What Is A Transaction Coordinator In Real Estate?

A transaction coordinator takes on administrative tasks during the home buying process. Throughout the real estate transaction, they keep brokers, real estate agents, REALTORS^® (agents licensed by the National Association of REALTORS^®) and all other involved parties organized and on schedule for a smooth closing process.

Do you need a transaction coordinator to help you through your home purchase? That’s a personal decision. But note that transaction coordinators understand the flow of a home sale and tricky lender jargon that might cause expensive delays.

What Is A Transaction Coordinator?

A transaction coordinator primarily oversees all paperwork and documentation in a real estate transaction. A broker or real estate agent typically hires a transaction coordinator to help communicate with all parties involved in the home sale. Busy real estate agents who manage multiple deals simultaneously hire transaction coordinators to keep the sale on schedule.

Transaction coordinators help a buyer or seller understand the purchase agreement and other documents from a lender, appraiser, title company and municipality. Mistakes might affect your closing timeline, contribute to mounting costs and even ruin the deal. A transaction coordinator can help you understand timelines specific to your transaction, so you don't miss important milestones. In short, a transaction coordinator might ease your stress and save you time and money.

Sellers using the “for sale by owner (FSBO)” method may benefit having a real estate transaction coordinator step in, too. When a homeowner (or home buyer) doesn't know what to do next, a transaction coordinator can fill in the blanks and provide a detailed plan for moving forward.

What Does A Real Estate Transaction Coordinator Do?

A transaction coordinator has many responsibilities throughout the home buying process, including the following:

• Create listings on the MLS: The multiple listing service (MLS) is an online network of local databases where real estate professionals share information about properties for sale. Real estate transaction coordinators may help generate a listing on this service.
• Oversee escrow arrangements: Escrow is when a neutral third party holds funds until a real estate condition has been met. The funds will go to the intended recipient once that condition is met. For example, if a buyer puts down a “good faith estimate” to show they’re serious about the purchase, the transaction coordinator would coordinate that process.
• Communicate among all parties: The transaction coordinator will also serve as a point of communication among all parties in a real estate transaction. They’ll largely handle administrative tasks related to this communication.
• Review the purchase agreement: The purchase agreement is a legally binding document that details the terms of a real estate transaction. If legally allowed, a transaction coordinator can help review this document.
• Schedule inspections and appraisals: Certified inspectors will check out a property to ensure its soundness. Professional and neutral, appraisers assess the fair market value of a home based on factors like recent home sales and an analysis of the property. Transaction coordinators will ensure these take place promptly.
• Confirm funding: Buyers must pay closing costs, including a down payment, inspection fees, prepaid interest, taxes, insurance and other agreed-upon fees. Transaction coordinators may ensure buyers have this and additional funding ready.
• Write Seller’s Disclosures: Seller's Disclosures allow sellers to disclose any known issues with their home or property. For example, if it’s known that the roof leaks, the transaction coordinator will secure this form during the transaction process.
• Oversee underwriting: Underwriting is a checkup of what you’ve reported financially to your lender. Underwriting ensures you can make your mortgage payments, so an underwriter verifies your assets, debt and investments. You can only get the funds to purchase a home once an underwriter approves you, and a transaction coordinator will make sure that underwriting occurs promptly.
• Organize the final walk-through: Before closing, the transaction coordinator might orchestrate a final walk-through of the home, allowing buyers to look at the home carefully before purchasing to make sure it’s in the agreed-upon condition.
• Coordinate the closing process: A transaction coordinator will coordinate the closing process. Closing refers to the day the home purchase ends, and the buyer becomes the homeowner. The closing process broadly involves finalizing details on the loan and the home itself.
• Organize contingencies: A transaction coordinator’s responsibilities may include managing contingencies. Contingencies let buyers get out of a contract if some qualification isn’t met, such as passing the home inspection. Other contingencies may include mortgage contingencies or home appraisal contingencies.
• Add addendums: Real estate transactions often include addendums. These are amendments to a purchase agreement that weren’t in the original agreed-upon purchase agreement. Transaction coordinators can follow up to get these added.

Real Estate Agent Vs. Real Estate Transaction Coordinator

At first glance, real estate agents and transaction coordinators have similar responsibilities. It’s true the responsibilities of a real estate agent involve going through paperwork, communicating with all parties and walking through the closing process. However, a real estate agent must be hands-on in the search process, including pricing and understanding client needs. A transaction coordinator has a hand in keeping everything going until closing.

The overlap in assistance ensures no detail gets missed. As brokerages grow and agents get busier, the number of documents and regulations multiplies. Therefore, it’s worth considering working with each professional – the agent for their superb knowledge of the real estate market and the transaction coordinator for their attention to detail.

Pros And Cons Of Having A Transaction Coordinator In Real Estate

Will you need a transaction coordinator to help in the process? It depends on your level of comfort with the buying or selling process. Transaction coordinators can help you every step of the way. Or you can use them as a sounding board during a specific part of the process. Look at a few of the pros and cons of transaction coordinators outlined below if you’re undecided about hiring one.

Real Estate Transaction Coordinator FAQs

Now that you know the basics of what a real estate transaction coordinator is, we’ll look at some frequently asked questions about their role in transaction management.

What is another name for a real estate transaction coordinator?

Transaction coordinators can go by several names, including real estate transaction adviser, transaction manager, facilitator and more. Some transaction coordinators have administrative-sounding titles but perform the duties of a transaction coordinator.

How much does a transaction coordinator cost?

A transaction coordinator usually gets paid with a flat fee per transaction or an hourly wage, which may or may not include bonuses. You can pay between $300 – $600 or more for a transaction coordinator’s services.

Who pays the transaction coordinator fee?

It depends on the individual hiring the transaction coordinator. In an FSBO situation, the owner should pay the fees. A buyer’s agent may need a transaction coordinator, so they would pay the transaction coordinator’s fee. An in-house transaction coordinator may work for a brokerage firm, meaning the brokerage pays the costs.

Is a transaction coordinator worth it?

Yes, you may want to work with a transaction coordinator in certain situations. For example, many FSBO sellers choose to work with a transaction coordinator because they know the buyer and don’t need help marketing or negotiating.

How do you become a transaction coordinator?

A transaction coordinator typically needs several years of real estate experience, including understanding the documents involved in real estate transactions. You must also check your state’s requirements to learn what it requires. Most have a background as licensed real estate brokers or sellers but may also receive training to become transaction coordinators.

Do I need a real estate license to be a transaction coordinator?

A real estate license isn’t always a requirement for transaction coordinators. Whether you need one will depend on your state’s laws. In some cases, transaction coordinators need a real estate license to view certain home buying documents. So even if it’s not required by law, a license can be a valuable tool.

What skills do I need to become a transaction coordinator?

Punctuality, time management, organization and communication skills – both online and in-person – are all crucial to becoming a successful transaction coordinator.

The Bottom Line

No matter where you are in the sale, a transaction coordinator can jump in and get the ball rolling. Maybe you’ve accepted a verbal offer on your home and don’t know what to do next. Maybe you want guidance during the whole process. A transaction coordinator can answer questions honestly from their experience and training.

Ultimately, you can make more accurate and informed decisions (and even anticipate speed bumps along the way) with a transaction coordinator on your side.

Get connected with an expert agent who can help you with your home buying journey.