Let's talk about how to price your Transaction Coordinating services and the practical steps you can take when making your decision.
I get asked all the time “How should I price my Transaction Coordinating services?”
If you’ve just found me (Welcome!) and are not quite sure what a Transaction Coordinator is and does check out my blog post here: What is a Virtual Transaction Coordinator.
If you haven’t met me yet (Hey!!) my name is Joni and I am the founder of The Transaction Coordinator Bootcamp and a Real Estate Broker since 1987…yes 1987! I help entrepreneurs like you ditch the 9-5 grind, launch, and grow your own Virtual Independent Real Estate Transaction Coordinator business working from home.
I have been selling houses for many years and coordinated all my own transactions so I know firsthand what it takes! If you want to learn how to create, launch, and run your own home-based business as an in-demand Virtual Real Estate Transaction Coordinator then you’ve come to the right place!
Not All Transaction Coordinator’s Services Are Created Equal and here's why:
Let me clarify. I am talking about transaction coordinators that work virtually and have their own businesses. (Not in-house TCs that work for a brokerage as an employee).
When you’re just starting out it can be challenging trying to figure out how much you are going to charge. You can easily see fees ranging from $300-$500+. So how do you know what to charge?
Start with what services you are going to offer in your transaction coordinating business.
Are you going to offer “the basics” or are you going to go above and beyond with what you offer? Will you offer to schedule appointments during the transaction for home inspections, appraisers, and contractors, be available during non-business hours, write up offers, and be available to do a task asap which would pull you away from other tasks at that moment?
Should you include a higher level service when you're deciding how to price your Transaction Coordinator Services?
You may offer some type of higher-level service during the transaction such as event planning. Once the transaction closes you could coordinate an event for the agent's buyers such as a housewarming party on behalf of the agent.
Maybe you will research and purchase a special closing gift (with the agent’s funds of course) unique to that client for the agent.
You might set up a years-long follow-up sequence with that client, or maybe you can include getting testimonials and posting them on the agent’s website.
Get as creative as you like and offer something that would really help the agent stand out to their clients and in turn make your services to the agent really stand out so you can charge a bit more.
Are you a licensed agent?
You will find that each state has a list of what a real estate transaction coordinator (usually referred to as a real estate assistant) can and cannot do if they don’t have a license. There are pros and cons to having a real estate license and working as a TC.
If you do happen to have a real estate license, it could be that you are considered more knowledgeable in the real estate world and an agent is willing to pay more for your service. The agent may want you to perform tasks that only a licensed agent can do in your state.
Just remember to be really clear on what you are doing and any liability it may pose to your business.
TIP: This is another good reason to consider carrying E&O insurance as an independent TC.
Where do you live?
When you're deciding how to price your Transaction Coordinator services it also depends on the state you live in. Some states like California and Washington will see higher TC fees closer to $500-$600+ per transaction because real estate prices are higher in those areas.
What’s the real estate market like in your area?
Above I talk about what part of the country you live in and how it affects TC rates. The real estate market in your state can also affect rates. Are things slow? Are houses selling fast and there is a big demand? Luckily the market has remained stable and growing for the most part over the past several years. There have been a few ups and downs but in most parts, it continues to grow.
What do other Transaction Coordinators in your area charge?
I recommend doing some heavy internet research (aka internet stalking) to check out other Transaction Coordinator's websites to see what they are charging. Also, take note of what services they are offering at their price range. Some may have their prices listed and some may not so just keep doing your research and you will come up with a range of prices for your services in your area.
I also recommend checking out social media channels for local TCs such as LinkedIn, Facebook, and Instagram. Savvy TCs will be marketing their services on all of those channels.
* TIP: Search for hashtags on each of the platforms to start your search. Such as #transactioncoordinatorseattle.
Raising your prices
Starting a new business can be really overwhelming in the beginning. The biggest thing to remember is that you don't have to have everything perfect in the beginning, you just need to get something out there. Start gaining some momentum and know that you can always raise your prices as you gain more experience and clients.
Another option to get clients "in the door" is to offer a first transaction discount such as $25 or $50 for new clients. Some TCs would disagree with this, but it can be a great way to kick-start your business. Nothing says you have to keep offering this discount once you get established, but it can help to bring in more clients when you’re just starting out.
I hope you found this blog post helpful when you're thinking about how to price your Transaction Coordinator services. I would love to hear your comments below! If you’re interested in learning more about The Transaction Coordinator Bootcamp you can check it out here.
For more information about Transaction Coordinators check out these posts:
How to Start an Online Business as a Transaction Coordinator
Planning your 2020 Transaction Coordinator Business Goals
3 Simple Strategies to Getting Clients For Your Transaction Coordinator Business
What is a Virtual Transaction Coordinator