Unraveling the Mystery of Transaction Coordinator Fees in Real Estate

Unraveling the Mystery of Transaction Coordinator Fees in Real Estate

When you navigate the complex world of real estate, there’s a pivotal role that often doesn’t get the spotlight it deserves. That role is the Transaction Coordinator (TC).

TCs are the hidden heroes in any real estate deal. They work behind the scenes, ensuring everything runs smoothly from the moment a sale enters escrow until it’s successfully closed. A TC’s job involves managing the paperwork, juggling communications, and maintaining contact with all parties involved – be it buyers, sellers, agents, lenders, title companies, or escrow. Their efficient coordination is truly invaluable.

An interesting fact about the real estate industry is that many brokerages now mandate the use of TCs. They realize that a TC’s expertise significantly enhances the transaction process. So, how are TCs compensated for their hard work? Typically, they earn a fee at closing, which ranges between $300 to $600 per file.

However, a question that has stirred up considerable debate in the real estate community is – who should bear the cost of the TC’s fee?

On one hand, some argue that it should be the agent. After all, the TC is essentially helping the agent with their workload. Hence, it seems fair that the agent should cover the TC fee.

On the other hand, others believe that it’s the client who should pay. They reason that since the TC fee is part and parcel of the home buying or selling process, it should be factored into the client’s expenses.

Lastly, there are those who assert that the broker should foot the bill. They contend that if the broker requires a TC to be involved, they should be responsible for covering the cost.

So, the question remains – who should pay for the TC fee? It’s a topic that has divided the agent community, and the answer is not straightforward.

We’d love to know your thoughts. Who do you think should pay the TC fee? Let’s start a conversation about this crucial aspect of real estate transactions.