What do a Realtor® and a homeowner attempting FSBO have in common? They are both drowning in a massive heap of head spinning paperwork, smothered with contract compliance dipped in deadlines. Not exactly the cherry-on-top sundae you were hoping for? Real estate transactions don’t have to be a recipe for disaster. The pros know to hire a transaction coordinator.
Contract to close
From the moment you sign a listing agreement or decide to sell your home yourself, the list of tasks begin to stack up around you and it can get you feeling behind when you’ve hardly even started. There are many names for a transaction coordinator: professional organizer, facilitator, fairy godmother. Whatever you want to call it, their job is the same: to make your life easier. Your transaction coordinator will be your right hand, from the time you go under contract, all the way to the closing. They keep you organized, and make sure you have your T’s dotted and your I’s crossed. Wait, I don’t think that’s right… let me ask my transaction coordinator.
Who can hire a transaction coordinator?
The good news: Anyone can hire a transaction coordinator– A newly licensed agent, a top agent, or a homeowner selling FSBO. If you have a transaction to coordinate, hire away!
The bad news: Well, there really isn’t any.
The nitty gritty
What exactly does a transaction coordinator do? In true Type-A personality fashion, let’s make a list.
Build a transaction management file
This is where everything to do with the sale will be kept. Some transaction coordinators use software that you can login to also and see everything that is going on with your sale, in real time.
Act as the main contact
For pretty much anyone associated to your transaction, which is a pretty exhaustive list including some of the following: listing agent, seller, buyers agents, buyers, lenders, title companies, inspection companies, surveyors, home warranty companies, repairmen, contractors, attorneys, appraisers, insurance agents and home-stagers.
A BIG one for sure. Your transaction coordinator will send documents for eSignature, organize them into the management file, review for compliance and completion, not to mention, hunt down the people who need to correct any of these items. Your coordinator is the master of documents such as the purchase agreement, escrow instructions, addenda, sellers disclosure, loan underwriter certificates and clearances, notice to perform, waivers, and exemptions.
Send out reminders to parties concerning earnest money, contingency periods, and contingency removal. Missing any of the deadlines stated in your monstrous purchase agreement, could spell catastrophe, resulting in loss of the deal or even a lawsuit.
Schedule open houses, showings, order home warranties, requests for repairs after inspection, and schedule the final walk-through and closing.
How much is a transaction coordinator going to cost?
I know what you’re thinking. I’m selling this house to MAKE money, not give it all away. You’re in luck. The average payout to a transaction coordinator is usually a flat fee, under $400. You read that number right, pretty incredible for a ninja personal assistant. Even better, most don’t expect payment until the closing. One less out of pocket, up front expense..
If after reading this article, you have some doubts about how you’ll get all of these things done on your own – or you had to Google what some of these items even were – just do yourself a favor and hire a fairy godmother. I mean, a transaction coordinator. A transaction coordinator may not walk your dog or pick up your dry cleaning, but it’s such a small price to pay for your sanity.