Aren't all agents the same? How to interview a transaction manager
- Ali Spicer
- Aug 3, 2018
- 5 min read
*TC, transaction coordinator and transaction manager used interchangeably.
"You all do the same things, right? And honestly, I’m going to find my own house online anyway, on Zillow, so I won’t really need anyone to do that much work for me. Finding the house is the hard part. So, I think I’m just going to go with my cousin’s sister’s friend’s brother’s aunt’s landscaper. Because he’s, like, really chill, and super nice, and totally said he’d hook me up with a family discount."
Solid choice, right? The landscaper probably has the same availability, standards, connections and experience that you do, eh? He probably runs his business exactly like yours, no? He probably has the exact same commitment to his clients that you do, as a full-time agent, yeah? He’ll absolutely be an expert negotiator for that client, sweet family discount aside, ya think?
Ok, you get it, I’m painting a really obvious picture. But WHY am I painting that picture?
I was at an industry event a few weeks ago and I ran into an old acquaintance that I hadn’t seen in years that works for a title company. She was so kind and excited to hear about Fine Point and asked for a card so she could begin referring me. How kind! I happily provided it, and as we were parting way she threw out, “Yes, I’ll definitely pass your name along. The other TC I know isn’t accepting any more client. And you all do the same stuff, right?”
Pause. And because we had exactly zero minutes left to chat, I said something like, “Well, not exactly, but most of us are trying to accomplish the same thing.”
You get it now, right? Independent contract transaction managers are just like agents, in that they are all free to run their own businesses however they choose. Once you’re considering adding a TC to your business plan/model make sure you understand how to interview and find the best transaction manager for you, and your business and clients.
Here are 10 TC interview questions to help you find the right partnership:
Are you licensed?
If they are unlicensed they are restricted on what information they can and cannot share, and if they’re working on your behalf you may have some liability there. If you want to hire an unlicensed TC make sure you’re very clear on the rules, and if you don’t want to learn the ins and outs of those rules, only work with licensed transaction managers.
Do you buy and sell homes?
This is a common scenario: a part-time agent and part-time transaction coordinator. It doesn’t mean they can’t do a good job for you given the right circumstances, but you should at least know before hiring someone if they are competing for the same clients and business that you are.
Are you a full-time transaction manager, or do you have another career/job?
Maybe they don't sell homes, but they have a part-time (or full-time!) job that will keep them from giving their focus and attention to your files for 4+ business hours/day. That may be a problem for you and your business goals.
What time do you “open?”
If they’re an independent contractor, just like agents, they’re free to “open” their business at any hour they choose. You need to know their hours of operation so you know what hours you, your clients and your team can expect timely communication.
How long does it take to get a file opened?
Many agents ask how many other agents they serve, or how many active files they have. Here’s why those aren’t great: Number of agents can be particularly misleading. They may answer: I have 100 agents, I’m very established. But you don’t know that only 3 are actively producing and working with them. They may say I only have 5 other agents, so plenty of space for you. And they don’t mention all 5 are Platinum Producers, or the 5 agents are team leaders, and they manage 5 entire team’s production. Number of active files is a little better, and it will help you find out if you’re the first one ever, but it’s also not a reliable indicator since you don’t yet know how quickly or thoroughly they work. If this what you want to know—When you send them a file and need them to get to work, how long will it take for that to happen? —then ask them that directly. Know what your expectations are, so you will know if this particular TC can meet them.
How do you keep track of where you’re at in a file, what has been done, and the tasks still to be done?
If the answer is “from memory,” that’s a problem. Memory will fail them at some point. Almost any other answer: software, a checklist, etc, should be sufficient.
What tasks will you be managing?
Understand: there is no standard in transaction management. I see two ends of this spectrum all the time: a.) agents worked with an admin or office manager before, so they don’t understand that transaction management, listing management, and fetching flyers are all different services. Or, b.) agents worked with a TC that set the bar pretty low, so they don’t know how great it can be, and their lack of understanding prevents their new TC from doing their best work. You should expect to see some kind of visual on what, specifically, they are offering to do for you. It doesn’t have to be detailed or lengthy, but you should be able to see in writing what they’re going to be taking on. If it’s not in writing it’s tough to expect consistency.
What happens if we decide not to work together anymore?
A transaction manager doesn’t necessarily have to have a written policy on this (although Fine Point does), but you do both need to know what to expect if you decide that you’re no longer a good partnership.
How and when do you expect to get paid?
There are pretty standard ways for this to happen, but it doesn’t always work out that way. In the instance that you need to pay them outside of escrow, do they have a system for that?
Are they awkward or cranky? How’s their EQ?
How did the initial call go? How was your in-person meeting? (You DID meet with them in-person before agreeing to work together, right?) Communication skills and emotional intelligence aren’t something you can ask a question and get a direct answer on, so you’re going to have to evaluate this on your own. It is incredibly important because if they are snappy as an alligator with you, how will they treat your clients? If they sound perpetually confused, how are they going to be able to direct vendors and partners on your behalf?
This list isn’t comprehensive but it is an excellent starting point. You’ll know what else you need to ask based on past good and bad experiences and by keeping in mind that transaction managers are just like agents—wildly different. If you’ve never worked with a transaction manager, take these questions with you to your meeting and you’ll leave with a great understanding what type of contractor you’re interviewing.
As always, let me know if you have any questions, or perhaps the best interview TC question that MUST be added the list!
Fine Point Transaction Management LLC is an Idaho-based real estate transaction management company. Our mission is to elevate the Idaho Real Estate Industry by elevating Idaho Real Estate Agents. We exist to support agents who desire to build and grow strong businesses through time-leverage.
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