Home buyers are frustrated about the time required for a sales transaction to close, according to a recent survey.
Indeed, everyone involved in the real estate transaction wants a smooth closing. The sellers want to receive their checks and move on to their next adventure. And real estate agents want to receive their commissions promptly, too.
All sorts of issues can delay house closings. Among them are financing difficulties, low appraisals, document errors, and problems found during inspections, such as pest damage or significant repair needs.
Managing the Process
Real estate agents can help make the escrow closing proceed more smoothly. Besides their commission on the sale, real estate agents have another stake in ensuring a smooth closing. Agents build their businesses mainly on referrals. If the transaction goes smoothly, buyers and sellers are more likely to recommend the agent to their friends.
One way to streamline the closing process is to outsource responsibilities to a transaction coordinator. A transaction coordinator is a real estate professional with keen attention to detail. Transaction coordinators perform many of the duties required after the sale through the escrow closing. These duties include
- Coordinating paperwork and helping all the parties fill out their paperwork without making errors
- Scheduling appraisals and inspections early in the process so that the parties can negotiate any issues without delaying the closing
- Negotiate the completion of necessary repairs
- Monitor deadlines so that nothing falls through the cracks
- Prepare disclosures, ensuring they are free from errors and in compliance with local laws
- Schedule the settlement meeting
- Use technology to make the process more efficient
Remaining Budget Conscious
Transaction coordinators are vital to a successful real estate operation. Yet, a transaction coordinator can be inexpensive.
You’ll benefit from smoother closings without breaking your budget if you outsource transaction coordination tasks. Although hiring a virtual real estate agent isn’t possible or desirable, a transaction coordinator can work remotely anywhere. Technology allows them to do their duties virtually.
Agents in countries with high costs of living, such as the United States, Canada, Australia, and New Zealand, can save money by outsourcing transaction coordinator functions through a real estate staffing firm in a low-cost country.
You can achieve cost savings in many cases without giving up quality. For example, the Philippines has a low cost of living, so labor costs are significantly lower than in many other countries. However, Filipinos speak flawless English and are well-educated and hard-working.
Also, the real estate industry is a crucial driver of the economy in the Philippines, as is business process outsourcing (BPO). The Filipino government supports both of these industries through infrastructure and educational incentives. Hiring a Philippines-based transaction coordinator makes sense from both a quality and a budget perspective.
Using a real estate staffing solutions firm to recruit and screen applicants makes outsourcing transaction coordination easy. The firm will present the agent with fully vetted candidates so that the agent can choose the best fit.
The Bottom Line
Buyers and sellers want quicker selling transactions. A virtual transaction coordinator can streamline the escrow closing without busting your budget.
Stephen Atcheler is an entrepreneur in the Real Estate space. He has grown multiple businesses, including a Real Estate Agency, and an online Real Estate Advertising business, and is currently the founder and driver of the fastest-growing Real Estate BPO in the Philippines. If you would like to connect or get in touch with Stephen, he is very active on LinkedIn and always happy for a new connection.