What Is Transaction Management?
- Ali Spicer
- Jan 30, 2018
- 2 min read
Also known as Transaction Coordination, a transaction manager/coordinator is a professional who takes on the responsibility of monitoring the deadlines and managing the tasks of a real estate file that has gone into contract. The TM (or TC) will remain responsible for those items until the file has reached successful close of escrow.
A TM handles:
COMMUNICATION Maintaining communication with all parties that are a part of a real estate transaction. This can include listing and selling agents, buyers and sellers, title companies and escrow officers, lenders, and any third-party vendors.
SCHEDULING Walk-throughs, inspections, re-inspections, signing, etc.
FILE OVERSIGHT Making sure all signatures are in the appropriate places, everything is uploaded and/or printed and is part of the transaction file. Generally monitoring that the file is compliant with brokerage policies.
A good transaction manager allows a busy real estate agent the time freedom to focus their attention on those items that are not administrative in nature, such as lead generation, building client relationships, building vendor relationships, creating or improving business systems, and focusing on the leadership aspects of managing a business. We like to say the agent is freed up to start working on their business, instead of working in their business.
HOW DO I HIRE A TRANSACTION MANAGER/COORDINATOR?
There are multiple ways to hire a TM for your business. Some brokerage companies have opted to create in-house transaction management departments, offering the service to the agents of their company for a fee. Others offer the service as a part of their office fee, and some companies even require agents use their in-house service.
Another way to hire a TM is to create a part or full-time position within your business. The downside to taking on a TM as an employee is just that: the responsibilities of having “an employee.” You will pay for file management whether you have active files or not. There are additional tax and paperwork implication, as well.
A third way to hire a TM is as an independent contractor. You pay your TM per file, as opposed to an hourly rate like an employee. You only pay when you’re producing, but still get all the upsides of a transaction manager.
If you would like to learn more about what a transaction manager hired as an independent contractor can do for your business, visit our SERVICES page, or schedule a no-obligation consultation with us via our CONTACT page.
Fine Point Transaction Management LLC is an Idaho based real estate transaction management company. We believe strong businesses are the foundation of strong communities. We exist to support local real estate agents who desire to build strong businesses through time-leverage.
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