A Transaction Coordinator Fee is a charge that a real estate agent or broker may pass on to the client, typically the seller, for services executed by a Transaction Coordinator (TC). Transaction coordinators are a crucial part of the real estate business. They manage administrative tasks and paperwork that are involved in real estate transactions, freeing up the real estate agent to focus more on providing services to the client. The Coordinator’s fee is for the work that they execute during each transaction.
Transaction Coordinator Services
Transaction Coordinators are responsible for managing a multitude of duties once a real estate deal has been initiated. Some of these responsibilities include facilitating communication among parties, ensuring that contractual timelines are followed, and managing the voluminous paperwork associated with closing a deal.
Specifically, the Transaction Coordinator fee includes tasks such as:
1. Organizing and submitting all required documents to parties involved (buyer, seller, lender, and title company).
2. Managing deadlines to ensure all tasks are completed in a timely manner.
3. Keeping the relevant parties informed about the transaction’s progress.
4. Keeping the agent organized by taking care of the administrative duties that would typically eat up their valuable time.
Typically, a Transaction Coordinator becomes involved in a transaction after a buyer and seller reach a mutual agreement. From here, they perform diligent follow-ups on the escrow process, ensuring a smooth journey towards the closing of the deal. Essentially, they are the point person who ensures that nothing falls through the cracks during the escrow process (“What Is a Transaction Coordinator (and Do I Need One)?,” 2021).
Transaction Coordinator Fee Rates
The Transaction Coordinator’s fee is generally not a fixed amount but can range anywhere from $300 – $500 per transaction, depending on the complexity of the real estate transaction at hand and the location. In some cases, it’s a flat fee. In others, Transaction Coordinators charge by the hour. Some brokers or agents include the Transaction Coordinator’s fee in their commission, while others bill the client separately (Kagan, 2020).
Who Pays the Transaction Coordinator Fee?
The question of who pays the Transaction Coordinator fee largely depends on the agreement between the real estate agent or broker and the client. Most often, the seller bears the responsibility to pay this fee. It can be paid at closing, or directly upon services rendered. However, elements such as which state you are in, or the customs of a specific real estate company, could shift this fee to the buyer (Rogers, 2019).
Choosing to Use a Transaction Coordinator
While it might seem more economical to handle all the tasks associated with a real estate transaction yourself, using a Transaction Coordinator can be cost-effective in the long run. TCs are experts at handling the plethora of paperwork, deadlines, and contingencies that come with real estate transactions, leaving real estate agents free to focus on their core duty, client service.
The transaction coordinator fee is a charge for professional services that improve consistency and reduce liability in real estate transactions. By managing the nitty-gritty details of the transaction process, a Transaction Coordinator facilitates a smoother, more efficient closing process. While it is often the seller or buyer who pays this fee, the invaluable peace of mind that comes with knowing the transaction is in capable hands should not be understated.
Are you looking for a great transaction coordinator? Check out Cook Transaction Services.
1) Kagan, J. (2020, September 16). Transaction Costs. Investopedia. https://www.investopedia.com/terms/t/transactioncosts.asp
2) Rogers, S. (2019, August 28). What Are Real Estate Transaction Coordinator Fees? | UpNest. UpNest. https://www.upnest.com/1/post/what-are-real-estate-transaction-coordinator-fees/
3) What Is a Transaction Coordinator (and Do I Need One)? (2021, April 1). Rocket Mortgage. https://www.rocketmortgage.com/learn/transaction-coordinator