The real estate industry is held up by a host of diverse and vital roles-stakeholders extending far beyond the homebuyer and the real estate agent. One such pivotal role is the Transaction Coordinator (TC), also known as the conductor of the real estate transaction orchestra. Having a thorough understanding of their compensation method is essential for anyone involved in the real estate world. The question often asked is, do transaction coordinators get a commission? Let’s shed light on this aspect now.
To answer the question, typically, transaction coordinators do not receive commission. Instead, they are compensated via flat fees for their services for each transaction they handle. It’s common for a TC to charge between $350 to $450 per transaction, though prices can vary depending on the complexity and workload of each transaction.
Why is it this way, you may ask? The reason is simple. Transaction coordinators handle the administrative tasks of a property deal, ensuring the necessary paperwork is properly filled out, meeting deadlines, coordinating with involved parties, and ensuring that everything runs smoothly. They don’t conduct sales negotiations or show homes like real estate agents – who primarily receive commissions because their income is directly related to the conclusion of a property sale.
However, while transaction coordinators typically don’t receive commissions, it’s important to note that compensation methods can vary. Some real estate brokerages could offer a basic salary with additional bonuses, others may pay on an hourly rate, and some might even offer a commission-based structure. Everything depends on the brokerage’s policy and the agreement between the TC and the brokerage.
Transaction coordinators play an integral part in the real estate transaction process. While they might not receive the commission as real estate agents do, their flat fee compensation is worth every penny given the amount of organization, communication, and meticulous attention to detail their role demands. Simply put, the smooth finalization of a real estate transaction could not be possible without the hard work of a transaction coordinator.
In conclusion, whether commission-based or not, the transaction coordinator’s compensation is a necessary investment for efficient and successful real estate transactions.
Sources:
[1] Investopedia (https://www.investopedia.com/terms/t/transaction-coordinator.asp)
[2] ListwithClever (https://listwithclever.com/real-estate-blog/what-does-a-transaction-coordinator-do/#:~:text=Most%20transaction%20coordinators%20charge%20a,a%20higher%20price%20to%20pay)
[3] The Balance SMB (https://www.thebalancesmb.com/what-is-a-real-estate-transaction-coordinator-2866375)
[4] Real Simple (https://www.realsimple.com/work-life/life-strategies/job-career/real-estate-jobs#transaction-coordinator)
Do Transaction Coordinators Get Commission?
