A transaction coordinator manages real estate transaction paperwork to ensure accuracy, completeness, and timely submission. By handling these administrative tasks, they free up valuable time for real estate agents, investors, and for-sale-by-owner (FSBO) sellers to focus on growing their business or attending to personal priorities.
While transaction coordinators save time and provide a crucial second set of eyes on paperwork, it's important to understand what they do — and what they don't. This article breaks down the role of a transaction coordinator, helping you decide if hiring one makes sense and what to expect.
What is a transaction coordinator?
A transaction coordinator keeps your real estate deal on track by managing all administrative tasks from contract to closing. Think of them as an assistant, researcher, and manager rolled into one. They offer excellent value for their price and can free up your mental bandwidth for more important matters.
Transaction coordinators may be licensed or unlicensed. Licensed coordinators hold a real estate license. There is no separate license specifically for transaction coordinators.
What does a transaction coordinator do?
Transaction coordinators handle the administrative details that keep real estate transactions moving forward. Their typical responsibilities include:
- Reviewing contracts and preparing required disclosures
- Coordinating with lenders, escrow companies, and other third parties
- Tracking deadlines and ensuring all documents are submitted on time
- Sending updates to the relevant parties involved in the transaction
What doesn't a transaction coordinator do?
Unlike real estate agents and lawyers, transaction coordinators are limited to managing and completing the real estate sale’s paperwork. Offering strategic advice or guidance on form completion is beyond their scope. For licensed coordinators, giving such advice can even put their license at risk.
Transaction coordinators “really have to stick strictly with following the deadlines of the transactions, keeping up with the communication and the paperwork,” says Taylor Pedro, CEO and founder of Taylor Made Transactions, a transaction coordination company.
In some states, a real estate attorney is required to prepare and review most legal documents. In these cases, transaction coordinators do more coordinating than paperwork.
Should I hire a transaction coordinator?
Not everyone needs a transaction coordinator, but when you do, they can be worth their weight in gold.
For real estate agents and investors
Juan Munoz, real estate investor and owner of Sell Florida House Now, says doing administrative tasks yourself "is manageable when you’re doing 2–3 transactions a month."
But if you’re working late nights on paperwork or turning down deals because of administrative overload, it might be time to hire a transaction coordinator. Many agents find the tipping point is around four or more transactions a month.
Itay Simchi, real estate investor and founder of Proven House Buyers, says, "For me, a TC easily pays for itself when deal flow increases. Let’s say a transaction coordinator costs $400 to $500 per deal. If freeing up your time allows you to close just one more deal a month that makes $20,000 in profit, the math is obvious."
Pedro says she’s a big advocate for using a transaction coordinator, even if it’s just a second set of eyes for the transaction. “I think for investors specifically, [who are] doing deals very quickly, to have that second set of eyes just to review everything … [can prevent] them from being in sticky situations where … lawsuits happen and things like that.”
For FSBO sellers and unrepresented buyers
Pedro advises that FSBO sellers with little to no selling experience should carefully consider whether they need a transaction coordinator or a real estate agent on their side. The same can be said for unrepresented buyers.
If you’re handling a straightforward cash sale under a standard contract with no contingencies or extra disclosures, you may not need a transaction coordinator. Still, a coordinator can serve as a valuable second set of eyes to ensure documents are fully completed and that deadlines aren’t missed.
Once financing, negotiations, or extra disclosures are involved, you may need more support. If you want advice, negotiation help, or guidance on filling out forms, you’re better off working with a real estate agent or attorney. Those activities are generally beyond a transaction coordinator’s scope of work.
You can negotiate realtor fees or work with agents offering discounted commissions if you want to save on costs.
For sellers and buyers represented by an agent
As a home buyer or seller with an agent, you may interact with a transaction coordinator, but you generally don’t need to find one yourself. If your agent needs help, they’ll bring one on board, usually at their own expense.
How much does a transaction coordinator cost?
Unlicensed transaction coordinators typically charge $300–600 per transaction, according to Pedro. Licensed coordinators may charge a bit more. In-house coordinators, employed by brokerages or agents, cost about $22.5 per hour.[1]
Overall, transaction coordinator fees are relatively modest compared to agent commissions and the extra deals you can handle with their support.
For example, if you sell a $400,000 home with a 3% commission and a 70/30 brokerage split, your gross take-home is $8,400. After paying a $600 transaction coordinator fee, you still net $7,800.
If you sell two more homes in the same month at similar prices, you’d pay about $1,800 ($600 × 3) in transaction coordinator fees.
However, if a transaction coordinator frees up enough time for you to sell just one additional home at a similar price point, you’d end the month $6,000 more in your pocket than if you hadn’t used one at all.
Moreover, transaction coordinators who charge per transaction only make money when you close a deal.
How to choose a transaction coordinator
Although transaction coordinator platforms exist, most people find coordinators through real estate agent referrals, Google searches, or sometimes virtual assistants overseas. Word-of-mouth is common, and many transaction coordinators build their businesses through agent and brokerage networks, such as Realtor Facebook groups.
Pedro also recommends asking title companies for referrals, noting they work with transaction coordinators frequently and are well-positioned to recommend reliable ones.
"Make sure you screen them properly and get references to make sure they can actually get the job done, that way you don’t have to micromanage," Munoz adds.
Wherever you find your coordinator, make sure they’re a strong fit. Look for experience with your type of deals, clear processes for managing deadlines, a defined scope of work, and several strong references. The right match can make your transactions much smoother.
Tips for working with a transaction coordinator
Pedro’s top advice is to keep your transaction coordinator in the loop. "The last thing that I want, [and] it's happened very often, is [for] people [to not] CC me on emails." She says to instead "give me a call and update me on … anything [that] happened that I wasn't aware of. Just so I can really assist and make sure everybody is doing what they need to do. The transaction is running smoothly. Everybody is updated."
Another tip is to share your administrative workflow with your transaction coordinator. Simchi says, “The biggest mistake is assuming the TC will automatically know your workflow. Once that system is in place, the relationship works very well.”
The bottom line: Are transaction coordinators worth it?
Transaction coordinators are worth the investment when your time is more valuable than their fee or when you need extra support. Most people who hire a transaction coordinator say the benefits far outweigh the cost. Agents can take on more clients, be more available, and spend less time chasing signatures or worrying about paperwork details.
For FSBO sellers or unrepresented buyers, the value depends on your comfort with paperwork and handling complex deals. If you need strategy, guidance, or advice, a real estate agent or attorney is a better investment.
FAQ
Does a transaction coordinator need to be licensed?
No, there’s no legal requirement for a transaction coordinator to have a license, nor is there a special license for the role.
What are the different types of transaction coordinator certifications?
There are no transaction coordinator certifications. Licensed coordinators are simply licensed real estate agents. When acting as a transaction coordinator, they must stay within that role. Overstepping into agent duties can put their license at risk.
Who pays the transaction coordinator fee?
Generally, the person who hired them (e.g., the real estate agent or the investor) pays the fee. However, some agents do pass on the cost to the seller or buyer.
