itself. “I recently hired a TC for a complex real estate transaction that involved at least 30 documents that needed to be signed and filled, which easily saved me 20 hours a week, and that TC cost me $1,000, but I made in that transaction $20,000.”
One Realtor on Reddit reported his production jumped by 1/3rd after hiring a transaction coordinator. He added, “Every now and then, I leave her off a deal because it comes together quickly and is new construction. I regret it EVERY SINGLE TIME. I highly recommend using a TC.”
How to find and hire a good one
There’s no official association or directory for transaction coordinators, but finding one isn’t difficult.
Where to find transaction coordinators
Most people find transaction coordinators by asking real estate agents for referrals. Even if an agent hasn’t used one, someone in their brokerage probably has. You can also ask on the Realtor Facebook groups. Google searches for transaction coordinators in your area are another possibility, as is using a transaction coordinator platform.
Pedro states that many people now hire virtual assistants (VAs) overseas, such as in the Philippines, who have experience with transaction coordination.
Questions to ask, and what to look for in the answers
Consider working with a transaction coordinator who is recommended by other agents or has excellent online reviews, which can give you some confidence in their abilities. Still, you want to do your own due diligence to ensure they’re the right fit. Some questions to ask are:
- How many transactions have you closed, and how long have you been in business? More experience often means a smoother process, especially for complex deals.
- What types of clients do you mainly serve: agents, investors, or FSBO sellers? Look for someone experienced with the kind of deals you’re pursuing.
- What’s your scope of work? Be sure you understand where their duties begin and end, and whether they communicate with clients. Transaction coordinators should have clear boundaries around their work.
- How do you ensure deadlines aren’t missed? Look for clear, specific processes or tools, not just reliance on memory.
- What transaction timelines do you typically handle? If you need fast closings, make sure they’re experienced with quick turnarounds.
- What’s your typical transaction load? High workloads can mean slower response times, which can be a problem for fast-moving cash sales.
- Can you provide references? If not, consider it a red flag unless you’re aware that they’re a new business.
Getting the most out of your transaction coordinator
To get the most out of your transaction coordinator, include them in all communications. Pedro tells clients, “CC me on emails and [keep me] in the loop with the transaction. … If I don’t know what’s going on, it’s really hard to assist.”
If you have preferred processes, share them with your transaction coordinator so they can align their work. Itay Simchi, real estate investor and founder of Proven House Buyers, says, “I make sure my TC gets all of the things she needs right away and that she uses the checklist that we built together for every step from opening escrow to closing. When expectations and responsibilities are clear, everything runs smoothly.”
FAQ
Do buyers ever need a transaction coordinator?
Not usually, unless a buyer isn’t working with an agent and wants a second set of eyes on the paperwork. “Most transaction coordinators are really just an assistant to the agent, not so much the buyer or the seller,” says Pedro.
Do I need a transaction coordinator if my agent is already handling everything?
No. If needed, your real estate agent will hire a transaction coordinator to handle administrative paperwork, and their fee generally comes out of the agent’s commission.
Can a TC work with the buyer's side and seller's side at the same time?
Yes. For example, in Florida, most agents are transaction brokers and can work on both sides of a deal.
Should I work with a local or a virtual transaction coordinator?
Both can work, since most of a transaction coordinator’s job is done remotely. However, you may prefer a local coordinator if your transaction has unique state or county requirements.
