Transaction coordinators are the best bang for your buck as far as leverage goes for a growing real estate business. You only pay per transaction, so if business is slow you’re not worried where a salary for an employee is going to come from. 

A transaction coordinator takes so much off of your plate that you’re able to focus on money-making activities in your business. Without all the paperwork bogging you down at 10 o’clock at night you can even free up some time to have work-life balance. If you’re interested in growing a team a TC can give you enough of your time back to set up your policies and systems and talk to prospective agents.

Hiring the right transaction coordinator can pay off immeasurably, but hiring the wrong one can cost you a lot of time, headache, money, deals or even your reputation.  

Here are some questions you should ask a prospective transaction coordinator before agreeing to hire them. This will help ensure they are the right fit for you and aren’t going to drop the ball on your transactions. 

Are you currently using a software program to coordinate your transactions and what is it?

• Using systems and technology is absolutely critical to effectively and efficiently manage multiple transactions. Without systems and software, it’s impossible to manage transactions in volume without dropping the ball.

• CoRETC uses a transaction management system called Paperless with detailed checklists and notifications so nothing falls through the cracks.

  We also have systems and processes in place so that our transaction management system integrates seamlessly with REColorado, CTM, and brokerage compliance systems.

What is your experience in real estate transaction coordinating?

• This is a vital question to ask any prospective TCs. Inexperience shows while working through a transaction. You want someone who knows the real estate transaction inside and out. 

• As the owner and operator of CoRETC, I have on-the-ground experience with real estate transactions. I’ve had 3 years of experience in production actually making sales on houses. I’ve worked transactions both on my own and with the help of a TC.

  I’ve been a broker with Keller Williams the entire time and specialize in their compliance systems which can be the trickiest in the business. I use this experience to make life easier for the agents I work with. Transaction coordinating is all I do.

  I spend any downtime perfecting my systems and gaining new knowledge about the rules and regulations so I can keep you on task and compliant.

What are the agent’s responsibilities during each transaction?

• No TC is set it and forget it. As the broker the transaction is yours and you are ultimately responsible for managing it.

  Different TCs offer different services and different pricing structures. Be sure you know what a TC does and what you will need to do for each transaction before choosing a TC for your business.

• I have a detailed checklist for each stage of the transaction that clearly shows what is the agent’s responsibility and what the TC will be covering. When you first sign up to start working with me I will send them along with the welcome email.

  If you would like to view the checklists please send an email to sara@corealestatetc.com and I am happy to share them.

  I highly encourage you to save these visuals somewhere accessible and to print them out and hang them by your workspace. That way you’ll always know what is being covered and what you need to complete for a smooth transaction.

What is the expected turn-around time when assigning a new file?

• You don’t want to send a new listing or under contract file to a TC and then sit around and wait, wondering when they’ll get to it. Always ask what their typical turn around time is to get started on a file. That way you know what expectations to have when sending over a new transaction. 

• At CoRETC we will start on your file within 12 business hours. Often if we have the file by 3 pm we can get started on it the same day, but during the busier months it can take up to a maximum of 12 business hours.

What is the best way to communicate with you?

• This is an important question to ask to make sure you’re receiving reminders and correspondence in a timely manner. Knowing this also helps you to reach your TC fast if you have a question or a concern that you need to be handled quickly. 

• At CoRETC we use email as our main means of correspondence. This can be the fastest way to get in touch with us and this is how you’ll receive all reminders and paperwork, so make sure to check your inbox regularly.

  You can text or call anytime, but know that we do not keep our phones available on our desk so that we can remain focused on the tasks at hand and not drop the ball due to distractions. We will gladly return texts and calls as we can throughout the day.

How do I know what you’re working on and what’s been completed?

• This question goes hand in hand with knowing the agent’s and TC’s responsibilities throughout the transaction. How will you know what has been done and be aware that items are being completed in a timely fashion?

• We give each agent a PDF with detailed lists of responsibilities for the agent and the TC for each stage of the transaction.

  We also make notes in CTM underneath the contracts, under documents in docs management, and in the contract deadlines tab so you can follow along every step of the way without us filling your inbox with unnecessary emails. 

How do you keep yourself updated on the latest changes in laws and contracts?

• It doesn’t matter if the transaction coordinator has 20 years of experience if they haven’t updated their knowledge base in 19 of those years. Things change frequently with contracts, commission rules, and technology. It is of the utmost importance that your TC stays up to date to be able to work your files correctly and keep you compliant. 

• At CoRETC we are licensed in Colorado and take all of the mandatory classes and more throughout the year. We take the commission update twice. Once at the beginning of the year and once in the 4th quarter because things can be added to the course.

  We also take classes and webinars anytime there is a change in the MLS, CTM or any other applications that we use. We take their general classes regularly refreshers.

What software experience do you have?

• Being proficient and adaptable with technology is vital today. The MLS, compliance systems and applications are constantly changing.

  If a TC is still using paper or isn’t able to quickly adapt to changing technology this could easily lead to missed deadlines, or worse, failed transactions. 

• The coordinators that work with CoRETC have high technological proficiency and stay up to date with all relevant systems and applications.

  We use robust applications for keeping track of all transaction tasks and due dates so that we never miss a beat. We have systems on processes with all of our technology applications to stay organized and on top of tasks.

  We tinker and test and try to break platforms so that we know them inside and out. Be sure to check out other blog posts with tips and tricks that we’ve learned along the way to be more effective and efficient during real estate transactions! 

Last but definitely not least - Is your transaction coordinator business compliant with state and federal laws as well as the Colorado Real Estate Commission?

• You want to make sure that you’re not going to get caught in the crosshairs of the state or the IRS because of an inappropriate business relationship with a transaction coordinator. There are fine lines to walk when a TC sets up their business and business relationships to stay compliant with the IRS, the state of Colorado, and with the real estate commission.

  You don’t want a TC to try to come after you for unemployment benefits or the like because of a miscommunication or blurring of the lines between employee and independent contractor. For more information on those definitions please check out the state’s policies at https://www.colorado.gov/pacific/cdle/independent-contractors as a deviation from these rules could cost you. 

• CoRETC, LLC follows commission rules and statements to the letter and takes the update classes twice each year. Once at the beginning of the year and once towards the end of the year as some things are added throughout the year.

  Agents must also sign an independent contractor agreement that lays out that we are not employees and are not entitled to employee benefits from your real estate business such as health care or unemployment benefits should we choose not to work together at any point. This document also states exactly what services we offer, that they are on a file by file basis and how payment for work is fulfilled.

  These are all important to have signed by both parties and in your files so there is no question about the relationship between parties and how everything operates. This keeps the state, the commission and the IRS happy, and we like happy regulators.